diff --git a/core/lib/Drupal/Core/Field/Plugin/Field/FieldType/EntityReferenceItem.php b/core/lib/Drupal/Core/Field/Plugin/Field/FieldType/EntityReferenceItem.php
index e5e6143..e106e47 100644
--- a/core/lib/Drupal/Core/Field/Plugin/Field/FieldType/EntityReferenceItem.php
+++ b/core/lib/Drupal/Core/Field/Plugin/Field/FieldType/EntityReferenceItem.php
@@ -148,26 +148,27 @@ public static function schema(FieldStorageDefinitionInterface $field_definition)
    */
   public function setValue($values, $notify = TRUE) {
     if (isset($values) && !is_array($values)) {
-      if ($values !== static::NEW_ENTITY_MARKER) {
-        // Directly update the property instead of invoking the parent, so it
-        // can handle objects and IDs.
-        $this->properties['entity']->setValue($values, $notify);
-        // If notify was FALSE, ensure the target_id property gets synched.
-        if (!$notify) {
-          $target_id = $values instanceof EntityInterface && $values->isNew() ? static::NEW_ENTITY_MARKER : $this->properties['entity']->getTargetIdentifier();
-          $this->set('target_id', $target_id, FALSE);
-        }
-      }
+      $values = $values instanceof EntityInterface ? array('entity' => $values) : array('target_id' => $values);
     }
-    else {
-      // Make sure that the 'entity' property gets set as 'target_id'.
-      if (isset($values['entity'])) {
-        $values['target_id'] = $values['entity']->isNew() ? self::NEW_ENTITY_MARKER : $values['entity']->id();
-      }
-      elseif (isset($values['target_id']) && $values['target_id'] !== static::NEW_ENTITY_MARKER) {
-        $values['entity'] = $values['target_id'];
+    // Make sure that the 'entity' property gets set as 'target_id'.
+    if (!isset($values['entity']) && isset($values['target_id'])) {
+      $values['entity'] = $values['target_id'];
+    }
+
+    // Update any existing property objects.
+    $this->values = $values;
+    foreach ($this->properties as $name => $property) {
+      $value = NULL;
+      if (isset($values[$name])) {
+        $value = $values[$name];
       }
-      parent::setValue($values, $notify);
+      $this->writePropertyValue($name, $value);
+      unset($this->values[$name]);
+    }
+
+    // Notify the parent of any changes.
+    if ($notify && isset($this->parent)) {
+      $this->parent->onChange($this->name);
     }
   }
 
@@ -178,9 +179,7 @@ public function set($property_name, $value, $notify = TRUE) {
     parent::set($property_name, $value, $notify);
 
     if (!$notify && $property_name == 'entity') {
-      $entity = $this->properties['entity']->getTarget()->getValue();
-      $target_id = $entity->isNew() ? static::NEW_ENTITY_MARKER : $entity->id();
-      $this->set('target_id', $target_id, FALSE);
+      $this->writePropertyValue($property_name, $value);
     }
   }
 
@@ -204,19 +203,35 @@ public function getValue() {
   public function onChange($property_name) {
     // Make sure that the target ID and the target property stay in sync.
     if ($property_name == 'target_id') {
-      if ($this->target_id !== static::NEW_ENTITY_MARKER) {
-        $this->properties['entity']->setValue($this->target_id, FALSE);
-      }
+      $this->writePropertyValue($property_name, $this->target_id);
     }
     elseif ($property_name == 'entity') {
-      $entity = $this->properties['entity']->getTarget()->getValue();
-      $target_id = $entity->isNew() ? static::NEW_ENTITY_MARKER : $entity->id();
-      $this->set('target_id', $target_id, FALSE);
+      $this->writePropertyValue($property_name, $this->properties['entity']->getTarget()->getValue());
     }
     parent::onChange($property_name);
   }
 
   /**
+   * Writes the value of a property without handling changes.
+   *
+   * @param string $property_name
+   * The name of the property to be written.
+   * @param $value
+   * The value to set.
+   */
+  protected function writePropertyValue($property_name, $value) {
+    if ($property_name == 'entity') {
+      parent::set('entity', $value, FALSE);
+      $target_id = $value instanceof EntityInterface && $value->isNew() ? static::NEW_ENTITY_MARKER : $this->properties['entity']->getTargetIdentifier();
+      parent::set('target_id', $target_id, FALSE);
+    }
+    elseif ($property_name == 'target_id' && $value !== static::NEW_ENTITY_MARKER) {
+      parent::set('target_id', $value, FALSE);
+      parent::set('entity', $value, FALSE);
+    }
+  }
+
+  /**
    * {@inheritdoc}
    */
   public function isEmpty() {