diff --git a/core/lib/Drupal/Core/Config/ConfigInstaller.php b/core/lib/Drupal/Core/Config/ConfigInstaller.php
index 2bb06b3..1cffc5c 100644
--- a/core/lib/Drupal/Core/Config/ConfigInstaller.php
+++ b/core/lib/Drupal/Core/Config/ConfigInstaller.php
@@ -107,18 +107,19 @@ public function installDefaultConfig($type, $name) {
     if (!empty($config_to_install)) {
       $old_state = $this->configFactory->getOverrideState();
       $this->configFactory->setOverrideState(FALSE);
-      foreach ($config_to_install as $name) {
+      foreach ($config_to_install as $config_name) {
         // Only import new config.
-        if ($this->activeStorage->exists($name)) {
+        if ($this->activeStorage->exists($config_name)) {
+          drupal_set_message(t('Active configuration with the name %config_name already exists therefore can not install the default configuration with the same name from %extension.', array('%config_name' => $config_name, '%extension' => $name)), 'warning');
           continue;
         }
 
-        $new_config = new Config($name, $this->activeStorage, $this->eventDispatcher, $this->typedConfig);
-        $data = $source_storage->read($name);
+        $new_config = new Config($config_name, $this->activeStorage, $this->eventDispatcher, $this->typedConfig);
+        $data = $source_storage->read($config_name);
         if ($data !== FALSE) {
           $new_config->setData($data);
         }
-        if ($entity_type = $this->configManager->getEntityTypeIdByName($name)) {
+        if ($entity_type = $this->configManager->getEntityTypeIdByName($config_name)) {
           $this->configManager
             ->getEntityManager()
             ->getStorageController($entity_type)
diff --git a/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php b/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
index 0fd3f5e..8f94f92 100644
--- a/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
+++ b/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
@@ -94,6 +94,13 @@ function testIntegrationModuleReinstallation() {
     $config_entity = \Drupal::config($default_configuration_entity);
     $this->assertIdentical($config_entity->isNew(), FALSE);
     $this->assertIdentical($config_entity->get('label'), 'Customized integration config label');
+
+    // Verify that installing a module with default configuration that already
+    // exists in active configuration produces a warning.
+    \Drupal::moduleHandler()->install(array('config_install_fail'));
+    $messages = drupal_get_messages('warning');
+    $expected_message = t('Active configuration with the name %config_name already exists therefore can not install the default configuration with the same name from %extension_name.', array('%config_name' => 'config_test.dynamic.dotted.default', '%extension_name' => 'config_install_fail'));
+    $this->assertTrue(in_array($expected_message, $messages['warning']), 'Warning message about existing configuration exists.');
   }
 
 }
diff --git a/core/modules/config/tests/config_install_fail/config/config_test.dynamic.dotted.default.yml b/core/modules/config/tests/config_install_fail/config/config_test.dynamic.dotted.default.yml
new file mode 100644
index 0000000..6e2af21
--- /dev/null
+++ b/core/modules/config/tests/config_install_fail/config/config_test.dynamic.dotted.default.yml
@@ -0,0 +1,6 @@
+id: dotted.default
+label: 'Config install fail'
+weight: 0
+protected_property: Default
+# Intentionally commented out to verify default status behavior.
+# status: 1
diff --git a/core/modules/config/tests/config_install_fail/config_install_fail.info.yml b/core/modules/config/tests/config_install_fail/config_install_fail.info.yml
new file mode 100644
index 0000000..ebe72ad
--- /dev/null
+++ b/core/modules/config/tests/config_install_fail/config_install_fail.info.yml
@@ -0,0 +1,8 @@
+name: 'Configuration test install fial'
+type: module
+package: Testing
+version: VERSION
+core: 8.x
+hidden: true
+dependencies:
+  - config_test
diff --git a/core/modules/config/tests/config_install_fail/config_install_fail.module b/core/modules/config/tests/config_install_fail/config_install_fail.module
new file mode 100644
index 0000000..e77c7ce
--- /dev/null
+++ b/core/modules/config/tests/config_install_fail/config_install_fail.module
@@ -0,0 +1,6 @@
+<?php
+
+/**
+ * @file
+ * Empty module to test providing a default config entity with the same name.
+ */
diff --git a/core/modules/system/config/system.module.yml b/core/modules/system/config/system.module.yml
deleted file mode 100644
index 9ec80e1..0000000
--- a/core/modules/system/config/system.module.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-enabled:
-  system: 0