diff --git a/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorFactory.java b/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorFactory.java
index b9db3d7c46..e54d889a69 100644
--- a/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorFactory.java
+++ b/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorFactory.java
@@ -68,10 +68,11 @@ public Mediator createSpecificMediator(OMElement elem, Properties properties) {
         // set its common attributes such as tracing etc
         processAuditStatus(logMediator,elem);
 
+        boolean containMessageTemplate = false;
         OMElement messageElement = elem.getFirstChildWithName(ELEMENT_MESSAGE_Q);
         if (messageElement != null && messageElement.getText() != null) {
             logMediator.setMessageTemplate(messageElement.getText());
-            logMediator.setLogLevel(LogMediator.MESSAGE_TEMPLATE);
+            containMessageTemplate = true;
         }
 
         // Set the high level set of properties to be logged (i.e. log level)
@@ -90,6 +91,10 @@ public Mediator createSpecificMediator(OMElement elem, Properties properties) {
                 handleException("Invalid log level. Level has to be one of the following : "
                         + "simple, headers, full, custom");
             }
+        } else {
+            if (containMessageTemplate) {
+                logMediator.setLogLevel(LogMediator.MESSAGE_TEMPLATE);
+            }
         }
 
         // Set the log statement category (i.e. INFO, DEBUG, etc..)
diff --git a/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorSerializer.java b/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorSerializer.java
index 08e7fc1856..841d186055 100644
--- a/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorSerializer.java
+++ b/modules/core/src/main/java/org/apache/synapse/config/xml/LogMediatorSerializer.java
@@ -44,7 +44,7 @@ public OMElement serializeSpecificMediator(Mediator m) {
         OMElement log = fac.createOMElement("log", synNS);
         saveTracingState(log,mediator);
 
-        if (StringUtils.isBlank(mediator.getMessageTemplate()) && mediator.getLogLevel() != LogMediator.SIMPLE) {
+        if (mediator.getLogLevel() != LogMediator.MESSAGE_TEMPLATE) {
             log.addAttribute(fac.createOMAttribute(
                 "level", nullNS,
                     mediator.getLogLevel() == LogMediator.HEADERS ? "headers" :
diff --git a/modules/core/src/main/java/org/apache/synapse/mediators/builtin/LogMediator.java b/modules/core/src/main/java/org/apache/synapse/mediators/builtin/LogMediator.java
index b313e4fc03..7daff54cbf 100644
--- a/modules/core/src/main/java/org/apache/synapse/mediators/builtin/LogMediator.java
+++ b/modules/core/src/main/java/org/apache/synapse/mediators/builtin/LogMediator.java
@@ -78,7 +78,7 @@ public class LogMediator extends AbstractMediator {
     /** The holder for the custom properties */
     private final List<MediatorProperty> properties = new ArrayList<MediatorProperty>();
 
-    private String messageTemplate;
+    private String messageTemplate = "";
 
     /**
      * Logs the current message according to the supplied semantics
@@ -142,6 +142,7 @@ public boolean mediate(MessageContext synCtx) {
     private String getLogMessage(MessageContext synCtx) {
         switch (logLevel) {
             case CUSTOM:
+            case MESSAGE_TEMPLATE:
                 return getCustomLogMessage(synCtx);
             case SIMPLE:
                 return getSimpleLogMessage(synCtx);
@@ -149,8 +150,6 @@ private String getLogMessage(MessageContext synCtx) {
                 return getHeadersLogMessage(synCtx);
             case FULL:
                 return getFullLogMessage(synCtx);
-            case MESSAGE_TEMPLATE:
-                return processMessageTemplate(synCtx, messageTemplate);
             default:
                 return "Invalid log level specified";
         }
@@ -158,12 +157,18 @@ private String getLogMessage(MessageContext synCtx) {
 
     private String getCustomLogMessage(MessageContext synCtx) {
         StringBuffer sb = new StringBuffer();
+        processMessageTemplate(sb, synCtx, messageTemplate);
         setCustomProperties(sb, synCtx);
         return trimLeadingSeparator(sb);
     }
 
     private String getSimpleLogMessage(MessageContext synCtx) {
         StringBuffer sb = new StringBuffer();
+        processMessageTemplate(sb, synCtx, messageTemplate);
+        // append separator if the message template is not empty
+        if (sb.length() > 0) {
+            sb.append(separator);
+        }
         if (synCtx.getTo() != null)
             sb.append("To: ").append(synCtx.getTo().getAddress());
         else
@@ -188,6 +193,7 @@ private String getSimpleLogMessage(MessageContext synCtx) {
 
     private String getHeadersLogMessage(MessageContext synCtx) {
         StringBuffer sb = new StringBuffer();
+        processMessageTemplate(sb, synCtx, messageTemplate);
         if (synCtx.getEnvelope() != null) {
             SOAPHeader header = synCtx.getEnvelope().getHeader();
             if (getCorrelationId(synCtx) != null)
@@ -315,20 +321,17 @@ private String trimLeadingSeparator(StringBuffer sb) {
         }
     }
 
-    private String processMessageTemplate(MessageContext synCtx, String template) {
-        StringBuffer result = new StringBuffer();
+    private void processMessageTemplate(StringBuffer stringBuffer, MessageContext synCtx, String template) {
         try {
-            result.append(InlineExpressionUtil.processInLineSynapseExpressionTemplate(synCtx, template));
+            stringBuffer.append(InlineExpressionUtil.processInLineSynapseExpressionTemplate(synCtx, template));
         } catch (JaxenException e) {
             handleException("Failed to process the message template : " + template, e, synCtx);
         }
-        setCustomProperties(result, synCtx);
-        return result.toString();
     }
 
     @Override
     public boolean isContentAware() {
-        if (logLevel == MESSAGE_TEMPLATE) {
+        if (logLevel == MESSAGE_TEMPLATE || logLevel == CUSTOM) {
             for (MediatorProperty property : properties) {
                 if (property.getExpression() != null && property.getExpression().isContentAware()) {
                     return true;
@@ -336,14 +339,6 @@ public boolean isContentAware() {
             }
             return InlineExpressionUtil.isInlineSynapseExpressionsContentAware(messageTemplate);
         }
-        if (logLevel == CUSTOM) {
-            for (MediatorProperty property : properties) {
-                if (property.getExpression() != null && property.getExpression().isContentAware()) {
-                    return true;
-                }
-            }
-            return false;
-        }
         return true;
     }
 }
diff --git a/modules/core/src/test/java/org/apache/synapse/config/xml/LogMediatorSerializationTest.java b/modules/core/src/test/java/org/apache/synapse/config/xml/LogMediatorSerializationTest.java
index f135a5f2ea..60862be49a 100644
--- a/modules/core/src/test/java/org/apache/synapse/config/xml/LogMediatorSerializationTest.java
+++ b/modules/core/src/test/java/org/apache/synapse/config/xml/LogMediatorSerializationTest.java
@@ -161,7 +161,7 @@ private String getXmlOfMediatorScenarioTwo(String level, String seperator) {
     }
 
     private String getXmlOfMediatorScenarioThree(String category) {
-        return "<log xmlns=\"http://ws.apache.org/ns/synapse\" category=\"" +
+        return "<log xmlns=\"http://ws.apache.org/ns/synapse\" level=\"simple\" category=\"" +
                 category + "\"><property name=\"Text\" value=\"Sending quote request\"/></log>";
 
     }