diff --git a/intern/cycles/blender/blender_object.cpp b/intern/cycles/blender/blender_object.cpp
index a18cb79c102..67255d9f707 100644
--- a/intern/cycles/blender/blender_object.cpp
+++ b/intern/cycles/blender/blender_object.cpp
@@ -253,6 +253,7 @@ Object *BlenderSync::sync_object(BL::Object b_parent, int persistent_id[OBJECT_P
 	if(use_holdout != object->use_holdout) {
 		object->use_holdout = use_holdout;
 		scene->object_manager->tag_update(scene);
+		object_updated = true;
 	}
 
 	/* object sync
@@ -278,6 +279,10 @@ Object *BlenderSync::sync_object(BL::Object b_parent, int persistent_id[OBJECT_P
 			object->random_id ^= hash_int(hash_string(b_parent.name().c_str()));
 		}
 
+		/* make holdout objects on excluded layer invisible for non-camera rays */
+		if(use_holdout && (layer_flag & render_layer.exclude_layer))
+			object->visibility &= ~(PATH_RAY_ALL - PATH_RAY_CAMERA);
+
 		/* camera flag is not actually used, instead is tested
 		 * against render layer flags */
 		if(object->visibility & PATH_RAY_CAMERA) {
diff --git a/intern/cycles/blender/blender_sync.cpp b/intern/cycles/blender/blender_sync.cpp
index eacfbdadba0..ce589f55e60 100644
--- a/intern/cycles/blender/blender_sync.cpp
+++ b/intern/cycles/blender/blender_sync.cpp
@@ -241,6 +241,7 @@ void BlenderSync::sync_render_layers(BL::SpaceView3D b_v3d, const char *layer)
 			render_layer.use_localview = (b_v3d.local_view() ? true : false);
 			render_layer.scene_layer = get_layer(b_v3d.layers(), b_v3d.layers_local_view(), render_layer.use_localview);
 			render_layer.layer = render_layer.scene_layer;
+			render_layer.exclude_layer = 0;
 			render_layer.holdout_layer = 0;
 			render_layer.material_override = PointerRNA_NULL;
 			render_layer.use_background = true;
@@ -258,10 +259,16 @@ void BlenderSync::sync_render_layers(BL::SpaceView3D b_v3d, const char *layer)
 	for(r.layers.begin(b_rlay); b_rlay != r.layers.end(); ++b_rlay) {
 		if((!layer && first_layer) || (layer && b_rlay->name() == layer)) {
 			render_layer.name = b_rlay->name();
-			render_layer.scene_layer = get_layer(b_scene.layers()) & ~get_layer(b_rlay->layers_exclude());
-			render_layer.layer = get_layer(b_rlay->layers());
+
 			render_layer.holdout_layer = get_layer(b_rlay->layers_zmask());
+			render_layer.exclude_layer = get_layer(b_rlay->layers_exclude());
+
+			render_layer.scene_layer = get_layer(b_scene.layers()) & ~render_layer.exclude_layer;
+			render_layer.scene_layer |= render_layer.exclude_layer & render_layer.holdout_layer;
+
+			render_layer.layer = get_layer(b_rlay->layers());
 			render_layer.layer |= render_layer.holdout_layer;
+
 			render_layer.material_override = b_rlay->material_override();
 			render_layer.use_background = b_rlay->use_sky();
 			render_layer.use_viewport_visibility = false;
diff --git a/intern/cycles/blender/blender_sync.h b/intern/cycles/blender/blender_sync.h
index 9a478118c04..71781bc5459 100644
--- a/intern/cycles/blender/blender_sync.h
+++ b/intern/cycles/blender/blender_sync.h
@@ -116,7 +116,8 @@ private:
 
 	struct RenderLayerInfo {
 		RenderLayerInfo()
-		: scene_layer(0), layer(0), holdout_layer(0),
+		: scene_layer(0), layer(0),
+		  holdout_layer(0), exclude_layer(0),
 		  material_override(PointerRNA_NULL),
 		  use_background(true),
 		  use_viewport_visibility(false),
@@ -127,6 +128,7 @@ private:
 		uint scene_layer;
 		uint layer;
 		uint holdout_layer;
+		uint exclude_layer;
 		BL::Material material_override;
 		bool use_background;
 		bool use_viewport_visibility;
diff --git a/intern/cycles/render/light.cpp b/intern/cycles/render/light.cpp
index d77516a1b18..4173da453fd 100644
--- a/intern/cycles/render/light.cpp
+++ b/intern/cycles/render/light.cpp
@@ -147,6 +147,10 @@ void LightManager::device_update_distribution(Device *device, DeviceScene *dscen
 		Mesh *mesh = object->mesh;
 		bool have_emission = false;
 
+		/* skip if we are not visible for BSDFs */
+		if(!(object->visibility & (PATH_RAY_DIFFUSE|PATH_RAY_GLOSSY|PATH_RAY_TRANSMIT)))
+			continue;
+
 		/* skip if we have no emission shaders */
 		foreach(uint sindex, mesh->used_shaders) {
 			Shader *shader = scene->shaders[sindex];
@@ -183,6 +187,10 @@ void LightManager::device_update_distribution(Device *device, DeviceScene *dscen
 		Mesh *mesh = object->mesh;
 		bool have_emission = false;
 
+		/* skip if we are not visible for BSDFs */
+		if(!(object->visibility & (PATH_RAY_DIFFUSE|PATH_RAY_GLOSSY|PATH_RAY_TRANSMIT)))
+			continue;
+
 		/* skip if we have no emission shaders */
 		foreach(uint sindex, mesh->used_shaders) {
 			Shader *shader = scene->shaders[sindex];