diff --git a/src/Plugin/Block/EntityField.php b/src/Plugin/Block/EntityField.php
index 60007ce..346142a 100644
--- a/src/Plugin/Block/EntityField.php
+++ b/src/Plugin/Block/EntityField.php
@@ -7,6 +7,7 @@
 
 namespace Drupal\ctools\Plugin\Block;
 
+use Drupal\Component\Utility\NestedArray;
 use Drupal\Core\Block\BlockBase;
 use Drupal\Core\Cache\CacheableMetadata;
 use Drupal\Core\Entity\EntityManagerInterface;
@@ -73,11 +74,18 @@ class EntityField extends BlockBase implements ContextAwarePluginInterface, Cont
   /**
    * The field definition.
    *
-   * @var \Drupal\Core\Field\FieldStorageDefinitionInterface
+   * @var \Drupal\Core\Field\FieldDefinitionInterface
    */
   protected $fieldDefinition;
 
   /**
+   * The field definition.
+   *
+   * @var \Drupal\Core\Field\FieldStorageDefinitionInterface
+   */
+  protected $fieldStorageDefinition;
+
+  /**
    * Constructs a new EntityField.
    *
    * @param array $configuration
@@ -121,15 +129,30 @@ class EntityField extends BlockBase implements ContextAwarePluginInterface, Cont
    *
    * @return \Drupal\Core\Field\FieldStorageDefinitionInterface
    */
-  protected function getFieldStorageDefinition() {
+  protected function getFieldDefinition() {
     if (empty($this->fieldDefinition)) {
-      $field_definitions = $this->entityManager->getFieldStorageDefinitions($this->entityTypeId);
+      $field_map = $this->entityManager->getFieldMap();
+      $bundle = reset($field_map[$this->entityTypeId][$this->fieldName]['bundles']);
+      $field_definitions = $this->entityManager->getFieldDefinitions($this->entityTypeId, $bundle);
       $this->fieldDefinition = $field_definitions[$this->fieldName];
     }
     return $this->fieldDefinition;
   }
 
   /**
+   * Get the field storage definition.
+   *
+   * @return \Drupal\Core\Field\FieldStorageDefinitionInterface
+   */
+  protected function getFieldStorageDefinition() {
+    if (empty($this->fieldStorageDefinition)) {
+      $field_definitions = $this->entityManager->getFieldStorageDefinitions($this->entityTypeId);
+      $this->fieldStorageDefinition = $field_definitions[$this->fieldName];
+    }
+    return $this->fieldStorageDefinition;
+  }
+
+  /**
    * Get field type.
    *
    * @return array
@@ -150,6 +173,32 @@ class EntityField extends BlockBase implements ContextAwarePluginInterface, Cont
   }
 
   /**
+   * Get the formatter object.
+   *
+   * @param string $type
+   *   The formatter name.
+   * @param string $label
+   *   The label option for the formatter.
+   * @param array $settings
+   *   The formatter settings.
+   * @param array $third_party_settings
+   *   The formatter third party settings.
+   *
+   * @return \Drupal\Core\Field\FormatterInterface
+   *   The formatter object.
+   */
+  protected function getFormatter($type, $label, array $settings, array $third_party_settings) {
+     return $this->formatterManager->createInstance($type, [
+      'field_definition' => $this->getFieldDefinition(),
+      'view_mode' => 'default',
+      'prepare' => TRUE,
+      'label' => $label,
+      'settings' => $settings,
+      'third_party_settings' => $third_party_settings,
+    ]);
+  }
+
+  /**
    * {@inheritdoc}
    */
   public function defaultConfiguration() {
@@ -159,6 +208,7 @@ class EntityField extends BlockBase implements ContextAwarePluginInterface, Cont
         'label' => 'above',
         'type' => $field_type_definition['default_formatter'] ?: '',
         'settings' => [],
+        'third_party_settings' => [],
         'weight' => 0.0,
       ],
     ];
@@ -187,20 +237,74 @@ class EntityField extends BlockBase implements ContextAwarePluginInterface, Cont
       '#title' => $this->t('Formatter'),
       '#options' => $this->getFormatterOptions(),
       '#default_value' => $form_state->getValue('formatter_type') ?: $config['formatter']['type'],
+      '#ajax' => array(
+        'callback' => array(get_class($this), 'formatterSettingsAjaxCallback'),
+        'wrapper' => 'formatter-settings-wrapper',
+        'effect' => 'fade',
+      ),
     ];
 
