diff --git a/CRM/Core/BAO/CustomField.php b/CRM/Core/BAO/CustomField.php
index 3e74216e11b9..4ce44b9d287a 100644
--- a/CRM/Core/BAO/CustomField.php
+++ b/CRM/Core/BAO/CustomField.php
@@ -1234,8 +1234,8 @@ private static function formatDisplayValue($value, $field, $entityId = NULL) {
                 break;
 
               default:
-                // if time is not selected remove time from value
-                $value = substr($value, 0, 10);
+                //If time is not selected remove time from value.
+                $value = $value ? date('Y-m-d', strtotime($value)) : '';
             }
             $customFormat = implode(" ", $customTimeFormat);
           }
diff --git a/tests/phpunit/CRM/Core/BAO/CustomQueryTest.php b/tests/phpunit/CRM/Core/BAO/CustomQueryTest.php
index 26629efcaf26..2336be65b670 100644
--- a/tests/phpunit/CRM/Core/BAO/CustomQueryTest.php
+++ b/tests/phpunit/CRM/Core/BAO/CustomQueryTest.php
@@ -81,6 +81,10 @@ public function testSearchCustomDataDateFromTo() {
       $queryObj->_where[0][0]
     );
     $this->assertEquals($queryObj->_qill[0][0], "date field BETWEEN 'June 6th, 2014 12:00 AM AND June 6th, 2015 11:59 PM'");
+
+    //CRM-17236 - Test custom date is correctly displayed without time.
+    $formattedValue = CRM_Core_BAO_CustomField::displayValue(date('Ymdhms'), $dateCustomField['id']);
+    $this->assertEquals(date('m/d/Y'), $formattedValue);
   }
 
   /**