diff --git a/core/lib/Drupal/Core/Field/FieldTypePluginManager.php b/core/lib/Drupal/Core/Field/FieldTypePluginManager.php
index 905cdb4f1bb1281065a66343d55d187fd5960878..565fa4e6f74963ba98a7859025d02969e1f01f9b 100644
--- a/core/lib/Drupal/Core/Field/FieldTypePluginManager.php
+++ b/core/lib/Drupal/Core/Field/FieldTypePluginManager.php
@@ -135,7 +135,7 @@ public function getUiDefinitions() {
     // Add preconfigured definitions.
     foreach ($definitions as $id => $definition) {
       if (is_subclass_of($definition['class'], '\Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface')) {
-        foreach ($definition['class']::getPreconfiguredOptions() as $key => $option) {
+        foreach ($this->getPreconfiguredOptions($definition['id']) as $key => $option) {
           $definitions['field_ui:' . $id . ':' . $key] = [
             'label' => $option['label'],
           ] + $definition;
@@ -150,6 +150,19 @@ public function getUiDefinitions() {
     return $definitions;
   }
 
+  /**
+   * {@inheritdoc}
+   */
+  public function getPreconfiguredOptions($field_type) {
+    $options = [];
+    $class = $this->getPluginClass($field_type);
+    if (is_subclass_of($class, '\Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface')) {
+      $options = $class::getPreconfiguredOptions();
+      $this->moduleHandler->alter('field_ui_preconfigured_options', $options, $field_type);
+    }
+    return $options;
+  }
+
   /**
    * {@inheritdoc}
    */
diff --git a/core/lib/Drupal/Core/Field/FieldTypePluginManagerInterface.php b/core/lib/Drupal/Core/Field/FieldTypePluginManagerInterface.php
index 3a5c7b546cdb65335bab13472153b9b05eeee3ca..d937aabd446d507acd09d1f9526d17c0b4723dd7 100644
--- a/core/lib/Drupal/Core/Field/FieldTypePluginManagerInterface.php
+++ b/core/lib/Drupal/Core/Field/FieldTypePluginManagerInterface.php
@@ -84,6 +84,26 @@ public function getDefaultStorageSettings($type);
    */
   public function getUiDefinitions();
 
+  /**
+   * Returns preconfigured field options for a field type.
+   *
+   * This is a wrapper around
+   * \Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface::getPreconfiguredOptions()
+   * allowing modules to alter the result of this method by implementing
+   * hook_field_ui_preconfigured_options_alter().
+   *
+   * @param string $field_type
+   *   The field type plugin ID.
+   *
+   * @return array
+   *   A multi-dimensional array as returned from
+   *   \Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface::getPreconfiguredOptions().
+   *
+   * @see \Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface::getPreconfiguredOptions()
+   * @see hook_field_ui_preconfigured_options_alter()
+   */
+  public function getPreconfiguredOptions($field_type);
+
   /**
    * Returns the PHP class that implements the field type plugin.
    *
diff --git a/core/lib/Drupal/Core/Field/PreconfiguredFieldUiOptionsInterface.php b/core/lib/Drupal/Core/Field/PreconfiguredFieldUiOptionsInterface.php
index 9130e8c017cce86dd39faed7f8a1baf25a2c3f6d..684168aacb8aa64e087fc69268ea4372c5429719 100644
--- a/core/lib/Drupal/Core/Field/PreconfiguredFieldUiOptionsInterface.php
+++ b/core/lib/Drupal/Core/Field/PreconfiguredFieldUiOptionsInterface.php
@@ -16,6 +16,11 @@ interface PreconfiguredFieldUiOptionsInterface {
   /**
    * Returns preconfigured field options for a field type.
    *
+   * Note that if you want to give modules an opportunity to alter the result
+   * of this method, you should call
+   * \Drupal\Core\Field\FieldTypePluginManagerInterface::getPreconfiguredOptions()
+   * instead.
+   *
    * @return mixed[][]
    *   A multi-dimensional array with string keys and the following structure:
    *   - label: The label to show in the field type selection list.
@@ -35,6 +40,7 @@ interface PreconfiguredFieldUiOptionsInterface {
    * @see \Drupal\field\Entity\FieldStorageConfig
    * @see \Drupal\field\Entity\FieldConfig
    * @see \Drupal\Core\Entity\Display\EntityDisplayInterface::setComponent()
+   * @see \Drupal\Core\Field\FieldTypePluginManagerInterface::getPreconfiguredOptions()
    */
   public static function getPreconfiguredOptions();
 
