diff --git a/src/plugins/streamers/lefdef/db_plugin/dbLEFDEFImporter.cc b/src/plugins/streamers/lefdef/db_plugin/dbLEFDEFImporter.cc
index 9bc02b648..88c48749f 100644
--- a/src/plugins/streamers/lefdef/db_plugin/dbLEFDEFImporter.cc
+++ b/src/plugins/streamers/lefdef/db_plugin/dbLEFDEFImporter.cc
@@ -522,7 +522,7 @@ GeometryBasedLayoutGenerator::subtract_overlap_from_outline (const std::set<std:
       pn += 2;
     }
 
-    db::BooleanOp op (db::BooleanOp::ANotB);
+    db::BooleanOp op (db::BooleanOp::And);
     db::ShapeGenerator sg (s->second, true /*clear shapes*/);
     db::PolygonGenerator out (sg, true, true);
     proc.process (out, op);
diff --git a/src/plugins/streamers/lefdef/unit_tests/dbLEFDEFImportTests.cc b/src/plugins/streamers/lefdef/unit_tests/dbLEFDEFImportTests.cc
index 381914855..38962826f 100644
--- a/src/plugins/streamers/lefdef/unit_tests/dbLEFDEFImportTests.cc
+++ b/src/plugins/streamers/lefdef/unit_tests/dbLEFDEFImportTests.cc
@@ -1011,3 +1011,10 @@ TEST(209_invalid_split_paths)
   run_test (_this, "issue-1472", "map:tech.map+lef:tech.lef.gz+def:test.def.gz", "au.oas", default_options (), false);
 }
 
+//  issue-1499
+TEST(210_overlaps)
+{
+  run_test (_this, "issue-1499", "map:tech.map+lef:tech.lef+lef:blocks.lef+def:top.def", "au.oas", default_options (), false);
+}
+
+
diff --git a/testdata/lefdef/issue-1499/au.oas b/testdata/lefdef/issue-1499/au.oas
new file mode 100644
index 000000000..02bb44686
Binary files /dev/null and b/testdata/lefdef/issue-1499/au.oas differ
diff --git a/testdata/lefdef/issue-1499/blocks.lef b/testdata/lefdef/issue-1499/blocks.lef
new file mode 100644
index 000000000..1ac45cb8b
--- /dev/null
+++ b/testdata/lefdef/issue-1499/blocks.lef
@@ -0,0 +1,31 @@
+VERSION 5.8 ;
+
+MACRO a
+  ORIGIN 0 0 ;
+  SIZE 600 BY 600 ;
+  OBS 
+    LAYER M1 ;
+      RECT 10 10 590 590 ;
+  END
+END a
+
+MACRO b
+  ORIGIN -600 0 ;
+  SIZE 400 BY 500 ;
+  OBS 
+    LAYER M1 ;
+      RECT 610 10 990 490 ;
+  END
+END b
+
+MACRO c
+  ORIGIN -500 -500 ;
+  SIZE 500 BY 500 ;
+  OBS 
+    LAYER M1 ;
+      POLYGON 510 610 610 610 610 510 990 510 990 990 510 990 ;
+    LAYER overlap ;
+      RECT 500 700 1000 1000 ;
+      POLYGON 500 600  600 600  600 500  1000 500  1000 700  500 700 ;
+  END
+END c
diff --git a/testdata/lefdef/issue-1499/tech.lef b/testdata/lefdef/issue-1499/tech.lef
new file mode 100644
index 000000000..606730c96
--- /dev/null
+++ b/testdata/lefdef/issue-1499/tech.lef
@@ -0,0 +1,12 @@
+VERSION 5.8 ;
+
+LAYER M1
+  TYPE ROUTING ;
+  DIRECTION HORIZONTAL ;
+  WIDTH 0.1 ;
+  PITCH 0.1 ;
+END M1
+
+LAYER overlap
+  TYPE OVERLAP ;
+END overlap
diff --git a/testdata/lefdef/issue-1499/tech.map b/testdata/lefdef/issue-1499/tech.map
new file mode 100644
index 000000000..e848325a6
--- /dev/null
+++ b/testdata/lefdef/issue-1499/tech.map
@@ -0,0 +1,6 @@
+DIEAREA ALL 1 0
+#BOUNDARY DIEAREA 1 0
+BOUNDARY MACRO 1 0
+#M1 LEFOBS 2 0
+M1 LEFOBS 3 0
+M1 BLOCKAGE 3 0
diff --git a/testdata/lefdef/issue-1499/top.def b/testdata/lefdef/issue-1499/top.def
new file mode 100644
index 000000000..1e1cd5c32
--- /dev/null
+++ b/testdata/lefdef/issue-1499/top.def
@@ -0,0 +1,10 @@
+VERSION 5.8 ;
+DESIGN top ;
+UNITS DISTANCE MICRONS 1000 ;
+DIEAREA ( 0 0 ) ( 1000000 1000000 ) ;
+COMPONENTS 3 ;
+- a a + PLACED ( 0 0 ) N ;
+- b b + PLACED ( 600000 0 ) N ;
+- c c + PLACED ( 500000 500000 ) N ;
+END COMPONENTS
+END DESIGN