diff --git a/core/lib/Drupal/Core/Entity/Field/Type/EntityReferenceItem.php b/core/lib/Drupal/Core/Entity/Field/Type/EntityReferenceItem.php
deleted file mode 100644
index a60e65e..0000000
--- a/core/lib/Drupal/Core/Entity/Field/Type/EntityReferenceItem.php
+++ /dev/null
@@ -1,82 +0,0 @@
-<?php
-
-/**
- * @file
- * Definition of Drupal\Core\Entity\Field\Type\EntityReferenceItem.
- */
-
-namespace Drupal\Core\Entity\Field\Type;
-
-use Drupal\Core\Entity\Field\FieldItemBase;
-use InvalidArgumentException;
-
-/**
- * Defines the 'entityreference_field' entity field item.
- *
- * Required settings (below the definition's 'settings' key) are:
- *  - entity type: The entity type to reference.
- */
-class EntityReferenceItem extends FieldItemBase {
-
-  /**
-   * Field definitions of the contained properties.
-   *
-   * @see self::getPropertyDefinitions()
-   *
-   * @var array
-   */
-  static $propertyDefinitions;
-
-  /**
-   * Implements ComplexDataInterface::getPropertyDefinitions().
-   */
-  public function getPropertyDefinitions() {
-    // Definitions vary by entity type, so key them by entity type.
-    $entity_type = $this->definition['settings']['entity type'];
-
-    if (!isset(self::$propertyDefinitions[$entity_type])) {
-      self::$propertyDefinitions[$entity_type]['value'] = array(
-        // @todo: Lookup the entity type's ID data type and use it here.
-        'type' => 'integer',
-        'label' => t('Entity ID'),
-      );
-      self::$propertyDefinitions[$entity_type]['entity'] = array(
-        'type' => 'entity',
-        'constraints' => array(
-          'entity type' => $entity_type,
-        ),
-        'label' => t('Entity'),
-        'description' => t('The referenced entity'),
-        // The entity object is computed out of the entity id.
-        'computed' => TRUE,
-        'read-only' => FALSE,
-        'settings' => array('id source' => 'value'),
-      );
-    }
-    return self::$propertyDefinitions[$entity_type];
-  }
-
-  /**
-   * Overrides FieldItemBase::setValue().
-   */
-  public function setValue($values) {
-    // Treat the values as property value of the entity field, if no array
-    // is given.
-    if (!is_array($values)) {
-      $values = array('entity' => $values);
-    }
-
-    // Entity is computed out of the ID, so we only need to update the ID. Only
-    // set the entity field if no ID is given.
-    if (isset($values['value'])) {
-      $this->properties['value']->setValue($values['value']);
-    }
-    else {
-      $this->properties['entity']->setValue(isset($values['entity']) ? $values['entity'] : NULL);
-    }
-    unset($values['entity'], $values['value']);
-    if ($values) {
-      throw new InvalidArgumentException('Property ' . key($values) . ' is unknown.');
-    }
-  }
-}
diff --git a/core/modules/entity_reference/entity_reference.module b/core/modules/entity_reference/entity_reference.module
index bd93686..fe05898 100644
--- a/core/modules/entity_reference/entity_reference.module
+++ b/core/modules/entity_reference/entity_reference.module
@@ -29,11 +29,29 @@ function entity_reference_field_info() {
     ),
     'default_widget' => 'entity_reference_autocomplete',
     'default_formatter' => 'entity_reference_label',
+    'field item class' => 'Drupal\entity_reference\Type\EntityReferenceItem',
   );
   return $field_info;
 }
 
 /**
+ * Implements hook_entity_field_info().
+ */
+function entity_reference_entity_field_info($entity_type) {
+  $property_info = array();
+  foreach (field_info_instances($entity_type) as $bundle_name => $instances) {
+    foreach ($instances as $field_name => $instance) {
+      $field = field_info_field($field_name);
+      if ($field['type'] != 'entity_reference') {
+        continue;
+      }
+      $property_info['definitions'][$field_name]['settings']['target_type'] = $field['settings']['target_type'];
+    }
+  }
+  return $property_info;
+}
+
+/**
  * Implements hook_menu().
