diff --git a/lib/Driver/Compilation.cpp b/lib/Driver/Compilation.cpp
index 7da9429f4d2..e77fd765eb5 100644
--- a/lib/Driver/Compilation.cpp
+++ b/lib/Driver/Compilation.cpp
@@ -143,6 +143,7 @@ int Compilation::performJobsInList(const JobList &JL, PerformJobsState &State) {
     // always have to run the job, but it doesn't affect any other jobs. If
     // there should be one but it's not present or can't be loaded, we have to
     // run all the jobs.
+    // FIXME: We can probably do better here!
     Job::Condition Condition = Job::Condition::Always;
     StringRef DependenciesFile =
       Cmd->getOutput().getAdditionalOutputForType(types::TY_SwiftDeps);
@@ -369,8 +370,10 @@ int Compilation::performJobsInList(const JobList &JL, PerformJobsState &State) {
       if (!State.ScheduledCommands.count(Cmd))
         continue;
 
-
-      State.UnfinishedCommands.insert({Cmd, DepGraph.isMarked(Cmd)});
+      bool isCascading = true;
+      if (getIncrementalBuildEnabled())
+        isCascading = DepGraph.isMarked(Cmd);
+      State.UnfinishedCommands.insert({Cmd, isCascading});
     }
   }
 
diff --git a/test/Driver/Dependencies/fail-new.swift b/test/Driver/Dependencies/fail-new.swift
new file mode 100644
index 00000000000..2157d0a1e80
--- /dev/null
+++ b/test/Driver/Dependencies/fail-new.swift
@@ -0,0 +1,32 @@
+/// bad ==> main | bad --> other
+
+// RUN: rm -rf %t && cp -r %S/Inputs/fail-simple/ %t
+// RUN: touch -t 201401240005 %t/*
+
+// RUN: cd %t && not %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies-bad.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck %s
+// CHECK: Handled main.swift
+// CHECK: Handled bad.swift
+// CHECK-NOT: Handled other.swift
+
+// RUN: cd %t && not %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies-bad.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck %s
+
+// RUN: cd %t && %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck -check-prefix=CHECK-OKAY %s
+// CHECK-OKAY: Handled main.swift
+// CHECK-OKAY: Handled bad.swift
+// CHECK-OKAY: Handled other.swift
+
+// RUN: rm %t/bad.o
+// RUN: rm %t/bad.swiftdeps
+// RUN: cd %t && not %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies-bad.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck %s
+
+// RUN: rm %t/*.o
+// RUN: cd %t && %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck -check-prefix=CHECK-OKAY %s
+// RUN: rm %t/main.o
+// RUN: rm %t/main.swiftdeps
+// RUN: cd %t && not %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies-bad.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck %s
+
+// RUN: rm %t/*.o
+// RUN: cd %t && %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck -check-prefix=CHECK-OKAY %s
+// RUN: rm %t/other.o
+// RUN: rm %t/other.swiftdeps
+// RUN: cd %t && not %swiftc_driver -c -driver-use-frontend-path %S/Inputs/update-dependencies-bad.py -output-file-map %t/output.json -incremental ./main.swift ./bad.swift ./other.swift -module-name main -j1 -v 2>&1 | FileCheck %s