diff --git a/vp10/common/blockd.h b/vp10/common/blockd.h
index 4ba353fde..84541545a 100644
--- a/vp10/common/blockd.h
+++ b/vp10/common/blockd.h
@@ -211,7 +211,7 @@ typedef struct macroblockd {
   int bd;
 #endif
 
-  int lossless;
+  int lossless[MAX_SEGMENTS];
   int corrupted;
 
   struct vpx_internal_error_info *error_info;
@@ -240,8 +240,8 @@ static INLINE TX_TYPE get_tx_type(PLANE_TYPE plane_type, const MACROBLOCKD *xd,
   const MODE_INFO *const mi = xd->mi[0];
   const MB_MODE_INFO *const mbmi = &mi->mbmi;
 
-  if (plane_type != PLANE_TYPE_Y || xd->lossless || is_inter_block(mbmi) ||
-      mbmi->tx_size >= TX_32X32)
+  if (plane_type != PLANE_TYPE_Y || xd->lossless[mbmi->segment_id] ||
+      is_inter_block(mbmi) || mbmi->tx_size >= TX_32X32)
     return DCT_DCT;
 
   return intra_mode_to_tx_type_lookup[get_y_mode(mi, block_idx)];
diff --git a/vp10/decoder/decodeframe.c b/vp10/decoder/decodeframe.c
index 618f8a179..2c3f357ea 100644
--- a/vp10/decoder/decodeframe.c
+++ b/vp10/decoder/decodeframe.c
@@ -213,6 +213,7 @@ static void inverse_transform_block_inter(MACROBLOCKD* xd, int plane,
                                           int eob, int block) {
   struct macroblockd_plane *const pd = &xd->plane[plane];
   TX_TYPE tx_type = get_tx_type(pd->plane_type, xd, block);
+  const int seg_id = xd->mi[0]->mbmi.segment_id;
   if (eob > 0) {
     tran_low_t *const dqcoeff = pd->dqcoeff;
 #if CONFIG_VP9_HIGHBITDEPTH
@@ -220,7 +221,7 @@ static void inverse_transform_block_inter(MACROBLOCKD* xd, int plane,
       switch (tx_size) {
         case TX_4X4:
           vp10_highbd_inv_txfm_add_4x4(dqcoeff, dst, stride, eob, xd->bd,
-                                       tx_type, xd->lossless);
+                                       tx_type, xd->lossless[seg_id]);
           break;
         case TX_8X8:
           vp10_highbd_inv_txfm_add_8x8(dqcoeff, dst, stride, eob, xd->bd,
@@ -243,7 +244,7 @@ static void inverse_transform_block_inter(MACROBLOCKD* xd, int plane,
       switch (tx_size) {
         case TX_4X4:
           vp10_inv_txfm_add_4x4(dqcoeff, dst, stride, eob, tx_type,
-                                xd->lossless);
+                                xd->lossless[seg_id]);
           break;
         case TX_8X8:
           vp10_inv_txfm_add_8x8(dqcoeff, dst, stride, eob, tx_type);
@@ -281,6 +282,7 @@ static void inverse_transform_block_intra(MACROBLOCKD* xd, int plane,
                                           uint8_t *dst, int stride,
                                           int eob) {
   struct macroblockd_plane *const pd = &xd->plane[plane];
+  const int seg_id = xd->mi[0]->mbmi.segment_id;
   if (eob > 0) {
     tran_low_t *const dqcoeff = pd->dqcoeff;
 #if CONFIG_VP9_HIGHBITDEPTH
@@ -288,7 +290,7 @@ static void inverse_transform_block_intra(MACROBLOCKD* xd, int plane,
       switch (tx_size) {
         case TX_4X4:
           vp10_highbd_inv_txfm_add_4x4(dqcoeff, dst, stride, eob, xd->bd,
-                                       tx_type, xd->lossless);
+                                       tx_type, xd->lossless[seg_id]);
           break;
         case TX_8X8:
           vp10_highbd_inv_txfm_add_8x8(dqcoeff, dst, stride, eob, xd->bd,
@@ -311,7 +313,7 @@ static void inverse_transform_block_intra(MACROBLOCKD* xd, int plane,
       switch (tx_size) {
         case TX_4X4:
           vp10_inv_txfm_add_4x4(dqcoeff, dst, stride, eob, tx_type,
-                                xd->lossless);
+                                xd->lossless[seg_id]);
           break;
         case TX_8X8:
           vp10_inv_txfm_add_8x8(dqcoeff, dst, stride, eob, tx_type);
@@ -1144,15 +1146,26 @@ static INLINE int read_delta_q(struct vpx_read_bit_buffer *rb) {
 
