diff --git a/core/modules/field/field.install b/core/modules/field/field.install
index 1860ad8..103f7cd 100644
--- a/core/modules/field/field.install
+++ b/core/modules/field/field.install
@@ -68,3 +68,39 @@ function field_update_8002() {
     }
   }
 }
+
+/**
+ * Populate the new 'auto_create_bundle' setting for entity reference fields.
+ */
+function field_update_8003() {
+  $config = \Drupal::configFactory();
+  /** @var \Drupal\Core\Field\FieldTypePluginManager $field_type_manager */
+  $field_type_manager = \Drupal::service('plugin.manager.field.field_type');
+
+  // Iterate on all fields.
+  foreach ($config->listAll('field.field.') as $field_id) {
+    $field = $config->getEditable($field_id);
+    $class = $field_type_manager->getPluginClass($field->get('field_type'));
+
+    // Deal only with entity reference fields and descendants.
+    if ($class == EntityReferenceItem::class || is_subclass_of($class, EntityReferenceItem::class)) {
+      $handler_settings = $field->get('settings.handler_settings');
+
+      if (isset($handler_settings['auto_create']) && $handler_settings['auto_create']) {
+        // If the field can reference multiple bundles, pick the first one
+        // available in order to replicate the previous behavior.
+        if (is_array($handler_settings['target_bundles']) && count($handler_settings['target_bundles']) > 1) {
+          $handler_settings['auto_create_bundle'] = reset($handler_settings['target_bundles']);
+        }
+        // Otherwise, we don't know which bundle to use for auto-creation so we
+        // have to disable the functionality completely.
+        elseif (!$handler_settings['target_bundles']) {
+          $handler_settings['auto_create'] = FALSE;
+          $handler_settings['auto_create_bundle'] = NULL;
+        }
+      }
+
+      $field->set('settings.handler_settings', $handler_settings)->save(TRUE);
+    }
+  }
+}
diff --git a/core/modules/field/src/Tests/Update/FieldUpdateTest.php b/core/modules/field/src/Tests/Update/FieldUpdateTest.php
index 65ca720..d555f47 100644
--- a/core/modules/field/src/Tests/Update/FieldUpdateTest.php
+++ b/core/modules/field/src/Tests/Update/FieldUpdateTest.php
@@ -112,6 +112,26 @@ public function testFieldUpdate8002() {
   }
 
   /**
+   * Tests field_update_8003().
+   *
+   * @see field_update_8003()
+   */
+  public function testFieldUpdate8003() {
+    // Run updates.
+    $this->runUpdates();
+
+    // Check that the new 'auto_create_bundle' setting is populated correctly.
+    $field = $this->configFactory->get('field.field.node.article.field_ref_autocreate_2412569');
+    $handler_settings = $field->get('settings.handler_settings');
+
+    $expected_target_bundles = ['tags' => 'tags', 'test' => 'test'];
+    $this->assertEqual($handler_settings['target_bundles'], $expected_target_bundles);
+
+    $this->assertTrue($handler_settings['auto_create']);
+    $this->assertEqual($handler_settings['auto_create_bundle'], 'tags');
+  }
+
+  /**
    * Asserts that a config depends on 'entity_reference' or not
    *
    * @param \Drupal\Core\Config\Config $config
diff --git a/core/modules/field/tests/fixtures/update/drupal-8.views_entity_reference_plugins-2429191.php b/core/modules/field/tests/fixtures/update/drupal-8.views_entity_reference_plugins-2429191.php
index 90f395b..ca7c51a 100644
--- a/core/modules/field/tests/fixtures/update/drupal-8.views_entity_reference_plugins-2429191.php
+++ b/core/modules/field/tests/fixtures/update/drupal-8.views_entity_reference_plugins-2429191.php
@@ -26,8 +26,14 @@
   ])
   ->execute();
 
