diff --git a/core/modules/block/custom_block/lib/Drupal/custom_block/CustomBlockTypeFormController.php b/core/modules/block/custom_block/lib/Drupal/custom_block/CustomBlockTypeFormController.php
index 5758788..3546f3f 100644
--- a/core/modules/block/custom_block/lib/Drupal/custom_block/CustomBlockTypeFormController.php
+++ b/core/modules/block/custom_block/lib/Drupal/custom_block/CustomBlockTypeFormController.php
@@ -53,7 +53,7 @@ public function form(array $form, array &$form_state) {
       '#description' => t('Create a new revision by default for this block type.')
     );
 
-    if ($this->moduleHandler->moduleExists('content_translation')) {
+    if ($this->moduleHandler->moduleExists('language')) {
       $form['language'] = array(
         '#type' => 'details',
         '#title' => t('Language settings'),
diff --git a/core/modules/content_translation/lib/Drupal/content_translation/Tests/Views/TranslationLinkTest.php b/core/modules/content_translation/lib/Drupal/content_translation/Tests/Views/TranslationLinkTest.php
index e1b939c..3297e28 100644
--- a/core/modules/content_translation/lib/Drupal/content_translation/Tests/Views/TranslationLinkTest.php
+++ b/core/modules/content_translation/lib/Drupal/content_translation/Tests/Views/TranslationLinkTest.php
@@ -10,6 +10,7 @@
 use Drupal\views\Tests\ViewTestBase;
 use Drupal\content_translation\Tests\ContentTranslationTestBase;
 use Drupal\views\Tests\ViewTestData;
+use Drupal\Core\Language\Language;
 
 /**
  * Tests the content translation overview link field handler.
@@ -51,6 +52,11 @@ function setUp() {
     $user->langcode = 'en';
     $user->save();
 
+    // Assign user 2 LANGCODE_NOT_SPECIFIED code so entity can't be translated.
+    $user = user_load(2);
+    $user->langcode = Language::LANGCODE_NOT_SPECIFIED;
+    $user->save();
+
     ViewTestData::createTestViews(get_class($this), array('content_translation_test_views'));
   }
 
