diff --git a/collects/drscheme/private/auto-language.ss b/collects/drscheme/private/auto-language.ss
index 23b5307dfe..63aef3aa3c 100644
--- a/collects/drscheme/private/auto-language.ss
+++ b/collects/drscheme/private/auto-language.ss
@@ -6,7 +6,7 @@
   
   (define reader-tag "#reader")
   
-  (define (pick-new-language text all-languages module-language)
+  (define (pick-new-language text all-languages module-language module-language-settings)
     (with-handlers ([exn:fail:read? (λ (x) (values #f #f))])
       (let ([found-language? #f]
             [settings #f])
@@ -38,7 +38,7 @@
                          (pair? r1)
                          (eq? (car r1) 'module))
                 (set! found-language? module-language)
-                (set! settings (send module-language default-settings))))))
+                (set! settings module-language-settings)))))
         
         (values found-language?
                 settings)))))
diff --git a/collects/drscheme/private/unit.ss b/collects/drscheme/private/unit.ss
index c511c3991c..7f1da3910e 100644
--- a/collects/drscheme/private/unit.ss
+++ b/collects/drscheme/private/unit.ss
@@ -475,12 +475,20 @@ module browser threading seems wrong.
                               (λ (lang)
                                 (and (is-a? lang drscheme:module-language:module-language<%>)
                                      lang))
-                              (drscheme:language-configuration:get-languages)))])
+                              (drscheme:language-configuration:get-languages)))]
+                       [module-language-settings
+                        (let ([prefs-setting (preferences:get drscheme:language-configuration:settings-preferences-symbol)])
+                          (cond
+                            [(eq? (drscheme:language-configuration:language-settings-language prefs-setting)
+                                  module-language)
+                             (drscheme:language-configuration:language-settings-settings prefs-setting)]
+                            [else (send module-language default-settings)]))])
                   (let-values ([(matching-language settings)
                                 (pick-new-language
                                  this
                                  (drscheme:language-configuration:get-languages)
-                                 module-language)])
+                                 module-language
+                                 module-language-settings)])
                     (when matching-language
                       (set-next-settings
                        (drscheme:language-configuration:make-language-settings