diff --git a/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryEntry.java b/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryEntry.java
index 717d9431d8ee9..4bab10c355af2 100644
--- a/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryEntry.java
+++ b/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryEntry.java
@@ -303,6 +303,16 @@ CacheObject oldValue() {
         return oldVal;
     }
 
+    /**
+     * Clears the keep binary flag.
+     *
+     * @param flags Flags.
+     * @return Flags without the keep binary flag.
+     */
+    static byte removeKeepBinary(byte flags) {
+        return (byte)(flags & ~KEEP_BINARY);
+    }
+
     /** {@inheritDoc} */
     @Override public void deploy(GridDeploymentInfo depInfo) {
         this.depInfo = depInfo;
diff --git a/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryHandler.java b/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryHandler.java
index b42c353ceb8fa..b1395813bdfcd 100644
--- a/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryHandler.java
+++ b/modules/core/src/main/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousQueryHandler.java
@@ -40,6 +40,7 @@
 import org.apache.ignite.IgniteLogger;
 import org.apache.ignite.IgniteSystemProperties;
 import org.apache.ignite.SystemProperty;
+import org.apache.ignite.binary.BinaryObject;
 import org.apache.ignite.cache.CacheEntryEventSerializableFilter;
 import org.apache.ignite.cache.query.ContinuousQueryWithTransformer.EventListener;
 import org.apache.ignite.cluster.ClusterNode;
@@ -1734,16 +1735,22 @@ private CacheContinuousQueryEntry transformToEntry(IgniteClosure<CacheEntryEvent
             oldVal = null;
         }
 
+        // The transformer result is not a cache value, so the keep binary flag of the cache does not apply to it.
+        // Keep it binary only if the transformer returned a BinaryObject, as on the local node.
+        boolean keepBinary = transVal instanceof BinaryObject;
+
         return new CacheContinuousQueryEntry(evt.entry().cacheId(),
             evt.entry().eventType(),
             null,
             newVal,
             oldVal,
-            evt.entry().isKeepBinary(),
+            keepBinary,
             evt.entry().partition(),
             evt.entry().updateCounter(),
             evt.entry().topologyVersion(),
-            evt.entry().flags());
+            // The copied flags are cleared first, because the constructor only sets the keep binary bit and never
+            // clears it. The constructor sets the bit again if keepBinary is true.
+            CacheContinuousQueryEntry.removeKeepBinary(evt.entry().flags()));
     }
 
     /**
diff --git a/modules/core/src/test/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousWithTransformerKeepBinaryTest.java b/modules/core/src/test/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousWithTransformerKeepBinaryTest.java
new file mode 100644
index 0000000000000..12ae3fdea9c2d
--- /dev/null
+++ b/modules/core/src/test/java/org/apache/ignite/internal/processors/cache/query/continuous/CacheContinuousWithTransformerKeepBinaryTest.java
@@ -0,0 +1,218 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.apache.ignite.internal.processors.cache.query.continuous;
+
+import java.util.ArrayList;
+import java.util.Collections;
+import java.util.List;
+import javax.cache.configuration.FactoryBuilder;
+import javax.cache.event.CacheEntryEvent;
+import org.apache.ignite.IgniteCache;
+import org.apache.ignite.binary.BinaryObject;
+import org.apache.ignite.cache.CacheAtomicityMode;
+import org.apache.ignite.cache.CacheMode;
+import org.apache.ignite.cache.affinity.AffinityKeyMapped;
+import org.apache.ignite.cache.query.ContinuousQueryWithTransformer;
+import org.apache.ignite.cache.query.QueryCursor;
+import org.apache.ignite.configuration.CacheConfiguration;
+import org.apache.ignite.configuration.IgniteConfiguration;
+import org.apache.ignite.lang.IgniteClosure;
+import org.apache.ignite.testframework.GridTestUtils;
+import org.apache.ignite.testframework.junits.common.GridCommonAbstractTest;
+import org.junit.Test;
+
+/**
+ * Checks that {@link ContinuousQueryWithTransformer} on a keep-binary cache delivers the transformer result
+ * to the listener as it was returned, for both local and remote events.
