diff --git a/src/engine/make.c b/src/engine/make.c
index e1b4d624e..d6677d952 100644
--- a/src/engine/make.c
+++ b/src/engine/make.c
@@ -126,7 +126,11 @@ int make( int n_targets, OBJECT * * targets, int anyhow )
     {
         PROFILE_ENTER( MAKE_MAKE0 );
         for ( i = 0; i < n_targets; ++i )
-            make0( bindtarget( targets[ i ] ), 0, 0, counts, anyhow );
+        {
+            TARGET * t = bindtarget( targets[ i ] );
+            if ( t->fate == T_FATE_INIT )
+                make0( t, 0, 0, counts, anyhow );
+        }
         PROFILE_EXIT( MAKE_MAKE0 );
     }
 
diff --git a/src/engine/make1.c b/src/engine/make1.c
index 3c1331e50..1e80b5a74 100644
--- a/src/engine/make1.c
+++ b/src/engine/make1.c
@@ -281,6 +281,15 @@ static void make1a( state * pState )
                 ++pState->parent->asynccnt;
         }
 
+    /*
+     * If the target has been previously updated with -n in
+     * effect, and we're ignoring -n, update it for real.
+     */
+    if ( !globs.noexec && pState->t->progress == T_MAKE_NOEXEC_DONE )
+    {
+        pState->t->progress = T_MAKE_INIT;
+    }
+
     /* If this target is already being processed then do nothing. There is no
      * need to start processing the same target all over again.
      */
@@ -384,13 +393,21 @@ static void make1b( state * pState )
 
     /* Now ready to build target 't', if dependencies built OK. */
 
-    /* Collect status from dependencies. */
-    for ( c = t->depends; c; c = c->next )
-        if ( c->target->status > t->status && !( c->target->flags & T_FLAG_NOCARE ) )
-        {
-            failed = c->target;
-            pState->t->status = c->target->status;
-        }
+    /* Collect status from dependencies. If -n was passed then
+     * act as though all dependencies built correctly.  The only
+     * way they can fail is if UPDATE_NOW was called.  If
+     * the dependencies can't be found or we got an interrupt,
+     * we can't get here.
+     */
+    if ( !globs.noexec )
+    {
+        for ( c = t->depends; c; c = c->next )
+            if ( c->target->status > t->status && !( c->target->flags & T_FLAG_NOCARE ) )
+            {
+                failed = c->target;
+                pState->t->status = c->target->status;
+            }
+    }
     /* If an internal header node failed to build, we want to output the target
      * that it failed on.
      */
@@ -560,7 +577,10 @@ static void make1c( state * pState )
             TARGET * t = pState->t;
             TARGET * additional_includes = NULL;
 
-            t->progress = T_MAKE_DONE;
+            if ( globs.noexec )
+                t->progress = T_MAKE_NOEXEC_DONE;
+            else
+                t->progress = T_MAKE_DONE;
 
             /* Target has been updated so rescan it for dependencies. */
             if ( ( t->fate >= T_FATE_MISSING ) &&
@@ -811,7 +831,7 @@ static void make1d( state * pState )
     CMD    * cmd    = (CMD *)t->cmds;
     int      status = pState->status;
 
-    if ( t->flags & T_FLAG_FAIL_EXPECTED )
+    if ( t->flags & T_FLAG_FAIL_EXPECTED && !globs.noexec )
     {
         /* Invert execution result when FAIL_EXPECTED has been applied. */
         switch ( status )
@@ -918,6 +938,7 @@ static CMD * make1cmds( TARGET * t )
     module_t * settings_module = 0;
     TARGET   * settings_target = 0;
     ACTIONS  * a0;
+    int running_flag = globs.noexec ? A_RUNNING_NOEXEC : A_RUNNING;
 
     /* Step through actions. Actions may be shared with other targets or grouped
      * using RULE_TOGETHER, so actions already seen are skipped.
@@ -937,10 +958,10 @@ static CMD * make1cmds( TARGET * t )
         /* Only do rules with commands to execute. If this action has already
          * been executed, use saved status.
          */
-        if ( !actions || a0->action->running )
+        if ( !actions || a0->action->running >= running_flag )
             continue;
 
-        a0->action->running = 1;
+        a0->action->running = running_flag;
 
         /* Make LISTS of targets and sources. If `execute together` has been
          * specified for this rule, tack on sources from each instance of this
@@ -950,10 +971,10 @@ static CMD * make1cmds( TARGET * t )
         ns = make1list( L0, a0->action->sources, actions->flags );
         if ( actions->flags & RULE_TOGETHER )
             for ( a1 = a0->next; a1; a1 = a1->next )
-                if ( a1->action->rule == rule && !a1->action->running )
+                if ( a1->action->rule == rule && a1->action->running < running_flag )
                 {
                     ns = make1list( ns, a1->action->sources, actions->flags );
-                    a1->action->running = 1;
+                    a1->action->running = running_flag;
                 }
 
         /* If doing only updated (or existing) sources, but none have been
diff --git a/src/engine/rules.h b/src/engine/rules.h
index 83e9797c1..345dc06ac 100644
--- a/src/engine/rules.h
+++ b/src/engine/rules.h
@@ -110,6 +110,9 @@ struct _action
     TARGETS * targets;
     TARGETS * sources;        /* aka $(>) */
     char      running;        /* has been started */
+#define A_INIT           0
+#define A_RUNNING_NOEXEC 1
+#define A_RUNNING        2
     char      status;         /* see TARGET status */
     int       refs;
 };
diff --git a/test/core_option_n.py b/test/core_option_n.py
index 5b5410605..3b91d8e63 100755
--- a/test/core_option_n.py
+++ b/test/core_option_n.py
@@ -25,6 +25,7 @@ echo [$(<:B)] 2
     NOTFILE subtest ;
     .a. subtest_a : subtest ;
     .a. subtest_b : subtest ;
+    FAIL_EXPECTED subtest_b ;
     DEPENDS all : subtest_a subtest_b ;
 """)
 
