diff --git a/config/schema/dynamic_entity_reference.schema.yml b/config/schema/dynamic_entity_reference.schema.yml
index a99d9b7..cd1ebbf 100644
--- a/config/schema/dynamic_entity_reference.schema.yml
+++ b/config/schema/dynamic_entity_reference.schema.yml
@@ -18,15 +18,18 @@ field.dynamic_entity_reference.storage_settings:
           label: 'Entity Type ID'
 
 field.dynamic_entity_reference.field_settings:
-  type: mapping
+  type: sequence
   label: 'Dynamic entity reference settings'
-  mapping:
-    handler:
-      type: string
-      label: 'Reference method'
-    handler_settings:
-      type: entity_reference.[%parent.handler].handler_settings
-      label: 'Reference method settings'
+  sequence:
+    - type: mapping
+      label: 'Entity Type ID'
+      mapping:
+        handler:
+          type: string
+          label: 'Reference method'
+        handler_settings:
+          type: entity_reference.[%parent.handler].handler_settings
+          label: 'Reference method settings'
 
 field.dynamic_entity_reference.value:
   type: sequence
diff --git a/src/Plugin/Field/FieldType/DynamicEntityReferenceItem.php b/src/Plugin/Field/FieldType/DynamicEntityReferenceItem.php
index ae014e8..437a3ec 100644
--- a/src/Plugin/Field/FieldType/DynamicEntityReferenceItem.php
+++ b/src/Plugin/Field/FieldType/DynamicEntityReferenceItem.php
@@ -1,4 +1,5 @@
 <?php
+
 /**
  * @file
  * Contains \Drupal\dynamic_entity_reference\Plugin\Field\FieldType\DynamicEntityReferenceItem.
@@ -6,7 +7,9 @@
 
 namespace Drupal\dynamic_entity_reference\Plugin\Field\FieldType;
 
+use Drupal\Core\Config\Entity\ConfigEntityType;
 use Drupal\Core\Entity\EntityTypeInterface;
+use Drupal\Core\Field\FieldDefinitionInterface;
 use Drupal\Core\Field\FieldStorageDefinitionInterface;
 use Drupal\Core\Form\FormStateInterface;
 use Drupal\Core\TypedData\DataDefinition;
@@ -39,16 +42,14 @@ class DynamicEntityReferenceItem extends ConfigurableEntityReferenceItem {
     return array(
       'exclude_entity_types' => TRUE,
       'entity_type_ids' => array(),
-    ) + parent::defaultStorageSettings();
+    );
   }
 
   /**
    * {@inheritdoc}
    */
   public static function defaultFieldSettings() {
-    return array(
-      'handler' => 'default',
-    ) + parent::defaultFieldSettings();
+    return array();
   }
 
   /**
@@ -126,7 +127,6 @@ class DynamicEntityReferenceItem extends ConfigurableEntityReferenceItem {
 
   /**
    * {@inheritdoc}
-   * @todo update
    */
   public function storageSettingsForm(array &$form, FormStateInterface $form_state, $has_data) {
     // @todo inject this.
@@ -155,7 +155,26 @@ class DynamicEntityReferenceItem extends ConfigurableEntityReferenceItem {
    * {@inheritdoc}
    */
   public function fieldSettingsForm(array $form, FormStateInterface $form_state) {
-    return array();
+
+    $settings_form = array();
+    $field = $form_state->get('field');
+    $settings = $this->getSettings();
+    $entity_type_ids = $this->getAllEntityTypeIds($settings);
+    foreach (array_keys($entity_type_ids) as $entity_type_id) {
+      $settings += array(
+        $entity_type_id => array(
+          'handler' => 'default',
+          'handler_settings' => array(),
+        ),
+      );
+      // We put the dummy value here so selection plugins can work.
+      $field->settings['target_type'] = $entity_type_id;
+      $field->settings['handler'] = $settings[$entity_type_id]['handler'];
+      $field->settings['handler_settings'] = $settings[$entity_type_id]['handler_settings'];
+      $settings_form[$entity_type_id] = parent::fieldSettingsForm($form, $form_state);
+      $settings_form[$entity_type_id]['handler']['#title'] = t('Reference type for @entity_type_id', array('@entity_type_id' => $entity_type_ids[$entity_type_id]));
+    }
+    return $settings_form;
   }
 
