diff --git a/modules/taxonomy/taxonomy.module b/modules/taxonomy/taxonomy.module
index fb443ed..7c11bcc 100644
--- a/modules/taxonomy/taxonomy.module
+++ b/modules/taxonomy/taxonomy.module
@@ -428,6 +428,7 @@ function taxonomy_vocabulary_save($vocabulary) {
 
   if (!empty($vocabulary->vid) && !empty($vocabulary->name)) {
     $status = drupal_write_record('taxonomy_vocabulary', $vocabulary, 'vid');
+    taxonomy_vocabulary_static_reset(array($vocabulary->vid));
     if ($vocabulary->old_machine_name != $vocabulary->machine_name) {
       field_attach_rename_bundle('taxonomy_term', $vocabulary->old_machine_name, $vocabulary->machine_name);
     }
@@ -436,6 +437,7 @@ function taxonomy_vocabulary_save($vocabulary) {
   }
   elseif (empty($vocabulary->vid)) {
     $status = drupal_write_record('taxonomy_vocabulary', $vocabulary);
+    taxonomy_vocabulary_static_reset();
     field_attach_create_bundle('taxonomy_term', $vocabulary->machine_name);
     module_invoke_all('taxonomy_vocabulary_insert', $vocabulary);
     module_invoke_all('entity_insert', $vocabulary, 'taxonomy_vocabulary');
@@ -443,7 +445,6 @@ function taxonomy_vocabulary_save($vocabulary) {
 
   unset($vocabulary->original);
   cache_clear_all();
-  taxonomy_vocabulary_static_reset(array($vocabulary->vid));
 
   return $status;
 }
diff --git a/modules/taxonomy/taxonomy.test b/modules/taxonomy/taxonomy.test
index eb13243..0a5bdf3 100644
--- a/modules/taxonomy/taxonomy.test
+++ b/modules/taxonomy/taxonomy.test
@@ -1290,10 +1290,16 @@ class TaxonomyTermFieldTestCase extends TaxonomyWebTestCase {
     );
     field_update_field($this->field);
     // Change the machine name.
+    $old_name = $this->vocabulary->machine_name;
     $new_name = drupal_strtolower($this->randomName());
     $this->vocabulary->machine_name = $new_name;
     taxonomy_vocabulary_save($this->vocabulary);
 
+    // Check that entity bundles are properly updated.
+    $info = entity_get_info('taxonomy_term');
+    $this->assertFalse(isset($info['bundles'][$old_name]), t('The old bundle name does not appear in entity_get_info().'));
+    $this->assertTrue(isset($info['bundles'][$new_name]), t('The new bundle name appears in entity_get_info().'));
+
     // Check that the field instance is still attached to the vocabulary.
     $field = field_info_field($this->field_name);
     $allowed_values = $field['settings']['allowed_values'];