A system and method for providing an in-memory data grid application container, for use with an application server, is described herein. In accordance with an embodiment, an application server, such as WebLogic Server (WLS), can be used to host data grid applications, such as Coherence applications (in which case the application container can be referred to as a Coherence container), and deliver the same benefits that regular Java Enterprise Edition (EE) applications derive from being hosted in a WLS environment. A model for creating combined Java EE and data grid applications can also be provided, by merging the programming, packaging, and deployment models used for data grid with existing Java EE models.