diff --git a/core/includes/config.inc b/core/includes/config.inc
index 8e9ce5e..dfe9c2e 100644
--- a/core/includes/config.inc
+++ b/core/includes/config.inc
@@ -68,18 +68,19 @@ function ($value) use ($name) {
     $context = new FreeConfigContext(Drupal::service('event_dispatcher'), Drupal::service('uuid'));
     $target_storage = Drupal::service('config.storage');
     $config_factory->enterContext($context);
-    foreach ($config_to_install as $name) {
+    foreach ($config_to_install as $config_name) {
       // Only import new config.
-      if ($target_storage->exists($name)) {
+      if ($target_storage->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, $target_storage, $context);
-      $data = $source_storage->read($name);
+      $new_config = new Config($config_name, $target_storage, $context);
+      $data = $source_storage->read($config_name);
       if ($data !== FALSE) {
         $new_config->setData($data);
       }
-      if ($entity_type = config_get_entity_type_by_name($name)) {
+      if ($entity_type = config_get_entity_type_by_name($config_name)) {
         $entity_manager
           ->getStorageController($entity_type)
           ->create($new_config->get())
@@ -90,7 +91,7 @@ function ($value) use ($name) {
       }
 
       // Reset static cache on the config factory.
-      $config_factory->reset($name);
+      $config_factory->reset($config_name);
     }
     $config_factory->leaveContext();
   }
diff --git a/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php b/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
index 3bb7839..b608a6d 100644
--- a/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
+++ b/core/modules/config/lib/Drupal/config/Tests/ConfigInstallWebTest.php
@@ -90,6 +90,13 @@ 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 696bedc..0000000
--- a/core/modules/system/config/system.module.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-enabled:
-  system: '0'