+ */
+public class CacheContinuousWithTransformerKeepBinaryTest extends GridCommonAbstractTest {
+
+    /** */
+    private static final int DFLT_SERVER_NODE_CNT = 2;
+
+    /** {@inheritDoc} */
+    @Override protected IgniteConfiguration getConfiguration(String igniteInstanceName) throws Exception {
+        IgniteConfiguration cfg = super.getConfiguration(igniteInstanceName);
+
+        CacheConfiguration ccfg = new CacheConfiguration(DEFAULT_CACHE_NAME);
+
+        ccfg.setCacheMode(CacheMode.PARTITIONED);
+        ccfg.setAtomicityMode(CacheAtomicityMode.TRANSACTIONAL);
+
+        cfg.setCacheConfiguration(ccfg);
+
+        return cfg;
+    }
+
+    /** {@inheritDoc} */
+    @Override protected void afterTest() throws Exception {
+        grid(0).cache(DEFAULT_CACHE_NAME).removeAll();
+    }
+
+    /** {@inheritDoc} */
+    @Override protected void beforeTestsStarted() throws Exception {
+        startGrids(DFLT_SERVER_NODE_CNT);
+
+        super.beforeTestsStarted();
+    }
+
+    /** {@inheritDoc} */
+    @Override protected void afterTestsStopped() throws Exception {
+        stopAllGrids(true);
+    }
+
+    /** */
+    @Test
+    public void testNonBinaryResultArrivesAsIs() throws Exception {
+        List<Object> received = Collections.synchronizedList(new ArrayList<>());
+
+        ContinuousQueryWithTransformer<Integer, Object, PersonId> qry = new ContinuousQueryWithTransformer<>();
+
+        qry.setRemoteTransformerFactory(FactoryBuilder.factoryOf(new ToPersonId()));
+
+        qry.setLocalListener(evts -> {
+            for (Object e : evts)
+                received.add(e);
+        });
+
+        IgniteCache<Integer, Object> cache = grid(0).cache(DEFAULT_CACHE_NAME);
+
+        // Primary on node 0, where the query runs: its event is transformed locally.
+        int locKey = primaryKey(cache);
+
+        // Primary on node 1: its event is transformed there and sent to node 0.
+        int rmtKey = primaryKey(grid(1).cache(DEFAULT_CACHE_NAME));
+
+        try (QueryCursor<?> ignored = cache.withKeepBinary().query(qry)) {
+            cache.put(locKey, locKey);
+            cache.put(rmtKey, rmtKey);
+
+            assertTrue(GridTestUtils.waitForCondition(() -> received.size() == 2, 5_000));
+
+            for (Object o : received)
+                assertTrue("Unexpected class: " + o.getClass().getName(), o instanceof PersonId);
+        }
+    }
+
+    /** */
+    @Test
+    public void testBinaryValueResultArrivesAsIs() throws Exception {
+        List<Object> received = Collections.synchronizedList(new ArrayList<>());
+
+        ContinuousQueryWithTransformer<Integer, Object, Object> qry = new ContinuousQueryWithTransformer<>();
+
+        qry.setRemoteTransformerFactory(FactoryBuilder.factoryOf(new ToValue()));
+
+        qry.setLocalListener(evts -> {
+            for (Object e : evts)
+                received.add(e);
+        });
+
+        IgniteCache<Integer, Object> cache = grid(0).cache(DEFAULT_CACHE_NAME);
+
+        // Primary on node 0, where the query runs: its event is transformed locally.
+        int locKey = primaryKey(cache);
+
+        // Primary on node 1: its event is transformed there and sent to node 0.
+        int rmtKey = primaryKey(grid(1).cache(DEFAULT_CACHE_NAME));
+
+        try (QueryCursor<?> ignored = cache.withKeepBinary().query(qry)) {
+            cache.put(locKey, new PersonId(locKey));
+            cache.put(rmtKey, new PersonId(rmtKey));
+
+            assertTrue(GridTestUtils.waitForCondition(() -> received.size() == 2, 5_000));
+
+            for (Object o : received)
+                assertTrue("Unexpected class: " + o.getClass().getName(), o instanceof BinaryObject);
+        }
+    }
+
+    /** */
+    @Test
+    public void testBinaryKeyResultArrivesAsIs() throws Exception {
+        List<Object> received = Collections.synchronizedList(new ArrayList<>());
+
+        ContinuousQueryWithTransformer<Object, Integer, Object> qry = new ContinuousQueryWithTransformer<>();
+
+        qry.setRemoteTransformerFactory(FactoryBuilder.factoryOf(new ToKey()));
+
+        qry.setLocalListener(evts -> {
+            for (Object e : evts)
+                received.add(e);
+        });
+
+        IgniteCache<Object, Integer> cache = grid(0).cache(DEFAULT_CACHE_NAME);
+
+        // Primary on node 0, where the query runs: its event is transformed locally.
