diff --git a/vp10/common/blockd.h b/vp10/common/blockd.h
index 5cecf79d3..65a8298a2 100644
--- a/vp10/common/blockd.h
+++ b/vp10/common/blockd.h
@@ -700,7 +700,11 @@ static INLINE int is_interintra_pred(const MB_MODE_INFO *mbmi) {
 
 #if CONFIG_OBMC
 static INLINE int is_obmc_allowed(const MB_MODE_INFO *mbmi) {
+#if CONFIG_EXT_INTER
+  return (mbmi->sb_type >= BLOCK_8X8 && mbmi->ref_frame[1] != INTRA_FRAME);
+#else
   return (mbmi->sb_type >= BLOCK_8X8);
+#endif  // CONFIG_EXT_INTER
 }
 
 static INLINE int is_neighbor_overlappable(const MB_MODE_INFO *mbmi) {
diff --git a/vp10/decoder/decodemv.c b/vp10/decoder/decodemv.c
index b52696d13..32ed20037 100644
--- a/vp10/decoder/decodemv.c
+++ b/vp10/decoder/decodemv.c
@@ -1230,14 +1230,6 @@ static void read_inter_block_mode_info(VP10Decoder *const pbi,
                       mi_row, mi_col, fpm_sync, (void *)pbi, inter_mode_ctx);
   }
 
-#if CONFIG_OBMC
-  mbmi->obmc = 0;
-#if CONFIG_SUPERTX
-  if (!supertx_enabled)
-#endif  // CONFIG_SUPERTX
-    mbmi->obmc = read_is_obmc_block(cm, xd, r);
-#endif  // CONFIG_OBMC
-
 #if CONFIG_REF_MV
 #if CONFIG_EXT_INTER
   if (is_compound)
@@ -1516,12 +1508,8 @@ static void read_inter_block_mode_info(VP10Decoder *const pbi,
   }
 
 #if CONFIG_EXT_INTER
-    mbmi->use_wedge_interintra = 0;
-    mbmi->use_wedge_interinter = 0;
+  mbmi->use_wedge_interintra = 0;
   if (cm->reference_mode != COMPOUND_REFERENCE &&
-#if CONFIG_OBMC
-      !(is_obmc_allowed(mbmi) && mbmi->obmc) &&
-#endif  // CONFIG_OBMC
 #if CONFIG_SUPERTX
       !supertx_enabled &&
 #endif
@@ -1557,6 +1545,21 @@ static void read_inter_block_mode_info(VP10Decoder *const pbi,
       }
     }
   }
+#endif  // CONFIG_EXT_INTER
+
+#if CONFIG_OBMC
+  mbmi->obmc = 0;
+#if CONFIG_SUPERTX
+  if (!supertx_enabled)
+#endif  // CONFIG_SUPERTX
+#if CONFIG_EXT_INTER
+    if (mbmi->ref_frame[1] != INTRA_FRAME)
+#endif  // CONFIG_EXT_INTER
+    mbmi->obmc = read_is_obmc_block(cm, xd, r);
+#endif  // CONFIG_OBMC
+
+#if CONFIG_EXT_INTER
+  mbmi->use_wedge_interinter = 0;
   if (cm->reference_mode != SINGLE_REFERENCE &&
       is_inter_compound_mode(mbmi->mode) &&
 #if CONFIG_OBMC
diff --git a/vp10/encoder/bitstream.c b/vp10/encoder/bitstream.c
index da1885d3e..dccdf3b75 100644
--- a/vp10/encoder/bitstream.c
+++ b/vp10/encoder/bitstream.c
@@ -1115,14 +1115,6 @@ static void pack_inter_mode_mvs(VP10_COMP *cpi, const MODE_INFO *mi,
     int16_t mode_ctx = mbmi_ext->mode_context[mbmi->ref_frame[0]];
     write_ref_frames(cm, xd, w);
 
-#if CONFIG_OBMC
-#if CONFIG_SUPERTX
-    if (!supertx_enabled)
-#endif  // CONFIG_SUPERTX
-      if (is_obmc_allowed(mbmi))
-        vp10_write(w, mbmi->obmc, cm->fc->obmc_prob[bsize]);
-#endif  // CONFIG_OBMC
-
 #if CONFIG_REF_MV
 #if CONFIG_EXT_INTER
     if (is_compound)
@@ -1286,9 +1278,6 @@ static void pack_inter_mode_mvs(VP10_COMP *cpi, const MODE_INFO *mi,
 
