diff --git a/rest_framework/serializers.py b/rest_framework/serializers.py
index 7707de7a7..ef099e579 100644
--- a/rest_framework/serializers.py
+++ b/rest_framework/serializers.py
@@ -378,23 +378,27 @@ class BaseSerializer(WritableField):
         # Set the serializer object if it exists
         obj = getattr(self.parent.object, field_name) if self.parent.object else None
 
-        if value in (None, ''):
-            into[(self.source or field_name)] = None
+        if self.source == '*':
+            if value:
+                into.update(value)
         else:
-            kwargs = {
-                'instance': obj,
-                'data': value,
-                'context': self.context,
-                'partial': self.partial,
-                'many': self.many
-            }
-            serializer = self.__class__(**kwargs)
-
-            if serializer.is_valid():
-                into[self.source or field_name] = serializer.object
+            if value in (None, ''):
+                into[(self.source or field_name)] = None
             else:
-                # Propagate errors up to our parent
-                raise NestedValidationError(serializer.errors)
+                kwargs = {
+                    'instance': obj,
+                    'data': value,
+                    'context': self.context,
+                    'partial': self.partial,
+                    'many': self.many
+                }
+                serializer = self.__class__(**kwargs)
+
+                if serializer.is_valid():
+                    into[self.source or field_name] = serializer.object
+                else:
+                    # Propagate errors up to our parent
+                    raise NestedValidationError(serializer.errors)
 
     def get_identity(self, data):
         """
diff --git a/rest_framework/tests/serializer.py b/rest_framework/tests/serializer.py
index 34acbaab4..116459e04 100644
--- a/rest_framework/tests/serializer.py
+++ b/rest_framework/tests/serializer.py
@@ -78,6 +78,17 @@ class PersonSerializer(serializers.ModelSerializer):
         read_only_fields = ('age',)
 
 
+class NestedSerializer(serializers.Serializer):
+    info = serializers.Field()
+
+
+class ModelSerializerWithNestedSerializer(serializers.ModelSerializer):
+    nested = NestedSerializer(source='*')
+
+    class Meta:
+        model = Person
+
+
 class PersonSerializerInvalidReadOnly(serializers.ModelSerializer):
     """
     Testing for #652.
@@ -369,6 +380,17 @@ class ValidationTests(TestCase):
         except:
             self.fail('Wrong exception type thrown.')
 
+    def test_writable_star_source_on_nested_serializer(self):
+        """
+        Assert that a nested serializer instantiated with source='*' correctly
+        expands the data into the outer serializer.
+        """
+        serializer = ModelSerializerWithNestedSerializer(data={
+            'name': 'marko',
+            'nested': {'info': 'hi'}},
+        )
+        self.assertEqual(serializer.is_valid(), True)
+
 
 class CustomValidationTests(TestCase):
     class CommentSerializerWithFieldValidator(CommentSerializer):