diff --git a/library/Director/CustomVariable/CustomVariable.php b/library/Director/CustomVariable/CustomVariable.php
index 4d8d70fb..e028475f 100644
--- a/library/Director/CustomVariable/CustomVariable.php
+++ b/library/Director/CustomVariable/CustomVariable.php
@@ -88,12 +88,12 @@ abstract class CustomVariable implements IcingaConfigRenderer
         return $this->modified;
     }
 
-    public function toConfigStringPrefetchable()
+    public function toConfigStringPrefetchable($renderExpressions = false)
     {
         if (PrefetchCache::shouldBeUsed()) {
-            return PrefetchCache::instance()->renderVar($this);
+            return PrefetchCache::instance()->renderVar($this, $renderExpressions);
         } else {
-            return $this->toConfigString();
+            return $this->toConfigString($renderExpressions);
         }
     }
 
diff --git a/library/Director/CustomVariable/CustomVariableString.php b/library/Director/CustomVariable/CustomVariableString.php
index b67b3322..11942769 100644
--- a/library/Director/CustomVariable/CustomVariableString.php
+++ b/library/Director/CustomVariable/CustomVariableString.php
@@ -36,8 +36,12 @@ class CustomVariableString extends CustomVariable
         return $this;
     }
 
-    public function toConfigString()
+    public function toConfigString($renderExpressions = false)
     {
-        return c::renderString($this->getValue());
+        if ($renderExpressions) {
+            return c::renderStringWithVariables($this->getValue());
+        } else {
+            return c::renderString($this->getValue());
+        }
     }
 }
diff --git a/library/Director/CustomVariable/CustomVariables.php b/library/Director/CustomVariable/CustomVariables.php
index 3ce0bb00..3bec8924 100644
--- a/library/Director/CustomVariable/CustomVariables.php
+++ b/library/Director/CustomVariable/CustomVariables.php
@@ -268,24 +268,24 @@ class CustomVariables implements Iterator, Countable, IcingaConfigRenderer
         return $this->storedVars;
     }
 
-    public function toConfigString()
+    public function toConfigString($renderExpressions = false)
     {
         $out = '';
 
         ksort($this->vars);
         foreach ($this->vars as $key => $var) {
             // TODO: ctype_alnum + underscore?
-            $out .= $this->renderSingleVar($key, $var);
+            $out .= $this->renderSingleVar($key, $var, $renderExpressions);
         }
 
         return $out;
     }
 
-    protected function renderSingleVar($key, $var)
+    protected function renderSingleVar($key, $var, $renderExpressions = false)
     {
         return c::renderKeyValue(
             $this->renderKeyName($key),
-            $var->toConfigStringPrefetchable()
+            $var->toConfigStringPrefetchable($renderExpressions)
         );
     }
 
diff --git a/library/Director/Db/Cache/PrefetchCache.php b/library/Director/Db/Cache/PrefetchCache.php
index ec5a910d..86fd922b 100644
--- a/library/Director/Db/Cache/PrefetchCache.php
+++ b/library/Director/Db/Cache/PrefetchCache.php
@@ -84,14 +84,14 @@ class PrefetchCache
     }
     */
 
-    public function renderVar(CustomVariable $var)
+    public function renderVar(CustomVariable $var, $renderExpressions = false)
     {
         $checksum = $var->getChecksum();
         if (null === $checksum) {
-            return $var->toConfigString();
+            return $var->toConfigString($renderExpressions);
         } else {
             if (! array_key_exists($checksum, $this->renderedVars)) {
-                $this->renderedVars[$checksum] = $var->toConfigString();
+                $this->renderedVars[$checksum] = $var->toConfigString($renderExpressions);
             }
 
             return $this->renderedVars[$checksum];
diff --git a/library/Director/IcingaConfig/IcingaConfigHelper.php b/library/Director/IcingaConfig/IcingaConfigHelper.php
index 71e4a5bc..f76ad167 100644
--- a/library/Director/IcingaConfig/IcingaConfigHelper.php
+++ b/library/Director/IcingaConfig/IcingaConfigHelper.php
@@ -257,4 +257,22 @@ class IcingaConfigHelper
 
         return $seconds . 's';
     }
+
+    public static function renderStringWithVariables($string)
+    {
+        $string = preg_replace(
+            '/(?<!\$)\$([\w\.]+)\$(?!\$)/',
+            '" + ${1} + "',
+            static::renderString($string)
+        );
+
+        if (substr($string, 0, 5) === '"" + ') {
+            $string = substr($string, 5);
+        }
+        if (substr($string, -5) === ' + ""') {
+            $string = substr($string, 0, -5);
+        }
+
+        return $string;
+    }
 }
diff --git a/library/Director/Objects/IcingaObject.php b/library/Director/Objects/IcingaObject.php
index 616a1f91..6d1a7cb4 100644
--- a/library/Director/Objects/IcingaObject.php
+++ b/library/Director/Objects/IcingaObject.php
@@ -1631,11 +1631,8 @@ abstract class IcingaObject extends DbObject implements IcingaConfigRenderer
     protected function renderLegacyProperties()
     {
         $out = '';
-        $blacklist = array_merge(array(
-            'id',
-            'object_name',
-            'object_type',
-        ), array() /* $this->prioritizedProperties */);
+        $blacklist = array_merge($this->propertiesNotForRendering,
+            array() /* $this->prioritizedProperties */);
 