@@ -45,4 +46,6 @@ echo [subtest_b] 2
 ...updated 2 targets...
 """)
 
+t.expect_nothing_more()
+
 t.cleanup()
diff --git a/test/core_update_now.py b/test/core_update_now.py
new file mode 100755
index 000000000..d31a8c560
--- /dev/null
+++ b/test/core_update_now.py
@@ -0,0 +1,198 @@
+#!/usr/bin/python
+
+# Copyright 2011 Steven Watanabe
+# Distributed under the Boost Software License, Version 1.0. 
+# (See accompanying file LICENSE_1_0.txt or http://www.boost.org/LICENSE_1_0.txt) 
+
+import BoostBuild
+import os
+
+def basic():
+    # Basic test
+
+    t = BoostBuild.Tester(pass_toolset=0, pass_d0=False)
+
+    t.write("file.jam", """
+
+actions do-print
+{
+    echo updating $(<)
+}
+
+NOTFILE target1 ;
+ALWAYS target1 ;
+do-print target1 ;
+
+UPDATE_NOW target1 ;
+
+DEPENDS all : target1 ;
+""")
+
+    t.run_build_system("-ffile.jam", stdout="""...found 1 target...
+...updating 1 target...
+do-print target1
+updating target1
+...updated 1 target...
+...found 1 target...
+""")
+
+    t.cleanup()
+
+def ignore_minus_n():
+    # ignore-minus-n
+
+    t = BoostBuild.Tester(pass_toolset=0, pass_d0=False)
+
+    t.write("file.jam", """
+
+actions do-print
+{
+    echo updating $(<)
+}
+
+NOTFILE target1 ;
+ALWAYS target1 ;
+do-print target1 ;
+
+UPDATE_NOW target1 : : ignore-minus-n ;
+
+DEPENDS all : target1 ;
+""")
+
+    t.run_build_system("-ffile.jam -n", stdout="""...found 1 target...
+...updating 1 target...
+do-print target1
+
+    echo updating target1
+
+updating target1
+...updated 1 target...
+...found 1 target...
+""")
+
+    t.cleanup()
+
+def failed_target():
+
+    t = BoostBuild.Tester(pass_toolset=0, pass_d0=False)
+
+    t.write("file.jam", """
+
+actions fail
+{
+    exit 1
+}
+
+NOTFILE target1 ;
+ALWAYS target1 ;
+fail target1 ;
+
+actions do-print
+{
+    echo updating $(<)
+}
+
+NOTFILE target2 ;
+do-print target2 ;
+DEPENDS target2 : target1 ;
+
+UPDATE_NOW target1 : : ignore-minus-n ;
+
+DEPENDS all : target1 target2 ;
+""")
+
+    t.run_build_system("-ffile.jam -n", stdout="""...found 1 target...
+...updating 1 target...
+fail target1
+
+    exit 1
+
+...failed fail target1...
+...failed updating 1 target...
+...found 2 targets...
+...updating 1 target...
+do-print target2
+
+    echo updating target2
+
+...updated 1 target...
+""")
+
+    t.cleanup()
+
+def missing_target():
+    t = BoostBuild.Tester(pass_toolset=0, pass_d0=False)
+
+    t.write("file.jam", """
+
+actions do-print
+{
+    echo updating $(<)
+}
+
+NOTFILE target2 ;
+do-print target2 ;
+DEPENDS target2 : target1 ;
+
+UPDATE_NOW target1 : : ignore-minus-n ;
+
+DEPENDS all : target1 target2 ;
+""")
+
+    t.run_build_system("-ffile.jam -n", status=1, stdout="""don't know how to make target1
+...found 1 target...
+...can't find 1 target...
+...found 2 targets...
+...can't make 1 target...
+""")
+
+    t.cleanup()
+
+# Make sure that if we call UPDATE_NOW with ignore-minus-n,
+# the target gets updated exactly once regardless of previous
+# calls to UPDATE_NOW with -n in effect.
+
+def build_once():
+    t = BoostBuild.Tester(pass_toolset=0, pass_d0=False)
+
+    t.write("file.jam", """
+
+actions do-print
+{
+    echo updating $(<)
+}
+
+NOTFILE target1 ;
+ALWAYS target1 ;
+do-print target1 ;
+
+UPDATE_NOW target1 ;
+UPDATE_NOW target1 : : ignore-minus-n ;
+UPDATE_NOW target1 : : ignore-minus-n ;
+
+DEPENDS all : target1 ;
+""")
+
+    t.run_build_system("-ffile.jam -n", stdout="""...found 1 target...
+...updating 1 target...
+do-print target1
+
+    echo updating target1
+
+...updated 1 target...
+do-print target1
+
+    echo updating target1
+
+updating target1
+...updated 1 target...
+...found 1 target...
+""")
+
+    t.cleanup()
+
+basic()
+ignore_minus_n()
+failed_target()
+missing_target()
+build_once()
diff --git a/test/test_all.py b/test/test_all.py
index 1b2ae3645..761c8ad87 100644
--- a/test/test_all.py
+++ b/test/test_all.py
@@ -151,6 +151,7 @@ tests = [ "absolute_sources",
           "core_parallel_actions",
           "core_parallel_multifile_actions_1",
           "core_parallel_multifile_actions_2",
+          "core_update_now",
           "custom_generator",
           "default_build",
           "default_features",