diff --git a/lib/Doctrine/ORM/UnitOfWork.php b/lib/Doctrine/ORM/UnitOfWork.php
index 8a3d582f7..e53f38c52 100644
--- a/lib/Doctrine/ORM/UnitOfWork.php
+++ b/lib/Doctrine/ORM/UnitOfWork.php
@@ -746,7 +746,7 @@ class UnitOfWork implements PropertyChangedListener
         $hasPostUpdateListeners = $this->evm->hasListeners(Events::postUpdate);
         
         foreach ($this->entityUpdates as $oid => $entity) {
-            if (get_class($entity) == $className || $entity instanceof Proxy && $entity instanceof $className) {
+            if (get_class($entity) == $className || $entity instanceof Proxy && get_parent_class($entity) == $className) {
                 
                 if ($hasPreUpdateLifecycleCallbacks) {
                     $class->invokeLifecycleCallbacks(Events::preUpdate, $entity);
@@ -788,7 +788,7 @@ class UnitOfWork implements PropertyChangedListener
         $hasListeners = $this->evm->hasListeners(Events::postRemove);
         
         foreach ($this->entityDeletions as $oid => $entity) {
-            if (get_class($entity) == $className || $entity instanceof Proxy && $entity instanceof $className) {
+            if (get_class($entity) == $className || $entity instanceof Proxy && get_parent_class($entity) == $className) {
                 $persister->delete($entity);
                 unset(
                     $this->entityDeletions[$oid],
diff --git a/tests/Doctrine/Tests/ORM/Functional/ReferenceProxyTest.php b/tests/Doctrine/Tests/ORM/Functional/ReferenceProxyTest.php
index 9fcb90a5e..3b6e1f546 100644
--- a/tests/Doctrine/Tests/ORM/Functional/ReferenceProxyTest.php
+++ b/tests/Doctrine/Tests/ORM/Functional/ReferenceProxyTest.php
@@ -112,4 +112,22 @@ class ReferenceProxyTest extends \Doctrine\Tests\OrmFunctionalTestCase
         $this->_em->getUnitOfWork()->initializeObject($entity);
         $this->assertTrue($entity->__isInitialized__, "Should be initialized after called UnitOfWork::initializeObject()");
     }
+    
+    /**
+     * @group DDC-1163
+     */
+    public function testInitializeChangeAndFlushProxy()
+    {
+        $id = $this->createProduct();
+
+        /* @var $entity Doctrine\Tests\Models\ECommerce\ECommerceProduct */
+        $entity = $this->_em->getReference('Doctrine\Tests\Models\ECommerce\ECommerceProduct' , $id);
+        $entity->setName('Doctrine 2 Cookbook');
+        
+        $this->_em->flush();
+        $this->_em->clear();
+        
+        $entity = $this->_em->getReference('Doctrine\Tests\Models\ECommerce\ECommerceProduct' , $id);
+        $this->assertEquals('Doctrine 2 Cookbook', $entity->getName());
+    }
 }
diff --git a/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC1163Test.php b/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC1163Test.php
new file mode 100644
index 000000000..7142ff211
--- /dev/null
+++ b/tests/Doctrine/Tests/ORM/Functional/Ticket/DDC1163Test.php
@@ -0,0 +1,215 @@
+<?php
+
+namespace Doctrine\Tests\ORM\Functional\Ticket;
+
+require_once __DIR__ . '/../../../TestInit.php';
+
+/**
+ * @group DDC-1163
+ */
+class DDC1163Test extends \Doctrine\Tests\OrmFunctionalTestCase
+{
+    protected function setUp()
+    {
+        parent::setUp();
+        //$this->_em->getConnection()->getConfiguration()->setSQLLogger(new \Doctrine\DBAL\Logging\EchoSQLLogger);
+        $this->_schemaTool->createSchema(array(
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC1163Product'),
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC1163SpecialProduct'),
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC1163ProxyHolder'),
+            $this->_em->getClassMetadata(__NAMESPACE__ . '\DDC1163Tag'),
+        ));
+    }
+
+    public function testIssue()
+    {
+        $this->createSpecialProductAndProxyHolderReferencingIt();
+        $this->_em->clear();
+
+        $this->createProxyForSpecialProduct();
+
+        $this->setPropertyAndAssignTagToSpecialProduct();
+
+        // fails
+        $this->_em->flush();
+    }
+
+    private function createSpecialProductAndProxyHolderReferencingIt()
+    {
+        $specialProduct = new DDC1163SpecialProduct();
+        $this->_em->persist($specialProduct);