diff --git a/core/modules/language/language.module b/core/modules/language/language.module
index 41a8a6f..bc4a68b 100644
--- a/core/modules/language/language.module
+++ b/core/modules/language/language.module
@@ -707,3 +707,11 @@ function language_system_regional_settings_form_submit($form, &$form_state) {
   $language->default = TRUE;
   language_save($language);
 }
+
+/**
+ * Implements hook_field_info_alter().
+ */
+function language_field_info_alter(&$info) {
+  // Change the default behavior of language field.
+  $info['language']['class'] = '\Drupal\language\DefaultLanguageItem';
+}
diff --git a/core/modules/language/lib/Drupal/language/DefaultLanguageItem.php b/core/modules/language/lib/Drupal/language/DefaultLanguageItem.php
new file mode 100644
index 0000000..fa74bc5
--- /dev/null
+++ b/core/modules/language/lib/Drupal/language/DefaultLanguageItem.php
@@ -0,0 +1,45 @@
+<?php
+
+/**
+ * @file
+ * Contains \Drupal\language\DefaultLanguageItem.
+ */
+
+namespace Drupal\language;
+
+use Drupal\Core\Entity\EntityInterface;
+use Drupal\Core\Field\Plugin\Field\FieldType\LanguageItem;
+use Drupal\Core\Language\Language;
+
+/**
+ * Alternative plugin implementation of the 'language' field type.
+ *
+ * Replaces the Core 'language' entity field type implementation, changes the
+ * default values used.
+ *
+ * Required settings are:
+ *  - target_type: The entity type to reference.
+ *
+ * @see language_field_info_alter().
+ */
+class DefaultLanguageItem extends LanguageItem {
+
+  /**
+   * {@inheritdoc}
+   */
+  public function applyDefaultValue($notify = TRUE) {
+    // Default to LANGCODE_NOT_SPECIFIED.
+    $langcode = Language::LANGCODE_NOT_SPECIFIED;
+    if ($entity = $this->getEntity()) {
+      $langcode = $this->getDefaultLangcode($entity);
+    }
+    // Always notify otherwise default langcode will not be set correctly.
+    $this->setValue(array('value' => $langcode), TRUE);
+    return $this;
+  }
+
+  public function getDefaultLangcode(EntityInterface $entity) {
+    return language_get_default_langcode($entity->getEntityTypeId(), $entity->bundle());
+  }
+
+}
diff --git a/core/modules/language/tests/Drupal/language/Tests/EntityDefaultLanguageTest.php b/core/modules/language/tests/Drupal/language/Tests/EntityDefaultLanguageTest.php
new file mode 100644
index 0000000..b96d4c7
--- /dev/null
+++ b/core/modules/language/tests/Drupal/language/Tests/EntityDefaultLanguageTest.php
@@ -0,0 +1,145 @@
+<?php
+
+/**
+ * @file
+ * Contains \Drupal\language\Tests\EntityDefaultLanguageTest.
+ */
+
+namespace Drupal\language\Tests;
+
+use Drupal\Core\Language\Language;
+use Drupal\simpletest\DrupalUnitTestBase;
+
+/**
+ * Tests default language code is properly generated for entities.
+ */
+class EntityDefaultLanguageTest extends DrupalUnitTestBase {
+
+  /**
+   * Modules to enable.
+   *
+   * @var array
+   */
+  public static $modules = array('language', 'node', 'field', 'text');
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Entity default language',
+      'description' => 'Test that entities are created with correct language code.',
+      'group' => 'Entity API',
+    );
+  }
+
+  public function setUp() {
+    parent::setUp();
+
+    // Activate Spanish language, so there are two languages activated.
+    $language_entity = $this->container->get('entity.manager')->getStorage('language_entity')->create(array(
+      'id' => 'es',
+    ));
+    $language_entity->save();
+
+    // Create a new content type which has Undefined language by default.
+    $this->createContentType('ctund', Language::LANGCODE_NOT_SPECIFIED);
+    // Create a new content type which has Spanish language by default.
+    $this->createContentType('ctes', 'es');
+  }
+
+  /**
+   * Tests that default language code is properly set for new nodes.
+   */
+  public function testEntityTranslationDefaultLanguageViaCode() {
+    // With language module activated, and a content type that is configured to
+    // have no language by default, a new node of this content type will have
+    // "und" language code when language is not specified.
+    $node = $this->createNode('ctund');
+    $this->assertEqual($node->langcode->value, Language::LANGCODE_NOT_SPECIFIED);
+    // With language module activated, and a content type that is configured to
+    // have no language by default, a new node of this content type will have
+    // "es" language code when language is specified as "es".
+    $node = $this->createNode('ctund', 'es');
+    $this->assertEqual($node->langcode->value, 'es');
+
+    // With language module activated, and a content type that is configured to
+    // have language "es" by default, a new node of this content type will have
+    // "es" language code when language is not specified.
+    $node = $this->createNode('ctes');
+    $this->assertEqual($node->langcode->value, 'es');
+    // With language module activated, and a content type that is configured to
+    // have language "es" by default, a new node of this content type will have
+    // "en" language code when language "en" is specified.
+    $node = $this->createNode('ctes', 'en');
+    $this->assertEqual($node->langcode->value, 'en');
+
+    // Disable language module.
+    $this->disableModules(array('language'));
+
+    // With language module disabled, and a content type that is configured to
+    // have no language specified by default, a new node of this content type
+    // will have "und" language code when language is not specified.
+    $node = $this->createNode('ctund');
+    $this->assertEqual($node->langcode->value, Language::LANGCODE_NOT_SPECIFIED);
+    // With language module disabled, and a content type that is configured to
+    // have no language specified by default, a new node of this type will have
+    // "es" language code when language "es" is specified.
+    $node = $this->createNode('ctund', 'es');
+    $this->assertEqual($node->langcode->value, 'es');
+
+    // With language module disabled, and a content type that is configured to
+    // have language "es" by default, a new node of this type will have "und"
+    // language code when language is not specified.
+    $node = $this->createNode('ctes');
+    $this->assertEqual($node->langcode->value, Language::LANGCODE_NOT_SPECIFIED);
+    // With language module disabled, and a content type that is configured to
+    // have language "es" by default, a new node of this type will have "en"
+    // language code when language "en" is specified.
+    $node = $this->createNode('ctes', 'en');
+    $this->assertEqual($node->langcode->value, 'en');
+  }
+
+  /**
+   * Creates a new node content type.
+   *
+   * @param name
+   *   The content type name.
+   * @param $langcode
+   *   Default language code of the nodes of this type.
+   */
+  protected function createContentType($name, $langcode) {
+    $content_type = $this->container->get('entity.manager')->getStorage('node_type')->create(array(
+      'name' => 'Test ' . $name,
+      'title_label' => 'Title',
+      'type' => $name,
+      'create_body' => FALSE,
+    ));
+    $content_type->save();
+    language_save_default_configuration('node', $name, array(
+      'langcode' => $langcode,
+      'language_show' => FALSE,
+    ));
+  }
+
+  /**
+   * Creates a new node of given type and language using Entity API.
+   *
+   * @param $type
+   *   The node content type.
+   * @param $langcode
+   *   (optional) Language code to pass to entity create.
+   *
+   * @return \Drupal\node\NodeInterface
+   *   The node created.
+   */
+  protected function createNode($type, $langcode = NULL) {
+    $values = array(
+      'type' => $type,
+      'title' => $this->randomName(),
+    );
+    if (!empty($langcode)) {
+      $values['langcode'] = $langcode;
+    }
+    $node = $this->container->get('entity.manager')->getStorage('node')->create($values);
+    return $node;
+  }
+
+}
diff --git a/core/modules/system/lib/Drupal/system/Tests/Entity/EntityTranslationTest.php b/core/modules/system/lib/Drupal/system/Tests/Entity/EntityTranslationTest.php
index 7b72ee5..d440b97 100644
--- a/core/modules/system/lib/Drupal/system/Tests/Entity/EntityTranslationTest.php
+++ b/core/modules/system/lib/Drupal/system/Tests/Entity/EntityTranslationTest.php
@@ -44,6 +44,13 @@ protected function _testEntityLanguageMethods($entity_type) {
       'name' => 'test',
       'user_id' => $this->container->get('current_user')->id(),
     ));
+    $this->assertEqual($entity->language()->id, $this->languageManager->getCurrentLanguage(Language::TYPE_CONTENT)->id, format_string('%entity_type: Entity created with API has default language.', array('%entity_type' => $entity_type)));
+
+    $entity = entity_create($entity_type, array(
+      'name' => 'test',
+      'user_id' => $GLOBALS['user']->id(),
+      'langcode' => Language::LANGCODE_NOT_SPECIFIED,
+    ));
     $this->assertEqual($entity->language()->id, Language::LANGCODE_NOT_SPECIFIED, format_string('%entity_type: Entity language not specified.', array('%entity_type' => $entity_type)));
     $this->assertFalse($entity->getTranslationLanguages(FALSE), format_string('%entity_type: No translations are available', array('%entity_type' => $entity_type)));
 