   /**
@@ -165,11 +184,18 @@ class DynamicEntityReferenceItem extends ConfigurableEntityReferenceItem {
    *   The form where the settings form is being included in.
    * @param \Drupal\Core\Form\FormStateInterface $form_state
    *   The form state of the (entire) configuration form.
-   * @todo update
    */
   public static function fieldSettingsFormValidate(array $form, FormStateInterface $form_state) {
     if ($form_state->hasValue('field')) {
-      $form_state->unsetValue(array('field', 'settings', 'handler_submit'));
+      $settings = $form_state->getValue(array('field', 'settings'));
+      foreach (array_keys($settings) as $entity_typ_id) {
+        $form_state->unsetValue(array(
+          'field',
+          'settings',
+          $entity_typ_id,
+          'handler_submit',
+        ));
+      }
       $form_state->get('field')->settings = $form_state->getValue(array('field', 'settings'));
     }
   }
@@ -200,4 +226,65 @@ class DynamicEntityReferenceItem extends ConfigurableEntityReferenceItem {
     return $this->values;
   }
 
+  /**
+   * {@inheritdoc}
+   */
+  public function preSave() {
+    if ($this->hasNewEntity()) {
+      $this->entity->save();
+    }
+    // Handle the case where an unsaved entity was directly set using the public
+    // 'entity' property and then saved before this entity. In this case
+    // ::hasNewEntity() will return FALSE but $this->target_id and
+    // $this->target_type will still be empty.
+    if (empty($this->target_id) && $this->entity) {
+      $this->target_type = $this->entity->getEntityTypeId();
+      $this->target_id = $this->entity->id();
+    }
+  }
+
+  /**
+   * Helper function to get all the entity type ids that can be referenced.
+   *
+   * @return string[]
+   *   All the entity type ids that can be referenced.
+   */
+  protected static function getAllEntityTypeIds($settings) {
+    $labels = \Drupal::entityManager()->getEntityTypeLabels(TRUE);
+    $options = $labels['Content'];
+
+    if ($settings['exclude_entity_types']) {
+      $entity_type_ids = array_diff_key($options, $settings['entity_type_ids'] ?: array());
+    }
+    else {
+      $entity_type_ids = array_intersect_key($options, $settings['entity_type_ids'] ?: array());
+    }
+    return $entity_type_ids;
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  public static function calculateDependencies(FieldDefinitionInterface $field_definition) {
+    $dependencies = [];
+
+    if (is_array($field_definition->default_value) && count($field_definition->default_value)) {
+      $target_entity_types = static::getAllEntityTypeIds($field_definition->getFieldStorageDefinition()->getSettings());
+      foreach ($target_entity_types as $target_entity_type) {
+        $key = $target_entity_type instanceof ConfigEntityType ? 'config' : 'content';
+        foreach ($field_definition->default_value as $default_value) {
+          if (is_array($default_value) && isset($default_value['target_uuid'])) {
+            $entity = \Drupal::entityManager()->loadEntityByUuid($target_entity_type->id(), $default_value['target_uuid']);
+            // If the entity does not exist do not create the dependency.
+            // @see \Drupal\Core\Field\EntityReferenceFieldItemList::processDefaultValue()
+            if ($entity) {
+              $dependencies[$key][] = $entity->getConfigDependencyName();
+            }
+          }
+        }
+      }
+    }
+    return $dependencies;
+  }
+
 }
diff --git a/src/Plugin/Field/FieldWidget/DynamicEntityReferenceWidget.php b/src/Plugin/Field/FieldWidget/DynamicEntityReferenceWidget.php
index c197546..a3f3ce0 100644
--- a/src/Plugin/Field/FieldWidget/DynamicEntityReferenceWidget.php
+++ b/src/Plugin/Field/FieldWidget/DynamicEntityReferenceWidget.php
@@ -108,8 +108,10 @@ class DynamicEntityReferenceWidget extends AutocompleteWidget {
    * Checks whether a content entity is referenced.
    *
    * @param string $target_type
-   *   The value target entity type
+   *   The value target entity type.
+   *
    * @return bool
+   *   TRUE if a content entity is referenced.
    */
   protected function isContentReferenced($target_type = NULL) {
     $target_type_info = \Drupal::entityManager()->getDefinition($target_type);
@@ -125,10 +127,17 @@ class DynamicEntityReferenceWidget extends AutocompleteWidget {
     if (!empty($element['#value'])) {
       // If this is the default value of the field.
       if ($form_state->hasValue('default_value_input')) {
-        $values = $form_state->getValue(array('default_value_input', $element['#field_name'], $element['#delta']));
+        $values = $form_state->getValue(array(
+          'default_value_input',
+          $element['#field_name'],
+          $element['#delta'],
+        ));
       }
       else {
-        $values = $form_state->getValue(array($element['#field_name'], $element['#delta']));
+        $values = $form_state->getValue(array(
+          $element['#field_name'],
+          $element['#delta'],
+        ));
       }
       // Take "label (entity id)', match the id from parenthesis.
       if ($this->isContentReferenced($values['target_type']) && preg_match("/.+\((\d+)\)/", $element['#value'], $matches)) {
@@ -137,10 +146,27 @@ class DynamicEntityReferenceWidget extends AutocompleteWidget {
       elseif (preg_match("/.+\(([\w.]+)\)/", $element['#value'], $matches)) {
         $value = $matches[1];
       }
-      if (!$value) {
+      $auto_create = $this->getHandlerSetting('auto_create', $values['target_type']);
+      if ($value === NULL) {
         // Try to get a match from the input string when the user didn't use the
         // autocomplete but filled in a value manually.
-        $value = $this->validateAutocompleteInput($values['target_type'], $element['#value'], $element, $form_state, $form);
+        $this->fakeFieldSettings($values['target_type']);
+        /** @var \Drupal\entity_reference\Plugin\Type\Selection\SelectionInterface $handler */
+        $handler = \Drupal::service('plugin.manager.entity_reference.selection')->getSelectionHandler($this->fieldDefinition);
+        $value = $handler->validateAutocompleteInput($element['#value'], $element, $form_state, $form, !$auto_create);
+      }
+      if (!$value && $auto_create && (count($this->getHandlerSetting('target_bundles', $values['target_type'])) == 1)) {
+        // Auto-create item. See
+        // \Drupal\Core\Field\Plugin\Field\FieldType\EntityReferenceItem::presave().
+        $value = array(
+          'target_id' => NULL,
+          'entity' => $this->createNewEntity($element['#value'], $element['#autocreate_uid']),
+          // Keep the weight property.
+          '_weight' => $element['#weight'],
+        );
+        // Change the element['#parents'], so in form_set_value() we
+        // populate the correct key.
+        array_pop($element['#parents']);
       }
 
