4 files changed, 28 insertions, 6 deletions
diff --git a/activerecord/lib/active_record/associations.rb b/activerecord/lib/active_record/associations.rb
index 1a4a46eb3d..ab4e02f86c 100755
--- a/activerecord/lib/active_record/associations.rb
+++ b/activerecord/lib/active_record/associations.rb
@@ -1072,12 +1072,15 @@ module ActiveRecord
           after_callback = <<-end_eval
             association = instance_variable_get("@#{association_name}")
 
-            if association.respond_to?(:loaded?) && association.loaded?
-              if @new_record_before_save
-                records_to_save = association
-              else
-                records_to_save = association.select { |record| record.new_record? }
-              end
+            records_to_save = if @new_record_before_save
+              association
+            elsif association.respond_to?(:loaded?) && association.loaded?
+              association.select { |record| record.new_record? }
+            else
+              []
+            end
+
+            if !records_to_save.blank?
               records_to_save.each { |record| association.send(:insert_record, record) }
               association.send(:construct_sql)   # reconstruct the SQL queries now that we know the owner's id
             end
diff --git a/activerecord/test/associations_test.rb b/activerecord/test/associations_test.rb
index 37e26ef80a..9e4d0f2711 100755
--- a/activerecord/test/associations_test.rb
+++ b/activerecord/test/associations_test.rb
@@ -101,6 +101,10 @@ class AssociationProxyTest < Test::Unit::TestCase
     assert !david.projects.loaded?
   end
 
+  def test_save_on_parent_saves_children
+    developer = Developer.create :name => "Bryan", :salary => 50_000
+    assert_equal 1, developer.reload.audit_logs.size
+  end
 end
 
 class HasOneAssociationsTest < Test::Unit::TestCase
diff --git a/activerecord/test/fixtures/db_definitions/schema.rb b/activerecord/test/fixtures/db_definitions/schema.rb
index cdebcbbe5f..52cd9f36f0 100644
--- a/activerecord/test/fixtures/db_definitions/schema.rb
+++ b/activerecord/test/fixtures/db_definitions/schema.rb
@@ -75,4 +75,9 @@ ActiveRecord::Schema.define do
       t.column :real_number, :real
     end
   end
+
+  create_table :audit_logs, :force => true do |t|
+    t.column :message, :string, :null=>false
+    t.column :developer_id, :integer, :null=>false
+  end
 end
diff --git a/activerecord/test/fixtures/developer.rb b/activerecord/test/fixtures/developer.rb
index c868cddecd..20005ed04e 100644
--- a/activerecord/test/fixtures/developer.rb
+++ b/activerecord/test/fixtures/developer.rb
@@ -41,8 +41,18 @@ class Developer < ActiveRecord::Base
 
   has_and_belongs_to_many :special_projects, :join_table => 'developers_projects', :association_foreign_key => 'project_id'
 
+  has_many :audit_logs
+
   validates_inclusion_of :salary, :in => 50000..200000
   validates_length_of    :name, :within => 3..20
+
+  before_create do |developer|
+    developer.audit_logs.build :message => "Computer created"
+  end
+end
+
+class AuditLog < ActiveRecord::Base
+  belongs_to :developer
 end
 
 DeveloperSalary = Struct.new(:amount)