diff --git a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/condition/OnBeanCondition.java b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/condition/OnBeanCondition.java
index 1ec9a44aed..3709542029 100644
--- a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/condition/OnBeanCondition.java
+++ b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/condition/OnBeanCondition.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2015 the original author or authors.
+ * Copyright 2012-2016 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -135,7 +135,7 @@ class OnBeanCondition extends SpringBootCondition implements ConfigurationCondit
 			return Collections.emptyList();
 		}
 		List<String> beanNames = new ArrayList<String>();
-		boolean considerHierarchy = beans.getStrategy() == SearchStrategy.ALL;
+		boolean considerHierarchy = beans.getStrategy() != SearchStrategy.CURRENT;
 		for (String type : beans.getTypes()) {
 			beanNames.addAll(getBeanNamesForType(beanFactory, type,
 					context.getClassLoader(), considerHierarchy));
diff --git a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnMissingBeanTests.java b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnMissingBeanTests.java
index 063d659632..8fa6731fa2 100644
--- a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnMissingBeanTests.java
+++ b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnMissingBeanTests.java
@@ -250,6 +250,45 @@ public class ConditionalOnMissingBeanTests {
 				is(equalTo(1)));
 	}
 
+	@Test
+	public void grandparentIsConsideredWhenUsingParentsStrategy() {
+		this.context.register(ExampleBeanConfiguration.class);
+		this.context.refresh();
+		AnnotationConfigApplicationContext parent = new AnnotationConfigApplicationContext();
+		parent.setParent(this.context);
+		parent.refresh();
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.setParent(parent);
+		child.register(ExampleBeanConfiguration.class,
+				OnBeanInParentsConfiguration.class);
+		child.refresh();
+		assertThat(child.getBeansOfType(ExampleBean.class).size(), is(equalTo(1)));
+		child.close();
+		parent.close();
+	}
+
+	@Test
+	public void currentContextIsIgnoredWhenUsingParentsStrategy() {
+		this.context.refresh();
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.register(ExampleBeanConfiguration.class,
+				OnBeanInParentsConfiguration.class);
+		child.setParent(this.context);
+		child.refresh();
+		assertThat(child.getBeansOfType(ExampleBean.class).size(), is(equalTo(2)));
+	}
+
+	@Configuration
+	protected static class OnBeanInParentsConfiguration {
+
+		@Bean
+		@ConditionalOnMissingBean(search = SearchStrategy.PARENTS)
+		public ExampleBean exampleBean2() {
+			return new ExampleBean("test");
+		}
+
+	}
+
 	@Configuration
 	@ConditionalOnMissingBean(name = "foo")
 	protected static class OnBeanNameConfiguration {
diff --git a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnSingleCandidateTests.java b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnSingleCandidateTests.java
index d8a20c5a89..5151a8f00b 100644
--- a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnSingleCandidateTests.java
+++ b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/condition/ConditionalOnSingleCandidateTests.java
@@ -64,6 +64,46 @@ public class ConditionalOnSingleCandidateTests {
 		assertEquals("foo", this.context.getBean("baz"));
 	}
 
+	@Test
+	public void singleCandidateInParentsOneCandidateInCurrent() {
+		load();
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.register(FooConfiguration.class,
+				OnBeanSingleCandidateInParentsConfiguration.class);
+		child.setParent(this.context);
+		child.refresh();
+		assertFalse(child.containsBean("baz"));
+		child.close();
+	}
+
+	@Test
+	public void singleCandidateInParentsOneCandidateInParent() {
+		load(FooConfiguration.class);
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.register(OnBeanSingleCandidateInParentsConfiguration.class);
+		child.setParent(this.context);
+		child.refresh();
+		assertTrue(child.containsBean("baz"));
+		assertEquals("foo", child.getBean("baz"));
+		child.close();
+	}
+
+	@Test
+	public void singleCandidateInParentsOneCandidateInGrandparent() {
+		load(FooConfiguration.class);
+		AnnotationConfigApplicationContext parent = new AnnotationConfigApplicationContext();
+		parent.setParent(this.context);
+		parent.refresh();
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.register(OnBeanSingleCandidateInParentsConfiguration.class);
+		child.setParent(parent);
+		child.refresh();
+		assertTrue(child.containsBean("baz"));
+		assertEquals("foo", child.getBean("baz"));
+		child.close();
+		parent.close();
+	}
+
 	@Test
 	public void singleCandidateMultipleCandidates() {
 		load(FooConfiguration.class, BarConfiguration.class,
@@ -121,7 +161,9 @@ public class ConditionalOnSingleCandidateTests {
 	}
 
 	private void load(Class<?>... classes) {
-		this.context.register(classes);
+		if (classes.length > 0) {
+			this.context.register(classes);
+		}
 		this.context.refresh();
 	}
 
@@ -136,6 +178,17 @@ public class ConditionalOnSingleCandidateTests {
 
 	}
 
+	@Configuration
+	@ConditionalOnSingleCandidate(value = String.class, search = SearchStrategy.PARENTS)
+	protected static class OnBeanSingleCandidateInParentsConfiguration {
+
+		@Bean
+		public String baz(String s) {
+			return s;
+		}
+
+	}
+
 	@Configuration
 	@ConditionalOnSingleCandidate(value = String.class, type = "java.lang.String")
 	protected static class OnBeanSingleCandidateTwoTypesConfiguration {