diff --git a/grails-core/src/main/groovy/org/grails/compiler/injection/GrailsASTUtils.java b/grails-core/src/main/groovy/org/grails/compiler/injection/GrailsASTUtils.java
index c7e83cb017..4d5f32dc44 100644
--- a/grails-core/src/main/groovy/org/grails/compiler/injection/GrailsASTUtils.java
+++ b/grails-core/src/main/groovy/org/grails/compiler/injection/GrailsASTUtils.java
@@ -148,6 +148,8 @@ public final class GrailsASTUtils {
     @SuppressWarnings("rawtypes")
     private static final Set<Class> ENTITY_ANNOTATIONS = new HashSet<>();
 
+    private static Class<?> JPA_ENTITY_ANNOTATION;
+
     static {
         ENTITY_ANNOTATIONS.add(grails.persistence.Entity.class);
         ClassLoader classLoader = GrailsASTUtils.class.getClassLoader();
@@ -160,7 +162,7 @@ public final class GrailsASTUtils {
         }
         if (ClassUtils.isPresent("javax.persistence.EntityManagerFactory", classLoader)) {
             try {
-                ENTITY_ANNOTATIONS.add(classLoader.loadClass("javax.persistence.Entity"));
+                JPA_ENTITY_ANNOTATION = classLoader.loadClass("javax.persistence.Entity");
             }
             catch (ClassNotFoundException ignored) {
             }
@@ -858,6 +860,9 @@ public static boolean isConstructorMethod(MethodNode declaredMethod) {
 
     @SuppressWarnings("unchecked")
     public static boolean isDomainClass(ClassNode classNode, SourceUnit sourceNode) {
+        if (isJpaEntityClass(classNode)) {
+            return false;
+        }
         boolean isDomainClass = GrailsASTUtils.hasAnyAnnotations(classNode, ENTITY_ANNOTATIONS.toArray(new Class[0]));
 
         if (!isDomainClass && sourceNode != null) {
@@ -884,6 +889,11 @@ public static boolean isDomainClass(ClassNode classNode, SourceUnit sourceNode)
         return isDomainClass;
     }
 
+    @SuppressWarnings("unchecked")
+    public static boolean isJpaEntityClass(ClassNode classNode) {
+        return JPA_ENTITY_ANNOTATION != null && GrailsASTUtils.hasAnnotation(classNode, (Class<? extends Annotation>) JPA_ENTITY_ANNOTATION);
+    }
+
     public static void addDelegateInstanceMethods(ClassNode classNode, ClassNode delegateNode, Expression delegateInstance) {
         addDelegateInstanceMethods(classNode, delegateNode, delegateInstance, null);
     }
diff --git a/grails-core/src/main/groovy/org/grails/core/artefact/AnnotationDomainClassArtefactHandler.java b/grails-core/src/main/groovy/org/grails/core/artefact/AnnotationDomainClassArtefactHandler.java
index 940d9f5408..3470f72db0 100644
--- a/grails-core/src/main/groovy/org/grails/core/artefact/AnnotationDomainClassArtefactHandler.java
+++ b/grails-core/src/main/groovy/org/grails/core/artefact/AnnotationDomainClassArtefactHandler.java
@@ -15,10 +15,11 @@
  */
 package org.grails.core.artefact;
 
+import java.lang.annotation.Annotation;
 import java.util.HashSet;
 import java.util.Set;
 
-import javax.persistence.Entity;
+import org.springframework.util.ClassUtils;
 
 /**
  * Detects annotated domain classes for EJB3 style mappings.
@@ -26,10 +27,24 @@
  * @author Graeme Rocher
  * @since 1.0
  */
+@SuppressWarnings("unchecked")
 public class AnnotationDomainClassArtefactHandler extends DomainClassArtefactHandler {
 
     private static final String JPA_MAPPING_STRATEGY = "JPA";
 
