diff --git a/CHANGES.txt b/CHANGES.txt
index 7d5839f7..1e31b01b 100644
--- a/CHANGES.txt
+++ b/CHANGES.txt
@@ -85,6 +85,7 @@ for detailed view of each issue, please consult http://issues.apache.org/jira/br
     Chris Wood
 	Patrick Woodworth
 	Jaroslaw Wypychowski
+	Aleksey Zhukov
 	
    trunk
 =====================================
@@ -94,6 +95,7 @@ for detailed view of each issue, please consult http://issues.apache.org/jira/br
 - IMPROVEMENT: Standalone runner should accept all the same parameters as ant tasks (IVY-1090)
 - IMPROVEMENT: Pre and post retrieve artifact events (IVY-1084)
 
+- FIX: ivy:resolve ignores branch in "dynamic" resolve mode (IVY-1087) (thanks to Aleksey Zhukov)
 - FIX: [originalname] not expanded during retrieve when module descriptor contains extra attributes (IVY-1096)
 - FIX: The Ant output wasn't always prefixed by the name of the task
 - FIX: Ivy buildnumber task does not find artifact in Sonatype Nexus repo (IVY-1069)
diff --git a/src/java/org/apache/ivy/core/cache/ParserSettingsMonitor.java b/src/java/org/apache/ivy/core/cache/ParserSettingsMonitor.java
index 22f52fbd..3510e441 100644
--- a/src/java/org/apache/ivy/core/cache/ParserSettingsMonitor.java
+++ b/src/java/org/apache/ivy/core/cache/ParserSettingsMonitor.java
@@ -25,6 +25,7 @@ import java.util.Map;
 import java.util.Map.Entry;
 
 import org.apache.ivy.core.RelativeUrlResolver;
+import org.apache.ivy.core.module.id.ModuleId;
 import org.apache.ivy.core.module.id.ModuleRevisionId;
 import org.apache.ivy.core.module.status.StatusManager;
 import org.apache.ivy.plugins.conflict.ConflictManager;
@@ -129,6 +130,10 @@ class ParserSettingsMonitor {
         public File resolveFile(String filename) {
             return delegatedSettings.resolveFile(filename);
         }
+        
+        public String getDefaultBranch(ModuleId moduleId) {
+            return delegatedSettings.getDefaultBranch(moduleId);
+        }
 
         public Map substitute(Map strings) {
             Map substituted = new LinkedHashMap();
diff --git a/src/java/org/apache/ivy/plugins/parser/ParserSettings.java b/src/java/org/apache/ivy/plugins/parser/ParserSettings.java
index 1cd865a7..14099a74 100644
--- a/src/java/org/apache/ivy/plugins/parser/ParserSettings.java
+++ b/src/java/org/apache/ivy/plugins/parser/ParserSettings.java
@@ -22,6 +22,7 @@ import java.util.Map;
 
 import org.apache.ivy.core.RelativeUrlResolver;
 import org.apache.ivy.core.cache.ResolutionCacheManager;
+import org.apache.ivy.core.module.id.ModuleId;
 import org.apache.ivy.core.module.id.ModuleRevisionId;
 import org.apache.ivy.core.module.status.StatusManager;
 import org.apache.ivy.plugins.conflict.ConflictManager;
@@ -52,5 +53,7 @@ public interface ParserSettings {
     File resolveFile(String filename);
     
     File getBaseDir();
+    
+    String getDefaultBranch(ModuleId moduleId);
 
 }
diff --git a/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java b/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java
index c90264e5..7e854d69 100644
--- a/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java
+++ b/src/java/org/apache/ivy/plugins/parser/xml/XmlModuleDescriptorParser.java
@@ -49,6 +49,7 @@ import org.apache.ivy.core.module.descriptor.OverrideDependencyDescriptorMediato
 import org.apache.ivy.core.module.id.ArtifactId;
 import org.apache.ivy.core.module.id.ModuleId;
 import org.apache.ivy.core.module.id.ModuleRevisionId;
+import org.apache.ivy.core.settings.IvySettings;
 import org.apache.ivy.plugins.conflict.ConflictManager;
 import org.apache.ivy.plugins.conflict.FixedConflictManager;
 import org.apache.ivy.plugins.matcher.PatternMatcher;
@@ -521,6 +522,12 @@ public class XmlModuleDescriptorParser extends AbstractModuleDescriptorParser {
             String name = settings.substitute(attributes.getValue("name"));
             String branch = settings.substitute(attributes.getValue("branch"));
             String branchConstraint = settings.substitute(attributes.getValue("branchConstraint"));
+            if (branchConstraint == null) {
+                // there was no branch constraint before, so we should
+                // set the branchConstraint to the current default branch
+                branchConstraint = settings.getDefaultBranch(ModuleId.newInstance(org, name));
+            }
+
             String rev = settings.substitute(attributes.getValue("rev"));
             String revConstraint = settings.substitute(attributes.getValue("revConstraint"));
             revConstraint = revConstraint == null ? rev : revConstraint;