 #if CONFIG_EXT_INTER
     if (cpi->common.reference_mode != COMPOUND_REFERENCE &&
-#if CONFIG_OBMC
-        !(is_obmc_allowed(mbmi) && mbmi->obmc) &&
-#endif  // CONFIG_OBMC
 #if CONFIG_SUPERTX
         !supertx_enabled &&
 #endif  // CONFIG_SUPERTX
@@ -1311,6 +1300,20 @@ static void pack_inter_mode_mvs(VP10_COMP *cpi, const MODE_INFO *mi,
         }
       }
     }
+#endif  // CONFIG_EXT_INTER
+
+#if CONFIG_OBMC
+#if CONFIG_SUPERTX
+    if (!supertx_enabled)
+#endif  // CONFIG_SUPERTX
+#if CONFIG_EXT_INTER
+      if (mbmi->ref_frame[1] != INTRA_FRAME)
+#endif  // CONFIG_EXT_INTER
+      if (is_obmc_allowed(mbmi))
+        vp10_write(w, mbmi->obmc, cm->fc->obmc_prob[bsize]);
+#endif  // CONFIG_OBMC
+
+#if CONFIG_EXT_INTER
     if (cpi->common.reference_mode != SINGLE_REFERENCE &&
         is_inter_compound_mode(mbmi->mode) &&
 #if CONFIG_OBMC
diff --git a/vp10/encoder/encodeframe.c b/vp10/encoder/encodeframe.c
index 6aba4752d..d93d7f35f 100644
--- a/vp10/encoder/encodeframe.c
+++ b/vp10/encoder/encodeframe.c
@@ -2008,21 +2008,8 @@ static void update_stats(VP10_COMMON *cm, ThreadData *td
 #endif  // CONFIG_EXT_REFS
         }
 
-#if CONFIG_OBMC
-#if CONFIG_SUPERTX
-        if (!supertx_enabled)
-#endif  // CONFIG_SUPERTX
-          if (is_obmc_allowed(mbmi))
-            counts->obmc[mbmi->sb_type][mbmi->obmc]++;
-#endif  // CONFIG_OBMC
-      }
-    }
-
 #if CONFIG_EXT_INTER
     if (cm->reference_mode != COMPOUND_REFERENCE &&
-#if CONFIG_OBMC
-        !(is_obmc_allowed(mbmi) && mbmi->obmc) &&
-#endif
 #if CONFIG_SUPERTX
         !supertx_enabled &&
 #endif
@@ -2037,16 +2024,32 @@ static void update_stats(VP10_COMMON *cm, ThreadData *td
         counts->interintra[bsize_group][0]++;
       }
     }
-    if (cm->reference_mode != SINGLE_REFERENCE &&
-        is_inter_compound_mode(mbmi->mode) &&
-#if CONFIG_OBMC
-        !(is_obmc_allowed(mbmi) && mbmi->obmc) &&
-#endif  // CONFIG_OBMC
-        is_interinter_wedge_used(bsize)) {
-      counts->wedge_interinter[bsize][mbmi->use_wedge_interinter]++;
-    }
 #endif  // CONFIG_EXT_INTER
 
+#if CONFIG_OBMC
+#if CONFIG_SUPERTX
+        if (!supertx_enabled)
+#endif  // CONFIG_SUPERTX
+#if CONFIG_EXT_INTER
+        if (mbmi->ref_frame[1] != INTRA_FRAME)
+#endif  // CONFIG_EXT_INTER
+          if (is_obmc_allowed(mbmi))
+            counts->obmc[mbmi->sb_type][mbmi->obmc]++;
+#endif  // CONFIG_OBMC
+
+#if CONFIG_EXT_INTER
+        if (cm->reference_mode != SINGLE_REFERENCE &&
+            is_inter_compound_mode(mbmi->mode) &&
+#if CONFIG_OBMC
+            !(is_obmc_allowed(mbmi) && mbmi->obmc) &&
+#endif  // CONFIG_OBMC
+            is_interinter_wedge_used(bsize)) {
+          counts->wedge_interinter[bsize][mbmi->use_wedge_interinter]++;
+        }
+#endif  // CONFIG_EXT_INTER
+      }
+    }
+
     if (inter_block &&
         !segfeature_active(&cm->seg, mbmi->segment_id, SEG_LVL_SKIP)) {
       int16_t mode_ctx = mbmi_ext->mode_context[mbmi->ref_frame[0]];
diff --git a/vp10/encoder/rdopt.c b/vp10/encoder/rdopt.c
index 918ad3e98..2b08c46c8 100644
--- a/vp10/encoder/rdopt.c
+++ b/vp10/encoder/rdopt.c
@@ -6248,6 +6248,10 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
   int64_t best_distortion = INT64_MAX;
   unsigned int best_pred_var = UINT_MAX;
   MB_MODE_INFO best_mbmi;
+#if CONFIG_EXT_INTER
+  int rate2_bmc_nocoeff;
+  MB_MODE_INFO best_bmc_mbmi;
+#endif  // CONFIG_EXT_INTER
 #endif  // CONFIG_OBMC
 
   int pred_exists = 0;
@@ -6278,9 +6282,6 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
   assert(!is_comp_interintra_pred || is_interintra_allowed(mbmi));
 #endif  // CONFIG_EXT_INTER
 
