diff --git a/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/core/MongoTemplate.java b/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/core/MongoTemplate.java
index 9c698d154..46e217529 100644
--- a/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/core/MongoTemplate.java
+++ b/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/core/MongoTemplate.java
@@ -1573,6 +1573,8 @@ public class MongoTemplate implements MongoOperations, ApplicationContextAware {
 
 		MongoPersistentEntity<?> entity = mappingContext.getPersistentEntity(entityClass);
 
+		increaseVersionForUpdateIfNecessary(entity, update);
+
 		DBObject mappedQuery = queryMapper.getMappedObject(query, entity);
 		DBObject mappedUpdate = updateMapper.getMappedObject(update.getUpdateObject(), entity);
 
diff --git a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateUnitTests.java b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateUnitTests.java
index 113f9b407..1947cec84 100644
--- a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateUnitTests.java
+++ b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateUnitTests.java
@@ -25,10 +25,14 @@ import java.util.Collections;
 import java.util.regex.Pattern;
 
 import org.bson.types.ObjectId;
+import org.hamcrest.core.Is;
+import org.junit.Assert;
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
+import org.mockito.ArgumentCaptor;
 import org.mockito.ArgumentMatcher;
+import org.mockito.Matchers;
 import org.mockito.Mock;
 import org.mockito.Mockito;
 import org.mockito.runners.MockitoJUnitRunner;
@@ -37,6 +41,7 @@ import org.springframework.core.convert.converter.Converter;
 import org.springframework.dao.DataAccessException;
 import org.springframework.dao.InvalidDataAccessApiUsageException;
 import org.springframework.data.annotation.Id;
+import org.springframework.data.annotation.Version;
 import org.springframework.data.mongodb.MongoDbFactory;
 import org.springframework.data.mongodb.core.convert.CustomConversions;
 import org.springframework.data.mongodb.core.convert.DefaultDbRefResolver;
@@ -48,6 +53,7 @@ import org.springframework.data.mongodb.core.query.Query;
 import org.springframework.data.mongodb.core.query.Update;
 import org.springframework.test.util.ReflectionTestUtils;
 
+import com.mongodb.BasicDBObject;
 import com.mongodb.DB;
 import com.mongodb.DBCollection;
 import com.mongodb.DBObject;
@@ -58,6 +64,7 @@ import com.mongodb.MongoException;
  * Unit tests for {@link MongoTemplate}.
  * 
  * @author Oliver Gierke
+ * @author Christoph Strobl
  */
 @RunWith(MockitoJUnitRunner.class)
 public class MongoTemplateUnitTests extends MongoOperationsUnitTests {
@@ -205,6 +212,46 @@ public class MongoTemplateUnitTests extends MongoOperationsUnitTests {
 		assertThat(entity.id, is(5));
 	}
 
+	/**
+	 * @see DATAMONGO-868
+	 */
+	@Test
+	public void findAndModifyShouldBumpVersionByOneWhenVersionFieldNotIncludedInUpdate() {
+
+		VersionedEntity v = new VersionedEntity();
+		v.id = 1;
+		v.version = 0;
+
+		ArgumentCaptor<DBObject> captor = ArgumentCaptor.forClass(DBObject.class);
+
+		template.findAndModify(new Query(), new Update().set("id", "10"), VersionedEntity.class);
+		verify(collection, times(1)).findAndModify(Matchers.any(DBObject.class),
+				org.mockito.Matchers.isNull(DBObject.class), org.mockito.Matchers.isNull(DBObject.class), eq(false),
+				captor.capture(), eq(false), eq(false));
+
+		Assert.assertThat(captor.getValue().get("$inc"), Is.<Object> is(new BasicDBObject("version", 1)));
+	}
+
+	/**
+	 * @see DATAMONGO-868
+	 */
+	@Test
+	public void findAndModifyShouldNotBumpVersionByOneWhenVersionFieldAlreadyIncludedInUpdate() {
+
+		VersionedEntity v = new VersionedEntity();
+		v.id = 1;
+		v.version = 0;
+
+		ArgumentCaptor<DBObject> captor = ArgumentCaptor.forClass(DBObject.class);
+
+		template.findAndModify(new Query(), new Update().set("version", 100), VersionedEntity.class);
+		verify(collection, times(1)).findAndModify(Matchers.any(DBObject.class), isNull(DBObject.class),
+				isNull(DBObject.class), eq(false), captor.capture(), eq(false), eq(false));
+
+		Assert.assertThat(captor.getValue().get("$set"), Is.<Object> is(new BasicDBObject("version", 100)));
+		Assert.assertThat(captor.getValue().get("$inc"), nullValue());
+	}
+
 	/**
 	 * @see DATAMONGO-533
 	 */
@@ -249,6 +296,12 @@ public class MongoTemplateUnitTests extends MongoOperationsUnitTests {
 		}
 	}
 
+	static class VersionedEntity {
+
+		@Id Integer id;
+		@Version Integer version;
+	}
+
 	enum MyConverter implements Converter<AutogenerateableId, String> {
 
 		INSTANCE;