diff --git a/core/modules/field/field.api.php b/core/modules/field/field.api.php
index 42bdd1e7125b46875b1a0ef3872aafb4c1817488..130f923180368d071fec92e171b7a23149914c0e 100644
--- a/core/modules/field/field.api.php
+++ b/core/modules/field/field.api.php
@@ -58,6 +58,33 @@ function hook_field_info_alter(&$info) {
   }
 }
 
+/**
+ * Perform alterations on preconfigured field options.
+ *
+ * @param array $options
+ *   Array of options as returned from
+ *   \Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface::getPreconfiguredOptions().
+ * @param string $field_type
+ *   The field type plugin ID.
+ *
+ * @see \Drupal\Core\Field\PreconfiguredFieldUiOptionsInterface::getPreconfiguredOptions()
+ */
+function hook_field_ui_preconfigured_options_alter(array &$options, $field_type) {
+  // If the field is not an "entity_reference"-based field, bail out.
+  /** @var \Drupal\Core\Field\FieldTypePluginManager $field_type_manager */
+  $field_type_manager = \Drupal::service('plugin.manager.field.field_type');
+  $class = $field_type_manager->getPluginClass($field_type);
+  if (!is_a($class, 'Drupal\Core\Field\Plugin\Field\FieldType\EntityReferenceItem', TRUE)) {
+    return;
+  }
+
+  // Set the default formatter for media in entity reference fields to be the
+  // "Rendered entity" formatter.
+  if (!empty($options['media'])) {
+    $options['media']['entity_view_display']['type'] = 'entity_reference_entity_view';
+  }
+}
+
 /**
  * Forbid a field storage update from occurring.
  *
diff --git a/core/modules/field/tests/modules/field_test/field_test.module b/core/modules/field/tests/modules/field_test/field_test.module
index cc1f9fa9054a31a79ec2e73e7fc8c0e3ddf25ebd..9121e942eae631d6d811e7e22c053705c8b0512e 100644
--- a/core/modules/field/tests/modules/field_test/field_test.module
+++ b/core/modules/field/tests/modules/field_test/field_test.module
@@ -171,3 +171,14 @@ function field_test_entity_bundle_field_info_alter(&$fields, EntityTypeInterface
     ]);
   }
 }
+
+/**
+ * Implements hook_field_ui_preconfigured_options_alter().
+ */
+function field_test_field_ui_preconfigured_options_alter(array &$options, $field_type) {
+  if ($field_type === 'test_field_with_preconfigured_options') {
+    $options['custom_options']['entity_view_display']['settings'] = [
+      'test_formatter_setting_multiple' => 'altered dummy test string',
+    ];
+  }
+}
diff --git a/core/modules/field_ui/src/Form/FieldStorageAddForm.php b/core/modules/field_ui/src/Form/FieldStorageAddForm.php
index 97e3ce7d102ee8924694b9c8f3cc92e3fb7c74c3..584cc96846746129429b01e25d95ab675b7b81e3 100644
--- a/core/modules/field_ui/src/Form/FieldStorageAddForm.php
+++ b/core/modules/field_ui/src/Form/FieldStorageAddForm.php
@@ -312,14 +312,16 @@ public function submitForm(array &$form, FormStateInterface $form_state) {
         'translatable' => FALSE,
       ];
       $widget_id = $formatter_id = NULL;
+      $widget_settings = $formatter_settings = [];
 
       // Check if we're dealing with a preconfigured field.
       if (strpos($field_storage_values['type'], 'field_ui:') !== FALSE) {
         list(, $field_type, $option_key) = explode(':', $field_storage_values['type'], 3);
         $field_storage_values['type'] = $field_type;
 
-        $field_type_class = $this->fieldTypePluginManager->getDefinition($field_type)['class'];
-        $field_options = $field_type_class::getPreconfiguredOptions()[$option_key];
+        $field_definition = $this->fieldTypePluginManager->getDefinition($field_type);
+        $options = $this->fieldTypePluginManager->getPreconfiguredOptions($field_definition['id']);
+        $field_options = $options[$option_key];
 
