diff --git a/entity_translation.module b/entity_translation.module
index 1668b68..4183852 100644
--- a/entity_translation.module
+++ b/entity_translation.module
@@ -1604,6 +1604,9 @@ function entity_translation_field_attach_submit($entity_type, $entity, $form, &$
     // Update the wrapped entity with the submitted values.
     $handler->setEntity($entity);
     $handler->entityFormSubmit($form, $form_state);
+
+    // Process in-place translations for the taxonomy autocomplete widget.
+    entity_translation_taxonomy_term_field_attach_submit($entity_type, $entity, $form, $form_state);
   }
 }
 
diff --git a/entity_translation.taxonomy.inc b/entity_translation.taxonomy.inc
index 4cdb596..ab85fea 100644
--- a/entity_translation.taxonomy.inc
+++ b/entity_translation.taxonomy.inc
@@ -154,11 +154,13 @@ function entity_translation_form_field_ui_field_edit_taxonomy_autocomplete_form_
  *
  * @param array $element
  *   The widget form element.
+ * @param array $form_state
+ *   The form state array.
  *
  * @return bool
  *   TRUE if in-place translation is enabled, FALSE otherwise.
  */
-function _entity_translation_taxonomy_autocomplete_translation_enabled($element) {
+function _entity_translation_taxonomy_autocomplete_translation_enabled($element, $form_state) {
   $field = field_info_field($element['#field_name']);
   if (field_is_translatable($element['#entity_type'], $field)) {
     return FALSE;
@@ -166,13 +168,18 @@ function _entity_translation_taxonomy_autocomplete_translation_enabled($element)
 
   $entity_type = 'taxonomy_term';
   $parent_handler = entity_translation_get_handler($element['#entity_type'], $element['#entity']);
-  $langcode = $parent_handler->getActiveLanguage();
+  $active_langcode = $parent_handler->getActiveLanguage();
   $translations = $parent_handler->getTranslations();
+  $entity_langcode = isset($translations->original) ? $translations->original : LANGUAGE_NONE;
   list(,, $bundle) = entity_extract_ids($element['#entity_type'], $element['#entity']);
   $instance = field_info_instance($element['#entity_type'], $field['field_name'], $bundle);
 
+  // We need to make sure that we are not dealing with a translation form.
+  // However checking the active language is not enough, because the user may
+  // have changed the entity language.
   return
-    isset($translations->original) && $translations->original != $langcode &&
+    (isset($form_state['entity_translation']['is_translation']) ?
+      $form_state['entity_translation']['is_translation'] : ($active_langcode != $entity_langcode)) &&
     !empty($instance['settings']['entity_translation_taxonomy_autocomplete_translate']) &&
     (user_access('translate any entity') || user_access("translate $entity_type entities"));
 }
@@ -201,7 +208,7 @@ function entity_translation_field_widget_taxonomy_autocomplete_form_alter(&$elem
 
     // If we are using the regular autocomplete behavior also in translation
     // forms, we need to set our custom callback.
-    if (!_entity_translation_taxonomy_autocomplete_translation_enabled($element)) {
+    if (!_entity_translation_taxonomy_autocomplete_translation_enabled($element, $form_state)) {
       $element['#autocomplete_path'] = 'entity_translation/' . $entity_type . '/autocomplete/' . $langcode . '/' . $element['#field_name'];
       $translations = $parent_handler->getTranslations();
       if (isset($translations->original) && $translations->original != $langcode) {
@@ -397,10 +404,11 @@ function entity_translation_taxonomy_autocomplete_validate($element, &$form_stat
   // This is the language of the parent entity, that we will be applying to new
   // terms.
   $parent_handler = entity_translation_get_handler($element['#entity_type'], $element['#entity']);
-  $langcode = $parent_handler->getActiveLanguage();
+  $langcode = !empty($form_state['entity_translation']['form_langcode']) ?
+    $form_state['entity_translation']['form_langcode'] : $parent_handler->getActiveLanguage();
 
   // Handle in-place translation.
-  if (_entity_translation_taxonomy_autocomplete_translation_enabled($element)) {
+  if (_entity_translation_taxonomy_autocomplete_translation_enabled($element, $form_state)) {
     // The referenced terms cannot change, so we just need to collect their term
     // identifiers. We also build a map of the corresponding deltas for later
     // use.
@@ -415,6 +423,9 @@ function entity_translation_taxonomy_autocomplete_validate($element, &$form_stat
     $entity_type = 'taxonomy_term';
     $name_field = 'name_field';
     $source_langcode = $parent_handler->getSourceLanguage();
+    // This is a validation handler, so we must defer the actual save to the
+    // submit phase.
+    $terms_to_save = &$form_state['entity_translation']['taxonomy_autocomplete'][$element['#entity_type']][$id][$element['#field_name']];
     foreach (taxonomy_term_load_multiple(array_keys($deltas)) as $term) {
       // This is also the right context to perform validation.
       $term_translation = $element[$deltas[$term->tid]]['#value'];
@@ -443,14 +454,14 @@ function entity_translation_taxonomy_autocomplete_validate($element, &$form_stat
           $name_field => array($typed_langcode => array(array('value' => $term_translation))),
         );
         $handler->setTranslation($translation, $translation_values);
-        entity_translation_entity_save($entity_type, $term);
+        $terms_to_save[] = $term;
       }
       // Otherwise we just update the existing translation, if it has changed.
       // If the term is language-neutral, we just update its main value. This is
       // expected to happen normally, but could when referencing existing terms.
       elseif ($term_translation != _entity_translation_taxonomy_label($term, $typed_langcode)) {
         $term->{$name_field}[$typed_langcode][0]['value'] = $term_translation;
-        entity_translation_entity_save($entity_type, $term);
+        $terms_to_save[] = $term;
       }
     }
   }
@@ -502,7 +513,6 @@ function entity_translation_taxonomy_autocomplete_validate($element, &$form_stat
       }
     }
 
-    // FIXME: language change
     // Now collect the identifiers for the various terms and update the taxonomy
     // reference field values.
     foreach ($typed_tags as $delta => $typed_tag) {
@@ -528,3 +538,21 @@ function entity_translation_taxonomy_autocomplete_validate($element, &$form_stat
 
   form_set_value($element, $value, $form_state);
 }
+
+/**
+ * Term-specific implementation of hook_field_attach_submit().
+ */
+function entity_translation_taxonomy_term_field_attach_submit($entity_type, $entity, $form, &$form_state) {
+  // Finally save in-place translations
+  if (!empty($form_state['entity_translation']['taxonomy_autocomplete'])) {
+    foreach ($form_state['entity_translation']['taxonomy_autocomplete'] as $entity_type => $entity_type_data) {
+      foreach ($entity_type_data as $id => $field_name_data) {
+        foreach ($field_name_data as $field_name => $term_data) {
+          foreach ($term_data as $term) {
+            entity_translation_entity_save('taxonomy_term', $term);
+          }
+        }
+      }
+    }
+  }
+}