-    // @todo: use AJAX to provide the settings form.
+    // Add the formatter settings to the form via AJAX.
+    $form['#process'][] = array($this, 'layoutSettingsProcessCallback');
+    $form['formatter_settings_wrapper'] = array(
+      '#prefix' => '<div id="formatter-settings-wrapper">',
+      '#suffix' => '</div>',
+    );
+    $form['formatter_settings_wrapper']['formatter_settings'] = array(
+      '#tree' => TRUE,
+      // The settings from the formatter plugin will be added in the
+      // ::formatterSettingsProcessCallback method.
+    );
 
     return $form;
   }
 
   /**
+   * Render API callback: builds the layout settings elements.
+   */
+  public function layoutSettingsProcessCallback(array &$element, FormStateInterface $form_state, array &$complete_form) {
+    $config = $this->getConfiguration();
+    $parents_base = $element['#parents'];
+    $formatter_parent = array_merge($parents_base, ['formatter_type']);
+    $formatter_settings_parent = array_merge($parents_base, ['formatter_settings']);
+
+    $settings_element =& $element['formatter_settings_wrapper']['formatter_settings'];
+
+    // Set the #parents on the formatter_settings so they end up as a peer to
+    // formatter_type.
+    $settings_element['#parents'] = $formatter_settings_parent;
+
+    // Get the formatter name in a way that works regardless of whether we're
+    // getting the value via AJAX or not.
+    $formatter_name = NestedArray::getValue($form_state->getUserInput(), $formatter_parent) ?: $element['formatter_type']['#default_value'];
+
+    // Place the formatter settings on the form if a formatter is selected.
+    $formatter = $this->getFormatter($formatter_name, $form_state->getValue('formatter_label'), $form_state->getValue($formatter_settings_parent, $config['formatter']['settings']), $config['formatter']['third_party_settings']);
+    $settings_element = array_merge($formatter->settingsForm($settings_element, $form_state), $settings_element);
+
+    // Store the array parents for our element so that we can use it to pull out
+    // the formatter settings in our AJAX callback.
+    $complete_form['#formatter_array_parents'] = $element['#array_parents'];
+
+    return $element;
+  }
+
+  /**
+   * Render API callback: gets the layout settings elements.
+   */
+  public static function formatterSettingsAjaxCallback(array $form, FormStateInterface $form_state) {
+    $formatter_array_parents = $form['#formatter_array_parents'];
+    return NestedArray::getValue($form, array_merge($formatter_array_parents, ['formatter_settings_wrapper']));
+  }
+
+  /**
    * {@inheritdoc}
    */
   public function blockSubmit($form, FormStateInterface $form_state) {
     $config = $this->getConfiguration();
     $config['formatter']['label'] = $form_state->getValue('formatter_label');
     $config['formatter']['type'] = $form_state->getValue('formatter_type');
+    $config['formatter']['settings'] = $form_state->getValue('formatter_settings');
     $this->setConfiguration($config);
   }
 
diff --git a/src/Plugin/Deriver/EntityFieldDeriver.php b/src/Plugin/Deriver/EntityFieldDeriver.php
index 675edea..7feac5d 100644
--- a/src/Plugin/Deriver/EntityFieldDeriver.php
+++ b/src/Plugin/Deriver/EntityFieldDeriver.php
@@ -77,7 +77,7 @@ class EntityFieldDeriver extends DeriverBase implements ContainerDeriverInterfac
         $derivative['category'] = $this->t('@entity fields', array('@entity' => $entity_type_labels[$entity_type_id]));
         $derivative['admin_label'] = $admin_label;
         $derivative['context'] = [
-          'entity' => new ContextDefinition('entity:' . $entity_type_id),
+          'entity' => new ContextDefinition('entity:' . $entity_type_id, $entity_type_labels[$entity_type_id], TRUE),
         ];
 
         $this->derivatives[$derivative_id] = $derivative;