diff --git a/src/etc/testcases/taskdefs/property.xml b/src/etc/testcases/taskdefs/property.xml
index ae967470b..cc3fb771a 100644
--- a/src/etc/testcases/taskdefs/property.xml
+++ b/src/etc/testcases/taskdefs/property.xml
@@ -16,4 +16,9 @@
     <property file="property2.properties"/>
   </target>
 
+  <target name="test4">
+    <property name="http.port" value="999" />
+    <property file="property3.properties"/>
+    <echo message="http.url is ${http.url}"/>
+  </target>
 </project>
diff --git a/src/etc/testcases/taskdefs/property3.properties b/src/etc/testcases/taskdefs/property3.properties
new file mode 100644
index 000000000..efbf7ce4b
--- /dev/null
+++ b/src/etc/testcases/taskdefs/property3.properties
@@ -0,0 +1,4 @@
+http.port = 80
+http.url = http://localhost:${http.port}
+
+
diff --git a/src/main/org/apache/tools/ant/taskdefs/Property.java b/src/main/org/apache/tools/ant/taskdefs/Property.java
index 78a0ad1aa..aa775c03e 100644
--- a/src/main/org/apache/tools/ant/taskdefs/Property.java
+++ b/src/main/org/apache/tools/ant/taskdefs/Property.java
@@ -178,7 +178,7 @@ public class Property extends Task {
         }
     }
 
-    protected void loadFile (File file) throws BuildException {
+    protected void loadFile(File file) throws BuildException {
         Properties props = new Properties();
         log("Loading " + file.getAbsolutePath(), Project.MSG_VERBOSE);
         try {
@@ -201,7 +201,7 @@ public class Property extends Task {
         }
     }
 
-    protected void loadResource( String name ) {
+    protected void loadResource(String name) {
         Properties props = new Properties();
         log("Resource Loading " + name, Project.MSG_VERBOSE);
         try {
@@ -300,12 +300,15 @@ public class Property extends Task {
                             if (propertyName.equals(name)) {
                                 throw new BuildException("Property " + name + " was circularly defined.");
                             }
-                            if (props.containsKey(propertyName)) {
-                                fragment = props.getProperty(propertyName);
-                                resolved = false;
-                            }
-                            else {
-                                fragment = "${" + propertyName + "}";
+                            fragment = getProject().getProperty(propertyName);
+                            if (fragment == null) {
+                                if (props.containsKey(propertyName)) {
+                                    fragment = props.getProperty(propertyName);
+                                    resolved = false;
+                                }
+                                else {
+                                    fragment = "${" + propertyName + "}";
+                                }
                             }
                         }
                         sb.append(fragment);
diff --git a/src/testcases/org/apache/tools/ant/taskdefs/PropertyTest.java b/src/testcases/org/apache/tools/ant/taskdefs/PropertyTest.java
index 17924d10f..1b2860334 100644
--- a/src/testcases/org/apache/tools/ant/taskdefs/PropertyTest.java
+++ b/src/testcases/org/apache/tools/ant/taskdefs/PropertyTest.java
@@ -90,4 +90,8 @@ public class PropertyTest extends TaskdefsTest {
         fail("Did not throw exception on circular exception");                     
     }
 
+    public void test4() { 
+        expectLog("test4", "http.url is http://localhost:999");
+    }
+    
 }