diff --git a/vp8/encoder/onyx_if.c b/vp8/encoder/onyx_if.c
index 52d17a30c..ea72de2de 100644
--- a/vp8/encoder/onyx_if.c
+++ b/vp8/encoder/onyx_if.c
@@ -4583,7 +4583,7 @@ static void encode_frame_to_data_rate
     }
     else
     {
-        if (cpi->oxcf.play_alternate && cpi->common.refresh_alt_ref_frame)
+        if (cpi->oxcf.play_alternate && cpi->common.refresh_alt_ref_frame && (cpi->common.frame_type != KEY_FRAME))
             // Update the alternate reference frame and stats as appropriate.
             update_alt_ref_frame_and_stats(cpi);
         else
diff --git a/vp8/encoder/ratectrl.c b/vp8/encoder/ratectrl.c
index c05e80e4b..a7d8f4897 100644
--- a/vp8/encoder/ratectrl.c
+++ b/vp8/encoder/ratectrl.c
@@ -326,6 +326,7 @@ void vp8_setup_key_frame(VP8_COMP *cpi)
         cpi->frames_till_gf_update_due = cpi->goldfreq;
 
     cpi->common.refresh_golden_frame = TRUE;
+    cpi->common.refresh_alt_ref_frame = TRUE;
 }
 
 void vp8_calc_auto_iframe_target_size(VP8_COMP *cpi)