         foreach ($this->properties as $key => $value) {
             if (in_array($key, $blacklist)) {
@@ -1706,7 +1703,12 @@ abstract class IcingaObject extends DbObject implements IcingaConfigRenderer
             return $this->renderRelationProperty($relKey, $value);
         }
 
-        return c::renderKeyValue($key, c::renderString($value));
+        return c::renderKeyValue(
+            $key,
+            $this->isApplyRule() ?
+                c::renderStringWithVariables($value) :
+                c::renderString($value)
+        );
     }
 
     protected function renderLegacyObjectProperty($key, $value)
@@ -1783,7 +1785,7 @@ abstract class IcingaObject extends DbObject implements IcingaConfigRenderer
     protected function renderCustomVars()
     {
         if ($this->supportsCustomVars()) {
-            return $this->vars()->toConfigString();
+            return $this->vars()->toConfigString($this->isApplyRule());
         } else {
             return '';
         }
diff --git a/test/php/library/Director/CustomVariable/CustomVariablesTest.php b/test/php/library/Director/CustomVariable/CustomVariablesTest.php
index f6d91873..ba1e25a6 100644
--- a/test/php/library/Director/CustomVariable/CustomVariablesTest.php
+++ b/test/php/library/Director/CustomVariable/CustomVariablesTest.php
@@ -44,6 +44,21 @@ class CustomVariablesTest extends BaseTestCase
         );
     }
 
+    public function testVariablesToExpression()
+    {
+        $vars = $this->newVars();
+        $vars->bla = 'da';
+        $vars->abc = '$val$';
+        $expected = $this->indentVarsList(array(
+            'vars.abc = val',
+            'vars.bla = "da"'
+        ));
+        $this->assertEquals(
+            $vars->toConfigString(true),
+            $expected
+        );
+    }
+
     protected function indentVarsList($vars)
     {
         return $this->indent . implode(
diff --git a/test/php/library/Director/IcingaConfig/IcingaConfigHelperTest.php b/test/php/library/Director/IcingaConfig/IcingaConfigHelperTest.php
index c73b5bb8..bb5955a0 100644
--- a/test/php/library/Director/IcingaConfig/IcingaConfigHelperTest.php
+++ b/test/php/library/Director/IcingaConfig/IcingaConfigHelperTest.php
@@ -69,4 +69,38 @@ class IcingaConfigHelperTest extends BaseTestCase
     {
         return file_get_contents(__DIR__ . '/rendered/' . $name . '.out');
     }
+
+    public function testRenderStringIsCorrectlyRendered()
+    {
+        $this->assertEquals(c::renderString('val1\\\val2'), '"val1\\\\\\\\val2"');
+        $this->assertEquals(c::renderString('"val1"'), '"\"val1\""');
+        $this->assertEquals(c::renderString('\$val\$'), '"\\\\$val\\\\$"');
+        $this->assertEquals(c::renderString('\t'), '"\\\\t"');
+        $this->assertEquals(c::renderString('\r'), '"\\\\r"');
+        $this->assertEquals(c::renderString('\n'), '"\\\\n"');
+        $this->assertEquals(c::renderString('\f'), '"\\\\f"');
+    }
+
+    public function testRenderStringWithVariables()
+    {
+        $this->assertEquals(c::renderStringWithVariables('Before $var$'), '"Before " + var');
+        $this->assertEquals(c::renderStringWithVariables('$var$ After'), 'var + " After"');
+        $this->assertEquals(c::renderStringWithVariables('$var$'), 'var');
+        $this->assertEquals(c::renderStringWithVariables('$$var$$'), '"$$var$$"');
+        $this->assertEquals(c::renderStringWithVariables('Before $$var$$ After'), '"Before $$var$$ After"');
+        $this->assertEquals(
+            c::renderStringWithVariables('Before $name$ $name$ After'),
+            '"Before " + name + " " + name + " After"'
+        );
+        $this->assertEquals(
+            c::renderStringWithVariables('Before $var1$ $var2$ After'),
+            '"Before " + var1 + " " + var2 + " After"'
+        );
+        $this->assertEquals(c::renderStringWithVariables('$host.vars.custom$'), 'host.vars.custom');
+        $this->assertEquals(c::renderStringWithVariables('$var"$'), '"$var\"$"');
+        $this->assertEquals(
+            c::renderStringWithVariables('\tI am\rrendering\nproperly\fand I $support$ "multiple" $variables$\$'),
+            '"\\\\tI am\\\\rrendering\\\\nproperly\\\\fand I " + support + " \"multiple\" " + variables + "\\\\$"'
+        );
+    }
 }
diff --git a/test/php/library/Director/Objects/IcingaServiceTest.php b/test/php/library/Director/Objects/IcingaServiceTest.php
index 590ad76d..07fea36c 100644
--- a/test/php/library/Director/Objects/IcingaServiceTest.php
+++ b/test/php/library/Director/Objects/IcingaServiceTest.php
@@ -13,6 +13,8 @@ class IcingaServiceTest extends BaseTestCase
 
