diff --git a/railties/lib/rails/generators/rails/app/app_generator.rb b/railties/lib/rails/generators/rails/app/app_generator.rb
index fc6a3cdee891446d978d8a3a8561f4ab7fb49d0e..2f85a0504ebdbab0087ab566057f8feec58c3d17 100644
--- a/railties/lib/rails/generators/rails/app/app_generator.rb
+++ b/railties/lib/rails/generators/rails/app/app_generator.rb
@@ -193,8 +193,12 @@ def app_name
         @app_name ||= File.basename(destination_root)
       end
 
+      def app_const_base
+        @app_const_base ||= app_name.gsub(/\W/, '_').squeeze('_').classify
+      end
+
       def app_const
-        @app_const ||= "#{app_name.gsub(/\W/, '_').squeeze('_').classify}::Application"
+        @app_const ||= "#{app_const_base}::Application"
       end
 
       def valid_app_const?
diff --git a/railties/lib/rails/generators/rails/app/templates/config/application.rb b/railties/lib/rails/generators/rails/app/templates/config/application.rb
index dce5b55d8655db8fbe5fe66f4a8f15884864d7aa..334820826ff8a88fb72e2dd0a5bddcc4ca8ada59 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/application.rb
+++ b/railties/lib/rails/generators/rails/app/templates/config/application.rb
@@ -1,6 +1,6 @@
 require File.expand_path('../boot', __FILE__)
 
-module <%= app_name.classify %>
+module <%= app_const_base %>
   class Application < Rails::Application
     # Settings in config/environments/* take precedence over those specified here.
     # Application configuration should go into files in config/initializers
diff --git a/railties/test/generators/app_generator_test.rb b/railties/test/generators/app_generator_test.rb
index 27537f39b2b17d724edc5fae63d0408a6c55735e..85081609dec2fe4bcdd79de1288f65f7b78b4c2e 100644
--- a/railties/test/generators/app_generator_test.rb
+++ b/railties/test/generators/app_generator_test.rb
@@ -61,7 +61,8 @@ def test_invalid_application_name_raises_an_error
 
   def test_invalid_application_name_is_fixed
     silence(:stdout){ Rails::Generators::AppGenerator.start [File.join(destination_root, "things-43")] }
-    assert_file "things-43/config/environment.rb", /Things43::Application/
+    assert_file "things-43/config/environment.rb", /Things43::Application\.initialize!/
+    assert_file "things-43/config/application.rb", /^module Things43$/
   end
 
   def test_config_database_is_added_by_default