         // Merge in preconfigured field storage options.
         if (isset($field_options['field_storage_config'])) {
@@ -340,7 +342,9 @@ public function submitForm(array &$form, FormStateInterface $form_state) {
         }
 
         $widget_id = isset($field_options['entity_form_display']['type']) ? $field_options['entity_form_display']['type'] : NULL;
+        $widget_settings = isset($field_options['entity_form_display']['settings']) ? $field_options['entity_form_display']['settings'] : [];
         $formatter_id = isset($field_options['entity_view_display']['type']) ? $field_options['entity_view_display']['type'] : NULL;
+        $formatter_settings = isset($field_options['entity_view_display']['settings']) ? $field_options['entity_view_display']['settings'] : [];
       }
 
       // Create the field storage and field.
@@ -349,8 +353,8 @@ public function submitForm(array &$form, FormStateInterface $form_state) {
         $field = $this->entityManager->getStorage('field_config')->create($field_values);
         $field->save();
 
-        $this->configureEntityFormDisplay($values['field_name'], $widget_id);
-        $this->configureEntityViewDisplay($values['field_name'], $formatter_id);
+        $this->configureEntityFormDisplay($values['field_name'], $widget_id, $widget_settings);
+        $this->configureEntityViewDisplay($values['field_name'], $formatter_id, $formatter_settings);
 
         // Always show the field settings step, as the cardinality needs to be
         // configured for new fields.
@@ -418,12 +422,20 @@ public function submitForm(array &$form, FormStateInterface $form_state) {
    *   The field name.
    * @param string|null $widget_id
    *   (optional) The plugin ID of the widget. Defaults to NULL.
+   * @param array $widget_settings
+   *   (optional) An array of widget settings. Defaults to an empty array.
    */
-  protected function configureEntityFormDisplay($field_name, $widget_id = NULL) {
+  protected function configureEntityFormDisplay($field_name, $widget_id = NULL, array $widget_settings = []) {
+    $options = [];
+    if ($widget_id) {
+      $options['type'] = $widget_id;
+      if (!empty($widget_settings)) {
+        $options['settings'] = $widget_settings;
+      }
+    }
     // Make sure the field is displayed in the 'default' form mode (using
     // default widget and settings). It stays hidden for other form modes
     // until it is explicitly configured.
-    $options = $widget_id ? ['type' => $widget_id] : [];
     entity_get_form_display($this->entityTypeId, $this->bundle, 'default')
       ->setComponent($field_name, $options)
       ->save();
@@ -436,12 +448,20 @@ protected function configureEntityFormDisplay($field_name, $widget_id = NULL) {
    *   The field name.
    * @param string|null $formatter_id
    *   (optional) The plugin ID of the formatter. Defaults to NULL.
+   * @param array $formatter_settings
+   *   (optional) An array of formatter settings. Defaults to an empty array.
    */
-  protected function configureEntityViewDisplay($field_name, $formatter_id = NULL) {
+  protected function configureEntityViewDisplay($field_name, $formatter_id = NULL, array $formatter_settings = []) {
+    $options = [];
+    if ($formatter_id) {
+      $options['type'] = $formatter_id;
+      if (!empty($formatter_settings)) {
+        $options['settings'] = $formatter_settings;
+      }
+    }
     // Make sure the field is displayed in the 'default' view mode (using
     // default formatter and settings). It stays hidden for other view
     // modes until it is explicitly configured.
-    $options = $formatter_id ? ['type' => $formatter_id] : [];
     entity_get_display($this->entityTypeId, $this->bundle, 'default')
       ->setComponent($field_name, $options)
       ->save();
diff --git a/core/modules/field_ui/src/Tests/ManageFieldsTest.php b/core/modules/field_ui/src/Tests/ManageFieldsTest.php
index d08ab03ba4cde7d175c79da5e7942c221a962d55..112e3923c497fe1399201f5eeedc8705c26c9ee5 100644
--- a/core/modules/field_ui/src/Tests/ManageFieldsTest.php
+++ b/core/modules/field_ui/src/Tests/ManageFieldsTest.php
@@ -750,6 +750,7 @@ public function testPreconfiguredFields() {
     $this->assertEqual($form_display->getComponent('field_test_custom_options')['type'], 'test_field_widget_multiple');
     $view_display = entity_get_display('node', 'article', 'default');
     $this->assertEqual($view_display->getComponent('field_test_custom_options')['type'], 'field_test_multiple');
+    $this->assertEqual($view_display->getComponent('field_test_custom_options')['settings']['test_formatter_setting_multiple'], 'altered dummy test string');
   }
 