@@ -149,7 +156,7 @@ protected function _testMultilingualProperties($entity_type) {
 
     // Create a language neutral entity and check that properties are stored
     // as language neutral.
-    $entity = entity_create($entity_type, array('name' => $name, 'user_id' => $uid));
+    $entity = entity_create($entity_type, array('name' => $name, 'user_id' => $uid, 'langcode' => Language::LANGCODE_NOT_SPECIFIED));
     $entity->save();
     $entity = entity_load($entity_type, $entity->id());
     $default_langcode = $entity->language()->id;
@@ -234,6 +241,7 @@ protected function _testMultilingualProperties($entity_type) {
     entity_create($entity_type, array(
       'user_id' => $properties[$langcode]['user_id'],
       'name' => 'some name',
+      'langcode' => Language::LANGCODE_NOT_SPECIFIED,
     ))->save();
 
     $entities = entity_load_multiple($entity_type);
@@ -296,7 +304,7 @@ function testEntityTranslationAPI() {
     $langcode = $this->langcodes[1];
     $entity = $this->entityManager
       ->getStorage('entity_test_mul')
-      ->create(array('name' => $this->randomName()));
+      ->create(array('name' => $this->randomName(), 'langcode' => Language::LANGCODE_NOT_SPECIFIED));
 
     $entity->save();
     $hooks = $this->getHooksInfo();
diff --git a/core/tests/Drupal/Tests/Core/Entity/ContentEntityBaseUnitTest.php b/core/tests/Drupal/Tests/Core/Entity/ContentEntityBaseUnitTest.php
index a9700bd..6c73639 100644
--- a/core/tests/Drupal/Tests/Core/Entity/ContentEntityBaseUnitTest.php
+++ b/core/tests/Drupal/Tests/Core/Entity/ContentEntityBaseUnitTest.php
@@ -8,6 +8,7 @@
 namespace Drupal\Tests\Core\Entity;
 
 use Drupal\Core\DependencyInjection\ContainerBuilder;
+use Drupal\Core\Extension\ModuleHandler;
 use Drupal\Tests\UnitTestCase;
 use Drupal\Core\Language\Language;
 
@@ -68,6 +69,13 @@ class ContentEntityBaseUnitTest extends UnitTestCase {
   protected $languageManager;
 
   /**
+   * The module handler.
+   *
+   * @var \Drupal\Core\Extension\ModuleHandlerInterface|\PHPUnit_Framework_MockObject_MockObject
+   */
+  protected $moduleHandler;
+
+  /**
    * The UUID generator used for testing.
    *
    * @var \Drupal\Component\Uuid\UuidInterface|\PHPUnit_Framework_MockObject_MockObject
@@ -136,12 +144,17 @@ public function setUp() {
       ->method('getLanguage')
       ->with('en')
       ->will($this->returnValue($language));
-
+    $this->moduleHandler = $this->getMock('\Drupal\Core\Extension\ModuleHandlerInterface');
+    $this->moduleHandler->expects($this->any())
+      ->method('module_exists')
+      ->with('language')
+      ->will($this->returnValue(FALSE));
     $container = new ContainerBuilder();
     $container->set('entity.manager', $this->entityManager);
     $container->set('uuid', $this->uuid);
     $container->set('typed_data_manager', $this->typedDataManager);
     $container->set('language_manager', $this->languageManager);
+    $container->set('module_handler', $this->moduleHandler);
     \Drupal::setContainer($container);
 
     $this->entity = $this->getMockForAbstractClass('\Drupal\Core\Entity\ContentEntityBase', array($values, $this->entityTypeId, $this->bundle));