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 e58f166e0..3100d0812 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
@@ -1565,8 +1565,8 @@ public class MongoTemplate implements MongoOperations, ApplicationContextAware {
 
 		MongoPersistentEntity<?> entity = mappingContext.getPersistentEntity(entityClass);
 
-		DBObject mappedUpdate = queryMapper.getMappedObject(update.getUpdateObject(), entity);
 		DBObject mappedQuery = queryMapper.getMappedObject(query, entity);
+		DBObject mappedUpdate = updateMapper.getMappedObject(update.getUpdateObject(), entity);
 
 		if (LOGGER.isDebugEnabled()) {
 			LOGGER.debug("findAndModify using query: " + mappedQuery + " fields: " + fields + " sort: " + sort
diff --git a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateTests.java b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateTests.java
index 5f6d9b4ff..f0e517ee1 100644
--- a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateTests.java
+++ b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/MongoTemplateTests.java
@@ -1803,12 +1803,12 @@ public class MongoTemplateTests {
 
 		Document doc = new Document();
 		doc.id = "4711";
-		doc.model = new ModelA().withValue("foo");
+		doc.model = new ModelA("foo");
 		template.insert(doc);
 
 		Query query = new Query(Criteria.where("id").is(doc.id));
 		String newModelValue = "bar";
-		Update update = Update.update("model", new ModelA().withValue(newModelValue));
+		Update update = Update.update("model", new ModelA(newModelValue));
 		template.updateFirst(query, update, Document.class);
 
 		Document result = template.findOne(query, Document.class);
@@ -2185,26 +2185,43 @@ public class MongoTemplateTests {
 		assertThat(template.find(query, Sample.class), is(not(empty())));
 	}
 
+	/**
+	 * @see DATAMONGO-807
+	 */
+	@Test
+	public void findAndModifyShouldRetrainTypeInformationWithinUpdatedType() {
+
+		Document document = new Document();
+		document.model = new ModelA("value1");
+
+		template.save(document);
+
+		Query query = query(where("id").is(document.id));
+		Update update = Update.update("model", new ModelA("value2"));
+		template.findAndModify(query, update, Document.class);
+
+		Document retrieved = template.findOne(query, Document.class);
+		Assert.assertThat(retrieved.model, instanceOf(ModelA.class));
+		Assert.assertThat(retrieved.model.value(), equalTo("value2"));
+	}
+
 	static interface Model {
 		String value();
-
-		Model withValue(String value);
 	}
 
 	static class ModelA implements Model {
 
 		private String value;
 
+		ModelA(String value) {
+			this.value = value;
+		}
+
 		@Override
 		public String value() {
 			return this.value;
 		}
 
-		@Override
-		public Model withValue(String value) {
-			this.value = value;
-			return this;
-		}
 	}
 
 	static class Document {
diff --git a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/convert/UpdateMapperUnitTests.java b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/convert/UpdateMapperUnitTests.java
index 66965d13f..2fdb1e514 100644
--- a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/convert/UpdateMapperUnitTests.java
+++ b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/core/convert/UpdateMapperUnitTests.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2013 the original author or authors.
+ * Copyright 2013-2014 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.
@@ -36,6 +36,7 @@ import com.mongodb.DBObject;
  * Unit tests for {@link UpdateMapper}.
  * 
  * @author Oliver Gierke
+ * @author Christoph Strobl
  */
 @RunWith(MockitoJUnitRunner.class)
 public class UpdateMapperUnitTests {
@@ -69,6 +70,71 @@ public class UpdateMapperUnitTests {
 		assertThat(list.get("_class"), is((Object) ConcreteChildClass.class.getName()));
 	}
 
+	/**
+	 * @see DATAMONGO-807
+	 */
+	@Test
+	public void updateMapperShouldRetainTypeInformationForNestedEntities() {
+
+		Update update = Update.update("model", new ModelImpl(1));
+		UpdateMapper mapper = new UpdateMapper(converter);
+
+		DBObject mappedObject = mapper.getMappedObject(update.getUpdateObject(),
+				context.getPersistentEntity(ModelWrapper.class));
+
+		DBObject set = DBObjectTestUtils.getAsDBObject(mappedObject, "$set");
+		DBObject modelDbObject = (DBObject) set.get("model");
+		assertThat(modelDbObject.get("_class"), not(nullValue()));
+	}
+
+	/**
+	 * @see DATAMONGO-807
+	 */
+	@Test
+	public void updateMapperShouldNotPersistTypeInformationForKnownSimpleTypes() {
+
+		Update update = Update.update("model.value", 1);
+		UpdateMapper mapper = new UpdateMapper(converter);
+
+		DBObject mappedObject = mapper.getMappedObject(update.getUpdateObject(),
+				context.getPersistentEntity(ModelWrapper.class));
+
+		DBObject set = DBObjectTestUtils.getAsDBObject(mappedObject, "$set");
+		assertThat(set.get("_class"), nullValue());
+	}
+
+	/**
+	 * @see DATAMONGO-807
+	 */
+	@Test
+	public void updateMapperShouldNotPersistTypeInformationForNullValues() {
+
+		Update update = Update.update("model", null);
+		UpdateMapper mapper = new UpdateMapper(converter);
+
+		DBObject mappedObject = mapper.getMappedObject(update.getUpdateObject(),
+				context.getPersistentEntity(ModelWrapper.class));
+
+		DBObject set = DBObjectTestUtils.getAsDBObject(mappedObject, "$set");
+		assertThat(set.get("_class"), nullValue());
+	}
+
+	static interface Model {
+
+	}
+
+	static class ModelImpl implements Model {
+		public int value;
+
+		public ModelImpl(int value) {
+			this.value = value;
+		}
+	}
+
+	public class ModelWrapper {
+		Model model;
+	}
+
 	static class ParentClass {
 
 		String id;