diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/XamlDom/SimpleLoadTests.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/XamlDom/SimpleLoadTests.cs
index ea9ee5de9c..340309dbbd 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/XamlDom/SimpleLoadTests.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/XamlDom/SimpleLoadTests.cs
@@ -255,6 +255,36 @@ namespace ICSharpCode.WpfDesign.Tests.XamlDom
   xmlns:t=""" + XamlTypeFinderTests.XamlDomTestsNamespace + @"""
   xmlns:x=""http://schemas.microsoft.com/winfx/2006/xaml""
   ObjectProp=""{x:Null}"">
+</t:ExampleClass>
+			");
+		}
+		
+		[Test]
+		public void ExampleClassObjectPropWithExplicitMarkupExtension()
+		{
+			TestLoading(@"
+<t:ExampleClass
+  xmlns=""http://schemas.microsoft.com/netfx/2007/xaml/presentation""
+  xmlns:t=""" + XamlTypeFinderTests.XamlDomTestsNamespace + @"""
+  xmlns:x=""http://schemas.microsoft.com/winfx/2006/xaml"">
+  <t:ExampleClass.ObjectProp>
+    <x:Type TypeName=""t:ExampleClass""/>
+  </t:ExampleClass.ObjectProp>
+</t:ExampleClass>
+			");
+		}
+		
+		[Test]
+		public void ExampleClassObjectPropWithExplicitMarkupExtension2()
+		{
+			TestLoading(@"
+<t:ExampleClass
+  xmlns=""http://schemas.microsoft.com/netfx/2007/xaml/presentation""
+  xmlns:t=""" + XamlTypeFinderTests.XamlDomTestsNamespace + @"""
+  xmlns:x=""http://schemas.microsoft.com/winfx/2006/xaml"">
+  <t:ExampleClass.ObjectProp>
+    <x:TypeExtension TypeName=""t:ExampleClass""/>
+  </t:ExampleClass.ObjectProp>
 </t:ExampleClass>
 			");
 		}
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlObject.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlObject.cs
index 391e849165..b689cf97f5 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlObject.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlObject.cs
@@ -9,6 +9,7 @@ using System;
 using System.Collections.Generic;
 using System.ComponentModel;
 using System.Diagnostics;
+using System.Windows.Markup;
 using System.Xml;
 
 namespace ICSharpCode.WpfDesign.XamlDom
@@ -50,7 +51,11 @@ namespace ICSharpCode.WpfDesign.XamlDom
 		#region XamlPropertyValue implementation
 		internal override object GetValueFor(XamlPropertyInfo targetProperty)
 		{
-			return instance;
+			if (instance is MarkupExtension) {
+				return ((MarkupExtension)instance).ProvideValue(new XamlTypeResolverProvider(this));
+			} else {
+				return instance;
+			}
 		}
 		
 		internal override XmlNode GetNodeForCollection()
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlParser.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlParser.cs
index 53d4a27bf4..3c837ab7f2 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlParser.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlParser.cs
@@ -133,7 +133,13 @@ namespace ICSharpCode.WpfDesign.XamlDom
 		
 		XamlObject ParseObject(XmlElement element)
 		{
-			Type elementType = FindType(element.NamespaceURI, element.LocalName);
+			Type elementType = settings.TypeFinder.GetType(element.NamespaceURI, element.LocalName);
+			if (elementType == null) {
+				elementType = settings.TypeFinder.GetType(element.NamespaceURI, element.LocalName + "Extension");
+				if (elementType == null) {
+					throw new XamlLoadException("Cannot find type " + element.Name);
+				}
+			}
 			
 			XmlSpace oldXmlSpace = currentXmlSpace;
 			XamlObject parentXamlObject = currentXamlObject;