diff --git a/lib/Doctrine/ORM/Query.php b/lib/Doctrine/ORM/Query.php
index f51b1fadc..b71842e69 100644
--- a/lib/Doctrine/ORM/Query.php
+++ b/lib/Doctrine/ORM/Query.php
@@ -219,7 +219,8 @@ final class Query extends AbstractQuery
             }
 
             if (is_object($value)) {
-                $values = $this->_em->getClassMetadata(get_class($value))->getIdentifierValues($value);
+                //$values = $this->_em->getClassMetadata(get_class($value))->getIdentifierValues($value);
+                $values = $this->_em->getUnitOfWork()->getEntityIdentifier($value);
                 //var_dump($this->_em->getUnitOfWork()->getEntityIdentifier($value));
                 $sqlPositions = $paramMappings[$key];
                 $sqlParams = array_merge($sqlParams, array_combine((array)$sqlPositions, $values));
diff --git a/lib/Doctrine/ORM/UnitOfWork.php b/lib/Doctrine/ORM/UnitOfWork.php
index 2f16ddba2..21b39c60b 100644
--- a/lib/Doctrine/ORM/UnitOfWork.php
+++ b/lib/Doctrine/ORM/UnitOfWork.php
@@ -607,7 +607,6 @@ class UnitOfWork implements PropertyChangedListener
                 $idGen = $targetClass->idGenerator;
                 if ( ! $idGen->isPostInsertGenerator()) {
                     $idValue = $idGen->generate($this->_em, $entry);
-                    $this->_entityStates[$oid] = self::STATE_MANAGED;
                     if ( ! $idGen instanceof \Doctrine\ORM\Id\Assigned) {
                         $this->_entityIdentifiers[$oid] = array($targetClass->identifier[0] => $idValue);
                         $targetClass->getSingleIdReflectionProperty()->setValue($entry, $idValue);
@@ -616,6 +615,7 @@ class UnitOfWork implements PropertyChangedListener
                     }
                     $this->addToIdentityMap($entry);
                 }
+                $this->_entityStates[$oid] = self::STATE_MANAGED;
 
                 // NEW entities are INSERTed within the current unit of work.
                 $this->_entityInsertions[$oid] = $entry;
diff --git a/tests/Doctrine/Tests/ORM/Functional/BasicFunctionalTest.php b/tests/Doctrine/Tests/ORM/Functional/BasicFunctionalTest.php
index 0b7c5ac69..116c8a14f 100644
--- a/tests/Doctrine/Tests/ORM/Functional/BasicFunctionalTest.php
+++ b/tests/Doctrine/Tests/ORM/Functional/BasicFunctionalTest.php
@@ -615,7 +615,7 @@ class BasicFunctionalTest extends \Doctrine\Tests\OrmFunctionalTestCase
     /**
      * @group ref
      */
-    /*public function testQueryEntityByReference()
+    public function testQueryEntityByReference()
     {
         $user = new CmsUser;
         $user->name = 'Guilherme';
@@ -633,13 +633,21 @@ class BasicFunctionalTest extends \Doctrine\Tests\OrmFunctionalTestCase
         $this->_em->flush();
         $this->_em->clear();
         
+        //$this->_em->getConnection()->getConfiguration()->setSqlLogger(new \Doctrine\DBAL\Logging\EchoSqlLogger);
+        
         $userRef = $this->_em->getReference('Doctrine\Tests\Models\CMS\CmsUser', $user->getId());
         $address2 = $this->_em->createQuery('select a from Doctrine\Tests\Models\CMS\CmsAddress a where a.user = :user')
                 ->setParameter('user', $userRef)
                 ->getSingleResult();
         
+        $this->assertTrue($address2->getUser() instanceof \Doctrine\ORM\Proxy\Proxy);
+        $this->assertTrue($userRef === $address2->getUser());
+        $this->assertFalse($userRef->__isInitialized__);
+        $this->assertEquals('Germany', $address2->country);
+        $this->assertEquals('Berlin', $address2->city);
+        $this->assertEquals('12345', $address2->zip);
         
