diff --git a/trytond/model/model.py b/trytond/model/model.py
index 1e4c67b3f4..cb6ff9046c 100644
--- a/trytond/model/model.py
+++ b/trytond/model/model.py
@@ -359,14 +359,21 @@ class Model(WarningErrorMixin, URLMixin, PoolBase):
                     setattr(self, name, value)
                 else:
                     parent_values[name] = value
-            for name, value in parent_values.iteritems():
+
+            def set_parent_value(record, name, value):
                 parent_name, field = name.split('.', 1)
                 parent_name = parent_name[8:]  # Strip '_parent_'
-                parent = getattr(self, parent_name, None)
+                parent = getattr(record, parent_name, None)
                 if parent is not None:
-                    setattr(parent, field, value)
+                    if not field.startswith('_parent_'):
+                        setattr(parent, field, value)
+                    else:
+                        set_parent_value(parent, field, value)
                 else:
-                    setattr(self, parent_name, {field: value})
+                    setattr(record, parent_name, {field: value})
+
+            for name, value in parent_values.iteritems():
+                set_parent_value(self, name, value)
             self._init_values = self._values.copy()
         else:
             self._values = None
diff --git a/trytond/tests/__init__.py b/trytond/tests/__init__.py
index 50c69ae7aa..ca7cfc52be 100644
--- a/trytond/tests/__init__.py
+++ b/trytond/tests/__init__.py
@@ -113,6 +113,9 @@ def register():
         BinaryRequired,
         BinaryFileStorage,
         Model,
+        ModelParent,
+        ModelChild,
+        ModelChildChild,
         Singleton,
         URLObject,
         ModelStorage,
diff --git a/trytond/tests/model.py b/trytond/tests/model.py
index 3eab4ddb4b..8ce2038446 100644
--- a/trytond/tests/model.py
+++ b/trytond/tests/model.py
@@ -6,6 +6,7 @@ from trytond.transaction import Transaction
 
 __all__ = [
     'Model',
+    'ModelParent', 'ModelChild', 'ModelChildChild',
     'Singleton', 'URLObject',
     'ModelStorage', 'ModelStorageRequired', 'ModelStorageContext',
     'ModelSQLRequiredField', 'ModelSQLTimestamp', 'ModelSQLFieldSet',
@@ -23,6 +24,26 @@ class Model(ModelSQL):
     name = fields.Char('Name')
 
 
+class ModelParent(Model):
+    "Model Parent"
+    __name__ = 'test.model_parent'
+    name = fields.Char("Name")
+
+
+class ModelChild(Model):
+    "Model Child"
+    __name__ = 'test.model_child'
+    name = fields.Char("Name")
+    parent = fields.Many2One('test.model_parent', "Parent")
+
+
+class ModelChildChild(Model):
+    "Model Child Child"
+    __name__ = 'test.model_child_child'
+    name = fields.Char("Name")
+    parent = fields.Many2One('test.model_child', "Parent")
+
+
 class Singleton(ModelSingleton, ModelSQL):
     'Singleton'
     __name__ = 'test.singleton'
diff --git a/trytond/tests/test_model.py b/trytond/tests/test_model.py
index e5cabd4ef1..cb1469863b 100644
--- a/trytond/tests/test_model.py
+++ b/trytond/tests/test_model.py
@@ -28,6 +28,34 @@ class ModelTestCase(unittest.TestCase):
         self.assertEqual(
             repr(record), "Pool().get('test.model')(%s)" % record.id)
 
+    @with_transaction()
+    def test_init_parent(self):
+        "Test __init__ with _parent_"
+        pool = Pool()
+        Model = pool.get('test.model_child')
+
+        values = {
+            '_parent_parent.name': "Test",
+            }
+        record = Model(**values)
+
+        self.assertEqual(record.parent.name, "Test")
+
+    @with_transaction()
+    def test_init_parent_parent(self):
+        "Test __init__ with _parent_._parent_"
+        pool = Pool()
+        Model = pool.get('test.model_child_child')
+
+        values = {
+            '_parent_parent.name': "Test 1",
+            '_parent_parent._parent_parent.name': "Test 2",
+            }
+        record = Model(**values)
+
+        self.assertEqual(record.parent.name, "Test 1")
+        self.assertEqual(record.parent.parent.name, "Test 2")
+
 
 def suite():
     return unittest.TestLoader().loadTestsFromTestCase(ModelTestCase)