diff --git a/addressfield.module b/addressfield.module
index b470c83..26b39d9 100644
--- a/addressfield.module
+++ b/addressfield.module
@@ -355,23 +355,18 @@ function addressfield_field_info() {
 /**
  * Returns an array of default values for the addressfield form elements.
  */
-function addressfield_default_values($available_countries = NULL, $optional_country = FALSE) {
-  if ($optional_country) {
-    $default_country = '';
+function addressfield_default_values($available_countries = NULL) {
+  if (!isset($available_countries)) {
+    $available_countries = _addressfield_country_options_list();
   }
-  else {
-    if (!isset($available_countries)) {
-      $available_countries = _addressfield_country_options_list();
-    }

-    // Use the default country of the site if possible.
-    $default_country = variable_get('site_default_country', NULL);
+  // Use the default country of the site if possible.
+  $default_country = variable_get('site_default_country', NULL);

-    // If the default country is undefined or not in the list of available countries,
-    // just fallback to the first country in the list.
-    if (!$default_country || !isset($available_countries[$default_country])) {
-      $default_country = key($available_countries);
-    }
+  // If the default country is undefined or not in the list of available countries,
+  // just fallback to the first country in the list.
+  if (!$default_country || !isset($available_countries[$default_country])) {
+    $default_country = key($available_countries);
   }

   return array(
@@ -396,7 +391,29 @@ function addressfield_default_values($available_countries = NULL, $optional_coun
  * Implements hook_field_is_empty().
  */
 function addressfield_field_is_empty($item, $field) {
+
+  // We need the field instance to check to see if country is optional and if
+  // default country is the same as the currently set country. In that case we
+  // consider the field to be empty.
+  // @TODO - it might be safer still to have a flag that says to count
+  // submissions with country-only as empty when there is a default country.
+  $default_country = $optional_country = FALSE;
+  if (isset($item['element_key'])) {
+    $instance_keys = explode('|', $item['element_key']);
+    list($entity_type, $bundle_name, $field_name) = $instance_keys;
+    $field_instance = field_info_instance($entity_type, $field_name, $bundle_name);
+    $optional_country = $field_instance['widget']['settings']['format_handlers']['optional-country'];
+    if (isset($field_instance['default_value'][0]['country'])) {
+      $default_country = $field_instance['default_value'][0]['country'];
+    }
+  }
+
+  // @TODO - $optional_country should be a boolean to match similar settings
   $ignore_item_keys = array('element_key', '_weight');
+  if ($optional_country && $default_country && $default_country == $item['country']) {
+    $ignore_item_keys[] = 'country';
+  }
+
   foreach ($item as $field_name => $field_value) {
     if (in_array($field_name, $ignore_item_keys)) {
       continue;
@@ -405,7 +422,6 @@ function addressfield_field_is_empty($item, $field) {
       return FALSE;
     }
   }
-
   return TRUE;
 }

@@ -577,13 +593,6 @@ function addressfield_standard_country_validate($element, &$form_state) {
   // Store the present address values in the form state for retrieval by the
   // widget form regardless of where the widget sits in the $form array.
   $form_state['addressfield'][$address['element_key']] = array_diff_key($address, array('element_key' => ''));
-
-  // Don't allow a default country if the optional country plugin is enabled.
-  if ($form_state['complete form']['#form_id'] == 'field_ui_field_edit_form') {
-    if (!empty($form_state['values']['instance']['widget']['settings']['format_handlers']['optional-country'])) {
-      $form_state['values'][key($form_state['field'])][LANGUAGE_NONE][0]['country'] = '';
-    }
-  }
 }

 /**