+
+        $proxyHolder = new DDC1163ProxyHolder();
+        $this->_em->persist($proxyHolder);
+
+        $proxyHolder->setSpecialProduct($specialProduct);
+
+        $this->_em->flush();
+
+        $this->productId = $specialProduct->getId();
+        $this->proxyHolderId = $proxyHolder->getId();
+    }
+
+    /**
+     * We want Doctrine to instantiate a lazy-load proxy for the previously created
+     * 'SpecialProduct' and register it.
+     *
+     * When Doctrine loads the 'ProxyHolder', it will do just that because the 'ProxyHolder'
+     * references the 'SpecialProduct'.
+     */
+    private function createProxyForSpecialProduct()
+    {
+        /* @var $proxyHolder ProxyHolder */
+        $proxyHolder = $this->_em->find(__NAMESPACE__ . '\\DDC1163ProxyHolder', $this->proxyHolderId);
+        
+        $this->assertInstanceOf(__NAMESPACE__.'\\DDC1163SpecialProduct', $proxyHolder->getSpecialProduct());
+    }
+
+    private function setPropertyAndAssignTagToSpecialProduct()
+    {
+        /* @var $specialProduct SpecialProduct */
+        $specialProduct = $this->_em->find(__NAMESPACE__ . '\\DDC1163SpecialProduct', $this->productId);
+
+        $this->assertInstanceOf(__NAMESPACE__.'\\DDC1163SpecialProduct', $specialProduct);
+        $this->assertInstanceOf('Doctrine\ORM\Proxy\Proxy', $specialProduct);
+        
+        $specialProduct->setSubclassProperty('foobar');
+        
+        // this screams violation of law of demeter ;)
+        $this->assertEquals(
+            __NAMESPACE__.'\\DDC1163SpecialProduct',
+            $this->_em->getUnitOfWork()->getEntityPersister(get_class($specialProduct))->getClassMetadata()->name
+        );
+
+        $tag = new DDC1163Tag('Foo');
+        $this->_em->persist($tag);
+        $tag->setProduct($specialProduct);
+    }
+}
+
+/**
+ * @Entity
+ */
+class DDC1163ProxyHolder
+{
+
+    /**
+     * @var int
+     * @Column(name="id", type="integer")
+     * @Id
+     * @GeneratedValue(strategy="AUTO")
+     */
+    private $id;
+    /**
+     * @var SpecialProduct
+     * @OneToOne(targetEntity="DDC1163SpecialProduct")
+     */
+    private $specialProduct;
+
+    public function getId()
+    {
+        return $this->id;
+    }
+
+    public function setSpecialProduct(DDC1163SpecialProduct $specialProduct)
+    {
+        $this->specialProduct = $specialProduct;
+    }
+    
+    public function getSpecialProduct()
+    {
+        return $this->specialProduct;
+    }
+
+}
+
+/**
+ * @Entity
+ * @InheritanceType("JOINED")
+ * @DiscriminatorColumn(name="type", type="string")
+ * @DiscriminatorMap({"special" = "DDC1163SpecialProduct"})
+ */
+abstract class DDC1163Product
+{
+
+    /**
+     * @var int
+     * @Column(name="id", type="integer")
+     * @Id
+     * @GeneratedValue(strategy="AUTO")
+     */
+    protected $id;
+
+    public function getId()
+    {
+        return $this->id;
+    }
+
+}
+
+/**
+ * @Entity
+ */
+class DDC1163SpecialProduct extends DDC1163Product
+{
+
+    /**
+     * @var string
+     * @Column(name="subclass_property", type="string", nullable=true)
+     */
+    private $subclassProperty;
+
+    /**
+     * @param string $value
+     */
+    public function setSubclassProperty($value)
+    {
+        $this->subclassProperty = $value;
+    }
+
+}
+
+/**
+ * @Entity
+ */
+class DDC1163Tag
+{
+
+    /**
+     * @var int
+     * @Column(name="id", type="integer")
+     * @Id
+     * @GeneratedValue(strategy="AUTO")
+     */
+    private $id;
+    /**
+     * @var string
+     * @Column(name="name", type="string")
+     */
+    private $name;
+    /**
+     * @var Product
+     * @ManyToOne(targetEntity="DDC1163Product", inversedBy="tags")
+     * @JoinColumns({
+     *   @JoinColumn(name="product_id", referencedColumnName="id")
+     * })
+     */
+    private $product;
+
+    /**
+     * @param string $name
+     */
+    public function __construct($name)
+    {
+        $this->name = $name;
+    }
+
+    /**
+     * @param Product $product
+     */
+    public function setProduct(DDC1163Product $product)
+    {
+        $this->product = $product;
+    }
+
+}
\ No newline at end of file