diff --git a/openjpa-kernel/src/main/java/org/apache/openjpa/enhance/PCEnhancer.java b/openjpa-kernel/src/main/java/org/apache/openjpa/enhance/PCEnhancer.java
index 6af248705..0af06fe59 100644
--- a/openjpa-kernel/src/main/java/org/apache/openjpa/enhance/PCEnhancer.java
+++ b/openjpa-kernel/src/main/java/org/apache/openjpa/enhance/PCEnhancer.java
@@ -1150,6 +1150,11 @@ public class PCEnhancer {
             if (_meta.hasAbstractPKField() == true) { 
                 addGetIDOwningClass();
             }
+            
+            if (_meta.isEmbeddedOnly() && _meta.getIdentityType() == ClassMetaData.ID_APPLICATION) {
+                _log.error(_loc.get("ID-field-in-embeddable-unsupported", _meta.toString()));
+            }
+            
             addNewObjectIdInstanceMethod(true);
             addNewObjectIdInstanceMethod(false);
         }
@@ -2582,13 +2587,12 @@ public class PCEnhancer {
         // new <oid class> ();
         code.anew().setType(oidType);
         code.dup();
-        if (_meta.isOpenJPAIdentity() || (obj && usesClsString ==
-                    Boolean.TRUE)) {
-            if(_meta.isEmbeddedOnly() || _meta.hasAbstractPKField() == true ) {
+        if (_meta.isOpenJPAIdentity() || (obj && usesClsString == Boolean.TRUE)) {
+            if ((_meta.isEmbeddedOnly() && ! (_meta.getIdentityType() == ClassMetaData.ID_APPLICATION)) 
+                || _meta.hasAbstractPKField() == true ) {
                 code.aload().setThis();
-                code.invokevirtual().setMethod(PRE + "GetIDOwningClass",
-                    Class.class, null);
-            }else {
+                code.invokevirtual().setMethod(PRE + "GetIDOwningClass", Class.class, null);
+            } else {
                 code.classconstant().setClass(getType(_meta));
             }
         }
diff --git a/openjpa-kernel/src/main/resources/org/apache/openjpa/enhance/localizer.properties b/openjpa-kernel/src/main/resources/org/apache/openjpa/enhance/localizer.properties
index 507e93715..1cd1facfa 100644
--- a/openjpa-kernel/src/main/resources/org/apache/openjpa/enhance/localizer.properties
+++ b/openjpa-kernel/src/main/resources/org/apache/openjpa/enhance/localizer.properties
@@ -214,4 +214,5 @@ temp-file-creation: The temporary file "{0}" was created and it may not get \
 get-field: Error while getting value of field {1} from instance {0} by reflection.    
 get-method: Error while getting value by getter method {1} on instance {0} by reflection.    
 set-field: Error while setting value {2} of {3} on field {1} of instance {0} by reflection.    
-set-method: Error while setting value {2} of {3} by setter method {1} of instance {0} by reflection.    
+set-method: Error while setting value {2} of {3} by setter method {1} of instance {0} by reflection.
+ID-field-in-embeddable-unsupported: The identity field defined in the embeddable entity {0} is not supported.    
diff --git a/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/TestEmbeddableEntityWithIDAnnotation.java b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/TestEmbeddableEntityWithIDAnnotation.java
new file mode 100644
index 000000000..4df20df89
--- /dev/null
+++ b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/TestEmbeddableEntityWithIDAnnotation.java
@@ -0,0 +1,49 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.    
+ */
+
+package org.apache.openjpa.persistence.enhance;
+
+import javax.persistence.EntityManager;
+
+import org.apache.openjpa.persistence.enhance.common.apps.EmbeddableEntityWithIDAnnotation;
+import org.apache.openjpa.persistence.enhance.common.apps.IDOwningClassTestEntity;
+import org.apache.openjpa.persistence.test.SQLListenerTestCase;
+
+public class TestEmbeddableEntityWithIDAnnotation extends SQLListenerTestCase{
+
+    public void setUp() {
+        setUp(EmbeddableEntityWithIDAnnotation.class, IDOwningClassTestEntity.class, CLEAR_TABLES);        
+    }
+    
+    //make sure no exception is thrown here. 
