diff -u b/core/modules/field/tests/modules/field_test/field_test.module b/core/modules/field/tests/modules/field_test/field_test.module
--- b/core/modules/field/tests/modules/field_test/field_test.module
+++ b/core/modules/field/tests/modules/field_test/field_test.module
@@ -158,13 +158,14 @@
 /**
  * Implements hook_field_widget_third_party_settings_form().
  */
-function field_test_field_widget_third_party_settings_form($element, $form_state, $context) {
-  $third_party = $context['widget']->getSetting('third_party_settings');
-  $element['field_test_field_widget_third_party_settings_form'] = array(
+function field_test_field_widget_third_party_settings_form($plugin, \Drupal\Core\Field\FieldDefinitionInterface $field_definition, $form_mode, $form, $form_state) {
+  $third_party_settings = $plugin->getSetting('third_party_settings');
+  $element['field_test_widget_third_party_settings_form'] = array(
     '#type' => 'textfield',
     '#title' => t('3rd party widget settings form'),
-    '#default_value' => $third_party['field_test'],
+    '#default_value' => $third_party_settings['field_test'],
   );
+  return $element;
 }
 
 /**
@@ -178,12 +179,12 @@
 /**
  * Implements hook_field_formatter_third_party_settings_form().
  */
-function field_test_field_formatter_third_party_settings_form($element, $form_state, $context) {
-  $third_party = $context['formatter']->getSetting('third_party_settings');
+function field_test_field_formatter_third_party_settings_form($plugin, \Drupal\Core\Field\FieldDefinitionInterface $field_definition, $view_mode, $form, $form_state) {
+  $third_party_settings = $plugin->getSetting('third_party_settings');
   $element['field_test_field_formatter_third_party_settings_form'] = array(
     '#type' => 'textfield',
     '#title' => t('3rd party formatter settings form'),
-    '#default_value' => $third_party['field_test'],
+    '#default_value' => $third_party_settings['field_test'],
   );
   return $element;
 }
diff -u b/core/modules/field_ui/field_ui.api.php b/core/modules/field_ui/field_ui.api.php
--- b/core/modules/field_ui/field_ui.api.php
+++ b/core/modules/field_ui/field_ui.api.php
@@ -11,64 +11,68 @@
  */
 
 /**
- * Alters the formatter settings form.
+ * Allow modules to add settings to field formatters provided by other modules.
  *
- * @param $element
- *   Form array.
- * @param $form_state
- *   The form state of the (entire) configuration form.
- * @param $context
- *   An associative array with the following elements:
- *   - formatter: The formatter object.
- *   - field_definition: The field definition.
- *   - view_mode: The view mode being configured.
- *   - form: The (entire) configuration form array.
+ * @param object $plugin
+ *   The field formatter.
+ * @param \Drupal\Core\Field\FieldDefinitionInterface $field_definition
+ *   The field definition.
+ * @param $view_mode
+ *   The entity view mode.
+ * @param array $form
+ *   The The (entire) configuration form array.
+ * @param array $form_state
+ *   The form state.
  *
- *  @return array
- *    Returns the form array to be built.
+ * @return array
+ *   Returns the form array to be built.
  *
  * @see \Drupal\field_ui\DisplayOverView.
  */
-function hook_field_formatter_third_party_settings_form($element, $form_state, $context) {
-  // Add a 'mysetting' checkbox to the settings form for 'foo_formatter' field
+function hook_field_formatter_third_party_settings_form($plugin, \Drupal\Core\Field\FieldDefinitionInterface $field_definition, $view_mode, $form, $form_state) {
+  $element = array();
+  // Add a 'my_setting' checkbox to the settings form for 'foo_formatter' field
   // formatters.
-  if ($context['formatter']->getPluginId() == 'foo_formatter') {
-    $element['mysetting'] = array(
+  if ($plugin->getPluginId() == 'foo_formatter') {
+    $third_party_settings = $plugin->getSetting('third_party_settings');
+    $element['my_setting'] = array(
       '#type' => 'checkbox',
       '#title' => t('My setting'),
-      '#default_value' => $context['formatter']->getSetting('mysetting'),
+      '#default_value' => $third_party_settings['my_setting'],
     );
   }
   return $element;
 }
 