  */
 function entity_reference_menu() {
@@ -93,7 +111,7 @@ function entity_reference_field_presave($entity_type, $entity, $field, $instance
   $entity_info = entity_get_info($target_type);
 
   // Get the bundle.
-  if (count($instance['settings']['handler_settings']['target_bundles']) == 1) {
+  if (!empty($instance['settings']['handler_settings']['target_bundles']) && count($instance['settings']['handler_settings']['target_bundles']) == 1) {
     $bundle = reset($instance['settings']['handler_settings']['target_bundles']);
   }
   else {
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/views/style/EntityReference.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/views/style/EntityReference.php
index 897fb7e..bcda1e6 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/views/style/EntityReference.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/views/style/EntityReference.php
@@ -90,7 +90,9 @@ public function render() {
     foreach ($sets as $records) {
       foreach ($records as $values) {
         // Sanitize html, remove line breaks and extra whitespace.
-        $results[$values->{$id_field_alias}] = filter_xss_admin(preg_replace('/\s\s+/', ' ', str_replace("\n", '', $this->row_plugin->render($values))));
+        $output = $this->row_plugin->render($values);
+        $output = drupal_render($output);
+        $results[$values->{$id_field_alias}] = filter_xss_admin(preg_replace('/\s\s+/', ' ', str_replace("\n", '', $output)));
         $this->view->row_index++;
       }
     }
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Tests/EntityReferenceItemTest.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Tests/EntityReferenceItemTest.php
new file mode 100644
index 0000000..eda7f7d
--- /dev/null
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Tests/EntityReferenceItemTest.php
@@ -0,0 +1,103 @@
+<?php
+
+/**
+ * @file
+ * Contains Drupal\entity_reference\Tests\EntityReferenceItemTest.
+ */
+
+namespace Drupal\entity_reference\Tests;
+
+use Drupal\simpletest\WebTestBase;
+use Drupal\entity_reference\Type\EntityReferenceItem;
+use Drupal\Core\Entity\Field\FieldItemInterface;
+use Drupal\Core\Entity\Field\FieldInterface;
+
+/**
+ * Tests the new entity API for the entity reference field type.
+ */
+class EntityReferenceItemTest extends WebTestBase {
+
+  /**
+   * Modules to enable.
+   *
+   * @var array
+   */
+  public static $modules = array('field', 'field_sql_storage', 'entity_test', 'options', 'entity_reference');
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Entity reference field API',
+      'description' => 'Tests using entity fields of the entity-reference field type.',
+      'group' => 'Entity Reference',
+    );
+  }
+
+  public function setUp() {
+    parent::setUp();
+
+    $field = array(
+      'translatable' => FALSE,
+      'entity_types' => array(),
+      'settings' => array(
+        'target_type' => 'node',
+      ),
+      'field_name' => 'field_test',
+      'type' => 'entity_reference',
+      'cardinality' => FIELD_CARDINALITY_UNLIMITED,
+    );
+
+    field_create_field($field);
+
+    $instance = array(
+      'entity_type' => 'entity_test',
+      'field_name' => 'field_test',
+      'bundle' => 'entity_test',
+      'widget' => array(
+        'type' => 'options_select',
+      ),
+      'settings' => array(
+        'handler' => 'base',
+        'handler_settings' => array(),
+      ),
+    );
+    field_create_instance($instance);
+  }
+
+  /**
+   * Tests using entity fields of the taxonomy term reference field type.
+   */
+  public function testEntityReferenceItem() {
+    // Create a node.
+    $node1 = $this->drupalCreateNode();
+    $nid = $node1->id();
+
+    // Just being able to create the entity like this verifies a lot of
+    // code.