-    }*/
+    }
     
     //DRAFT OF EXPECTED/DESIRED BEHAVIOR
     /*public function testPersistentCollectionContainsDoesNeverInitialize()
diff --git a/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC345Test.php b/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC345Test.php
new file mode 100644
index 000000000..92a984525
--- /dev/null
+++ b/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC345Test.php
@@ -0,0 +1,157 @@
+<?php
+
+namespace Doctrine\Tests\ORM\Functional\Ticket;
+
+require_once __DIR__ . '/../../../TestInit.php';
+
+class DDC345Test extends \Doctrine\Tests\OrmFunctionalTestCase
+{
+    protected function setUp()
+    {
+        parent::setUp();
+        //$this->_em->getConnection()->getConfiguration()->setSqlLogger(new \Doctrine\DBAL\Logging\EchoSqlLogger);
+        $this->_schemaTool->createSchema(array(
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC345User'),
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC345Group'),
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC345Membership'),
+        ));
+    }
+
+    public function testTwoIterateHydrations()
+    {
+        // Create User
+        $user = new DDC345User;
+        $user->name = 'Test User';
+        $this->_em->persist($user); // $em->flush() does not change much here
+
+        // Create Group
+        $group = new DDC345Group;
+        $group->name = 'Test Group';
+        $this->_em->persist($group); // $em->flush() does not change much here
+
+        $membership = new DDC345Membership;
+        $membership->group = $group;
+        $membership->user = $user;
+        $membership->state = 'active';
+
+        //$this->_em->persist($membership); // COMMENT OUT TO SEE BUG
+        /*
+        This should be not necessary, but without, its PrePersist is called twice,
+        $membership seems to be persisted twice, but all properties but the
+        ones set by LifecycleCallbacks are deleted.
+        */
+
+        $user->Memberships->add($membership);
+        $group->Memberships->add($membership);
+
+        $this->_em->flush();
+        
+        $this->assertEquals(1, $membership->prePersistCallCount);
+        $this->assertEquals(0, $membership->preUpdateCallCount);
+        $this->assertTrue($membership->updated instanceof \DateTime);
+    }
+}
+
+/**
+ * @Entity
+ */
+class DDC345User
+{
+    /**
+     * @Id
+     * @Column(type="integer")
+     * @GeneratedValue
+     */
+    public $id;
+
+    /** @Column(type="string") */
+    public $name;
+
+    /** @OneToMany(targetEntity="DDC345Membership", mappedBy="user", cascade={"persist"}) */
+    public $Memberships;
+
+    public function __construct()
+    {
+        $this->Memberships = new \Doctrine\Common\Collections\ArrayCollection;
+    }
+}
+
+/**
+ * @Entity
+ */
+class DDC345Group
+{
+    /**
+     * @Id
+     * @Column(type="integer")
+     * @GeneratedValue
+     */
+    public $id;
+
+    /** @Column(type="string") */
+    public $name;
+
+    /** @OneToMany(targetEntity="DDC345Membership", mappedBy="group", cascade={"persist"}) */
+    public $Memberships;
+
+
+    public function __construct()
+    {
+        $this->Memberships = new \Doctrine\Common\Collections\ArrayCollection;
+    }
+}
+
+/**
+ * @Entity
+ * @HasLifecycleCallbacks
+ * @Table(name="ddc345_memberships", uniqueConstraints={
+ *      @UniqueConstraint(name="ddc345_memship_fks", columns={"user_id","group_id"})
+ * })
+ */
+class DDC345Membership
+{
+    /**
+     * @Id
+     * @Column(type="integer")
+     * @GeneratedValue
+     */
+    public $id;
+
+    /**
+     * @OneToOne(targetEntity="DDC345User")
+     * @JoinColumn(name="user_id", referencedColumnName="id", nullable=false)
+     */
+    public $user;
+
+    /**
+     * @OneToOne(targetEntity="DDC345Group")
+     * @JoinColumn(name="group_id", referencedColumnName="id", nullable=false)
+     */
+    public $group;
+
+    /** @Column(type="string") */
+    public $state;
+
+    /** @Column(type="datetime") */
+    public $updated;
+
+    public $prePersistCallCount = 0;
+    public $preUpdateCallCount = 0;
+
+    /** @PrePersist */
+    public function doStuffOnPrePersist()
+    {
+        //echo "***** PrePersist\n";
+        ++$this->prePersistCallCount;
+        $this->updated = new \DateTime;
+    }
+
+    /** @PreUpdate */
+    public function doStuffOnPreUpdate()
+    {
+        //echo "***** PreUpdate\n";
+        ++$this->preUpdateCallCount;
+        $this->updated = new \DateTime;
+    }
+}
+