diff --git a/CHANGELOG.txt b/CHANGELOG.txt
index 36e3ce3141ac860a6080b3b30b7138c42aa347ac..e18d220a38db283820fe7282754b2a1ac9af655c 100644
--- a/CHANGELOG.txt
+++ b/CHANGELOG.txt
@@ -6,6 +6,7 @@ Version 7.x-2.x-dev
 ===================
 
 - Issue #1209026, When date validation fails, Date Popup value is getting cleared.
+- Issue #1017216 by tim.plunkett, arlinsandbulte: Added custom date format without time shows 'all day'.
 - Issue #1408014 by dasjo, We no longer need the $error_element value to display errors properly.
 
 ======================
diff --git a/date_all_day/date_all_day.module b/date_all_day/date_all_day.module
index 27df5f51f0af755c618588506d6f360ec554f05e..a4cad56ea43831fffa2d2d31513900493a89a965 100644
--- a/date_all_day/date_all_day.module
+++ b/date_all_day/date_all_day.module
@@ -117,26 +117,25 @@ function theme_date_all_day($vars) {
     $date2 = $date1;
   }
 
+  $suffix = '';
   if (!date_has_time($field['settings']['granularity'])) {
     $format = date_limit_format($format, array('year', 'month', 'day'));
-    return date_format_date($$which, 'custom', $format);
-  }
-
-  $format_granularity = date_format_order($format);
-  $format_has_time = FALSE;
-  if (in_array('hour', $format_granularity)) {
-    $format_has_time = TRUE;
-  }
-  $all_day = date_all_day_field($field, $instance, $date1, $date2);
-
-  if ($all_day && $format_has_time) {
-    $format = date_limit_format($format, array('year', 'month', 'day'));
-    return trim(date_format_date($$which, 'custom', $format) .' '. theme('date_all_day_label'));
   }
   else {
-    return date_format_date($$which, 'custom', $format);
+    $format_granularity = date_format_order($format);
+    $format_has_time = FALSE;
+    if (in_array('hour', $format_granularity)) {
+      $format_has_time = TRUE;
+    }
+    $all_day = date_all_day_field($field, $instance, $date1, $date2);
+    if ($all_day && $format_has_time) {
+      $format = date_limit_format($format, array('year', 'month', 'day'));
+      $suffix = ' ' . theme('date_all_day_label');
+    }
   }
 
+  return trim(date_format_date($$which, 'custom', $format) . $suffix);
+
 }
 
 /**