+    private static Class<Annotation> JPA_ENTITY_ANNOTATION;
+
+    static {
+        ClassLoader classLoader = AnnotationDomainClassArtefactHandler.class.getClassLoader();
+        if (ClassUtils.isPresent("javax.persistence.EntityManagerFactory", classLoader)) {
+            try {
+                JPA_ENTITY_ANNOTATION = (Class<Annotation>) classLoader.loadClass("javax.persistence.Entity");
+            }
+            catch (ClassNotFoundException ignored) {
+            }
+        }
+    }
+
     private final Set<String> jpaClassNames = new HashSet<>();
 
     public Set<String> getJpaClassNames() {
@@ -46,7 +61,7 @@ public boolean isArtefactClass(Class<?> clazz) {
     }
 
     public static boolean isJPADomainClass(Class<?> clazz) {
-        return clazz != null && clazz.getAnnotation(Entity.class) != null;
+        return clazz != null && JPA_ENTITY_ANNOTATION != null && clazz.getAnnotation(JPA_ENTITY_ANNOTATION) != null;
     }
 
 }
diff --git a/grails-core/src/main/groovy/org/grails/core/artefact/DomainClassArtefactHandler.java b/grails-core/src/main/groovy/org/grails/core/artefact/DomainClassArtefactHandler.java
index fb0182dfc6..cac0a28109 100644
--- a/grails-core/src/main/groovy/org/grails/core/artefact/DomainClassArtefactHandler.java
+++ b/grails-core/src/main/groovy/org/grails/core/artefact/DomainClassArtefactHandler.java
@@ -54,8 +54,6 @@ public class DomainClassArtefactHandler extends ArtefactHandlerAdapter implement
 
     private static final String GRAILS_PACKAGE_PREFIX = "grails.";
 
-    private static final String JAVAX_PERSISTENCE = "javax.persistence";
-
     public DomainClassArtefactHandler() {
         super(TYPE, GrailsDomainClass.class, DefaultGrailsDomainClass.class, null, true);
     }
@@ -99,7 +97,8 @@ public boolean isArtefact(ClassNode classNode) {
 
         URL url = GrailsASTUtils.getSourceUrl(classNode);
         if (url != null) {
-            return GrailsResourceUtils.isDomainClass(url);
+            boolean isDomainClass = GrailsResourceUtils.isDomainClass(url);
+            return isDomainClass && !GrailsASTUtils.isJpaEntityClass(classNode);
         }
         else {
             return super.isArtefact(classNode);
@@ -158,7 +157,7 @@ private static boolean doIsDomainClassCheck(Class<?> clazz) {
                 String annName = annType.getSimpleName();
 
                 String pkgName = annType.getPackage().getName();
-                if (ENTITY_ANN_NAME.equals(annName) && pkgName.startsWith(GRAILS_PACKAGE_PREFIX) || pkgName.startsWith(JAVAX_PERSISTENCE)) {
+                if (ENTITY_ANN_NAME.equals(annName) && pkgName.startsWith(GRAILS_PACKAGE_PREFIX)) {
                     return true;
                 }
             }
diff --git a/grails-core/src/test/groovy/org/grails/compiler/injection/GrailsASTUtilsSpec.groovy b/grails-core/src/test/groovy/org/grails/compiler/injection/GrailsASTUtilsSpec.groovy
index 325d291d98..abd8dad1e2 100644
--- a/grails-core/src/test/groovy/org/grails/compiler/injection/GrailsASTUtilsSpec.groovy
+++ b/grails-core/src/test/groovy/org/grails/compiler/injection/GrailsASTUtilsSpec.groovy
@@ -136,7 +136,8 @@ class GrailsASTUtilsSpec extends Specification {
         someEntitySourceUnit.getName() >> someEntityFile.absolutePath
 
         expect: 'SomeJpaEntity should be recognized as a domain because annotated with @grails.persistence.Entity'
-        GrailsASTUtils.isDomainClass(new ClassNode(SomeJpaEntity), someEntitySourceUnit)
+        GrailsASTUtils.isJpaEntityClass(new ClassNode(SomeJpaEntity))
+        !GrailsASTUtils.isDomainClass(new ClassNode(SomeJpaEntity), someEntitySourceUnit)
     }
 
     void 'test domain class annotated with @grails.gorm.annotation.Entity'() {