diff --git a/src/ajax.js b/src/ajax.js
index ee52ed82f..4af502a97 100644
--- a/src/ajax.js
+++ b/src/ajax.js
@@ -206,7 +206,7 @@ jQuery.extend({
 		var s = jQuery.extend(true, {}, jQuery.ajaxSettings, origSettings);
 		
 		var jsonp, status, data,
-			callbackContext = s.context || s,
+			callbackContext = origSettings && origSettings.context || s,
 			type = s.type.toUpperCase();
 
 		// convert data if not already a string
diff --git a/test/unit/ajax.js b/test/unit/ajax.js
index 775523e58..195fa27ca 100644
--- a/test/unit/ajax.js
+++ b/test/unit/ajax.js
@@ -180,6 +180,27 @@ test("Ajax events with context", function() {
 	});
 });
 
+test("jQuery.ajax context modification", function() {
+	expect(1);
+
+	stop();
+
+	var obj = {}
+
+	jQuery.ajax({
+		url: url("data/name.html"),
+		context: obj,
+		beforeSend: function(){
+			this.test = "foo";
+		},
+		complete: function() {
+			start();
+		}
+	});
+
+	equals( obj.test, "foo", "Make sure the original object is maintained." );
+});
+
 test("jQuery.ajax() - disabled globals", function() {
 	expect( 3 );
 	stop();