 static void setup_quantization(VP10_COMMON *const cm, MACROBLOCKD *const xd,
                                struct vpx_read_bit_buffer *rb) {
+  int i;
+
   cm->base_qindex = vpx_rb_read_literal(rb, QINDEX_BITS);
   cm->y_dc_delta_q = read_delta_q(rb);
   cm->uv_dc_delta_q = read_delta_q(rb);
   cm->uv_ac_delta_q = read_delta_q(rb);
   cm->dequant_bit_depth = cm->bit_depth;
-  xd->lossless = cm->base_qindex == 0 &&
-                 cm->y_dc_delta_q == 0 &&
-                 cm->uv_dc_delta_q == 0 &&
-                 cm->uv_ac_delta_q == 0;
+  for (i = 0; i < (cm->seg.enabled ? MAX_SEGMENTS : 1); ++i) {
+#if CONFIG_MISC_FIXES
+    const int qindex = vp10_get_qindex(&cm->seg, i, cm->base_qindex);
+#endif
+    xd->lossless[i] = cm->y_dc_delta_q == 0 &&
+#if CONFIG_MISC_FIXES
+                      qindex == 0 &&
+#else
+                      cm->base_qindex == 0 &&
+#endif
+                      cm->uv_dc_delta_q == 0 &&
+                      cm->uv_ac_delta_q == 0;
+  }
 
 #if CONFIG_VP9_HIGHBITDEPTH
   xd->bd = (int)cm->bit_depth;
@@ -2098,7 +2111,8 @@ static size_t read_uncompressed_header(VP10Decoder *pbi,
   setup_segmentation(cm, rb);
   setup_segmentation_dequant(cm);
 #if CONFIG_MISC_FIXES
-  cm->tx_mode = xd->lossless ? ONLY_4X4 : read_tx_mode(rb);
+  cm->tx_mode = (!cm->seg.enabled && xd->lossless[0]) ? ONLY_4X4
+                                                      : read_tx_mode(rb);
   cm->reference_mode = read_frame_reference_mode(cm, rb);
 #endif
 
@@ -2128,7 +2142,7 @@ static int read_compressed_header(VP10Decoder *pbi, const uint8_t *data,
                        "Failed to allocate bool decoder 0");
 
 #if !CONFIG_MISC_FIXES
-  cm->tx_mode = xd->lossless ? ONLY_4X4 : read_tx_mode(&r);
+  cm->tx_mode = xd->lossless[0] ? ONLY_4X4 : read_tx_mode(&r);
 #endif
   if (cm->tx_mode == TX_MODE_SELECT)
     read_tx_mode_probs(&fc->tx_probs, &r);
diff --git a/vp10/encoder/bitstream.c b/vp10/encoder/bitstream.c
index 5ce33c461..ea3d05e32 100644
--- a/vp10/encoder/bitstream.c
+++ b/vp10/encoder/bitstream.c
@@ -1326,7 +1326,7 @@ static void write_uncompressed_header(VP10_COMP *cpi,
   encode_quantization(cm, wb);
   encode_segmentation(cm, xd, wb);
 #if CONFIG_MISC_FIXES
-  if (xd->lossless)
+  if (!cm->seg.enabled && xd->lossless[0])
     cm->tx_mode = TX_4X4;
   else
     write_txfm_mode(cm->tx_mode, wb);
@@ -1356,7 +1356,7 @@ static size_t write_compressed_header(VP10_COMP *cpi, uint8_t *data) {
   vpx_start_encode(&header_bc, data);
 
