diff --git a/Src/Newtonsoft.Json.Tests/Issues/Issue0198.cs b/Src/Newtonsoft.Json.Tests/Issues/Issue0198.cs
new file mode 100644
index 00000000..74b9632f
--- /dev/null
+++ b/Src/Newtonsoft.Json.Tests/Issues/Issue0198.cs
@@ -0,0 +1,123 @@
+#region License
+// Copyright (c) 2007 James Newton-King
+//
+// Permission is hereby granted, free of charge, to any person
+// obtaining a copy of this software and associated documentation
+// files (the "Software"), to deal in the Software without
+// restriction, including without limitation the rights to use,
+// copy, modify, merge, publish, distribute, sublicense, and/or sell
+// copies of the Software, and to permit persons to whom the
+// Software is furnished to do so, subject to the following
+// conditions:
+//
+// The above copyright notice and this permission notice shall be
+// included in all copies or substantial portions of the Software.
+//
+// THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
+// EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES
+// OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
+// NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT
+// HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY,
+// WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
+// FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
+// OTHER DEALINGS IN THE SOFTWARE.
+#endregion
+
+#if !(NET20 || NET35 || PORTABLE || PORTABLE40)
+using System;
+using System.Collections;
+using System.Collections.Generic;
+using System.Dynamic;
+using System.IO;
+using System.Linq;
+using System.Reflection;
+using System.Runtime.Serialization;
+using Newtonsoft.Json.Linq;
+using Newtonsoft.Json.Serialization;
+#if DNXCORE50
+using Xunit;
+using Test = Xunit.FactAttribute;
+using Assert = Newtonsoft.Json.Tests.XUnitAssert;
+#else
+using NUnit.Framework;
+#endif
+
+namespace Newtonsoft.Json.Tests.Issues
+{
+    [TestFixture]
+    public class Issue0198 : TestFixtureBase
+    {
+        [Test]
+        public void Test()
+        {
+            IEnumerable<TestClass1> objects = new List<TestClass1>
+            {
+                new TestClass1
+                {
+                    Prop1 = new HashSet<TestClass2>
+                    {
+                        new TestClass2
+                        {
+                            MyProperty1 = "Test1",
+                            MyProperty2 = "Test2",
+                        }
+                    },
+                    Prop2 = new List<string>
+                    {
+                        "Test1",
+                        "Test1"
+                    },
+                    Prop3 = new HashSet<TestClass2>
+                    {
+                        new TestClass2
+                        {
+                            MyProperty1 = "Test1",
+                            MyProperty2 = "Test2",
+                        }
+                    },
+                }
+            };
+
+            string serializedData = JsonConvert.SerializeObject(objects, new JsonSerializerSettings
+            {
+                TypeNameHandling = TypeNameHandling.All,
+                Formatting = Formatting.Indented
+            });
+
+            IEnumerable<TestClass1> a = JsonConvert.DeserializeObject<IEnumerable<TestClass1>>(serializedData, new JsonSerializerSettings
+            {
+                TypeNameHandling = TypeNameHandling.All
+            });
+
+            TestClass1 o = a.First();
+
+            Assert.AreEqual(1, o.Prop1.Count);
+            Assert.AreEqual(1, o.Prop2.Count);
+            Assert.AreEqual(1, o.Prop3.Count);
+        }
+
+        class TestClass1 : AbstactClass
+        {
+            public TestClass1()
+            {
+                Prop1 = new HashSet<TestClass2>();
+                Prop2 = new HashSet<string>();
+            }
+
+            public ICollection<TestClass2> Prop1 { get; set; }
+            public ICollection<string> Prop2 { get; set; }
+        }
+
+        class TestClass2
+        {
+            public string MyProperty1 { get; set; }
+            public string MyProperty2 { get; set; }
+        }
+
+        abstract class AbstactClass
+        {
+            public ICollection<TestClass2> Prop3 { get; set; } = new List<TestClass2>();
+        }
+    }
+}
+#endif
\ No newline at end of file
diff --git a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
index cb86bf5a..39b2e585 100644
--- a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
+++ b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
@@ -912,7 +912,7 @@ namespace Newtonsoft.Json.Serialization
                     throw JsonSerializationException.Create(reader, "Cannot populate list type {0}.".FormatWith(CultureInfo.InvariantCulture, contract.CreatedType));
                 }
 
-                value = PopulateList((arrayContract.ShouldCreateWrapper) ? arrayContract.CreateWrapper(existingValue) : (IList)existingValue, reader, arrayContract, member, id);
+                value = PopulateList((arrayContract.ShouldCreateWrapper || !(existingValue is IList)) ? arrayContract.CreateWrapper(existingValue) : (IList)existingValue, reader, arrayContract, member, id);
             }
 
             return value;