diff --git a/app/models/application_setting.rb b/app/models/application_setting.rb
index d3b8debb0fd..4dda276bb41 100644
--- a/app/models/application_setting.rb
+++ b/app/models/application_setting.rb
@@ -203,7 +203,10 @@ class ApplicationSetting < ActiveRecord::Base
     ensure_cache_setup
 
     Rails.cache.fetch(CACHE_KEY) do
-      ApplicationSetting.last
+      ApplicationSetting.last.tap do |settings|
+        # do not cache nils
+        raise 'missing settings' unless settings
+      end
     end
   rescue
     # Fall back to an uncached value if there are any problems (e.g. redis down)
diff --git a/changelogs/unreleased/fix-application-setting-nil-cache.yml b/changelogs/unreleased/fix-application-setting-nil-cache.yml
new file mode 100644
index 00000000000..a5f028e3d69
--- /dev/null
+++ b/changelogs/unreleased/fix-application-setting-nil-cache.yml
@@ -0,0 +1,5 @@
+---
+title: Fix application setting to cache nil object
+merge_request:
+author:
+type: fixed
diff --git a/spec/models/application_setting_spec.rb b/spec/models/application_setting_spec.rb
index 6945c90cb9b..30495fd4f5e 100644
--- a/spec/models/application_setting_spec.rb
+++ b/spec/models/application_setting_spec.rb
@@ -220,6 +220,21 @@ describe ApplicationSetting do
         expect(described_class.current).to eq(:last)
       end
     end
+
+    context 'when an ApplicationSetting is not yet present' do
+      it 'does not cache nil object' do
+        # when missing settings a nil object is returned, but not cached
+        allow(described_class).to receive(:last).and_return(nil).twice
+        expect(described_class.current).to be_nil
+
+        # when the settings are set the method returns a valid object
+        allow(described_class).to receive(:last).and_return(:last)
+        expect(described_class.current).to eq(:last)
+
+        # subsequent calls get everything from cache
+        expect(described_class.current).to eq(:last)
+      end
+    end
   end
 
   context 'restrict creating duplicates' do