diff --git a/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/main/java/io/quarkus/resteasy/reactive/server/deployment/ResteasyReactiveProcessor.java b/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/main/java/io/quarkus/resteasy/reactive/server/deployment/ResteasyReactiveProcessor.java
index f5665da9d16f5..e08c17a8661a9 100644
--- a/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/main/java/io/quarkus/resteasy/reactive/server/deployment/ResteasyReactiveProcessor.java
+++ b/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/main/java/io/quarkus/resteasy/reactive/server/deployment/ResteasyReactiveProcessor.java
@@ -291,7 +291,8 @@ public void setupEndpoints(Capabilities capabilities, BeanArchiveIndexBuildItem
                             config.inputBufferSize.asLongValue(), config.singleDefaultProduces, config.defaultProduces))
                     .setAdditionalReaders(additionalReaders)
                     .setHttpAnnotationToMethod(result.getHttpAnnotationToMethod())
-                    .setInjectableBeans(injectableBeans).setAdditionalWriters(additionalWriters)
+                    .setInjectableBeans(injectableBeans)
+                    .setAdditionalWriters(additionalWriters)
                     .setDefaultBlocking(appResult.isBlocking())
                     .setHasRuntimeConverters(!paramConverterProviders.getParamConverterProviders().isEmpty())
                     .setClassLevelExceptionMappers(
diff --git a/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/test/java/io/quarkus/resteasy/reactive/server/test/simple/ApplicationWithBlockingTest.java b/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/test/java/io/quarkus/resteasy/reactive/server/test/simple/ApplicationWithBlockingTest.java
new file mode 100644
index 0000000000000..4abbe528c48a2
--- /dev/null
+++ b/extensions/resteasy-reactive/quarkus-resteasy-reactive/deployment/src/test/java/io/quarkus/resteasy/reactive/server/test/simple/ApplicationWithBlockingTest.java
@@ -0,0 +1,63 @@
+package io.quarkus.resteasy.reactive.server.test.simple;
+
+import java.util.function.Supplier;
+
+import javax.ws.rs.GET;
+import javax.ws.rs.Path;
+import javax.ws.rs.core.Application;
+
+import org.hamcrest.Matchers;
+import org.jboss.shrinkwrap.api.ShrinkWrap;
+import org.jboss.shrinkwrap.api.spec.JavaArchive;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.extension.RegisterExtension;
+
+import io.quarkus.test.QuarkusUnitTest;
+import io.restassured.RestAssured;
+import io.smallrye.common.annotation.Blocking;
+import io.smallrye.common.annotation.NonBlocking;
+
+public class ApplicationWithBlockingTest {
+
+    @RegisterExtension
+    static QuarkusUnitTest test = new QuarkusUnitTest()
+            .setArchiveProducer(new Supplier<JavaArchive>() {
+                @Override
+                public JavaArchive get() {
+                    return ShrinkWrap.create(JavaArchive.class)
+                            .addClasses(BlockingApplication.class, ThreadNameResource.class);
+                }
+            });
+
+    @Test
+    public void test() {
+        RestAssured.get("/tname/blocking")
+                .then().body(Matchers.containsString("executor"), Matchers.not(Matchers.containsString("loop")));
+
+        RestAssured.get("/tname/nonblocking")
+                .then().body(Matchers.containsString("loop"), Matchers.not(Matchers.containsString("executor")));
+    }
+
+    @Blocking
+    public static class BlockingApplication extends Application {
+
+    }
+
+    @Path("tname")
+    public static class ThreadNameResource {
+
+        @Path("blocking")
+        @GET
+        public String threadName() {
+            return Thread.currentThread().getName();
+        }
+
+        @NonBlocking
+        @Path("nonblocking")
+        @GET
+        public String nonBlocking() {
+            return Thread.currentThread().getName();
+        }
+    }
+
+}
diff --git a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
index cdce7ab7e3e5a..7a299d0d9aa83 100644
--- a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
+++ b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
@@ -20,6 +20,7 @@
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.LONG;
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.MATRIX_PARAM;
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.MULTI;
+import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.NON_BLOCKING;
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.PATH;
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.PATH_PARAM;
 import static org.jboss.resteasy.reactive.common.processor.ResteasyReactiveDotNames.PATH_SEGMENT;
@@ -438,11 +439,11 @@ private ResourceMethod createResourceMethod(ClassInfo currentClassInfo, ClassInf
             boolean blocking = defaultBlocking;
             AnnotationInstance blockingAnnotation = getInheritableAnnotation(info, BLOCKING);
             if (blockingAnnotation != null) {
-                AnnotationValue value = blockingAnnotation.value();
-                if (value != null) {
-                    blocking = value.asBoolean();
-                } else {
-                    blocking = true;
+                blocking = true;
+            } else {
+                AnnotationInstance nonBlockingAnnotation = getInheritableAnnotation(info, NON_BLOCKING);
+                if (nonBlockingAnnotation != null) {
+                    blocking = false;
                 }
             }
 
diff --git a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/scanning/ResteasyReactiveScanner.java b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/scanning/ResteasyReactiveScanner.java
index 621a249ee05cb..c37f18504f718 100644
--- a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/scanning/ResteasyReactiveScanner.java
+++ b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/scanning/ResteasyReactiveScanner.java
@@ -84,10 +84,10 @@ public static ApplicationScanningResult scanForApplicationClass(IndexView index)
                     | InvocationTargetException e) {
                 throw new RuntimeException("Unable to handle class: " + applicationClass, e);
             }
-            if (applicationClassInfo.classAnnotation(ResteasyReactiveDotNames.NON_BLOCKING) != null) {
-                blocking = false;
-            } else if (applicationClassInfo.classAnnotation(ResteasyReactiveDotNames.NON_BLOCKING) != null) {
+            if (applicationClassInfo.classAnnotation(ResteasyReactiveDotNames.BLOCKING) != null) {
                 blocking = true;
+            } else if (applicationClassInfo.classAnnotation(ResteasyReactiveDotNames.NON_BLOCKING) != null) {
+                blocking = false;
             }
         }
         if (selectedAppClass != null) {