diff --git a/railties/CHANGELOG.md b/railties/CHANGELOG.md
index 83fe6f56a4..243f40a057 100644
--- a/railties/CHANGELOG.md
+++ b/railties/CHANGELOG.md
@@ -1,3 +1,11 @@
+*   Do not run `bundle install` when generating a new plugin.
+
+    Since bundler 1.12.0, the gemspec is validated so the `bundle install`
+    command will fail just after the gem is created causing confusion to the
+    users. This change was a bug fix to correctly validate gemspecs.
+
+    *Rafael Mendonça França*
+
 *   Default `config.assets.quiet = true` in the development environment. Suppress
     logging of `sprockets-rails` requests by default.
 
diff --git a/railties/lib/rails/generators/app_base.rb b/railties/lib/rails/generators/app_base.rb
index 0835c09323..af3c6dead3 100644
--- a/railties/lib/rails/generators/app_base.rb
+++ b/railties/lib/rails/generators/app_base.rb
@@ -242,7 +242,7 @@ module Rails
           ] + dev_edge_common
         elsif options.edge?
           [
-            GemfileEntry.github('rails', 'rails/rails')
+            GemfileEntry.github('rails', 'rails/rails', '5-0-stable')
           ] + dev_edge_common
         else
           [GemfileEntry.version('rails',
diff --git a/railties/lib/rails/generators/rails/plugin/plugin_generator.rb b/railties/lib/rails/generators/rails/plugin/plugin_generator.rb
index 56efd35a95..7f427947f5 100644
--- a/railties/lib/rails/generators/rails/plugin/plugin_generator.rb
+++ b/railties/lib/rails/generators/rails/plugin/plugin_generator.rb
@@ -258,7 +258,7 @@ task default: :test
         build(:leftovers)
       end
 
-      public_task :apply_rails_template, :run_bundle
+      public_task :apply_rails_template
 
       def run_after_bundle_callbacks
         @after_bundle_callbacks.each do |callback|
diff --git a/railties/test/generators/app_generator_test.rb b/railties/test/generators/app_generator_test.rb
index 058308aa13..ac1488abb3 100644
--- a/railties/test/generators/app_generator_test.rb
+++ b/railties/test/generators/app_generator_test.rb
@@ -597,6 +597,21 @@ class AppGeneratorTest < Rails::Generators::TestCase
     end
   end
 
+  def test_generation_runs_bundle_install
+    assert_generates_with_bundler
+  end
+
+  def test_dev_option
+    assert_generates_with_bundler dev: true
+    rails_path = File.expand_path('../../..', Rails.root)
+    assert_file 'Gemfile', /^gem\s+["']rails["'],\s+path:\s+["']#{Regexp.escape(rails_path)}["']$/
+  end
+
+  def test_edge_option
+    assert_generates_with_bundler edge: true
+    assert_file 'Gemfile', %r{^gem\s+["']rails["'],\s+github:\s+["']#{Regexp.escape("rails/rails")}["'],\s+branch:\s+["']#{Regexp.escape("5-0-stable")}["']$}
+  end
+
   def test_spring
     run_generator
     assert_gem 'spring'
@@ -754,41 +769,61 @@ class AppGeneratorTest < Rails::Generators::TestCase
 
   protected
 
-  def stub_rails_application(root)
-    Rails.application.config.root = root
-    Rails.application.class.stub(:name, "Myapp") do
-      yield
-    end
-  end
-
-  def action(*args, &block)
-    capture(:stdout) { generator.send(*args, &block) }
-  end
-
-  def assert_gem(gem, constraint = nil)
-    if constraint
-      assert_file "Gemfile", /^\s*gem\s+["']#{gem}["'], #{constraint}$*/
-    else
-      assert_file "Gemfile", /^\s*gem\s+["']#{gem}["']$*/
-    end
-  end
-
-  def assert_listen_related_configuration
-    assert_gem 'listen'
-    assert_gem 'spring-watcher-listen'
-
-    assert_file 'config/environments/development.rb' do |content|
-      assert_match(/^\s*config.file_watcher = ActiveSupport::EventedFileUpdateChecker/, content)
-    end
-  end
-
-  def assert_no_listen_related_configuration
-    assert_file 'Gemfile' do |content|
-      assert_no_match(/listen/, content)
+    def stub_rails_application(root)
+      Rails.application.config.root = root
+      Rails.application.class.stub(:name, "Myapp") do
+        yield
+      end
     end
 
