diff --git a/packages/create-instance/create-instance.js b/packages/create-instance/create-instance.js
index a8c0ac00d..669249157 100644
--- a/packages/create-instance/create-instance.js
+++ b/packages/create-instance/create-instance.js
@@ -39,6 +39,13 @@ function createChildren(vm, h, { slots, context }) {
   )
 }
 
+function getValuesFromCallableOption(optionValue) {
+  if (typeof optionValue === 'function') {
+    return optionValue.call(this)
+  }
+  return optionValue
+}
+
 export default function createInstance(
   component: Component,
   options: NormalizedOptions,
@@ -99,8 +106,14 @@ export default function createInstance(
 
   const parentComponentOptions = options.parentComponent || {}
 
-  parentComponentOptions.provide = options.provide
-  parentComponentOptions._provided = options.provide
+  const originalParentComponentProvide = parentComponentOptions.provide
+  parentComponentOptions.provide = function() {
+    return {
+      ...getValuesFromCallableOption.call(this, originalParentComponentProvide),
+      ...getValuesFromCallableOption.call(this, options.provide)
+    }
+  }
+
   parentComponentOptions.$_doNotStubChildren = true
   parentComponentOptions._isFunctionalContainer = componentOptions.functional
   parentComponentOptions.render = function(h) {
diff --git a/test/specs/mounting-options/methods.spec.js b/test/specs/mounting-options/methods.spec.js
index 98ff48bbf..3e000361b 100644
--- a/test/specs/mounting-options/methods.spec.js
+++ b/test/specs/mounting-options/methods.spec.js
@@ -2,6 +2,17 @@ import { config } from '@vue/test-utils'
 import { describeWithShallowAndMount } from '~resources/utils'
 
 describeWithShallowAndMount('options.methods', mountingMethod => {
+  let configMethodsSave
+
+  beforeEach(() => {
+    configMethodsSave = config.methods
+    config.methods = {}
+  })
+
+  afterEach(() => {
+    config.methods = configMethodsSave
+  })
+
   it('prioritize mounting options over config', () => {
     config.methods['val'] = () => 'methodFromConfig'
 
diff --git a/test/specs/mounting-options/provide.spec.js b/test/specs/mounting-options/provide.spec.js
index 7339af7f2..904958611 100644
--- a/test/specs/mounting-options/provide.spec.js
+++ b/test/specs/mounting-options/provide.spec.js
@@ -32,6 +32,86 @@ describeWithShallowAndMount('options.provide', mountingMethod => {
     }
   )
 
+  itDoNotRunIf(
+    !injectSupported,
+    'respects provide fooues from parentComponent',
+    () => {
+      const parentComponent = {
+        provide: {
+          foo: 'from parent'
+        }
+      }
+
+      const child = {
+        inject: ['foo', 'foo2'],
+        template: '<div></div>'
+      }
+
+      const wrapper = mountingMethod(child, {
+        parentComponent,
+        provide: {
+          foo2: 'from config'
+        }
+      })
+
+      expect(wrapper.vm.foo).to.equal('from parent')
+      expect(wrapper.vm.foo2).to.equal('from config')
+    }
+  )
+
+  itDoNotRunIf(
+    !injectSupported,
+    'respects provide function from parentComponent',
+    () => {
+      const parentComponent = {
+        provide() {
+          return { foo: 'from parent' }
+        }
+      }
+
+      const child = {
+        inject: ['foo', 'foo2'],
+        template: '<div></div>'
+      }
+
+      const wrapper = mountingMethod(child, {
+        parentComponent,
+        provide: {
+          foo2: 'from config'
+        }
+      })
+
+      expect(wrapper.vm.foo).to.equal('from parent')
+      expect(wrapper.vm.foo2).to.equal('from config')
+    }
+  )
+
+  itDoNotRunIf(
+    !injectSupported,
+    'prioritize mounting options over parentComponent provide',
+    () => {
+      const parentComponent = {
+        provide() {
+          return { foo: 'from parent' }
+        }
+      }
+
+      const child = {
+        inject: ['foo'],
+        template: '<div></div>'
+      }
+
+      const wrapper = mountingMethod(child, {
+        parentComponent,
+        provide: {
+          foo: 'from config'
+        }
+      })
+
+      expect(wrapper.vm.foo).to.equal('from config')
+    }
+  )
+
   itDoNotRunIf(
     !injectSupported,
     'provides function which is injected by mounted component',