diff --git a/spring-boot-project/spring-boot-test/src/main/java/org/springframework/boot/test/context/SpringBootContextLoader.java b/spring-boot-project/spring-boot-test/src/main/java/org/springframework/boot/test/context/SpringBootContextLoader.java
index 4990c8f14cb8..0485ddfab6f8 100644
--- a/spring-boot-project/spring-boot-test/src/main/java/org/springframework/boot/test/context/SpringBootContextLoader.java
+++ b/spring-boot-project/spring-boot-test/src/main/java/org/springframework/boot/test/context/SpringBootContextLoader.java
@@ -27,6 +27,7 @@
 import org.springframework.boot.test.context.SpringBootTest.WebEnvironment;
 import org.springframework.boot.test.mock.web.SpringBootMockServletContext;
 import org.springframework.boot.test.util.TestPropertyValues;
+import org.springframework.boot.test.util.TestPropertyValues.Type;
 import org.springframework.boot.web.reactive.context.GenericReactiveWebApplicationContext;
 import org.springframework.boot.web.servlet.support.ServletContextApplicationContextInitializer;
 import org.springframework.context.ApplicationContext;
@@ -133,6 +134,9 @@ private ConfigurableEnvironment getEnvironment(SpringApplication application, St
 
 	private void setActiveProfiles(ConfigurableEnvironment environment, String[] profiles,
 			boolean applicationEnvironment) {
+		if (ObjectUtils.isEmpty(profiles)) {
+			return;
+		}
 		if (!applicationEnvironment) {
 			environment.setActiveProfiles(profiles);
 		}
@@ -140,7 +144,7 @@ private void setActiveProfiles(ConfigurableEnvironment environment, String[] pro
 		for (int i = 0; i < profiles.length; i++) {
 			pairs[i] = "spring.profiles.active[" + i + "]=" + profiles[i];
 		}
-		TestPropertyValues.of(pairs).applyTo(environment);
+		TestPropertyValues.of(pairs).applyTo(environment, Type.MAP, "active-test-profiles");
 	}
 
 	/**
diff --git a/spring-boot-project/spring-boot-test/src/test/java/org/springframework/boot/test/context/SpringBootContextLoaderTests.java b/spring-boot-project/spring-boot-test/src/test/java/org/springframework/boot/test/context/SpringBootContextLoaderTests.java
index e34568306f32..f06016c6d6b9 100644
--- a/spring-boot-project/spring-boot-test/src/test/java/org/springframework/boot/test/context/SpringBootContextLoaderTests.java
+++ b/spring-boot-project/spring-boot-test/src/test/java/org/springframework/boot/test/context/SpringBootContextLoaderTests.java
@@ -21,8 +21,10 @@
 import org.junit.jupiter.api.Disabled;
 import org.junit.jupiter.api.Test;
 
+import org.springframework.boot.test.util.TestPropertyValues;
 import org.springframework.context.ApplicationContext;
 import org.springframework.context.annotation.Configuration;
+import org.springframework.core.env.StandardEnvironment;
 import org.springframework.test.context.ActiveProfiles;
 import org.springframework.test.context.ContextConfiguration;
 import org.springframework.test.context.MergedContextConfiguration;
@@ -38,6 +40,7 @@
  *
  * @author Stephane Nicoll
  * @author Scott Frederick
+ * @author Madhura Bhave
  */
 class SpringBootContextLoaderTests {
 
@@ -82,10 +85,9 @@ void environmentPropertiesAnotherSeparatorInValue() {
 		assertKey(config, "anotherKey", "another=Value");
 	}
 
-	@Test
+	@Test // gh-4384
 	@Disabled
 	void environmentPropertiesNewLineInValue() {
-		// gh-4384
 		Map<String, Object> config = getMergedContextConfigurationProperties(NewLineInValue.class);
 		assertKey(config, "key", "myValue");
 		assertKey(config, "variables", "foo=FOO\n bar=BAR");
@@ -106,6 +108,26 @@ void activeProfileWithComma() {
 		assertThat(getActiveProfiles(ActiveProfileWithComma.class)).containsExactly("profile1,2");
 	}
 
+	@Test
+	// gh-28776
+	void testPropertyValuesShouldTakePrecedenceWhenInlinedPropertiesPresent() {
+		TestContext context = new ExposedTestContextManager(SimpleConfig.class).getExposedTestContext();
+		StandardEnvironment environment = (StandardEnvironment) context.getApplicationContext().getEnvironment();
+		TestPropertyValues.of("key=thisValue").applyTo(environment);
+		assertThat(environment.getProperty("key")).isEqualTo("thisValue");
+		assertThat(environment.getPropertySources().get("active-test-profiles")).isNull();
+	}
+
+	@Test
+	void testPropertyValuesShouldTakePrecedenceWhenInlinedPropertiesPresentAndProfilesActive() {
+		TestContext context = new ExposedTestContextManager(ActiveProfileWithInlinedProperties.class)
+				.getExposedTestContext();
+		StandardEnvironment environment = (StandardEnvironment) context.getApplicationContext().getEnvironment();
+		TestPropertyValues.of("key=thisValue").applyTo(environment);
+		assertThat(environment.getProperty("key")).isEqualTo("thisValue");
+		assertThat(environment.getPropertySources().get("active-test-profiles")).isNotNull();
+	}
+
 	private String[] getActiveProfiles(Class<?> testClass) {
 		TestContext testContext = new ExposedTestContextManager(testClass).getExposedTestContext();
 		ApplicationContext applicationContext = testContext.getApplicationContext();
@@ -180,6 +202,13 @@ static class ActiveProfileWithComma {
 
 	}
 
+	@SpringBootTest({ "key=myValue" })
+	@ActiveProfiles({ "profile1,2" })
+	@ContextConfiguration(classes = Config.class)
+	static class ActiveProfileWithInlinedProperties {
+
+	}
+
 	@Configuration(proxyBeanMethods = false)
 	static class Config {