-    assert_file 'config/environments/development.rb' do |content|
-      assert_match(/^\s*# config.file_watcher = ActiveSupport::EventedFileUpdateChecker/, content)
+    def action(*args, &block)
+      capture(:stdout) { generator.send(*args, &block) }
+    end
+
+    def assert_gem(gem, constraint = nil)
+      if constraint
+        assert_file "Gemfile", /^\s*gem\s+["']#{gem}["'], #{constraint}$*/
+      else
+        assert_file "Gemfile", /^\s*gem\s+["']#{gem}["']$*/
+      end
+    end
+
+    def assert_listen_related_configuration
+      assert_gem 'listen'
+      assert_gem 'spring-watcher-listen'
+
+      assert_file 'config/environments/development.rb' do |content|
+        assert_match(/^\s*config.file_watcher = ActiveSupport::EventedFileUpdateChecker/, content)
+      end
+    end
+
+    def assert_no_listen_related_configuration
+      assert_file 'Gemfile' do |content|
+        assert_no_match(/listen/, content)
+      end
+
+      assert_file 'config/environments/development.rb' do |content|
+        assert_match(/^\s*# config.file_watcher = ActiveSupport::EventedFileUpdateChecker/, content)
+      end
+    end
+
+    def assert_generates_with_bundler(options = {})
+      generator([destination_root], options)
+
+      command_check = -> command do
+        @install_called ||= 0
+
+        case command
+        when 'install'
+          @install_called += 1
+          assert_equal 1, @install_called, "install expected to be called once, but was called #{@install_called} times"
+        when 'exec spring binstub --all'
+          # Called when running tests with spring, let through unscathed.
+        end
+      end
+
+      generator.stub :bundle_command, command_check do
+        quietly { generator.invoke_all }
+      end
     end
-  end
 end
diff --git a/railties/test/generators/plugin_generator_test.rb b/railties/test/generators/plugin_generator_test.rb
index 5dd4cce28a..823dcc50ee 100644
--- a/railties/test/generators/plugin_generator_test.rb
+++ b/railties/test/generators/plugin_generator_test.rb
@@ -193,13 +193,24 @@ class PluginGeneratorTest < Rails::Generators::TestCase
     assert_file "test/dummy/config/database.yml", /postgres/
   end
 
-  def test_generation_runs_bundle_install_with_full_and_mountable
-    result = run_generator [destination_root, "--mountable", "--full", "--dev"]
-    assert_match(/run  bundle install/, result)
-    assert $?.success?, "Command failed: #{result}"
-    assert_file "#{destination_root}/Gemfile.lock" do |contents|
-      assert_match(/bukkits/, contents)
-    end
+  def test_generation_runs_bundle_install
+    assert_generates_without_bundler
+  end
+
+  def test_dev_option
+    assert_generates_without_bundler(dev: true)
+    rails_path = File.expand_path('../../..', Rails.root)
+    assert_file 'Gemfile', /^gem\s+["']rails["'],\s+path:\s+["']#{Regexp.escape(rails_path)}["']$/
+  end
+
+  def test_edge_option
+    assert_generates_without_bundler(edge: true)
+    assert_file 'Gemfile', %r{^gem\s+["']rails["'],\s+github:\s+["']#{Regexp.escape("rails/rails")}["'],\s+branch:\s+["']#{Regexp.escape("5-0-stable")}["']$}
+  end
+
+  def test_generation_does_not_run_bundle_install_with_full_and_mountable
+    assert_generates_without_bundler(mountable: true, full: true, dev: true)
+    assert_no_file "#{destination_root}/Gemfile.lock"
   end
 
   def test_skipping_javascripts_without_mountable_option
@@ -697,48 +708,38 @@ class PluginGeneratorTest < Rails::Generators::TestCase
     end
   end
 
-  def test_after_bundle_callback
-    path = 'http://example.org/rails_template'
-    template = %{ after_bundle { run 'echo ran after_bundle' } }
-    template.instance_eval "def read; self; end" # Make the string respond to read
+  protected
 
