diff --git a/modules/ripple_app/ledger/LedgerMaster.cpp b/modules/ripple_app/ledger/LedgerMaster.cpp
index f56b37e23b..357ba239b5 100644
--- a/modules/ripple_app/ledger/LedgerMaster.cpp
+++ b/modules/ripple_app/ledger/LedgerMaster.cpp
@@ -680,7 +680,6 @@ void LedgerMaster::advanceThread()
 
             getApp().getOPs().clearNeedNetworkLedger();
 
-            mPathFindNewLedger = true;
             if (!mPathFindThread)
             {
                 mPathFindThread = true;
@@ -832,26 +831,28 @@ void LedgerMaster::updatePaths ()
 
     do
     {
-        bool newOnly = false;
+        bool newOnly = true;
 
         {
             boost::recursive_mutex::scoped_lock ml (mLock);
 
-            if (mPathFindNewLedger || (lastLedger && (lastLedger.get () != mPubLedger.get ())))
-                lastLedger = mPubLedger;
+            if (!mPathLedger || (mPathLedger->getLedgerSeq() < mValidLedger->getLedgerSeq()))
+            { // We have a new valid ledger since the last full pathfinding
+                newOnly = false;
+                mPathLedger = mValidLedger;
+                lastLedger = mPathLedger;
+            }
             else if (mPathFindNewRequest)
-            {
+            { // We have a new request but no new ledger
                 newOnly = true;
                 lastLedger = boost::make_shared<Ledger> (boost::ref (*mCurrentLedger), false);
             }
             else
-            {
+            { // Nothing to do
                 mPathFindThread = false;
                 return;
             }
 
-            lastLedger = mPubLedger;
-            mPathFindNewLedger = false;
             mPathFindNewRequest = false;
         }
 
diff --git a/modules/ripple_app/ledger/LedgerMaster.h b/modules/ripple_app/ledger/LedgerMaster.h
index 481e92d2ea..2989b07817 100644
--- a/modules/ripple_app/ledger/LedgerMaster.h
+++ b/modules/ripple_app/ledger/LedgerMaster.h
@@ -27,7 +27,6 @@ public:
         , mAdvanceThread (false)
         , mFillInProgress (false)
         , mPathFindThread (false)
-        , mPathFindNewLedger (false)
         , mPathFindNewRequest (false)
     {
     }
@@ -203,9 +202,10 @@ private:
 
     Ledger::pointer mCurrentLedger;     // The ledger we are currently processiong
     Ledger::pointer mCurrentSnapshot;   // Snapshot of the current ledger
-    Ledger::pointer mClosedLedger;   // The ledger that most recently closed
+    Ledger::pointer mClosedLedger;      // The ledger that most recently closed
     Ledger::pointer mValidLedger;       // The highest-sequence ledger we have fully accepted
     Ledger::pointer mPubLedger;         // The last ledger we have published
+    Ledger::pointer mPathLedger;        // The last ledger we did pathfinding against
 
     LedgerHistory mLedgerHistory;