     protected $testServiceName = '___TEST___service';
 
+    protected $createdServices = array();
+
     public function testUnstoredHostCanBeLazySet()
     {
         $service = $this->service();
@@ -233,6 +235,51 @@ class IcingaServiceTest extends BaseTestCase
         );
     }
 
+    public function testVariablesInPropertiesAndCustomVariables()
+    {
+        if ($this->skipForMissingDb()) {
+            return;
+        }
+
+        $db = $this->getDb();
+
+        $service = $this->service('___TEST___service_$not_replaced$');
+        $service->object_type = 'apply';
+        $service->display_name = 'Service: $host.vars.replaced$';
+        $service->assignments = array(
+            'host.address="127.*"',
+        );
+        $service->{'vars.custom_var'} = '$host.vars.replaced$';
+        $service->store($db);
+
+        $service = IcingaService::loadWithAutoIncId($service->id, $db);
+        $this->assertEquals(
+            $this->loadRendered('service3'),
+            (string) $service
+        );
+    }
+
+    public function testVariablesAreNotReplacedForNonApplyObjects()
+    {
+        if ($this->skipForMissingDb()) {
+            return;
+        }
+
+        $db = $this->getDb();
+
+        $service = $this->service('___TEST___service_$not_replaced$');
+        $service->object_type = 'object';
+        $service->display_name = 'Service: $host.vars.not_replaced$';
+        $service->{'vars.custom_var'} = '$host.vars.not_replaced$';
+        $service->store($db);
+
+        $service = IcingaService::loadWithAutoIncId($service->id, $db);
+        $this->assertEquals(
+            $this->loadRendered('service4'),
+            (string) $service
+        );
+    }
+
     protected function host()
     {
         return IcingaHost::create(array(
@@ -242,10 +289,14 @@ class IcingaServiceTest extends BaseTestCase
         ));
     }
 
-    protected function service()
+    protected function service($objectName = null)
     {
+        if ($objectName === null) {
+            $objectName = $this->testServiceName;
+        }
+        $this->createdServices[] = $objectName;
         return IcingaService::create(array(
-            'object_name'  => $this->testServiceName,
+            'object_name'  => $objectName,
             'object_type'  => 'object',
             'display_name' => 'Whatever service',
             'vars'         => array(
@@ -279,7 +330,7 @@ class IcingaServiceTest extends BaseTestCase
                 }
             }
 
-            $kill = array($this->testServiceName);
+            $kill = $this->createdServices;
             foreach ($kill as $name) {
                 if (IcingaService::exists(array($name), $db)) {
                     IcingaService::load($name, $db)->delete();
diff --git a/test/php/library/Director/Objects/rendered/service3.out b/test/php/library/Director/Objects/rendered/service3.out
new file mode 100644
index 00000000..ad39128a
--- /dev/null
+++ b/test/php/library/Director/Objects/rendered/service3.out
@@ -0,0 +1,16 @@
+apply Service "___TEST___service_$not_replaced$" {
+    display_name = "Service: " + host.vars.replaced
+    vars.custom_var = host.vars.replaced
+    vars.test1 = "string"
+    vars.test2 = 17
+    vars.test3 = false
+    vars.test4 = {
+        a = [ "dict", "ionary" ]
+        @this = "is"
+    }
+
+    assign where match("127.*", host.address)
+
+    import DirectorOverrideTemplate
+}
+
diff --git a/test/php/library/Director/Objects/rendered/service4.out b/test/php/library/Director/Objects/rendered/service4.out
new file mode 100644
index 00000000..ef87fc83
--- /dev/null
+++ b/test/php/library/Director/Objects/rendered/service4.out
@@ -0,0 +1,12 @@
+object Service "___TEST___service_$not_replaced$" {
+    display_name = "Service: $host.vars.not_replaced$"
+    vars.custom_var = "$host.vars.not_replaced$"
+    vars.test1 = "string"
+    vars.test2 = 17
+    vars.test3 = false
+    vars.test4 = {
+        a = [ "dict", "ionary" ]
+        @this = "is"
+    }
+}
+