-    check_open = -> *args do
-      assert_equal [ path, 'Accept' => 'application/x-thor-template' ], args
-      template
+    def action(*args, &block)
+      silence(:stdout){ generator.send(*args, &block) }
     end
 
-    sequence = ['install', 'echo ran after_bundle']
-    @sequence_step ||= 0
-    ensure_bundler_first = -> command do
-      assert_equal sequence[@sequence_step], command, "commands should be called in sequence #{sequence}"
-      @sequence_step += 1
+    def default_files
+      ::DEFAULT_PLUGIN_FILES
     end
 
-    generator([destination_root], template: path).stub(:open, check_open, template) do
-      generator.stub(:bundle_command, ensure_bundler_first) do
-        generator.stub(:run, ensure_bundler_first) do
-          quietly { generator.invoke_all }
-        end
+    def assert_match_sqlite3(contents)
+      if defined?(JRUBY_VERSION)
+        assert_match(/group :development do\n  gem 'activerecord-jdbcsqlite3-adapter'\nend/, contents)
+      else
+        assert_match(/group :development do\n  gem 'sqlite3'\nend/, contents)
       end
     end
 
-    assert_equal 2, @sequence_step
-  end
+    def assert_generates_without_bundler(options = {})
+      generator([destination_root], options)
 
-protected
-  def action(*args, &block)
-    silence(:stdout){ generator.send(*args, &block) }
-  end
+      command_check = -> command do
+        case command
+        when 'install'
+          flunk "install expected to not be called"
+        when 'exec spring binstub --all'
+          # Called when running tests with spring, let through unscathed.
+        end
+      end
 
-  def default_files
-    ::DEFAULT_PLUGIN_FILES
-  end
-
-  def assert_match_sqlite3(contents)
-    if defined?(JRUBY_VERSION)
-      assert_match(/group :development do\n  gem 'activerecord-jdbcsqlite3-adapter'\nend/, contents)
-    else
-      assert_match(/group :development do\n  gem 'sqlite3'\nend/, contents)
+      generator.stub :bundle_command, command_check do
+        quietly { generator.invoke_all }
+      end
     end
-  end
 end
diff --git a/railties/test/generators/shared_generator_tests.rb b/railties/test/generators/shared_generator_tests.rb
index e83d54890a..03ea521355 100644
--- a/railties/test/generators/shared_generator_tests.rb
+++ b/railties/test/generators/shared_generator_tests.rb
@@ -26,30 +26,6 @@ module SharedGeneratorTests
     default_files.each { |path| assert_file path }
   end
 
-  def assert_generates_with_bundler(options = {})
-    generator([destination_root], options)
-
-    command_check = -> command do
-      @install_called ||= 0
-
-      case command
-      when 'install'
-        @install_called += 1
-        assert_equal 1, @install_called, "install expected to be called once, but was called #{@install_called} times"
-      when 'exec spring binstub --all'
-        # Called when running tests with spring, let through unscathed.
-      end
-    end
-
-    generator.stub :bundle_command, command_check do
-      quietly { generator.invoke_all }
-    end
-  end
-
-  def test_generation_runs_bundle_install
-    assert_generates_with_bundler
-  end
-
   def test_plugin_new_generate_pretend
     run_generator ["testapp", "--pretend"]
     default_files.each{ |path| assert_no_file File.join("testapp",path) }
@@ -114,17 +90,6 @@ module SharedGeneratorTests
     end
   end
 
-  def test_dev_option
-    assert_generates_with_bundler dev: true
-    rails_path = File.expand_path('../../..', Rails.root)
-    assert_file 'Gemfile', /^gem\s+["']rails["'],\s+path:\s+["']#{Regexp.escape(rails_path)}["']$/
-  end
-
-  def test_edge_option
-    assert_generates_with_bundler edge: true
-    assert_file 'Gemfile', %r{^gem\s+["']rails["'],\s+github:\s+["']#{Regexp.escape("rails/rails")}["']$}
-  end
-
   def test_skip_gemfile
     assert_not_called(generator([destination_root], skip_gemfile: true), :bundle_command) do
       quietly { generator.invoke_all }