 #if !CONFIG_MISC_FIXES
-  if (cpi->td.mb.e_mbd.lossless)
+  if (cpi->td.mb.e_mbd.lossless[0])
     cm->tx_mode = TX_4X4;
   else
     update_txfm_probs(cm, &header_bc, counts);
diff --git a/vp10/encoder/encodeframe.c b/vp10/encoder/encodeframe.c
index c9e4cfbd5..e038fe675 100644
--- a/vp10/encoder/encodeframe.c
+++ b/vp10/encoder/encodeframe.c
@@ -2203,7 +2203,7 @@ static void rd_pick_partition(VP10_COMP *cpi, ThreadData *td,
         // terminated for current branch of the partition search tree.
         // The dist & rate thresholds are set to 0 at speed 0 to disable the
         // early termination at that speed.
-        if (!x->e_mbd.lossless &&
+        if (!x->e_mbd.lossless[xd->mi[0]->mbmi.segment_id] &&
             (ctx->skippable && best_rdc.dist < dist_breakout_thr &&
             best_rdc.rate < rate_breakout_thr)) {
           do_split = 0;
@@ -2588,7 +2588,7 @@ static MV_REFERENCE_FRAME get_frame_type(const VP10_COMP *cpi) {
 }
 
 static TX_MODE select_tx_mode(const VP10_COMP *cpi, MACROBLOCKD *const xd) {
-  if (xd->lossless)
+  if (!cpi->common.seg.enabled && xd->lossless[0])
     return ONLY_4X4;
   if (cpi->sf.tx_size_search_method == USE_LARGESTALL)
     return ALLOW_32X32;
@@ -2695,6 +2695,7 @@ static void encode_frame_internal(VP10_COMP *cpi) {
   VP10_COMMON *const cm = &cpi->common;
   MACROBLOCKD *const xd = &x->e_mbd;
   RD_COUNTS *const rdc = &cpi->td.rd_counts;
+  int i;
 
   xd->mi = cm->mi_grid_visible;
   xd->mi[0] = cm->mi;
@@ -2704,12 +2705,21 @@ static void encode_frame_internal(VP10_COMP *cpi) {
   vp10_zero(rdc->comp_pred_diff);
   vp10_zero(rdc->filter_diff);
 
-  xd->lossless = cm->base_qindex == 0 &&
-                 cm->y_dc_delta_q == 0 &&
-                 cm->uv_dc_delta_q == 0 &&
-                 cm->uv_ac_delta_q == 0;
+  for (i = 0; i < (cm->seg.enabled ? MAX_SEGMENTS : 1); ++i) {
+#if CONFIG_MISC_FIXES
+    const int qindex = vp10_get_qindex(&cm->seg, i, cm->base_qindex);
+#endif
+    xd->lossless[i] = cm->y_dc_delta_q == 0 &&
+#if CONFIG_MISC_FIXES
+                      qindex == 0 &&
+#else
+                      cm->base_qindex == 0 &&
+#endif
+                      cm->uv_dc_delta_q == 0 &&
+                      cm->uv_ac_delta_q == 0;
+  }
 
-  if (xd->lossless)
+  if (!cm->seg.enabled && xd->lossless[0])
     x->optimize = 0;
 
