diff --git a/main/src/main/scala/sbt/BuildLoader.scala b/main/src/main/scala/sbt/BuildLoader.scala
index eb32bb20f..6affab1cb 100644
--- a/main/src/main/scala/sbt/BuildLoader.scala
+++ b/main/src/main/scala/sbt/BuildLoader.scala
@@ -122,12 +122,19 @@ final class BuildLoader(
 			full.setRoot(loaders.full),
 			loaders.transformAll andThen transformAll
 		)
+	def resetPluginDepth: BuildLoader = copyWithNewPM(config.pluginManagement.resetDepth)
+
 	def updatePluginManagement(overrides: Set[ModuleID]): BuildLoader =
 	{
 		val mgmt = config.pluginManagement
-		val newConfig = config.copy(pluginManagement = mgmt.copy(overrides = mgmt.overrides ++ overrides))
+		copyWithNewPM(mgmt.copy(overrides = mgmt.overrides ++ overrides))
+	}
+	private[this] def copyWithNewPM(newpm: PluginManagement): BuildLoader =
+	{
+		val newConfig = config.copy(pluginManagement = newpm)
 		new BuildLoader(fail, state, newConfig, resolvers, builders, transformer, full, transformAll)
 	}
+
 	def components = new Components(resolvers.applyFun, builders.applyFun, transformer, full.applyFun, transformAll)
 	def apply(uri: URI): BuildUnit =
 	{
diff --git a/main/src/main/scala/sbt/Load.scala b/main/src/main/scala/sbt/Load.scala
index 6434ce6be..5d0a36123 100755
--- a/main/src/main/scala/sbt/Load.scala
+++ b/main/src/main/scala/sbt/Load.scala
@@ -312,7 +312,7 @@ object Load
 				{
 					val (loadedBuild, refs) = loaded(loaders(b))
 					checkBuildBase(loadedBuild.unit.localBase)
-					val newLoader = addOverrides(loadedBuild.unit, addResolvers(loadedBuild.unit, builds.isEmpty, loaders))
+					val newLoader = addOverrides(loadedBuild.unit, addResolvers(loadedBuild.unit, builds.isEmpty, loaders.resetPluginDepth))
 					// it is important to keep the load order stable, so we sort the remaining URIs
 					val remainingBases = (refs.flatMap(Reference.uri) reverse_::: bs).sorted
 					loadAll(remainingBases, references.updated(b, refs), newLoader, builds.updated(b, loadedBuild))
diff --git a/main/src/main/scala/sbt/PluginManagement.scala b/main/src/main/scala/sbt/PluginManagement.scala
index 634961569..436d009e2 100644
--- a/main/src/main/scala/sbt/PluginManagement.scala
+++ b/main/src/main/scala/sbt/PluginManagement.scala
@@ -21,6 +21,7 @@ final case class PluginManagement(overrides: Set[ModuleID], applyOverrides: Set[
 		Keys.dependencyOverrides ++= overrides
 	)
 
+	def resetDepth: PluginManagement = copy(context = Context(globalPluginProject = false, pluginProjectDepth = 0))
 	def forGlobalPlugin: PluginManagement = copy(context = Context(globalPluginProject = true, pluginProjectDepth = 0))
 	def forPlugin: PluginManagement = copy(context = context.copy(pluginProjectDepth = context.pluginProjectDepth + 1))
 }
diff --git a/sbt/src/sbt-test/project/source-plugins/build.sbt b/sbt/src/sbt-test/project/source-plugins/build.sbt
index 500e7835b..1e0d4c099 100644
--- a/sbt/src/sbt-test/project/source-plugins/build.sbt
+++ b/sbt/src/sbt-test/project/source-plugins/build.sbt
@@ -2,6 +2,6 @@ name := "source-plugins"
 
 organization := "org.example"
 
-ProguardPlugin.proguardSettings
+proguardSettings
 
 useJGit
\ No newline at end of file
diff --git a/sbt/src/sbt-test/project/source-plugins/project/project/Build.scala b/sbt/src/sbt-test/project/source-plugins/project/project/Build.scala
index 649e47f8c..a97aac2bd 100644
--- a/sbt/src/sbt-test/project/source-plugins/project/project/Build.scala
+++ b/sbt/src/sbt-test/project/source-plugins/project/project/Build.scala
@@ -2,6 +2,6 @@ import sbt._
 object PluginDef extends Build {
   override def projects = Seq(root)
   lazy val root = Project("plugins", file(".")) dependsOn(proguard, git)
-  lazy val proguard = uri("git://github.com/jsuereth/xsbt-proguard-plugin.git")
+  lazy val proguard = uri("git://github.com/sbt/sbt-proguard.git")
   lazy val git = uri("git://github.com/sbt/sbt-git.git#master")
 }
\ No newline at end of file