+    public void testpcNewObjectIdInstanceMethod(){
+        EntityManager em = emf.createEntityManager();
+        try{
+            IDOwningClassTestEntity e = new IDOwningClassTestEntity();
+            em.getTransaction().begin();
+            em.persist(e);
+            em.getTransaction().commit();
+            assertTrue(em.createQuery("select count(c) from IDOwningClassTestEntity c", Long.class)
+                    .getSingleResult().longValue() > 0);                    
+        }finally{
+            em.close();
+        }
+    }
+
+}
diff --git a/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/EmbeddableEntityWithIDAnnotation.java b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/EmbeddableEntityWithIDAnnotation.java
new file mode 100644
index 000000000..8ff76ebf1
--- /dev/null
+++ b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/EmbeddableEntityWithIDAnnotation.java
@@ -0,0 +1,105 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.    
+ */
+
+package org.apache.openjpa.persistence.enhance.common.apps;
+
+// default package
+
+import javax.persistence.Column;
+import javax.persistence.Embeddable;
+import javax.persistence.GeneratedValue;
+import javax.persistence.GenerationType;
+import javax.persistence.Id;
+import javax.persistence.SequenceGenerator;
+
+/**
+ * BillingNoteId entity. @author MyEclipse Persistence Tools
+ */
+@Embeddable
+public class EmbeddableEntityWithIDAnnotation implements java.io.Serializable
+{
+
+	private static final long serialVersionUID = 558333273831654654L;
+
+	private Long id;
+
+    private Long seqNo = new Long(2012);
+
+    public EmbeddableEntityWithIDAnnotation( )
+    {
+    }
+
+    public EmbeddableEntityWithIDAnnotation( Long id, Long seqNo )
+    {
+        this.id = id;
+        this.seqNo = seqNo;
+    }
+
+    // Property accessors   
+    @Id
+    @Column(unique=true, nullable=false, precision=12, scale=0)  
+    public Long getId()
+    {
+        return this.id;
+    }
+
+    public void setId( Long id )
+    {
+        this.id = id;
+    }
+
+    @Column( name = "EmbeddableEntitySeqNo", nullable = false, precision = 12, scale = 0 )
+    public Long getSeqNo()
+    {
+        return this.seqNo;
+    }
+
+    public void setSeqNo( Long seqNo )
+    {
+        this.seqNo = seqNo;
+    }
+
+    public boolean equals( Object other )
+    {
+        if ( ( this == other ) )
+            return true;
+        if ( ( other == null ) )
+            return false;
+        if ( !( other instanceof EmbeddableEntityWithIDAnnotation ) )
+            return false;
+        EmbeddableEntityWithIDAnnotation castOther = ( EmbeddableEntityWithIDAnnotation ) other;
+
+        return ( ( this.getId( ) == castOther.getId( ) ) 
+        		|| ( this.getId( ) != null && castOther.getId( ) != null 
+        		&& this.getId( ).equals( castOther.getId( ) ) ) )
+                && ( ( this.getSeqNo( ) == castOther.getSeqNo( ) ) 
+                		|| ( this.getSeqNo( ) != null && castOther.getSeqNo( ) != null 
+                		&& this.getSeqNo( ).equals( castOther.getSeqNo( ) ) ) );
+    }
+
+    public int hashCode()
+    {
+        int result = 17;
+
+        result = 37 * result + ( getId( ) == null ? 0 : this.getId( ).hashCode( ) );
+        result = 37 * result + ( getSeqNo( ) == null ? 0 : this.getSeqNo( ).hashCode( ) );
+        return result;
+    }
+
+}
diff --git a/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/IDOwningClassTestEntity.java b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/IDOwningClassTestEntity.java
new file mode 100644
index 000000000..544236f19
--- /dev/null
+++ b/openjpa-persistence-jdbc/src/test/java/org/apache/openjpa/persistence/enhance/common/apps/IDOwningClassTestEntity.java
@@ -0,0 +1,32 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.    
+ */
+
+package org.apache.openjpa.persistence.enhance.common.apps;
+
+import javax.persistence.EmbeddedId;
+import javax.persistence.Entity;
+
+@Entity
+public class IDOwningClassTestEntity {
+    @EmbeddedId
+    EmbeddableEntityWithIDAnnotation pk = new EmbeddableEntityWithIDAnnotation(new Long(2012), new Long(2000));
+    
+    String name;
+    
+}