diff --git a/rdflib/plugins/parsers/nquads.py b/rdflib/plugins/parsers/nquads.py
index bcbd7b036..f733078f9 100644
--- a/rdflib/plugins/parsers/nquads.py
+++ b/rdflib/plugins/parsers/nquads.py
@@ -45,7 +45,7 @@ def parse(self, inputsource, sink, **kwargs):
         """Parse f as an N-Triples file."""
         assert sink.store.context_aware, ("NQuadsParser must be given"
                                           " a context aware store.")
-        self.sink = ConjunctiveGraph(store=sink.store)
+        self.sink = ConjunctiveGraph(store=sink.store, identifier=sink.identifier)
 
         source = inputsource.getByteStream()
 
@@ -81,7 +81,7 @@ def parseline(self):
         obj = self.object()
         self.eat(r_wspace)
 
-        context = self.uriref() or self.nodeid()
+        context = self.uriref() or self.nodeid() or self.sink.identifier
         self.eat(r_tail)
 
         if self.line:
diff --git a/test/test_issue535.py b/test/test_issue535.py
new file mode 100644
index 000000000..15c6d0d39
--- /dev/null
+++ b/test/test_issue535.py
@@ -0,0 +1,19 @@
+from rdflib import ConjunctiveGraph, URIRef
+from rdflib.parser import StringInputSource
+
+def test_nquads_default_graph():
+    ds = ConjunctiveGraph()
+
+    data = """
+    <http://example.org/s1> <http://example.org/p1> <http://example.org/o1> .
+    <http://example.org/s2> <http://example.org/p2> <http://example.org/o2> .
+    <http://example.org/s3> <http://example.org/p3> <http://example.org/o3> <http://example.org/g3> .
+    """
+
+    publicID = URIRef("http://example.org/g0")
+    
+    ds.parse(data=data, format="nquads", publicID=publicID)
+
+    assert len(ds) == 3, len(g)
+    assert len(list(ds.contexts())) == 2, len(list(ds.contexts()))
+    assert len(ds.get_context(publicID)) == 2, len(ds.get_context(publicID))