   cm->tx_mode = select_tx_mode(cpi, xd);
diff --git a/vp10/encoder/encodemb.c b/vp10/encoder/encodemb.c
index b2b562bb9..ff23fee27 100644
--- a/vp10/encoder/encodemb.c
+++ b/vp10/encoder/encodemb.c
@@ -367,7 +367,7 @@ void vp10_xform_quant_fp(MACROBLOCK *x, int plane, int block,
                                scan_order->scan, scan_order->iscan);
         break;
       case TX_4X4:
-        if (xd->lossless) {
+        if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
           vp10_highbd_fwht4x4(src_diff, coeff, diff_stride);
         } else {
           vpx_highbd_fdct4x4(src_diff, coeff, diff_stride);
@@ -407,7 +407,7 @@ void vp10_xform_quant_fp(MACROBLOCK *x, int plane, int block,
                         scan_order->scan, scan_order->iscan);
       break;
     case TX_4X4:
-      if (xd->lossless) {
+      if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
         vp10_fwht4x4(src_diff, coeff, diff_stride);
       } else {
         vpx_fdct4x4(src_diff, coeff, diff_stride);
@@ -461,7 +461,7 @@ void vp10_xform_quant_dc(MACROBLOCK *x, int plane, int block,
                                pd->dequant[0], eob);
         break;
       case TX_4X4:
-        if (xd->lossless) {
+        if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
           vp10_highbd_fwht4x4(src_diff, coeff, diff_stride);
         } else {
           vpx_highbd_fdct4x4(src_diff, coeff, diff_stride);
@@ -497,7 +497,7 @@ void vp10_xform_quant_dc(MACROBLOCK *x, int plane, int block,
                       pd->dequant[0], eob);
       break;
     case TX_4X4:
-      if (xd->lossless) {
+      if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
         vp10_fwht4x4(src_diff, coeff, diff_stride);
       } else {
         vpx_fdct4x4(src_diff, coeff, diff_stride);
@@ -702,7 +702,7 @@ void vp10_xform_quant(MACROBLOCK *x, int plane, int block,
         break;
       case TX_4X4:
         vp10_highbd_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type,
-                                 xd->lossless);
+                                 xd->lossless[xd->mi[0]->mbmi.segment_id]);
         vpx_highbd_quantize_b(coeff, 16, x->skip_block, p->zbin, p->round,
                               p->quant, p->quant_shift, qcoeff, dqcoeff,
                               pd->dequant, eob,
@@ -738,7 +738,8 @@ void vp10_xform_quant(MACROBLOCK *x, int plane, int block,
                      scan_order->scan, scan_order->iscan);
       break;
     case TX_4X4:
-      vp10_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type, xd->lossless);
+      vp10_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type,
+                        xd->lossless[xd->mi[0]->mbmi.segment_id]);
       vpx_quantize_b(coeff, 16, x->skip_block, p->zbin, p->round,
                      p->quant, p->quant_shift, qcoeff, dqcoeff,
                      pd->dequant, eob,
@@ -841,7 +842,7 @@ static void encode_block(int plane, int block, BLOCK_SIZE plane_bsize,
         // case.
         vp10_highbd_inv_txfm_add_4x4(dqcoeff, dst, pd->dst.stride,
                                      p->eobs[block], xd->bd, tx_type,
-                                     xd->lossless);
+                                     xd->lossless[xd->mi[0]->mbmi.segment_id]);
         break;
       default:
         assert(0 && "Invalid transform size");
@@ -870,7 +871,7 @@ static void encode_block(int plane, int block, BLOCK_SIZE plane_bsize,
       // which is significant (not just an optimization) for the lossless
       // case.
       vp10_inv_txfm_add_4x4(dqcoeff, dst, pd->dst.stride, p->eobs[block],
-                            tx_type, xd->lossless);
+                            tx_type, xd->lossless[xd->mi[0]->mbmi.segment_id]);