     }
@@ -148,55 +174,32 @@ class DynamicEntityReferenceWidget extends AutocompleteWidget {
   }
 
   /**
-   * {@inheritdoc}
+   * Sets the fake field settings values.
+   *
+   * @param string $entity_type_id
+   *   The id of the entity type.
    */
-  public function validateAutocompleteInput($target_type, $input, &$element, FormStateInterface $form_state, $form) {
-    // @todo Make this a service.
-    $controller = new DynamicEntityReferenceController(\Drupal::service('entity.query'));
-    $bundled_entities = $controller->getReferenceableEntities($target_type, $input, '=', 6);
-    $params = array(
-      '%value' => $input,
-      '@value' => $input,
-    );
-    $entities = array();
-    foreach ($bundled_entities as $entities_list) {
-      $entities += $entities_list;
-    }
-    if (empty($entities)) {
-      // Error if there are no entities available for a required field.
-      $form_state->setError($element, t('There are no entities matching "%value".', $params));
-    }
-    elseif (count($entities) > 5) {
-      $params['@id'] = key($entities);
-      // Error if there are more than 5 matching entities.
-      $form_state->setError($element, t('Many entities are called %value. Specify the one you want by appending the id in parentheses, like "@value (@id)".', $params));
-    }
-    elseif (count($entities) > 1) {
-      // More helpful error if there are only a few matching entities.
-      $multiples = array();
-      foreach ($entities as $id => $name) {
-        $multiples[] = $name . ' (' . $id . ')';
-      }
-      $params['@id'] = $id;
-      $params['%multiple'] = implode('", "', $multiples);
-      $form_state->setError($element, t('Multiple entities match this reference; "%multiple". Specify the one you want by appending the id in parentheses, like "@value (@id)".', $params));
-    }
-    else {
-      // Take the one and only matching entity.
-      return key($entities);
-    }
+  protected function fakeFieldSettings($entity_type_id) {
+    $settings = $this->getFieldSettings();
+    $this->fieldDefinition->settings['target_type'] = $entity_type_id;
+    $this->fieldDefinition->settings['handler'] = $settings[$entity_type_id]['handler'];
+    $this->fieldDefinition->settings['handler_settings'] = $settings[$entity_type_id]['handler_settings'];
   }
 
