diff --git a/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/AbstractMessageWriterResultHandler.java b/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/AbstractMessageWriterResultHandler.java
index cbdd2f851f..45e1e17974 100644
--- a/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/AbstractMessageWriterResultHandler.java
+++ b/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/AbstractMessageWriterResultHandler.java
@@ -52,7 +52,7 @@ import org.springframework.web.server.ServerWebExchange;
  */
 public abstract class AbstractMessageWriterResultHandler extends HandlerResultHandlerSupport {
 
-	private static final String COROUTINES_FLOW_CLASS_NAME = "kotlinx.coroutines.flow.Flow";
+	protected static final String COROUTINES_FLOW_CLASS_NAME = "kotlinx.coroutines.flow.Flow";
 
 	private final List<HttpMessageWriter<?>> messageWriters;
 
diff --git a/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/ResponseEntityResultHandler.java b/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/ResponseEntityResultHandler.java
index 3ad66a9bfc..26b59a4bd4 100644
--- a/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/ResponseEntityResultHandler.java
+++ b/spring-webflux/src/main/java/org/springframework/web/reactive/result/method/annotation/ResponseEntityResultHandler.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2020 the original author or authors.
+ * Copyright 2002-2021 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -23,6 +23,7 @@ import java.util.Set;
 
 import reactor.core.publisher.Mono;
 
+import org.springframework.core.KotlinDetector;
 import org.springframework.core.MethodParameter;
 import org.springframework.core.ReactiveAdapter;
 import org.springframework.core.ReactiveAdapterRegistry;
@@ -108,6 +109,7 @@ public class ResponseEntityResultHandler extends AbstractMessageWriterResultHand
 
 
 	@Override
+	@SuppressWarnings("ConstantConditions")
 	public Mono<Void> handleResult(ServerWebExchange exchange, HandlerResult result) {
 
 		Mono<?> returnValueMono;
@@ -118,7 +120,9 @@ public class ResponseEntityResultHandler extends AbstractMessageWriterResultHand
 		if (adapter != null) {
 			Assert.isTrue(!adapter.isMultiValue(), "Only a single ResponseEntity supported");
 			returnValueMono = Mono.from(adapter.toPublisher(result.getReturnValue()));
-			bodyParameter = actualParameter.nested().nested();
+			boolean isContinuation = (KotlinDetector.isSuspendingFunction(actualParameter.getMethod()) &&
+					!COROUTINES_FLOW_CLASS_NAME.equals(actualParameter.getParameterType().getName()));
+			bodyParameter = (isContinuation ? actualParameter.nested() : actualParameter.nested().nested());
 		}
 		else {
 			returnValueMono = Mono.justOrEmpty(result.getReturnValue());
diff --git a/spring-webflux/src/test/kotlin/org/springframework/web/reactive/result/method/annotation/CoroutinesIntegrationTests.kt b/spring-webflux/src/test/kotlin/org/springframework/web/reactive/result/method/annotation/CoroutinesIntegrationTests.kt
index af2502c09f..7a43168c7b 100644
--- a/spring-webflux/src/test/kotlin/org/springframework/web/reactive/result/method/annotation/CoroutinesIntegrationTests.kt
+++ b/spring-webflux/src/test/kotlin/org/springframework/web/reactive/result/method/annotation/CoroutinesIntegrationTests.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2019 the original author or authors.
+ * Copyright 2002-2021 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -22,18 +22,20 @@ import kotlinx.coroutines.async
 import kotlinx.coroutines.delay
 import kotlinx.coroutines.flow.Flow
 import kotlinx.coroutines.flow.flow
-import org.assertj.core.api.Assertions.*
+import org.assertj.core.api.Assertions.assertThat
+import org.assertj.core.api.Assertions.assertThatExceptionOfType
 import org.springframework.context.ApplicationContext
 import org.springframework.context.annotation.AnnotationConfigApplicationContext
 import org.springframework.context.annotation.ComponentScan
 import org.springframework.context.annotation.Configuration
 import org.springframework.http.HttpHeaders
 import org.springframework.http.HttpStatus
-import org.springframework.web.testfixture.http.server.reactive.bootstrap.HttpServer
+import org.springframework.http.ResponseEntity
 import org.springframework.web.bind.annotation.GetMapping
 import org.springframework.web.bind.annotation.RestController
 import org.springframework.web.client.HttpServerErrorException
 import org.springframework.web.reactive.config.EnableWebFlux
+import org.springframework.web.testfixture.http.server.reactive.bootstrap.HttpServer
 
 class CoroutinesIntegrationTests : AbstractRequestMappingIntegrationTests() {
 
@@ -63,6 +65,15 @@ class CoroutinesIntegrationTests : AbstractRequestMappingIntegrationTests() {
 		assertThat(entity.body).isEqualTo("foo")
 	}
 
+	@ParameterizedHttpServerTest  // gh-27292
+	fun `Suspending ResponseEntity handler method`(httpServer: HttpServer) {
+		startServer(httpServer)
+
+		val entity = performGet<String>("/suspend-response-entity", HttpHeaders.EMPTY, String::class.java)
+		assertThat(entity.statusCode).isEqualTo(HttpStatus.OK)
+		assertThat(entity.body).isEqualTo("{\"value\":\"foo\"}")
+	}
+
 	@ParameterizedHttpServerTest
 	fun `Handler method returning Flow`(httpServer: HttpServer) {
 		startServer(httpServer)
@@ -119,6 +130,12 @@ class CoroutinesIntegrationTests : AbstractRequestMappingIntegrationTests() {
 			"foo"
 		}
 
+		@GetMapping("/suspend-response-entity")
+		suspend fun suspendingResponseEntityEndpoint(): ResponseEntity<FooContainer<String>> {
+			delay(1)
+			return ResponseEntity.ok(FooContainer("foo"))
+		}
+
 		@GetMapping("/flow")
 		fun flowEndpoint()= flow {
 			emit("foo")
@@ -151,4 +168,8 @@ class CoroutinesIntegrationTests : AbstractRequestMappingIntegrationTests() {
 		}
 
 	}
+
+
+	class FooContainer<T>(val value: T)
+
 }