 /**
- * Alters the widget settings form.
+ * Allow modules to add settings to field widgets provided by other modules.
  *
- * @param array $element
- *   Form array.
+ * @param object $plugin
+ *   The field widget.
+ * @param \Drupal\Core\Field\FieldDefinitionInterface $field_definition
+ *   The field definition.
+ * @param $form_mode
+ *   The entity form mode.
+ * @param array $form
+ *   The The (entire) configuration form array.
  * @param array $form_state
- *   The form state of the (entire) configuration form.
- * @param array $context
- *   An associative array with the following elements:
- *   - widget: The widget object.
- *   - field_definition: The field definition.
- *   - form_mode: The form mode being configured.
- *   - form: The (entire) configuration form array.
+ *   The form state.
  *
- *  @return array
- *    Returns the form array to be built.
+ * @return array
+ *   Returns the form array to be built.
  *
  * @see \Drupal\field_ui\FormDisplayOverView.
  */
-function hook_field_widget_third_party_settings_form($element, $form_state, $context) {
-  // Add a 'mysetting' checkbox to the settings form for 'foo_widget' field
-  //  widgets.
-  if ($context['formatter'] == 'foo_widget') {
-    $element['mysetting'] = array(
+function hook_field_widget_third_party_settings_form($plugin, \Drupal\Core\Field\FieldDefinitionInterface $field_definition, $form_mode, $form, $form_state) {
+  $element = array();
+  // Add a 'my_setting' checkbox to the settings form for 'foo_widget' field
+  // widgets.
+  if ($plugin->getPluginId() == 'foo_widget') {
+    $third_party_settings = $plugin->getSetting('third_party_settings');
+    $element['my_setting'] = array(
       '#type' => 'checkbox',
       '#title' => t('My setting'),
-      '#default_value' => $context['widget']->getSetting('mysetting'),
+      '#default_value' => $third_party_settings['my_setting'],
     );
   }
   return $element;
@@ -91,7 +95,8 @@
   // Append a message to the summary when an instance of foo_formatter has
   // mysetting set to TRUE for the current view mode.
   if ($context['formatter']->getPluginId() == 'foo_formatter') {
-    if ($context['formatter']->getSetting('mysetting')) {
+    $third_party_settings = $plugin->getSetting('third_party_settings');
+    if (isset($third_party_settings['my_setting']) && $third_party_settings['my_setting']) {
       $summary[] = t('My setting enabled.');
     }
   }
@@ -112,9 +117,10 @@
  */
 function hook_field_widget_settings_summary_alter(&$summary, $context) {
   // Append a message to the summary when an instance of foo_widget has
-  // mysetting set to TRUE for the current form mode.
-  if ($context['widget'] == 'foo_widget') {
-    if ($context['widget']->getSetting('mysetting')) {
+  // mysetting set to TRUE for the current view mode.
+  if ($context['widget']->getPluginId() == 'foo_widget') {
+    $third_party_settings = $plugin->getSetting('third_party_settings');
+    if (isset($third_party_settings['my_setting']) && $third_party_settings['my_setting']) {
       $summary[] = t('My setting enabled.');
     }
   }
diff -u b/core/modules/field_ui/src/DisplayOverview.php b/core/modules/field_ui/src/DisplayOverview.php
--- b/core/modules/field_ui/src/DisplayOverview.php
+++ b/core/modules/field_ui/src/DisplayOverview.php
@@ -231,23 +231,17 @@
    * {@inheritdoc}
    */
   protected function alterSettingsForm(array &$settings_form, $plugin, FieldDefinitionInterface $field_definition, array $form, array &$form_state) {
-    $context = array(
-      'formatter' => $plugin,
-      'field_definition' => $field_definition,
-      'view_mode' => $this->mode,
-      'form' => $form,
-    );
     // Iterate through the modules calling their
     // field_formatter_third_party_settings_form handlers (if any):
-    $settings_form['third_party'] = array();
     foreach ($this->moduleHandler->getImplementations('field_formatter_third_party_settings_form') as $module) {
-      $third_party_settings = $this->moduleHandler->invoke($module, 'field_formatter_third_party_settings_form', array(
-        $settings_form,
+      // Index the settings form by module name.
+      $settings_form['third_party'][$module] = $this->moduleHandler->invoke($module, 'field_formatter_third_party_settings_form', array(
+        $plugin,
+        $field_definition,
+        $this->mode,
+        $form,
         $form_state,
-        $context,
       ));
-      // Index the settings form by module name.
-      $settings_form['third_party'][$module] = $third_party_settings;
     }
   }
 
diff -u b/core/modules/field_ui/src/DisplayOverviewBase.php b/core/modules/field_ui/src/DisplayOverviewBase.php
--- b/core/modules/field_ui/src/DisplayOverviewBase.php
+++ b/core/modules/field_ui/src/DisplayOverviewBase.php
@@ -350,12 +350,7 @@
         $settings_form = $plugin->settingsForm($form, $form_state);
         $additional_settings_form = array();
         $this->alterSettingsForm($additional_settings_form, $plugin, $field_definition, $form, $form_state);
-        if (!empty($additional_settings_form)) {
-          $settings_form['wrapper'] = array(
-            '#type' => 'container',
-          );
-          $settings_form['wrapper'] += $additional_settings_form;
-        }
+        $settings_form += $additional_settings_form;
 
         if ($settings_form) {
           $field_row['plugin']['#cell_attributes'] = array('colspan' => 3);
@@ -531,11 +526,8 @@
 