+    $entity = entity_create('entity_test', array('name' => 'foo'));
+    $entity->field_test->target_id = $nid;
+    $entity->save();
+
+    $this->assertTrue($entity->field_test instanceof FieldInterface, 'Field implements interface.');
+    $this->assertTrue($entity->field_test[0] instanceof FieldItemInterface, 'Field item implements interface.');
+    $this->assertEqual($entity->field_test->target_id, $nid);
+    $this->assertEqual($entity->field_test->entity->title, $node1->label());
+    $this->assertEqual($entity->field_test->entity->id(), $nid);
+    $this->assertEqual($entity->field_test->entity->uuid(), $node1->uuid());
+
+    // Change the name of the term via the reference.
+    $new_name = $this->randomName();
+    $entity->field_test->entity->title = $new_name;
+    $entity->field_test->entity->save();
+
+    // Verify it is the correct name.
+    $node = node_load($nid);
+    $this->assertEqual($node->label(), $new_name);
+
+    // Make sure the computed node reflects updates to the node id.
+    $node2 = $this->drupalCreateNode();
+
+    $entity->field_test->target_id = $node2->nid;
+    $this->assertEqual($entity->field_test->entity->id(), $node2->id());
+    $this->assertEqual($entity->field_test->entity->title, $node2->label());
+  }
+}
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Type/EntityReferenceItem.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Type/EntityReferenceItem.php
new file mode 100644
index 0000000..44d8b0c
--- /dev/null
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Type/EntityReferenceItem.php
@@ -0,0 +1,81 @@
+<?php
+
+/**
+ * @file
+ * Contains Drupal\entity_reference\Type\EntityReferenceItem.
+ */
+
+namespace Drupal\entity_reference\Type;
+
+use Drupal\Core\Entity\Field\FieldItemBase;
+use Drupal\Core\TypedData\ContextAwareInterface;
+
+/**
+ * Defines the 'entityre_reference_field' entity field item.
+ *
+ * Required settings (below the definition's 'settings' key) are:
+ *  - target_type: The entity type to reference.
+ */
+class EntityReferenceItem extends FieldItemBase {
+
+  /**
+   * Field definitions of the contained properties.
+   *
+   * @see self::getPropertyDefinitions()
+   *
+   * @var array
+   */
+  static $propertyDefinitions;
+
+  /**
+   * Implements Drupal\Core\TypedData\ComplexDataInterface::getPropertyDefinitions().
+   */
+  public function getPropertyDefinitions() {
+    $target_type = $this->definition['settings']['target_type'];
+
+    if (!isset(self::$propertyDefinitions[$target_type])) {
+      self::$propertyDefinitions[$target_type]['value'] = array(
+        // @todo: Lookup the entity type's ID data type and use it here.
+        'type' => 'integer',
+        'label' => t('Entity ID'),
+      );
+      self::$propertyDefinitions[$target_type]['entity'] = array(
+        'type' => 'entity',
+        'constraints' => array(
+          'entity type' => $target_type,
+        ),
+        'label' => t('Entity'),
+        'description' => t('The referenced entity'),
+        // The entity object is computed out of the entity ID.
+        'computed' => TRUE,
+        'read-only' => FALSE,
+        'settings' => array('id source' => 'value'),
+      );
+    }
+    return self::$propertyDefinitions[$target_type];
+  }
+
+  /**
+   * Overrides Drupal\Core\Entity\Field\FieldItemBase::setValue().
+   */
+  public function setValue($values) {
+    // Treat the values as property value of the entity field, if no array
+    // is given.
+    if (!is_array($values)) {
+      $values = array('entity' => $values);
+    }
+
+    // Entity is computed out of the ID, so we only need to update the ID. Only
+    // set the entity field if no ID is given.