-#if CONFIG_OBMC
-  tmp_rd = 0;
-#endif  // CONFIG_OBMC
 #if CONFIG_REF_MV
 #if CONFIG_EXT_INTER
   if (is_comp_pred)
@@ -6643,6 +6644,12 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
   rs = cm->interp_filter == SWITCHABLE ? vp10_get_switchable_rate(cpi, xd) : 0;
 
 #if CONFIG_EXT_INTER
+#if CONFIG_OBMC
+  best_bmc_mbmi = *mbmi;
+  rate2_bmc_nocoeff = *rate2;
+  if (cm->interp_filter == SWITCHABLE)
+    rate2_bmc_nocoeff += rs;
+#endif  // CONFIG_OBMC
   if (is_comp_pred && is_interinter_wedge_used(bsize)) {
     int wedge_index, best_wedge_index = WEDGE_NONE, rs;
     int rate_sum;
@@ -6755,7 +6762,6 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
           xd, bsize, mi_row, mi_col, 1, preds1, strides);
       for (wedge_index = 0; wedge_index < wedge_types; ++wedge_index) {
         mbmi->interinter_wedge_index = wedge_index;
-        // vp10_build_inter_predictors_sb(xd, mi_row, mi_col, bsize);
         vp10_build_wedge_inter_predictor_from_buf(xd, bsize, mi_row, mi_col,
                                                   preds0, strides,
                                                   preds1, strides);
@@ -6774,12 +6780,8 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
         mbmi->use_wedge_interinter = 0;
       }
     }
-#if CONFIG_OBMC
-    if (mbmi->use_wedge_interinter)
-      allow_obmc = 0;
-#endif  // CONFIG_OBMC
     if (ref_best_rd < INT64_MAX &&
-        VPXMIN(best_rd_wedge, best_rd_nowedge) / 2 > ref_best_rd)
+        VPXMIN(best_rd_wedge, best_rd_nowedge) / 3 > ref_best_rd)
       return INT64_MAX;
 
     pred_exists = 0;
@@ -7079,7 +7081,6 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
   memcpy(x->skip_txfm, skip_txfm, sizeof(skip_txfm));
   memcpy(x->bsse, bsse, sizeof(bsse));
 
-
 #if CONFIG_OBMC
   best_rd = INT64_MAX;
   for (mbmi->obmc = 0; mbmi->obmc <= allow_obmc; mbmi->obmc++) {
@@ -7087,6 +7088,12 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
     int tmp_rate;
 
     if (mbmi->obmc) {
+#if CONFIG_EXT_INTER
+      *mbmi = best_bmc_mbmi;
+      assert(!mbmi->use_wedge_interinter);
+      vp10_build_inter_predictors_sb(xd, mi_row, mi_col, bsize);
+      mbmi->obmc = 1;
+#endif  // CONFIG_EXT_INTER
       vp10_build_obmc_inter_prediction(cm, xd, mi_row, mi_col, 0,
                                        NULL, NULL,
                                        dst_buf1, dst_stride1,
@@ -7106,13 +7113,16 @@ static int64_t handle_inter_mode(VP10_COMP *cpi, MACROBLOCK *x,
     x->pred_variance =
         vp10_get_sby_perpixel_variance(cpi, &xd->plane[0].dst, bsize);
 #endif  // CONFIG_VP9_HIGHBITDEPTH
-
     x->skip = 0;
 
+#if CONFIG_EXT_INTER
+    *rate2 = mbmi->obmc ? rate2_bmc_nocoeff : rate2_nocoeff;
+#else
     *rate2 = rate2_nocoeff;
-    *distortion = 0;
+#endif  // CONFIG_EXT_INTER
     if (allow_obmc)
       *rate2 += cpi->obmc_cost[bsize][mbmi->obmc];
+    *distortion = 0;
 #endif  // CONFIG_OBMC
   if (!skip_txfm_sb) {
     int skippable_y, skippable_uv;
@@ -8472,6 +8482,9 @@ void vp10_rd_pick_inter_mode_sb(VP10_COMP *cpi,
 #if CONFIG_EXT_INTER
     rate2 += compmode_interintra_cost;
     if (cm->reference_mode != SINGLE_REFERENCE && comp_pred)
+#if CONFIG_OBMC
+      if (mbmi->obmc == 0)
+#endif  // CONFIG_OBMC
       rate2 += compmode_wedge_cost;
 #endif  // CONFIG_EXT_INTER
 
@@ -8578,7 +8591,7 @@ void vp10_rd_pick_inter_mode_sb(VP10_COMP *cpi,
         *returnrate_nocoef -= vp10_cost_bit(vp10_get_intra_inter_prob(cm, xd),
                                             mbmi->ref_frame[0] != INTRA_FRAME);
 #if CONFIG_OBMC
-        if (is_neighbor_overlappable(mbmi) && is_obmc_allowed(mbmi))
+        if (is_inter_block(mbmi) && is_obmc_allowed(mbmi))
           *returnrate_nocoef -= cpi->obmc_cost[bsize][mbmi->obmc];
 #endif  // CONFIG_OBMC
 #endif  // CONFIG_SUPERTX