       break;
     default:
       assert(0 && "Invalid transform size");
@@ -895,7 +896,7 @@ static void encode_block_pass1(int plane, int block, BLOCK_SIZE plane_bsize,
   if (p->eobs[block] > 0) {
 #if CONFIG_VP9_HIGHBITDEPTH
     if (xd->cur_buf->flags & YV12_FLAG_HIGHBITDEPTH) {
-      if (xd->lossless) {
+      if (xd->lossless[0]) {
         vp10_highbd_iwht4x4_add(dqcoeff, dst, pd->dst.stride,
                                 p->eobs[block], xd->bd);
       } else {
@@ -905,7 +906,7 @@ static void encode_block_pass1(int plane, int block, BLOCK_SIZE plane_bsize,
       return;
     }
 #endif  // CONFIG_VP9_HIGHBITDEPTH
-    if (xd->lossless) {
+    if (xd->lossless[0]) {
       vp10_iwht4x4_add(dqcoeff, dst, pd->dst.stride, p->eobs[block]);
     } else {
       vp10_idct4x4_add(dqcoeff, dst, pd->dst.stride, p->eobs[block]);
@@ -1031,7 +1032,7 @@ void vp10_encode_block_intra(int plane, int block, BLOCK_SIZE plane_bsize,
           vpx_highbd_subtract_block(4, 4, src_diff, diff_stride,
                                     src, src_stride, dst, dst_stride, xd->bd);
           vp10_highbd_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type,
-                                   xd->lossless);
+                                   xd->lossless[mbmi->segment_id]);
           vpx_highbd_quantize_b(coeff, 16, x->skip_block, p->zbin, p->round,
                                 p->quant, p->quant_shift, qcoeff, dqcoeff,
                                 pd->dequant, eob,
@@ -1043,7 +1044,7 @@ void vp10_encode_block_intra(int plane, int block, BLOCK_SIZE plane_bsize,
           // eob<=1 which is significant (not just an optimization) for the
           // lossless case.
           vp10_highbd_inv_txfm_add_4x4(dqcoeff, dst, dst_stride, *eob, xd->bd,
-                                       tx_type, xd->lossless);
+                                       tx_type, xd->lossless[mbmi->segment_id]);
         break;
       default:
         assert(0);
@@ -1100,7 +1101,8 @@ void vp10_encode_block_intra(int plane, int block, BLOCK_SIZE plane_bsize,
       if (!x->skip_recode) {
         vpx_subtract_block(4, 4, src_diff, diff_stride,
                            src, src_stride, dst, dst_stride);
-        vp10_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type, xd->lossless);
+        vp10_fwd_txfm_4x4(src_diff, coeff, diff_stride, tx_type,
+                          xd->lossless[mbmi->segment_id]);
         vpx_quantize_b(coeff, 16, x->skip_block, p->zbin, p->round, p->quant,
                        p->quant_shift, qcoeff, dqcoeff,
                        pd->dequant, eob, scan_order->scan,
@@ -1112,7 +1114,7 @@ void vp10_encode_block_intra(int plane, int block, BLOCK_SIZE plane_bsize,
         // which is significant (not just an optimization) for the lossless
         // case.
         vp10_inv_txfm_add_4x4(dqcoeff, dst, dst_stride, *eob, tx_type,
-                              xd->lossless);
+                              xd->lossless[mbmi->segment_id]);
       }
       break;
     default:
diff --git a/vp10/encoder/encoder.c b/vp10/encoder/encoder.c
index 3c7c19347..5b646a2f4 100644
--- a/vp10/encoder/encoder.c
+++ b/vp10/encoder/encoder.c
@@ -2663,7 +2663,7 @@ void vp10_update_reference_frames(VP10_COMP *cpi) {
 static void loopfilter_frame(VP10_COMP *cpi, VP10_COMMON *cm) {
   MACROBLOCKD *xd = &cpi->td.mb.e_mbd;
   struct loopfilter *lf = &cm->lf;
-  if (xd->lossless) {
+  if (is_lossless_requested(&cpi->oxcf)) {
       lf->filter_level = 0;
   } else {
     struct vpx_usec_timer timer;
@@ -4119,7 +4119,7 @@ int vp10_get_compressed_data(VP10_COMP *cpi, unsigned int *frame_flags,
   }
 
