diff --git a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfiguration.java b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfiguration.java
index afda757b17d..23006e1caf7 100644
--- a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfiguration.java
+++ b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfiguration.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.
@@ -22,22 +22,25 @@ import org.apache.http.impl.client.HttpClientBuilder;
 
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.boot.autoconfigure.EnableAutoConfiguration;
+import org.springframework.boot.autoconfigure.condition.AnyNestedCondition;
 import org.springframework.boot.autoconfigure.condition.ConditionalOnClass;
 import org.springframework.boot.autoconfigure.condition.ConditionalOnMissingBean;
 import org.springframework.boot.autoconfigure.condition.ConditionalOnProperty;
 import org.springframework.boot.context.properties.EnableConfigurationProperties;
 import org.springframework.context.annotation.Bean;
+import org.springframework.context.annotation.Conditional;
 import org.springframework.context.annotation.Configuration;
 
 /**
  * {@link EnableAutoConfiguration Auto-configuration} for SendGrid.
  *
  * @author Maciej Walkowiak
+ * @author Patrick Bray
  * @since 1.3.0
  */
 @Configuration
 @ConditionalOnClass(SendGrid.class)
-@ConditionalOnProperty(prefix = "spring.sendgrid", value = "username")
+@Conditional(SendGridAutoConfiguration.SendGridPropertyCondition.class)
 @EnableConfigurationProperties(SendGridProperties.class)
 public class SendGridAutoConfiguration {
 
@@ -47,8 +50,7 @@ public class SendGridAutoConfiguration {
 	@Bean
 	@ConditionalOnMissingBean(SendGrid.class)
 	public SendGrid sendGrid() {
-		SendGrid sendGrid = new SendGrid(this.properties.getUsername(),
-				this.properties.getPassword());
+		SendGrid sendGrid = createSendGrid();
 		if (this.properties.isProxyConfigured()) {
 			HttpHost proxy = new HttpHost(this.properties.getProxy().getHost(),
 					this.properties.getProxy().getPort());
@@ -58,4 +60,29 @@ public class SendGridAutoConfiguration {
 		return sendGrid;
 	}
 
+	private SendGrid createSendGrid() {
+		if (this.properties.getApiKey() != null) {
+			return new SendGrid(this.properties.getApiKey());
+		}
+		else {
+			return new SendGrid(this.properties.getUsername(),
+					this.properties.getPassword());
+		}
+	}
+
+
+	static class SendGridPropertyCondition extends AnyNestedCondition {
+
+		SendGridPropertyCondition() {
+			super(ConfigurationPhase.PARSE_CONFIGURATION);
+		}
+
+		@ConditionalOnProperty(prefix = "spring.sendgrid", value = "username")
+		static class SendGridUserProperty {
+		}
+
+		@ConditionalOnProperty(prefix = "spring.sendgrid", value = "api-key")
+		static class SendGridApiKeyProperty {
+		}
+	}
 }
diff --git a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridProperties.java b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridProperties.java
index 480933a8fb6..6a97a2a32a7 100644
--- a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridProperties.java
+++ b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/sendgrid/SendGridProperties.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.
@@ -28,7 +28,7 @@ import org.springframework.boot.context.properties.ConfigurationProperties;
 public class SendGridProperties {
 
 	/**
-	 * SendGrid username.
+	 * SendGrid username. Alternative to api key.
 	 */
 	private String username;
 
@@ -37,6 +37,11 @@ public class SendGridProperties {
 	 */
 	private String password;
 
+	/**
+	 * SendGrid api key. Alternative to username/password.
+	 */
+	private String apiKey;
+
 	/**
 	 * Proxy configuration.
 	 */
@@ -58,6 +63,14 @@ public class SendGridProperties {
 		this.password = password;
 	}
 
+	public String getApiKey() {
+		return this.apiKey;
+	}
+
+	public void setApiKey(final String apiKey) {
+		this.apiKey = apiKey;
+	}
+
 	public Proxy getProxy() {
 		return this.proxy;
 	}
diff --git a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfigurationTests.java b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfigurationTests.java
index 09d337fe7f5..59f57a9d931 100644
--- a/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfigurationTests.java
+++ b/spring-boot-autoconfigure/src/test/java/org/springframework/boot/autoconfigure/sendgrid/SendGridAutoConfigurationTests.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.
@@ -38,6 +38,7 @@ import static org.junit.Assert.assertThat;
  * Tests for {@link SendGridAutoConfiguration}.
  *
  * @author Maciej Walkowiak
+ * @author Patrick Bray
  */
 public class SendGridAutoConfigurationTests {
 
@@ -51,13 +52,20 @@ public class SendGridAutoConfigurationTests {
 	}
 
 	@Test
-	public void expectedSendGridBeanCreated() {
+	public void expectedSendGridBeanCreatedUsername() {
 		loadContext("spring.sendgrid.username:user", "spring.sendgrid.password:secret");
 		SendGrid sendGrid = this.context.getBean(SendGrid.class);
 		assertEquals("user", ReflectionTestUtils.getField(sendGrid, "username"));
 		assertEquals("secret", ReflectionTestUtils.getField(sendGrid, "password"));
 	}
 
+	@Test
+	public void expectedSendGridBeanCreatedApiKey() {
+		loadContext("spring.sendgrid.apiKey:SG.SECRET-API-KEY");
+		SendGrid sendGrid = this.context.getBean(SendGrid.class);
+		assertEquals("SG.SECRET-API-KEY", ReflectionTestUtils.getField(sendGrid, "password"));
+	}
+
 	@Test(expected = NoSuchBeanDefinitionException.class)
 	public void autoConfigurationNotFiredWhenPropertiesNotSet() {
 		loadContext();
diff --git a/spring-boot-docs/src/main/asciidoc/appendix-application-properties.adoc b/spring-boot-docs/src/main/asciidoc/appendix-application-properties.adoc
index 601cee365e5..07f648d15ae 100644
--- a/spring-boot-docs/src/main/asciidoc/appendix-application-properties.adoc
+++ b/spring-boot-docs/src/main/asciidoc/appendix-application-properties.adoc
@@ -120,6 +120,7 @@ content into your application; rather pick only the properties that you need.
 	spring.profiles.include= # Unconditionally activate the specified comma separated profiles.
 
 	# SENDGRID ({sc-spring-boot-autoconfigure}/sendgrid/SendGridAutoConfiguration.{sc-ext}[SendGridAutoConfiguration])
+	spring.sendgrid.api-key= # SendGrid api key (alternative to username/password)
 	spring.sendgrid.username= # SendGrid account username
 	spring.sendgrid.password= # SendGrid account password
 	spring.sendgrid.proxy.host= # SendGrid proxy host