diff --git a/dependencymanager/core/src/main/java/org/apache/felix/dm/ServiceDependency.java b/dependencymanager/core/src/main/java/org/apache/felix/dm/ServiceDependency.java
index 532c237..5b5baeb 100644
--- a/dependencymanager/core/src/main/java/org/apache/felix/dm/ServiceDependency.java
+++ b/dependencymanager/core/src/main/java/org/apache/felix/dm/ServiceDependency.java
@@ -161,5 +161,23 @@
      */
 	public ServiceDependency setCallbacks(Object instance, String added, String changed, String removed);
     
-    public ServiceDependency setInstanceBound(boolean isInstanceBound);
+    /**
+     * Sets propagation of the service dependency properties to the provided service properties. Any additional
+     * service properties specified directly are merged with these.
+     */
+    public ServiceDependency setPropagate(boolean propagate);
+    
+    /**
+     * Sets an Object instance and a callback method used to propagate some properties to the provided service properties.
+     * The method will be invoked on the specified object instance and must have one of the following signatures:<p>
+     * <ul><li>Dictionary callback(ServiceReference, Object service) 
+     * <li>Dictionary callback(ServiceReference)
+     * </ul>
+     * @param instance the Object instance which is used to retrieve propagated service properties 
+     * @param method the method to invoke for retrieving the properties to be propagated to the service properties.
+     * @return this service dependency.
+     */
+    public ServiceDependency setPropagate(Object instance, String method);
+
+    public ServiceDependency setInstanceBound(boolean isInstanceBound);    
 }
diff --git a/dependencymanager/test/src/test/java/org/apache/felix/dm/test/ServiceDependencyPropagateTest.java b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/ServiceDependencyPropagateTest.java
new file mode 100644
index 0000000..5f445e2
--- /dev/null
+++ b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/ServiceDependencyPropagateTest.java
@@ -0,0 +1,145 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.felix.dm.test;
+
+import static org.ops4j.pax.exam.CoreOptions.mavenBundle;
+import static org.ops4j.pax.exam.CoreOptions.options;
+import static org.ops4j.pax.exam.CoreOptions.provision;
+
+import java.util.Dictionary;
+import java.util.Hashtable;
+import java.util.Map;
+
+import org.apache.felix.dm.DependencyManager;
+import org.apache.felix.dm.Service;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.ops4j.pax.exam.Option;
+import org.ops4j.pax.exam.junit.Configuration;
+import org.ops4j.pax.exam.junit.JUnit4TestRunner;
+import org.osgi.framework.BundleContext;
+import org.osgi.framework.ServiceReference;
+
+/**
+ * Validates ServiceDependency service properties propagation.
+ */
+@RunWith(JUnit4TestRunner.class)
+public class ServiceDependencyPropagateTest extends Base {
+    @Configuration
+    public static Option[] configuration() {
+        return options(
+            provision(
+                mavenBundle().groupId("org.osgi").artifactId("org.osgi.compendium").version("4.1.0"),
+                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.dependencymanager").versionAsInProject()
+            )
+        );
+    }    
+
+    /**
+     * Checks that a ServiceDependency propagates the dependency service properties to the provided service properties.
+     */
+    @Test
+    public void testServiceDependencyPropagate(BundleContext context) {
+        DependencyManager m = new DependencyManager(context);
+        // helper class that ensures certain steps get executed in sequence
+        Ensure e = new Ensure();
+        Service c1 = m.createService()
+                      .setImplementation(new C1(e))
+                      .add(m.createServiceDependency().setService(C2.class).setRequired(true).setCallbacks("bind", null));
+
+        Service c2 = m.createService()
+                      .setInterface(C2.class.getName(), new Hashtable() {{ put("foo", "bar"); }})
+                      .setImplementation(new C2())
+                      .add(m.createServiceDependency().setService(C3.class).setRequired(true).setPropagate(true));
+
+        Service c3 = m.createService()
+                      .setInterface(C3.class.getName(), new Hashtable() {{ put("foo2", "bar2"); }})
+                      .setImplementation(new C3());
+        
+        m.add(c1);
+        m.add(c2);
+        m.add(c3);
+
+        e.waitForStep(3, 10000);
+    }
+    
+    /**
+     * Checks that a ServiceDependency propagates the dependency service properties to the provided service properties,
+     * using a callback method.
+     */
+    @Test
+    public void testServiceDependencyPropagateCallback(BundleContext context) {
+        DependencyManager m = new DependencyManager(context);
+        // helper class that ensures certain steps get executed in sequence
+        Ensure e = new Ensure();
+        Service c1 = m.createService()
+                      .setImplementation(new C1(e))
+                      .add(m.createServiceDependency().setService(C2.class).setRequired(true).setCallbacks("bind", null));
+
+        C2 c2Impl = new C2();
+        Service c2 = m.createService()
+                      .setInterface(C2.class.getName(), new Hashtable() {{ put("foo", "bar"); }})
+                      .setImplementation(c2Impl)
+                      .add(m.createServiceDependency().setService(C3.class).setRequired(true).setPropagate(c2Impl, "getServiceProperties"));
+        
+        Service c3 = m.createService()
+                      .setInterface(C3.class.getName(), null)
+                      .setImplementation(new C3());
+        
+        m.add(c1);
+        m.add(c2);
+        m.add(c3);
+
+        e.waitForStep(3, 10000);
+    }
+    
+    public static class C1 {
+        private Map m_props;
+        private Ensure m_ensure;
+        
+        C1(Ensure ensure) {
+            m_ensure = ensure;
+        }
+
+        void bind(Map props, C2 c2) {
+            m_props = props;
+        }
+        
+        void start() {
+            m_ensure.step(1);
+            if ("bar".equals(m_props.get("foo"))) {
+                m_ensure.step(2);
+            }
+            if ("bar2".equals(m_props.get("foo2"))) {
+                m_ensure.step(3);
+            }
+        }
+    }
+    
+    public static class C2 {
+      C3 m_c3;
+      
+      public Dictionary getServiceProperties(ServiceReference ref) {
+          return new Hashtable() {{ put("foo2", "bar2"); }};
+      }
+    }
+    
+    public static class C3 {
+    }
+}