diff --git a/contrib/postgres_fdw/expected/postgres_fdw.out b/contrib/postgres_fdw/expected/postgres_fdw.out
index 7720ab9c58..7d6f7d9e3d 100644
--- a/contrib/postgres_fdw/expected/postgres_fdw.out
+++ b/contrib/postgres_fdw/expected/postgres_fdw.out
@@ -10825,3 +10825,54 @@ ERROR:  invalid value for integer option "batch_size": 100$%$#$#
 ALTER FOREIGN DATA WRAPPER postgres_fdw OPTIONS (nonexistent 'fdw');
 ERROR:  invalid option "nonexistent"
 HINT:  There are no valid options in this context.
+-- ===================================================================
+-- test postgres_fdw.application_name GUC
+-- ===================================================================
+--- Turn debug_discard_caches off for this test to make sure that
+--- the remote connection is alive when checking its application_name.
+SET debug_discard_caches = 0;
+-- Specify escape sequences in application_name option of a server
+-- object so as to test that they are replaced with status information
+-- expectedly.
+--
+-- Since pg_stat_activity.application_name may be truncated to less than
+-- NAMEDATALEN characters, note that substring() needs to be used
+-- at the condition of test query to make sure that the string consisting
+-- of database name and process ID is also less than that.
+ALTER SERVER loopback2 OPTIONS (application_name 'fdw_%d%p');
+SELECT 1 FROM ft6 LIMIT 1;
+ ?column? 
+----------
+        1
+(1 row)
+
+SELECT pg_terminate_backend(pid, 180000) FROM pg_stat_activity
+  WHERE application_name =
+    substring('fdw_' || current_database() || pg_backend_pid() for
+      current_setting('max_identifier_length')::int);
+ pg_terminate_backend 
+----------------------
+ t
+(1 row)
+
+-- postgres_fdw.application_name overrides application_name option
+-- of a server object if both settings are present.
+SET postgres_fdw.application_name TO 'fdw_%a%u%%';
+SELECT 1 FROM ft6 LIMIT 1;
+ ?column? 
+----------
+        1
+(1 row)
+
+SELECT pg_terminate_backend(pid, 180000) FROM pg_stat_activity
+  WHERE application_name =
+    substring('fdw_' || current_setting('application_name') ||
+      CURRENT_USER || '%' for current_setting('max_identifier_length')::int);
+ pg_terminate_backend 
+----------------------
+ t
+(1 row)
+
+--Clean up
+RESET postgres_fdw.application_name;
+RESET debug_discard_caches;
diff --git a/contrib/postgres_fdw/sql/postgres_fdw.sql b/contrib/postgres_fdw/sql/postgres_fdw.sql
index beeac8af1e..9eb673e369 100644
--- a/contrib/postgres_fdw/sql/postgres_fdw.sql
+++ b/contrib/postgres_fdw/sql/postgres_fdw.sql
@@ -3452,3 +3452,38 @@ CREATE FOREIGN TABLE inv_bsz (c1 int )
 
 -- No option is allowed to be specified at foreign data wrapper level
 ALTER FOREIGN DATA WRAPPER postgres_fdw OPTIONS (nonexistent 'fdw');
+
+-- ===================================================================
+-- test postgres_fdw.application_name GUC
+-- ===================================================================
+--- Turn debug_discard_caches off for this test to make sure that
+--- the remote connection is alive when checking its application_name.
+SET debug_discard_caches = 0;
+
+-- Specify escape sequences in application_name option of a server
+-- object so as to test that they are replaced with status information
+-- expectedly.
+--
+-- Since pg_stat_activity.application_name may be truncated to less than
+-- NAMEDATALEN characters, note that substring() needs to be used
+-- at the condition of test query to make sure that the string consisting
+-- of database name and process ID is also less than that.
+ALTER SERVER loopback2 OPTIONS (application_name 'fdw_%d%p');
+SELECT 1 FROM ft6 LIMIT 1;
+SELECT pg_terminate_backend(pid, 180000) FROM pg_stat_activity
+  WHERE application_name =
+    substring('fdw_' || current_database() || pg_backend_pid() for
+      current_setting('max_identifier_length')::int);
+
+-- postgres_fdw.application_name overrides application_name option
+-- of a server object if both settings are present.
+SET postgres_fdw.application_name TO 'fdw_%a%u%%';
+SELECT 1 FROM ft6 LIMIT 1;
+SELECT pg_terminate_backend(pid, 180000) FROM pg_stat_activity
+  WHERE application_name =
+    substring('fdw_' || current_setting('application_name') ||
+      CURRENT_USER || '%' for current_setting('max_identifier_length')::int);
+
+--Clean up
+RESET postgres_fdw.application_name;
+RESET debug_discard_caches;