   /**
-   * {@inheritdoc}
+   * Returns the value of a setting for the entity reference selection handler.
+   *
+   * @param string $setting_name
+   *   The setting name.
+   * @param string $entity_type_id
+   *   The id of the entity type.
+   *
+   * @return mixed
+   *   The setting value.
    */
-  protected function getEntityType(FieldItemListInterface $items, $delta) {
-    // The autocomplete widget outputs one entity label per form element.
-    if (isset($items[$delta])) {
-      return $items[$delta]->target_type;
-    }
-
-    return FALSE;
+  protected function getHandlerSetting($setting_name, $entity_type_id) {
+    $settings = $this->getFieldSettings();
+    return isset($settings[$entity_type_id]['handler_settings'][$setting_name]) ? $settings[$entity_type_id]['handler_settings'][$setting_name] : NULL;
   }
 
 }
diff --git a/src/Tests/DynamicEntityReferenceSchemaTest.php b/src/Tests/DynamicEntityReferenceSchemaTest.php
index 3fa73b1..221b72f 100644
--- a/src/Tests/DynamicEntityReferenceSchemaTest.php
+++ b/src/Tests/DynamicEntityReferenceSchemaTest.php
@@ -60,7 +60,20 @@ class DynamicEntityReferenceSchemaTest extends EntityUnitTestBase {
       'entity_type' => 'entity_test',
       'field_name' => 'field_test',
       'bundle' => 'entity_test',
-      'settings' => array(),
+      'settings' => array(
+        'entity_test' => array(
+          'handler' => 'default',
+          'handler_settings' => array(
+            'target_bundles' => array(
+              'entity_test' => 'entity_test',
+            ),
+            'sort' => array(
+              'field' => '_none',
+            ),
+            'auto_create' => FALSE,
+          ),
+        ),
+      ),
     ));
     $entity_storage= \Drupal::entityManager()->getStorage('entity_test');
     $referenced_entity = $entity_storage->create(array());
diff --git a/src/Tests/DynamicEntityReferenceTest.php b/src/Tests/DynamicEntityReferenceTest.php
index 37a96a6..83b0401 100644
--- a/src/Tests/DynamicEntityReferenceTest.php
+++ b/src/Tests/DynamicEntityReferenceTest.php
@@ -78,7 +78,25 @@ class DynamicEntityReferenceTest extends WebTestBase {
     $this->assertFieldByName('default_value_input[field_foobar][0][target_type]');
     $this->assertFieldByXPath(CssSelector::toXPath('select[name="default_value_input[field_foobar][0][target_type]"] > option[value=entity_test]'), 'entity_test');
     $this->assertNoFieldByXPath(CssSelector::toXPath('select[name="default_value_input[field_foobar][0][target_type]"] > option[value=user]'), 'user');
-    $this->drupalPostForm(NULL, array(), t('Save settings'));
+    $edit = array(
+      'field[settings][entity_test_label][handler_settings][target_bundles][entity_test_label]' => TRUE,
+      'field[settings][entity_test_no_id][handler_settings][target_bundles][entity_test_no_id]' => TRUE,
+      'field[settings][entity_test_no_label][handler_settings][target_bundles][entity_test_no_label]' => TRUE,
+      'field[settings][entity_test_label_callback][handler_settings][target_bundles][entity_test_label_callback]' => TRUE,
+      'field[settings][entity_test][handler_settings][target_bundles][entity_test]' => TRUE,
+      'field[settings][entity_test_base_field_display][handler_settings][target_bundles][entity_test_base_field_display]' => TRUE,
+      'field[settings][entity_test_mul][handler_settings][target_bundles][entity_test_mul]' => TRUE,
+      'field[settings][entity_test_rev][handler_settings][target_bundles][entity_test_rev]' => TRUE,
+      'field[settings][entity_test_mulrev][handler_settings][target_bundles][entity_test_mulrev]' => TRUE,
+      'field[settings][entity_test_constraint_violation][handler_settings][target_bundles][entity_test_constraint_violation]' => TRUE,
+      'field[settings][entity_test_field_override][handler_settings][target_bundles][entity_test_field_override]' => TRUE,
+      'field[settings][entity_test_default_value][handler_settings][target_bundles][entity_test_default_value]' => TRUE,
+      'field[settings][entity_test_update][handler_settings][target_bundles][entity_test_update]' => TRUE,
+      'field[settings][entity_test_default_access][handler_settings][target_bundles][entity_test_default_access]' => TRUE,
+      'field[settings][entity_test_cache][handler_settings][target_bundles][entity_test_cache]' => TRUE,
+      'field[settings][entity_test_string_id][handler_settings][target_bundles][entity_test_string_id]' => TRUE,
+    );
+    $this->drupalPostForm(NULL, $edit, t('Save settings'));
     $this->assertRaw(t('Saved %name configuration', array('%name' => 'Foobar')));
     $excluded_entity_type_ids = FieldStorageConfig::loadByName('entity_test', 'field_foobar')
       ->getSetting('entity_type_ids');
@@ -130,7 +148,25 @@ class DynamicEntityReferenceTest extends WebTestBase {
       'field_storage[cardinality]' => '-1',
     ), t('Save field settings'));
 