+        PersonId locKey = new PersonId(primaryKey(cache));
+
+        // Primary on node 1: its event is transformed there and sent to node 0.
+        PersonId rmtKey = new PersonId(primaryKey(grid(1).cache(DEFAULT_CACHE_NAME)));
+
+        // Make sure one event is transformed locally and the other remotely.
+        // Check that @AffinityKeyMapped keeps each key on the node primaryKey() found it for.
+        assertTrue(grid(0).affinity(DEFAULT_CACHE_NAME).isPrimary(grid(0).localNode(), locKey));
+        assertTrue(grid(0).affinity(DEFAULT_CACHE_NAME).isPrimary(grid(1).localNode(), rmtKey));
+
+        try (QueryCursor<?> ignored = cache.withKeepBinary().query(qry)) {
+            cache.put(locKey, locKey.id);
+            cache.put(rmtKey, rmtKey.id);
+
+            assertTrue(GridTestUtils.waitForCondition(() -> received.size() == 2, 5_000));
+
+            for (Object o : received)
+                assertTrue("Unexpected class: " + o.getClass().getName(), o instanceof BinaryObject);
+        }
+    }
+
+    /** */
+    private static class PersonId {
+        /** So the key has the same owner as its id. */
+        @AffinityKeyMapped
+        final int id;
+
+        /** */
+        PersonId(int id) {
+            this.id = id;
+        }
+    }
+
+    /** */
+    private static class ToPersonId implements IgniteClosure<CacheEntryEvent<? extends Integer, ?>, PersonId> {
+        /** {@inheritDoc} */
+        @Override public PersonId apply(CacheEntryEvent<? extends Integer, ?> evt) {
+            return new PersonId(evt.getKey());
+        }
+    }
+
+    /** */
+    private static class ToValue implements IgniteClosure<CacheEntryEvent<? extends Integer, ?>, Object> {
+        /** {@inheritDoc} */
+        @Override public Object apply(CacheEntryEvent<? extends Integer, ?> evt) {
+            return evt.getValue();
+        }
+    }
+
+    /** */
+    private static class ToKey implements IgniteClosure<CacheEntryEvent<?, ? extends Integer>, Object> {
+        /** {@inheritDoc} */
+        @Override public Object apply(CacheEntryEvent<?, ? extends Integer> evt) {
+            return evt.getKey();
+        }
+    }
+}
diff --git a/modules/indexing/src/test/java/org/apache/ignite/testsuites/IgniteCacheQuerySelfTestSuite3.java b/modules/indexing/src/test/java/org/apache/ignite/testsuites/IgniteCacheQuerySelfTestSuite3.java
index cb682564f263a..0028bd859bc30 100644
--- a/modules/indexing/src/test/java/org/apache/ignite/testsuites/IgniteCacheQuerySelfTestSuite3.java
+++ b/modules/indexing/src/test/java/org/apache/ignite/testsuites/IgniteCacheQuerySelfTestSuite3.java
@@ -26,6 +26,7 @@
 import org.apache.ignite.internal.processors.cache.query.continuous.CacheContinuousQueryExecuteInPrimaryTest;
 import org.apache.ignite.internal.processors.cache.query.continuous.CacheContinuousQueryFactoryAsyncFilterRandomOperationTest;
 import org.apache.ignite.internal.processors.cache.query.continuous.CacheContinuousWithTransformerClientSelfTest;
+import org.apache.ignite.internal.processors.cache.query.continuous.CacheContinuousWithTransformerKeepBinaryTest;
 import org.apache.ignite.internal.processors.cache.query.continuous.CacheContinuousWithTransformerReplicatedSelfTest;
 import org.apache.ignite.internal.processors.cache.query.continuous.ClientReconnectContinuousQueryTest;
 import org.apache.ignite.internal.processors.cache.query.continuous.ContinuousQueryReassignmentTest;
@@ -73,7 +74,9 @@
     CacheContinuousQueryCounterPartitionedAtomicTest.class,
     CacheContinuousQueryCounterPartitionedTxTest.class,
     CacheContinuousQueryCounterReplicatedAtomicTest.class,
-    CacheContinuousQueryCounterReplicatedTxTest.class
+    CacheContinuousQueryCounterReplicatedTxTest.class,
+
+    CacheContinuousWithTransformerKeepBinaryTest.class
 })
 public class IgniteCacheQuerySelfTestSuite3 {
 }