   if (oxcf->pass == 1) {
-    cpi->td.mb.e_mbd.lossless = is_lossless_requested(oxcf);
+    cpi->td.mb.e_mbd.lossless[0] = is_lossless_requested(oxcf);
     vp10_first_pass(cpi, source);
   } else if (oxcf->pass == 2) {
     Pass2Encode(cpi, size, dest, frame_flags);
diff --git a/vp10/encoder/firstpass.c b/vp10/encoder/firstpass.c
index d155316aa..c41fa3e39 100644
--- a/vp10/encoder/firstpass.c
+++ b/vp10/encoder/firstpass.c
@@ -614,6 +614,7 @@ void vp10_first_pass(VP10_COMP *cpi, const struct lookahead_entry *source) {
                      cm->mi_rows, cm->mi_cols);
 
       // Do intra 16x16 prediction.
+      xd->mi[0]->mbmi.segment_id = 0;
       xd->mi[0]->mbmi.mode = DC_PRED;
       xd->mi[0]->mbmi.tx_size = use_dc_pred ?
          (bsize >= BLOCK_16X16 ? TX_16X16 : TX_8X8) : TX_4X4;
diff --git a/vp10/encoder/rdopt.c b/vp10/encoder/rdopt.c
index 1944a60cd..e8bc81875 100644
--- a/vp10/encoder/rdopt.c
+++ b/vp10/encoder/rdopt.c
@@ -533,7 +533,7 @@ static void block_rd_txfm(int plane, int block, BLOCK_SIZE plane_bsize,
   rd = VPXMIN(rd1, rd2);
   if (plane == 0)
     x->zcoeff_blk[tx_size][block] = !x->plane[plane].eobs[block] ||
-                                    (rd1 > rd2 && !xd->lossless);
+        (rd1 > rd2 && !xd->lossless[mbmi->segment_id]);
 
   args->this_rate += rate;
   args->this_dist += dist;
@@ -605,6 +605,21 @@ static void choose_largest_tx_size(VP10_COMP *cpi, MACROBLOCK *x,
                    mbmi->tx_size, cpi->sf.use_fast_coef_costing);
 }
 
+static void choose_smallest_tx_size(VP10_COMP *cpi, MACROBLOCK *x,
+                                    int *rate, int64_t *distortion,
+                                    int *skip, int64_t *sse,
+                                    int64_t ref_best_rd,
+                                    BLOCK_SIZE bs) {
+  MACROBLOCKD *const xd = &x->e_mbd;
+  MB_MODE_INFO *const mbmi = &xd->mi[0]->mbmi;
+
+  mbmi->tx_size = TX_4X4;
+
+  txfm_rd_in_plane(x, rate, distortion, skip,
+                   sse, ref_best_rd, 0, bs,
+                   mbmi->tx_size, cpi->sf.use_fast_coef_costing);
+}
+
 static void choose_tx_size_from_rd(VP10_COMP *cpi, MACROBLOCK *x,
                                    int *rate,
                                    int64_t *distortion,
@@ -674,7 +689,8 @@ static void choose_tx_size_from_rd(VP10_COMP *cpi, MACROBLOCK *x,
       rd[n][1] = RDCOST(x->rdmult, x->rddiv, r[n][1] + s0, d[n]);
     }
 
-    if (is_inter_block(mbmi) && !xd->lossless && !s[n] && sse[n] != INT64_MAX) {
+    if (is_inter_block(mbmi) && !xd->lossless[mbmi->segment_id] &&
+        !s[n] && sse[n] != INT64_MAX) {
       rd[n][0] = VPXMIN(rd[n][0], RDCOST(x->rdmult, x->rddiv, s1, sse[n]));
       rd[n][1] = VPXMIN(rd[n][1], RDCOST(x->rdmult, x->rddiv, s1, sse[n]));
     }
@@ -709,7 +725,11 @@ static void super_block_yrd(VP10_COMP *cpi, MACROBLOCK *x, int *rate,
 
   assert(bs == xd->mi[0]->mbmi.sb_type);
 