   /**
diff --git a/core/modules/media/media.module b/core/modules/media/media.module
index dc2d898e3c8eff530415fb0a1d7063978dd27d1a..5df059c284b89cd65cd88d4aad43c6b02178b08d 100644
--- a/core/modules/media/media.module
+++ b/core/modules/media/media.module
@@ -96,3 +96,22 @@ function template_preprocess_media(array &$variables) {
     $variables['content'][$key] = $variables['elements'][$key];
   }
 }
+
+/**
+ * Implements hook_field_ui_preconfigured_options_alter().
+ */
+function media_field_ui_preconfigured_options_alter(array &$options, $field_type) {
+  // If the field is not an "entity_reference"-based field, bail out.
+  /** @var \Drupal\Core\Field\FieldTypePluginManager $field_type_manager */
+  $field_type_manager = \Drupal::service('plugin.manager.field.field_type');
+  $class = $field_type_manager->getPluginClass($field_type);
+  if (!is_a($class, 'Drupal\Core\Field\Plugin\Field\FieldType\EntityReferenceItem', TRUE)) {
+    return;
+  }
+
+  // Set the default formatter for media in entity reference fields to be the
+  // "Rendered entity" formatter.
+  if (!empty($options['media'])) {
+    $options['media']['entity_view_display']['type'] = 'entity_reference_entity_view';
+  }
+}
diff --git a/core/modules/media/tests/src/Functional/MediaFunctionalTestTrait.php b/core/modules/media/tests/src/Functional/MediaFunctionalTestTrait.php
index d56e1565f7589fca30a7b5da8538a611b6f6975c..4fa7b54280f795bc35c91f3476ab19c0d7715ae7 100644
--- a/core/modules/media/tests/src/Functional/MediaFunctionalTestTrait.php
+++ b/core/modules/media/tests/src/Functional/MediaFunctionalTestTrait.php
@@ -32,6 +32,7 @@ trait MediaFunctionalTestTrait {
     'administer content types',
     'administer node fields',
     'administer node form display',
+    'administer node display',
     'bypass node access',
   ];
 
diff --git a/core/modules/media/tests/src/Functional/MediaUiFunctionalTest.php b/core/modules/media/tests/src/Functional/MediaUiFunctionalTest.php
index 4aa3f001f6d442e842b467b08a2a05afce6d9e6d..8a0a82fffb0f0ad14dab010b04c5a019a4686091 100644
--- a/core/modules/media/tests/src/Functional/MediaUiFunctionalTest.php
+++ b/core/modules/media/tests/src/Functional/MediaUiFunctionalTest.php
@@ -175,4 +175,21 @@ public function testMediaWithMultipleMediaTypes() {
     $assert_session->pageTextContains($second_media_item->getName());
   }
 
+  /**
+   * Test that media in ER fields use the Rendered Entity formatter by default.
+   */
+  public function testRenderedEntityReferencedMedia() {
+    $page = $this->getSession()->getPage();
+    $assert_session = $this->assertSession();
+
+    $this->drupalCreateContentType(['type' => 'page', 'name' => 'Page']);
+    $this->drupalGet('/admin/structure/types/manage/page/fields/add-field');
+    $page->selectFieldOption('new_storage_type', 'field_ui:entity_reference:media');
+    $page->fillField('label', 'Foo field');
+    $page->fillField('field_name', 'foo_field');
+    $page->pressButton('Save and continue');
+    $this->drupalGet('/admin/structure/types/manage/page/display');
+    $assert_session->fieldValueEquals('fields[field_foo_field][type]', 'entity_reference_entity_view');
+  }
+
 }