diff --git a/railties/lib/rails/generators/actions.rb b/railties/lib/rails/generators/actions.rb
index 433a56dc577a63c181b276a96c76b47b28bead66..b8541c236ef7315b2fef27b255b64b8bdcfab84d 100644
--- a/railties/lib/rails/generators/actions.rb
+++ b/railties/lib/rails/generators/actions.rb
@@ -92,14 +92,15 @@ def add_source(source, options={})
       #
       def environment(data=nil, options={}, &block)
         sentinel = /class [a-z_:]+ < Rails::Application/i
+        env_file_sentinel = /::Application\.configure do/
         data = block.call if !data && block_given?
 
         in_root do
           if options[:env].nil?
             inject_into_file 'config/application.rb', "\n  #{data}", :after => sentinel, :verbose => false
           else
-            Array.wrap(options[:env]).each do|env|
-              append_file "config/environments/#{env}.rb", "\n#{data}", :verbose => false
+            Array.wrap(options[:env]).each do |env|
+              inject_into_file "config/environments/#{env}.rb", "\n  #{data}", :after => env_file_sentinel, :verbose => false
             end
           end
         end
diff --git a/railties/test/generators/actions_test.rb b/railties/test/generators/actions_test.rb
index 597746c4aaca4d047ea120e41a2a2437e2e6b537..e4a8000425e4d7a2451be9bbc0e1bcc20b1e965a 100644
--- a/railties/test/generators/actions_test.rb
+++ b/railties/test/generators/actions_test.rb
@@ -109,6 +109,13 @@ def test_environment_should_include_data_in_environment_initializer_block
     assert_file 'config/application.rb', /#{Regexp.escape(autoload_paths)}/
   end
 
+  def test_environment_should_include_data_in_environment_initializer_block_with_env_option
+    run_generator
+    autoload_paths = 'config.autoload_paths += %w["#{Rails.root}/app/extras"]'
+    action :environment, autoload_paths, :env => 'development'
+    assert_file "config/environments/development.rb", /Application\.configure do\n  #{Regexp.escape(autoload_paths)}/
+  end
+
   def test_environment_with_block_should_include_block_contents_in_environment_initializer_block
     run_generator