diff --git a/ivy/Ivy.scala b/ivy/Ivy.scala
index 03b434ac4..0c378c899 100644
--- a/ivy/Ivy.scala
+++ b/ivy/Ivy.scala
@@ -141,9 +141,9 @@ final class IvySbt(val configuration: IvyConfiguration)
 			log.debug("Using inline dependencies specified in Scala" + (if(ivyXML.isEmpty) "." else " and XML."))
 
 			val parser = IvySbt.parseIvyXML(ivy.getSettings, IvySbt.wrapped(module, ivyXML), moduleID, defaultConf.name, validate)
-			IvySbt.addDependencies(moduleID, dependencies, parser)
 			IvySbt.addMainArtifact(moduleID)
-			IvySbt.addOverrides(moduleID, overrides, ivy.getSettings.getMatcher(PatternMatcher.EXACT_OR_REGEXP))
+			IvySbt.addOverrides(moduleID, overrides, ivy.getSettings.getMatcher(PatternMatcher.EXACT))
+			IvySbt.addDependencies(moduleID, IvySbt.overrideDirect(dependencies, overrides), parser)
 			(moduleID, parser.getDefaultConf)
 		}
 		private def newConfiguredModuleID(module: ModuleID, moduleInfo: ModuleInfo, configurations: Iterable[Configuration]) =
@@ -440,6 +440,20 @@ private object IvySbt
 		val overrideWith = new OverrideDependencyDescriptorMediator(null, overrideDef.revision)
 		moduleID.addDependencyDescriptorMediator(overrideID, matcher, overrideWith)
 	}
+	/** It is necessary to explicitly modify direct dependencies because Ivy gives
+	* "IllegalStateException: impossible to get artifacts when data has not been loaded." 
+	* when a direct dependency is overridden with a newer version."*/
+	def overrideDirect(dependencies: Seq[ModuleID], overrides: Set[ModuleID]): Seq[ModuleID] =
+	{
+		def key(id: ModuleID) = (id.organization, id.name)
+		val overridden = overrides.map(id => (key(id), id.revision)).toMap
+		dependencies map { dep =>
+			overridden get key(dep) match {
+				case Some(rev) => dep.copy(revision = rev)
+				case None => dep
+			}
+		}
+	}
 
 	/** This method is used to add inline artifacts to the provided module. */
 	def addArtifacts(moduleID: DefaultModuleDescriptor, artifacts: Iterable[Artifact]): Unit =
diff --git a/sbt/src/sbt-test/dependency-management/override/build.sbt b/sbt/src/sbt-test/dependency-management/override/build.sbt
index e58d5e2d9..42d7b3e61 100644
--- a/sbt/src/sbt-test/dependency-management/override/build.sbt
+++ b/sbt/src/sbt-test/dependency-management/override/build.sbt
@@ -1,6 +1,10 @@
 autoScalaLibrary := false
 
-libraryDependencies += "junit" % "junit" % "4.5" % "test"
+ivyPaths <<= (baseDirectory, target)( (dir, t) => new IvyPaths(dir, Some(t / "ivy-cache")))
+
+ivyScala <<= (scalaVersion in update, scalaBinaryVersion in update) { (fv, bv) =>
+	Some(new IvyScala(fv, bv, Nil, filterImplicit = false, checkExplicit = false, overrideScalaVersion = false))
+}
 
 InputKey[Unit]("check") <<= inputTask { args => 
 	(update, args) map {
diff --git a/sbt/src/sbt-test/dependency-management/override/test b/sbt/src/sbt-test/dependency-management/override/test
index feb4e36ab..dfcf1da95 100644
--- a/sbt/src/sbt-test/dependency-management/override/test
+++ b/sbt/src/sbt-test/dependency-management/override/test
@@ -1,8 +1,19 @@
+> 'set libraryDependencies := Seq("junit" % "junit" % "3.8.1" % "test")'
+> check 3.8.1
+> 'set dependencyOverrides := Set("junit" % "junit" % "4.5")'
+> check 4.5
+
+> 'set libraryDependencies := Seq("junit" % "junit" % "4.5" % "test")'
 > check 4.5
 > 'set dependencyOverrides := Set("junit" % "junit" % "3.8.1")'
 > check 3.8.1
 
-> 'set libraryDependencies := Seq("net.databinder" %% "dispatch-http" % "0.8.7" intransitive())'
+> 'set libraryDependencies := Seq("net.databinder" %% "dispatch-http" % "0.8.7")'
 > check 0.8.7
 > 'set dependencyOverrides := Set("net.databinder" %% "dispatch-http" % "0.8.6")'
 > check 0.8.6
+
+> 'set libraryDependencies := Seq("net.databinder" %% "dispatch-http" % "0.8.6")'
+> check 0.8.6
+> 'set dependencyOverrides := Set("net.databinder" %% "dispatch-http" % "0.8.7")'
+> check 0.8.7
diff --git a/sbt/src/sbt-test/dependency-management/override2/build.sbt b/sbt/src/sbt-test/dependency-management/override2/build.sbt
new file mode 100644
index 000000000..a5fc90ff0
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/override2/build.sbt
@@ -0,0 +1,7 @@
+sbtBinaryVersion := "0.11.2"
+
+addSbtPlugin("com.typesafe.sbtscalariform" % "sbtscalariform" % "0.3.0")
+
+resolvers += Classpaths.typesafeResolver
+
+dependencyOverrides := Set("com.typesafe.sbtscalariform" % "sbtscalariform" % "0.3.1")
diff --git a/sbt/src/sbt-test/dependency-management/override2/test b/sbt/src/sbt-test/dependency-management/override2/test
new file mode 100644
index 000000000..103bd8d2f
--- /dev/null
+++ b/sbt/src/sbt-test/dependency-management/override2/test
@@ -0,0 +1 @@
+> update