-  if (cpi->sf.tx_size_search_method == USE_LARGESTALL || xd->lossless) {
+  if (CONFIG_MISC_FIXES && xd->lossless[xd->mi[0]->mbmi.segment_id]) {
+    choose_smallest_tx_size(cpi, x, rate, distortion, skip, ret_sse,
+                            ref_best_rd, bs);
+  } else if (cpi->sf.tx_size_search_method == USE_LARGESTALL ||
+             xd->lossless[xd->mi[0]->mbmi.segment_id]) {
     choose_largest_tx_size(cpi, x, rate, distortion, skip, ret_sse, ref_best_rd,
                            bs);
   } else {
@@ -963,7 +983,7 @@ static int64_t rd_pick_intra4x4block(VP10_COMP *cpi, MACROBLOCK *x,
                                   col + idx, row + idy, 0);
           vpx_highbd_subtract_block(4, 4, src_diff, 8, src, src_stride,
                                     dst, dst_stride, xd->bd);
-          if (xd->lossless) {
+          if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
             TX_TYPE tx_type = get_tx_type(PLANE_TYPE_Y, xd, block);
             const scan_order *so = get_scan(TX_4X4, tx_type);
             vp10_highbd_fwd_txfm_4x4(src_diff, coeff, 8, DCT_DCT, 1);
@@ -1062,7 +1082,7 @@ static int64_t rd_pick_intra4x4block(VP10_COMP *cpi, MACROBLOCK *x,
                                 dst, dst_stride, col + idx, row + idy, 0);
         vpx_subtract_block(4, 4, src_diff, 8, src, src_stride, dst, dst_stride);
 
-        if (xd->lossless) {
+        if (xd->lossless[xd->mi[0]->mbmi.segment_id]) {
           TX_TYPE tx_type = get_tx_type(PLANE_TYPE_Y, xd, block);
           const scan_order *so = get_scan(TX_4X4, tx_type);
           vp10_fwd_txfm_4x4(src_diff, coeff, 8, DCT_DCT, 1);
@@ -1497,12 +1517,13 @@ static int64_t encode_inter_mb_segment(VP10_COMP *cpi,
 
 #if CONFIG_VP9_HIGHBITDEPTH
   if (xd->cur_buf->flags & YV12_FLAG_HIGHBITDEPTH) {
-    fwd_txm4x4 = xd->lossless ? vp10_highbd_fwht4x4 : vpx_highbd_fdct4x4;
+    fwd_txm4x4 = xd->lossless[mi->mbmi.segment_id] ? vp10_highbd_fwht4x4
+                                                   : vpx_highbd_fdct4x4;
   } else {
-    fwd_txm4x4 = xd->lossless ? vp10_fwht4x4 : vpx_fdct4x4;
+    fwd_txm4x4 = xd->lossless[mi->mbmi.segment_id] ? vp10_fwht4x4 : vpx_fdct4x4;
   }
 #else
-  fwd_txm4x4 = xd->lossless ? vp10_fwht4x4 : vpx_fdct4x4;
+  fwd_txm4x4 = xd->lossless[mi->mbmi.segment_id] ? vp10_fwht4x4 : vpx_fdct4x4;
 #endif  // CONFIG_VP9_HIGHBITDEPTH
 
 #if CONFIG_VP9_HIGHBITDEPTH
@@ -3460,7 +3481,7 @@ void vp10_rd_pick_inter_mode_sb(VP10_COMP *cpi,
 
         // Cost the skip mb case
         rate2 += vp10_cost_bit(vp10_get_skip_prob(cm, xd), 1);
-      } else if (ref_frame != INTRA_FRAME && !xd->lossless) {
+      } else if (ref_frame != INTRA_FRAME && !xd->lossless[mbmi->segment_id]) {
         if (RDCOST(x->rdmult, x->rddiv, rate_y + rate_uv, distortion2) <
             RDCOST(x->rdmult, x->rddiv, 0, total_sse)) {
           // Add in the cost of the no skip flag.
@@ -4215,7 +4236,7 @@ void vp10_rd_pick_inter_mode_sub8x8(VP10_COMP *cpi,
       // Skip is never coded at the segment level for sub8x8 blocks and instead
       // always coded in the bitstream at the mode info level.
 
-      if (ref_frame != INTRA_FRAME && !xd->lossless) {
+      if (ref_frame != INTRA_FRAME && !xd->lossless[mbmi->segment_id]) {
         if (RDCOST(x->rdmult, x->rddiv, rate_y + rate_uv, distortion2) <
             RDCOST(x->rdmult, x->rddiv, 0, total_sse)) {
           // Add in the cost of the no skip flag.