diff --git a/modules/elasticsearch/src/main/java/org/elasticsearch/cluster/metadata/MetaDataUpdateSettingsService.java b/modules/elasticsearch/src/main/java/org/elasticsearch/cluster/metadata/MetaDataUpdateSettingsService.java
index d10c35d1d84..c73262d0f76 100644
--- a/modules/elasticsearch/src/main/java/org/elasticsearch/cluster/metadata/MetaDataUpdateSettingsService.java
+++ b/modules/elasticsearch/src/main/java/org/elasticsearch/cluster/metadata/MetaDataUpdateSettingsService.java
@@ -61,13 +61,11 @@ public class MetaDataUpdateSettingsService extends AbstractComponent implements
         if (!event.state().nodes().localNodeMaster()) {
             return;
         }
-        // TODO we only need to do that on first create of an index, or the number of nodes changed
+        // we need to do this each time in case it was changed by update settings
         for (final IndexMetaData indexMetaData : event.state().metaData()) {
             String autoExpandReplicas = indexMetaData.settings().get(IndexMetaData.SETTING_AUTO_EXPAND_REPLICAS);
             if (autoExpandReplicas != null && Booleans.parseBoolean(autoExpandReplicas, true)) { // Booleans only work for false values, just as we want it here
                 try {
-                    final int numberOfReplicas = event.state().nodes().dataNodes().size() - 1;
-
                     int min;
                     int max;
                     try {
@@ -83,20 +81,28 @@ public class MetaDataUpdateSettingsService extends AbstractComponent implements
                         continue;
                     }
 
+                    int numberOfReplicas = event.state().nodes().dataNodes().size() - 1;
+                    if (numberOfReplicas < min) {
+                        numberOfReplicas = min;
+                    } else if (numberOfReplicas > max) {
+                        numberOfReplicas = max;
+                    }
+
                     // same value, nothing to do there
                     if (numberOfReplicas == indexMetaData.numberOfReplicas()) {
                         continue;
                     }
 
                     if (numberOfReplicas >= min && numberOfReplicas <= max) {
-                        Settings settings = ImmutableSettings.settingsBuilder().put(IndexMetaData.SETTING_NUMBER_OF_REPLICAS, numberOfReplicas).build();
+                        final int fNumberOfReplicas = numberOfReplicas;
+                        Settings settings = ImmutableSettings.settingsBuilder().put(IndexMetaData.SETTING_NUMBER_OF_REPLICAS, fNumberOfReplicas).build();
                         updateSettings(settings, new String[]{indexMetaData.index()}, new Listener() {
                             @Override public void onSuccess() {
-                                logger.info("[{}] auto expanded replicas to [{}]", indexMetaData.index(), numberOfReplicas);
+                                logger.info("[{}] auto expanded replicas to [{}]", indexMetaData.index(), fNumberOfReplicas);
                             }
 
                             @Override public void onFailure(Throwable t) {
-                                logger.warn("[{}] fail to auto expand replicas to [{}]", indexMetaData.index(), numberOfReplicas);
+                                logger.warn("[{}] fail to auto expand replicas to [{}]", indexMetaData.index(), fNumberOfReplicas);
                             }
                         });
                     }
diff --git a/modules/test/integration/src/test/java/org/elasticsearch/test/integration/indices/settings/UpdateNumberOfReplicasTests.java b/modules/test/integration/src/test/java/org/elasticsearch/test/integration/indices/settings/UpdateNumberOfReplicasTests.java
index cd5a160a3ee..2cbdd6f589e 100644
--- a/modules/test/integration/src/test/java/org/elasticsearch/test/integration/indices/settings/UpdateNumberOfReplicasTests.java
+++ b/modules/test/integration/src/test/java/org/elasticsearch/test/integration/indices/settings/UpdateNumberOfReplicasTests.java
@@ -241,4 +241,36 @@ public class UpdateNumberOfReplicasTests extends AbstractNodesTests {
         assertThat(clusterHealth.indices().get("test").numberOfReplicas(), equalTo(1));
         assertThat(clusterHealth.indices().get("test").activeShards(), equalTo(2));
     }
+
+    @Test public void testAutoExpandNumberReplicas2() {
+        logger.info("--> add another node");
+        startNode("node3");
+        logger.info("--> creating index test with auto expand replicas set to 0-2");
+        client1.admin().indices().prepareCreate("test").setSettings(settingsBuilder().put("number_of_shards", 2).put("auto_expand_replicas", "0-2")).execute().actionGet();
+
+        logger.info("--> running cluster health");
+        ClusterHealthResponse clusterHealth = client1.admin().cluster().prepareHealth().setWaitForGreenStatus().setWaitForActiveShards(6).execute().actionGet();
+        logger.info("--> done cluster health, status " + clusterHealth.status());
+        assertThat(clusterHealth.timedOut(), equalTo(false));
+        assertThat(clusterHealth.status(), equalTo(ClusterHealthStatus.GREEN));
+        assertThat(clusterHealth.indices().get("test").activePrimaryShards(), equalTo(2));
+        assertThat(clusterHealth.indices().get("test").numberOfReplicas(), equalTo(2));
+        assertThat(clusterHealth.indices().get("test").activeShards(), equalTo(6));
+
+        logger.info("--> add two more nodes");
+        startNode("node4");
+        startNode("node5");
+
+        logger.info("--> update the auto expand replicas to 0-3");
+        client1.admin().indices().prepareUpdateSettings("test").setSettings(settingsBuilder().put("auto_expand_replicas", "0-3")).execute().actionGet();
+
+        logger.info("--> running cluster health");
+        clusterHealth = client1.admin().cluster().prepareHealth().setWaitForGreenStatus().setWaitForActiveShards(8).execute().actionGet();
+        logger.info("--> done cluster health, status " + clusterHealth.status());
+        assertThat(clusterHealth.timedOut(), equalTo(false));
+        assertThat(clusterHealth.status(), equalTo(ClusterHealthStatus.GREEN));
+        assertThat(clusterHealth.indices().get("test").activePrimaryShards(), equalTo(2));
+        assertThat(clusterHealth.indices().get("test").numberOfReplicas(), equalTo(3));
+        assertThat(clusterHealth.indices().get("test").activeShards(), equalTo(8));
+    }
 }