diff --git a/Lib/unittest/mock.py b/Lib/unittest/mock.py
index b75a1fa..61ed80b 100644
--- a/Lib/unittest/mock.py
+++ b/Lib/unittest/mock.py
@@ -1027,28 +1027,27 @@
                 break
             seen.add(_new_parent_id)
 
-        ret_val = DEFAULT
         effect = self.side_effect
         if effect is not None:
             if _is_exception(effect):
                 raise effect
-
-            if not _callable(effect):
+            elif not _callable(effect):
                 result = next(effect)
                 if _is_exception(result):
                     raise result
-                if result is DEFAULT:
-                    result = self.return_value
+            else:
+                result = effect(*args, **kwargs)
+
+            if result is not DEFAULT:
                 return result
 
-            ret_val = effect(*args, **kwargs)
+        if self._mock_return_value is not DEFAULT:
+            return self.return_value
 
-        if (self._mock_wraps is not None and
-             self._mock_return_value is DEFAULT):
+        if self._mock_wraps is not None:
             return self._mock_wraps(*args, **kwargs)
-        if ret_val is DEFAULT:
-            ret_val = self.return_value
-        return ret_val
+
+        return self.return_value
 
 
 
diff --git a/Lib/unittest/test/testmock/testmock.py b/Lib/unittest/test/testmock/testmock.py
index 0a638b7..193ae9f 100644
--- a/Lib/unittest/test/testmock/testmock.py
+++ b/Lib/unittest/test/testmock/testmock.py
@@ -558,6 +558,16 @@
         real.assert_called_with(1, 2, fish=3)
 
 
+    def test_wraps_prevents_automatic_creation_of_mocks(self):
+        class Real(object):
+            pass
+
+        real = Real()
+        mock = Mock(wraps=real)
+
+        self.assertRaises(AttributeError, lambda: mock.new_attr())
+
+
     def test_wraps_call_with_nondefault_return_value(self):
         real = Mock()
 
@@ -584,6 +594,118 @@
         self.assertEqual(result, Real.attribute.frog())
 
 
+    def test_customize_wrapped_object_with_side_effect_iterable_with_default(self):
+        class Real(object):
+            def method(self):
+                return sentinel.ORIGINAL_VALUE
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = [sentinel.VALUE1, DEFAULT]
+
+        self.assertEqual(mock.method(), sentinel.VALUE1)
+        self.assertEqual(mock.method(), sentinel.ORIGINAL_VALUE)
+        self.assertRaises(StopIteration, mock.method)
+
+
+    def test_customize_wrapped_object_with_side_effect_iterable(self):
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = [sentinel.VALUE1, sentinel.VALUE2]
+
+        self.assertEqual(mock.method(), sentinel.VALUE1)
+        self.assertEqual(mock.method(), sentinel.VALUE2)
+        self.assertRaises(StopIteration, mock.method)
+
+
+    def test_customize_wrapped_object_with_side_effect_exception(self):
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = RuntimeError
+
+        self.assertRaises(RuntimeError, mock.method)
+
+
+    def test_customize_wrapped_object_with_side_effect_function(self):
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        def side_effect():
+            return sentinel.VALUE
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = side_effect
+
+        self.assertEqual(mock.method(), sentinel.VALUE)
+
+
+    def test_customize_wrapped_object_with_return_value(self):
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.return_value = sentinel.VALUE
+
+        self.assertEqual(mock.method(), sentinel.VALUE)
+
+
+    def test_customize_wrapped_object_with_return_value_and_side_effect(self):
+        # side_effect should always take precedence over return_value.
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = [sentinel.VALUE1, sentinel.VALUE2]
+        mock.method.return_value = sentinel.WRONG_VALUE
+
+        self.assertEqual(mock.method(), sentinel.VALUE1)
+        self.assertEqual(mock.method(), sentinel.VALUE2)
+        self.assertRaises(StopIteration, mock.method)
+
+
+    def test_customize_wrapped_object_with_return_value_and_side_effect2(self):
+        # side_effect can return DEFAULT to default to return_value
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = lambda: DEFAULT
+        mock.method.return_value = sentinel.VALUE
+
+        self.assertEqual(mock.method(), sentinel.VALUE)
+
+
+    def test_customize_wrapped_object_with_return_value_and_side_effect_default(self):
+        class Real(object):
+            def method(self):
+                raise NotImplementedError()
+
+        real = Real()
+        mock = Mock(wraps=real)
+        mock.method.side_effect = [sentinel.VALUE1, DEFAULT]
+        mock.method.return_value = sentinel.RETURN
+
+        self.assertEqual(mock.method(), sentinel.VALUE1)
+        self.assertEqual(mock.method(), sentinel.RETURN)
+        self.assertRaises(StopIteration, mock.method)
+
+
     def test_exceptional_side_effect(self):
         mock = Mock(side_effect=AttributeError)
         self.assertRaises(AttributeError, mock)
diff --git a/Misc/NEWS.d/next/Library/2018-12-06-00-43-13.bpo-35330.abB4BN.rst b/Misc/NEWS.d/next/Library/2018-12-06-00-43-13.bpo-35330.abB4BN.rst
new file mode 100644
index 0000000..24d0ab8
--- /dev/null
+++ b/Misc/NEWS.d/next/Library/2018-12-06-00-43-13.bpo-35330.abB4BN.rst
@@ -0,0 +1,4 @@
+When a :class:`Mock` instance was used to wrap an object, if `side_effect`
+is used in one of the mocks of it methods, don't call the original
+implementation and return the result of using the side effect the same way
+that it is done with return_value.