         // Only save settings actually used by the selected plugin.
         $default_settings = $this->pluginManager->getDefaultSettings($values['type']);
-        $third_party = !empty($settings['third_party_settings']) ? $settings['third_party_settings'] : array();
+        $third_party = !empty($settings['third_party']) ? $settings['third_party'] : array();
         $settings = array_intersect_key($settings, $default_settings);
-        if (!empty($third_party)) {
-          $settings['third_party_settings'] = $third_party;
-        }
 
         // Default component values.
         $component_values = array(
@@ -544,6 +536,11 @@
           'settings' => $settings
         );
 
+        // Add third party settings.
+        if (!empty($third_party)) {
+          $component_values['third_party_settings'] = $third_party;
+        }
+
         // Only formatters have configurable label visibility.
         if (isset($values['label'])) {
           $component_values['label'] = $values['label'];
diff -u b/core/modules/field_ui/src/FormDisplayOverview.php b/core/modules/field_ui/src/FormDisplayOverview.php
--- b/core/modules/field_ui/src/FormDisplayOverview.php
+++ b/core/modules/field_ui/src/FormDisplayOverview.php
@@ -183,23 +183,17 @@
    * {@inheritdoc}
    */
   protected function alterSettingsForm(array &$settings_form, $plugin, FieldDefinitionInterface $field_definition, array $form, array &$form_state) {
-    $context = array(
-      'widget' => $plugin,
-      'field_definition' => $field_definition,
-      'form_mode' => $this->mode,
-      'form' => $form,
-    );
     // Iterate through the modules calling their
-    // field_formatter_third_party_settings_form handlers (if any):
-    $settings_form['third_party'] = array();
+    // field_widget_third_party_settings_form handlers (if any):
     foreach ($this->moduleHandler->getImplementations('field_widget_third_party_settings_form') as $module) {
-      $third_party_settings = $this->moduleHandler->invoke($module, 'field_widget_third_party_settings_form', array(
-        $settings_form,
+      // Index the settings form by module name.
+      $settings_form['third_party'][$module] = $this->moduleHandler->invoke($module, 'field_widget_third_party_settings_form', array(
+        $plugin,
+        $field_definition,
+        $this->mode,
+        $form,
         $form_state,
-        $context,
       ));
-      // Index the settings form by module name.
-      $settings_form['third_party'][$module] = $third_party_settings;
     }
   }
 
diff -u b/core/modules/field_ui/src/Tests/ManageDisplayTest.php b/core/modules/field_ui/src/Tests/ManageDisplayTest.php
--- b/core/modules/field_ui/src/Tests/ManageDisplayTest.php
+++ b/core/modules/field_ui/src/Tests/ManageDisplayTest.php
@@ -101,12 +101,12 @@
 
     // Assert that the field added in
     // field_test_field_formatter_third_party_settings_form() is present.
-    $fieldname = 'fields[field_test][settings_edit_form][settings][wrapper][third_party][field_test][field_test_field_formatter_third_party_settings_form]';
+    $fieldname = 'fields[field_test][settings_edit_form][third_party][field_test][field_test_field_formatter_third_party_settings_form]';
     $this->assertField($fieldname, 'The field added in hook_field_formatter_third_party_settings_form() is present on the settings form.');
     $edit = array($fieldname => 'foo');
     $this->drupalPostAjaxForm(NULL, $edit, "field_test_plugin_settings_update");
 
-    // Confirm that the third_party_settings settings are not updated on the settings form.
+    // Confirm that the third party settings are not updated on the settings form.
     $this->drupalPostAjaxForm(NULL, array(), "field_test_settings_edit");
     $this->assertFieldByName($fieldname, '');
 
@@ -194,7 +194,7 @@
 
     // Assert that the field added in
     // field_test_field_widget_third_party_settings_form() is present.
-    $fieldname = 'fields[field_test][settings_edit_form][settings][wrapper][third_party][field_test][field_test_field_widget_third_party_settings_form]';
+    $fieldname = 'fields[field_test][settings_edit_form][third_party][field_test][field_test_field_widget_third_party_settings_form]';
     $this->assertField($fieldname, 'The field added in hook_field_widget_third_party_settings_form() is present on the settings form.');
     $edit = array($fieldname => 'foo');
     $this->drupalPostAjaxForm(NULL, $edit, "field_test_plugin_settings_update");
only in patch2:
unchanged:
--- a/core/modules/entity/src/EntityDisplayBase.php
+++ b/core/modules/entity/src/EntityDisplayBase.php
@@ -313,6 +313,12 @@ public function setComponent($name, array $options = array()) {
       $options = $this->pluginManager->prepareConfiguration($field_definition->getType(), $options);
     }
 
+    if (isset($options['third_party_settings'])) {
+      foreach (array_keys($options['third_party_settings']) as $module) {
+        $this->addDependency('module', $module);
+      }
+    }
+
     $this->content[$name] = $options;
     unset($this->hidden[$name]);
     unset($this->plugins[$name]);