diff --git a/activerecord/lib/active_record/railties/databases.rake b/activerecord/lib/active_record/railties/databases.rake
index b022fe942a..ef8292de2b 100644
--- a/activerecord/lib/active_record/railties/databases.rake
+++ b/activerecord/lib/active_record/railties/databases.rake
@@ -222,13 +222,16 @@ db_namespace = namespace :db do
   desc "Creates the database, loads the schema, and initializes with the seed data (use db:reset to also drop the database first)"
   task setup: ["db:schema:load_if_ruby", "db:structure:load_if_sql", :seed]
 
-  desc "Setup database if doesn’t exist already and run migrations"
+  desc "Runs setup if database does not exist, or runs migrations if it does"
   task prepare: :load_config do
-    ActiveRecord::Base.connection
-  rescue ActiveRecord::NoDatabaseError
-    db_namespace["setup"].invoke
-  else
-    db_namespace["migrate"].invoke
+    ActiveRecord::Base.configurations.configs_for(env_name: Rails.env).each do |db_config|
+      begin
+        ActiveRecord::Base.establish_connection(db_config.config)
+        db_namespace["migrate"].invoke
+      rescue ActiveRecord::NoDatabaseError
+        db_namespace["setup"].invoke
+      end
+    end
   end
 
   desc "Loads the seed data from db/seeds.rb"
diff --git a/railties/test/application/rake/dbs_test.rb b/railties/test/application/rake/dbs_test.rb
index a1e237fa7b..ba8de8adc9 100644
--- a/railties/test/application/rake/dbs_test.rb
+++ b/railties/test/application/rake/dbs_test.rb
@@ -553,6 +553,15 @@ def db_test_load_structure
           end
         end
       end
+
+      test "db:prepare setup the database" do
+        Dir.chdir(app_path) do
+          rails "generate", "model", "book", "title:string"
+          output = rails("db:prepare")
+
+          assert_match /CreateBooks: migrated/, output
+        end
+      end
     end
   end
 end
diff --git a/railties/test/application/rake/multi_dbs_test.rb b/railties/test/application/rake/multi_dbs_test.rb
index d676e7486e..2c7cfbc0c6 100644
--- a/railties/test/application/rake/multi_dbs_test.rb
+++ b/railties/test/application/rake/multi_dbs_test.rb
@@ -137,6 +137,21 @@ def db_migrate_status_namespaced(namespace)
         end
       end
 
+      def db_prepare
+        Dir.chdir(app_path) do
+          generate_models_for_animals
+          output = rails("db:prepare")
+
+          ActiveRecord::Base.configurations.configs_for(env_name: Rails.env).each do |db_config|
+            if db_config.spec_name == "primary"
+              assert_match(/CreateBooks: migrated/, output)
+            else
+              assert_match(/CreateDogs: migrated/, output)
+            end
+          end
+        end
+      end
+
       def write_models_for_animals
         # make a directory for the animals migration
         FileUtils.mkdir_p("#{app_path}/db/animals_migrate")
@@ -175,6 +190,7 @@ def generate_models_for_animals
 
       test "db:create and db:drop works on all databases for env" do
         require "#{app_path}/config/environment"
+
         ActiveRecord::Base.configurations.configs_for(env_name: Rails.env).each do |db_config|
           db_create_and_drop db_config.spec_name, db_config.config["database"]
         end
@@ -226,6 +242,11 @@ def generate_models_for_animals
         require "#{app_path}/config/environment"
         db_migrate_and_schema_cache_dump_and_schema_cache_clear
       end
+
+      test "db:prepare works on all databases" do
+        require "#{app_path}/config/environment"
+        db_prepare
+      end
     end
   end
 end