diff --git a/templates/components/api-server/component.js b/templates/components/api-server/component.js
index 36e7d0a0..82a53d82 100644
--- a/templates/components/api-server/component.js
+++ b/templates/components/api-server/component.js
@@ -14,7 +14,7 @@ template.package = {
     "compression": "^1.0.3",
     "errorhandler": "^1.1.1",
     "loopback": "^2.8.0",
-    "loopback-boot": "^2.4.0",
+    "loopback-boot": "^2.6.5",
     "loopback-datasource-juggler": "^2.7.0",
     "serve-favicon": "^2.0.1"
   },
diff --git a/templates/components/api-server/template/server/server.js b/templates/components/api-server/template/server/server.js
index daf536f5..a168b0af 100644
--- a/templates/components/api-server/template/server/server.js
+++ b/templates/components/api-server/template/server/server.js
@@ -3,10 +3,6 @@ var boot = require('loopback-boot');
 
 var app = module.exports = loopback();
 
-// Bootstrap the application, configure models, datasources and middleware.
-// Sub-apps like REST API are mounted via boot scripts.
-boot(app, __dirname);
-
 app.start = function() {
   // start the web server
   return app.listen(function() {
@@ -15,7 +11,12 @@ app.start = function() {
   });
 };
 
-// start the server if `$ node server.js`
-if (require.main === module) {
-  app.start();
-}
+// Bootstrap the application, configure models, datasources and middleware.
+// Sub-apps like REST API are mounted via boot scripts.
+boot(app, __dirname, function(err) {
+  if (err) throw err;
+
+  // start the server if `$ node server.js`
+  if (require.main === module)
+    app.start();
+});
diff --git a/test/end-to-end.js b/test/end-to-end.js
index a7417c31..6aca487d 100644
--- a/test/end-to-end.js
+++ b/test/end-to-end.js
@@ -140,6 +140,19 @@ describe('end-to-end', function() {
         done(err);
       });
     });
+
+    it('emits the `booted` event when booting is complete', function(done) {
+      var src = FIXTURES + '/async.js';
+      var dest = SANDBOX + '/server/boot/async.js';
+      fs.copySync(src, dest);
+      delete require.cache[require.resolve(SANDBOX)];
+      var app = require(SANDBOX);
+      app.on('booted', function() {
+        expect(app.asyncBoot, 'app.asyncBoot').to.be.true();
+        done();
+      });
+      // the test will time out if `booted` is not emitted
+    });
   });
 
   describe('autoupdate', function() {
diff --git a/test/fixtures/async.js b/test/fixtures/async.js
new file mode 100644
index 00000000..47346810
--- /dev/null
+++ b/test/fixtures/async.js
@@ -0,0 +1,4 @@
+module.exports = function(app, cb) {
+  app.asyncBoot = typeof cb === 'function';
+  process.nextTick(cb);
+};
diff --git a/test/support.js b/test/support.js
index 97d83fe3..9bb309cb 100644
--- a/test/support.js
+++ b/test/support.js
@@ -22,6 +22,7 @@ expectValueInJSONFile = function(file, propertyPath, val) {
   expect(obj).to.have.deep.property(propertyPath, val);
 }
 
+FIXTURES = path.resolve(__dirname, 'fixtures/');
 SANDBOX = path.resolve(__dirname, 'sandbox/');
 
 // tell the workspace to load files from the sandbox