+    if (isset($values['value'])) {
+      $this->properties['value']->setValue($values['value']);
+    }
+    else {
+      $this->properties['entity']->setValue(isset($values['entity']) ? $values['entity'] : NULL);
+    }
+    unset($values['entity'], $values['value']);
+    if ($values) {
+      throw new \InvalidArgumentException('Property ' . key($values) . ' is unknown.');
+    }
+  }
+}
diff --git a/core/modules/jsonld/lib/Drupal/jsonld/JsonldEntityReferenceNormalizer.php b/core/modules/jsonld/lib/Drupal/jsonld/JsonldEntityReferenceNormalizer.php
index 66767cf..b71deb0 100644
--- a/core/modules/jsonld/lib/Drupal/jsonld/JsonldEntityReferenceNormalizer.php
+++ b/core/modules/jsonld/lib/Drupal/jsonld/JsonldEntityReferenceNormalizer.php
@@ -25,7 +25,7 @@ class JsonldEntityReferenceNormalizer extends JsonldNormalizerBase implements De
    *
    * @var string
    */
-  protected static $supportedInterfaceOrClass = 'Drupal\Core\Entity\Field\Type\EntityReferenceItem';
+  protected static $supportedInterfaceOrClass = 'Drupal\entity_reference\Type\EntityReferenceItem';
 
   /**
    * Implements \Symfony\Component\Serializer\Normalizer\NormalizerInterface::normalize()
diff --git a/core/modules/system/system.module b/core/modules/system/system.module
index eaaebc2..de91fb3 100644
--- a/core/modules/system/system.module
+++ b/core/modules/system/system.module
@@ -2110,12 +2110,6 @@ function system_data_type_info() {
       'class' => '\Drupal\Core\Entity\Field\Type\LanguageItem',
       'list class' => '\Drupal\Core\Entity\Field\Type\Field',
     ),
-    'entityreference_field' => array(
-      'label' => t('Entity reference field item'),
-      'description' => t('An entity field containing an entity reference.'),
-      'class' => '\Drupal\Core\Entity\Field\Type\EntityReferenceItem',
-      'list class' => '\Drupal\Core\Entity\Field\Type\Field',
-    ),
   );
 }
 
diff --git a/core/modules/system/tests/modules/entity_test/entity_test.info b/core/modules/system/tests/modules/entity_test/entity_test.info
index ce49e8a..c21bbff 100644
--- a/core/modules/system/tests/modules/entity_test/entity_test.info
+++ b/core/modules/system/tests/modules/entity_test/entity_test.info
@@ -4,4 +4,5 @@ package = Testing
 version = VERSION
 core = 8.x
 dependencies[] = field
+dependencies[] = entity_reference
 hidden = TRUE
diff --git a/core/modules/system/tests/modules/entity_test/lib/Drupal/entity_test/EntityTestStorageController.php b/core/modules/system/tests/modules/entity_test/lib/Drupal/entity_test/EntityTestStorageController.php
index e3b45fa..501ca78 100644
--- a/core/modules/system/tests/modules/entity_test/lib/Drupal/entity_test/EntityTestStorageController.php
+++ b/core/modules/system/tests/modules/entity_test/lib/Drupal/entity_test/EntityTestStorageController.php
@@ -168,8 +168,8 @@ public function baseFieldDefinitions() {
     $fields['user_id'] = array(
       'label' => t('User ID'),
       'description' => t('The ID of the associated user.'),
-      'type' => 'entityreference_field',
-      'settings' => array('entity type' => 'user'),
+      'type' => 'entity_reference_field',
+      'settings' => array('target_type' => 'user'),
       'translatable' => TRUE,
     );
     return $fields;
diff --git a/core/modules/views/lib/Drupal/views/Plugin/entity_reference/selection/ViewsSelection.php b/core/modules/views/lib/Drupal/views/Plugin/entity_reference/selection/ViewsSelection.php
index ea6bd2e..e073e39 100644
--- a/core/modules/views/lib/Drupal/views/Plugin/entity_reference/selection/ViewsSelection.php
+++ b/core/modules/views/lib/Drupal/views/Plugin/entity_reference/selection/ViewsSelection.php
@@ -157,7 +157,7 @@ public function getReferencableEntities($match = NULL, $match_operator = 'CONTAI
     if ($result) {
       foreach($this->view->result as $row) {
         $entity = $row->_entity;
-        $return[$entity->bundle()][$entity->id()] = $result[$entity->id()];
+        $return[$entity->bundle()][$entity->id()] = $entity->label();
       }
     }
     return $return;