-    $this->drupalPostForm(NULL, array(), t('Save settings'));
+    $edit = array(
+      'field[settings][entity_test_label][handler_settings][target_bundles][entity_test_label]' => TRUE,
+      'field[settings][entity_test_no_id][handler_settings][target_bundles][entity_test_no_id]' => TRUE,
+      'field[settings][entity_test_no_label][handler_settings][target_bundles][entity_test_no_label]' => TRUE,
+      'field[settings][entity_test_label_callback][handler_settings][target_bundles][entity_test_label_callback]' => TRUE,
+      'field[settings][entity_test][handler_settings][target_bundles][entity_test]' => TRUE,
+      'field[settings][entity_test_base_field_display][handler_settings][target_bundles][entity_test_base_field_display]' => TRUE,
+      'field[settings][entity_test_mul][handler_settings][target_bundles][entity_test_mul]' => TRUE,
+      'field[settings][entity_test_rev][handler_settings][target_bundles][entity_test_rev]' => TRUE,
+      'field[settings][entity_test_mulrev][handler_settings][target_bundles][entity_test_mulrev]' => TRUE,
+      'field[settings][entity_test_constraint_violation][handler_settings][target_bundles][entity_test_constraint_violation]' => TRUE,
+      'field[settings][entity_test_field_override][handler_settings][target_bundles][entity_test_field_override]' => TRUE,
+      'field[settings][entity_test_default_value][handler_settings][target_bundles][entity_test_default_value]' => TRUE,
+      'field[settings][entity_test_update][handler_settings][target_bundles][entity_test_update]' => TRUE,
+      'field[settings][entity_test_default_access][handler_settings][target_bundles][entity_test_default_access]' => TRUE,
+      'field[settings][entity_test_cache][handler_settings][target_bundles][entity_test_cache]' => TRUE,
+      'field[settings][entity_test_string_id][handler_settings][target_bundles][entity_test_string_id]' => TRUE,
+    );
+    $this->drupalPostForm(NULL, $edit, t('Save settings'));
     $this->assertRaw(t('Saved %name configuration', array('%name' => 'Foobar')));
 
     // Create some items to reference.