-// Configuration for an entity_reference field storage.
-$config = Yaml::decode(file_get_contents(__DIR__ . '/field.storage.node.field_ref_views_select_2429191.yml'));
+// Configuration for an entity_reference field storage using the View for
+// selection.
+$field_ref_views_select_2429191 = Yaml::decode(file_get_contents(__DIR__ . '/field.storage.node.field_ref_views_select_2429191.yml'));
+
+// Configuration for an entity_reference field storage using the auto-create
+// feature.
+$field_ref_autocreate_2412569 = Yaml::decode(file_get_contents(__DIR__ . '/field.storage.node.field_ref_autocreate_2412569.yml'));
+
 $connection->insert('config')
   ->fields([
     'collection',
@@ -36,8 +42,13 @@
   ])
   ->values([
     'collection' => '',
-    'name' => 'field.storage.' . $config['id'],
-    'data' => serialize($config),
+    'name' => 'field.storage.' . $field_ref_views_select_2429191['id'],
+    'data' => serialize($field_ref_views_select_2429191),
+  ])
+  ->values([
+    'collection' => '',
+    'name' => 'field.storage.' . $field_ref_autocreate_2412569['id'],
+    'data' => serialize($field_ref_autocreate_2412569),
   ])
   ->execute();
 // We need to Update the registry of "last installed" field definitions.
@@ -48,7 +59,8 @@
   ->execute()
   ->fetchField();
 $installed = unserialize($installed);
-$installed['field_ref_views_select_2429191'] = new \Drupal\field\Entity\FieldStorageConfig($config);
+$installed['field_ref_views_select_2429191'] = new \Drupal\field\Entity\FieldStorageConfig($field_ref_views_select_2429191);
+$installed['field_ref_autocreate_2412569'] = new \Drupal\field\Entity\FieldStorageConfig($field_ref_autocreate_2412569);
 $connection->update('key_value')
   ->condition('collection', 'entity.definitions.installed')
   ->condition('name', 'node.field_storage_definitions')
@@ -58,7 +70,11 @@
   ->execute();
 
 // Configuration for an entity_reference field using the View for selection.
-$config = Yaml::decode(file_get_contents(__DIR__ . '/field.field.node.article.field_ref_views_select_2429191.yml'));
+$field_ref_views_select_2429191 = Yaml::decode(file_get_contents(__DIR__ . '/field.field.node.article.field_ref_views_select_2429191.yml'));
+
+// Configuration for an entity_reference field using the auto-create feature.
+$field_ref_autocreate_2412569 = Yaml::decode(file_get_contents(__DIR__ . '/field.field.node.article.field_ref_autocreate_2412569.yml'));
+
 $connection->insert('config')
   ->fields([
     'collection',
@@ -67,7 +83,12 @@
   ])
   ->values([
     'collection' => '',
-    'name' => 'field.field.' . $config['id'],
-    'data' => serialize($config),
+    'name' => 'field.field.' . $field_ref_views_select_2429191['id'],
+    'data' => serialize($field_ref_views_select_2429191),
+  ])
+  ->values([
+    'collection' => '',
+    'name' => 'field.field.' . $field_ref_autocreate_2412569['id'],
+    'data' => serialize($field_ref_autocreate_2412569),
   ])
   ->execute();
diff --git a/core/modules/field/tests/fixtures/update/field.field.node.article.field_ref_autocreate_2412569.yml b/core/modules/field/tests/fixtures/update/field.field.node.article.field_ref_autocreate_2412569.yml
new file mode 100644
index 0000000..2606bf6
--- /dev/null
+++ b/core/modules/field/tests/fixtures/update/field.field.node.article.field_ref_autocreate_2412569.yml
@@ -0,0 +1,29 @@
+uuid: d6deba8d-073a-4572-a000-ee2a2de94de2
+langcode: en
+status: true
+dependencies:
+  config:
+    - field.storage.node.field_ref_autocreate_2412569
+    - node.type.article
+    - taxonomy.vocabulary.tags
+    - taxonomy.vocabulary.test
+id: node.article.field_ref_autocreate_2412569
+field_name: field_ref_autocreate_2412569
+entity_type: node
+bundle: article
+label: 'Ref Autocreate 2412569'
+description: ''
+required: false
+translatable: false
+default_value: {  }
+default_value_callback: ''
+settings:
+  handler: 'default:taxonomy_term'
+  handler_settings:
+    target_bundles:
+      tags: tags
+      test: test
+    sort:
+      field: _none
+    auto_create: true
+field_type: entity_reference
diff --git a/core/modules/field/tests/fixtures/update/field.storage.node.field_ref_autocreate_2412569.yml b/core/modules/field/tests/fixtures/update/field.storage.node.field_ref_autocreate_2412569.yml
new file mode 100644
index 0000000..19e4a6a
--- /dev/null
+++ b/core/modules/field/tests/fixtures/update/field.storage.node.field_ref_autocreate_2412569.yml
@@ -0,0 +1,20 @@
+uuid: 5e4095a3-8f89-4d7a-b222-34bf5240b646
+langcode: en
+status: true
+dependencies:
+  module:
+    - node
+    - taxonomy
+id: node.field_ref_autocreate_2412569
+field_name: field_ref_autocreate_2412569
+entity_type: node
+type: entity_reference
+settings:
+  target_type: taxonomy_term
+module: core
+locked: false
+cardinality: 1
+translatable: true
+indexes: {  }
+persist_with_no_fields: false
+custom_storage: false