diff --git a/vp8/encoder/firstpass.c b/vp8/encoder/firstpass.c
index 2dea8b70f..a65bce6e1 100644
--- a/vp8/encoder/firstpass.c
+++ b/vp8/encoder/firstpass.c
@@ -1403,6 +1403,7 @@ static void define_gf_group(VP8_COMP *cpi, FIRSTPASS_STATS *this_frame)
 
     // Should we use the alternate refernce frame
     if (cpi->oxcf.play_alternate &&
+        cpi->oxcf.lag_in_frames &&
         (i >= MIN_GF_INTERVAL) &&
         (i <= (cpi->frames_to_key - MIN_GF_INTERVAL)) &&          // dont use ARF very near next kf
         (((next_frame.pcnt_inter > 0.75) &&
diff --git a/vp8/encoder/onyx_if.c b/vp8/encoder/onyx_if.c
index 5c78b9c8a..56bac0aaa 100644
--- a/vp8/encoder/onyx_if.c
+++ b/vp8/encoder/onyx_if.c
@@ -1344,8 +1344,8 @@ void vp8_new_frame_rate(VP8_COMP *cpi, double framerate)
         cpi->max_gf_interval = 12;
 
 
-    // Special conditions when altr ref frame enabled
-    if (cpi->oxcf.play_alternate)
+    // Special conditions when altr ref frame enabled in lagged compress mode
+    if (cpi->oxcf.play_alternate && cpi->oxcf.lag_in_frames)
     {
         if (cpi->max_gf_interval > cpi->oxcf.lag_in_frames - 1)
             cpi->max_gf_interval = cpi->oxcf.lag_in_frames - 1;