diff --git a/bfd/ChangeLog b/bfd/ChangeLog
index d47fbe25b01..ba070189e00 100644
--- a/bfd/ChangeLog
+++ b/bfd/ChangeLog
@@ -1,3 +1,9 @@
+2009-01-31  Alan Modra  <amodra@bigpond.net.au>
+
+	* elflink.c (on_needed_list): New function.
+	(elf_link_add_object_symbols): Link in --as-needed libs if they
+	satisfy undefined symbols in other libs.
+
 2009-01-30  Julian Brown  <julian@codesourcery.com>
 
 	* elf32-arm.c (bfd_elf32_arm_vfp11_erratum_scan): Skip BFDs with
diff --git a/bfd/elflink.c b/bfd/elflink.c
index 927f1c481a4..8685a2fe182 100644
--- a/bfd/elflink.c
+++ b/bfd/elflink.c
@@ -3199,6 +3199,16 @@ elf_add_dt_needed_tag (bfd *abfd,
   return 0;
 }
 
+static bfd_boolean
+on_needed_list (const char *soname, struct bfd_link_needed_list *needed)
+{
+  for (; needed != NULL; needed = needed->next)
+    if (strcmp (soname, needed->name) == 0)
+      return TRUE;
+
+  return FALSE;
+}
+
 /* Sort symbol by value and section.  */
 static int
 elf_sort_symbol (const void *arg1, const void *arg2)
@@ -4434,8 +4444,11 @@ elf_link_add_object_symbols (bfd *abfd, struct bfd_link_info *info)
 
 	  if (!add_needed
 	      && definition
-	      && dynsym
-	      && h->ref_regular)
+	      && ((dynsym
+		   && h->ref_regular)
+		  || (h->ref_dynamic
+		      && (elf_dyn_lib_class (abfd) & DYN_AS_NEEDED) != 0
+		      && !on_needed_list (elf_dt_name (abfd), htab->needed))))
 	    {
 	      int ret;
 	      const char *soname = elf_dt_name (abfd);
diff --git a/binutils/ChangeLog b/binutils/ChangeLog
index b61784efd47..c18aa008fa6 100644
--- a/binutils/ChangeLog
+++ b/binutils/ChangeLog
@@ -1,3 +1,7 @@
+2009-01-31  Alan Modra  <amodra@bigpond.net.au>
+
+	* NEWS: Mention --as-needed change.
+
 2009-01-29  Alan Modra  <amodra@bigpond.net.au>
 
 	PR 9798
diff --git a/binutils/NEWS b/binutils/NEWS
index 4cc89e1dff7..60ea0cd7a1f 100644
--- a/binutils/NEWS
+++ b/binutils/NEWS
@@ -1,5 +1,10 @@
 -*- text -*-
 
+* --as-needed now links in a dynamic library if it satisfies undefined
+  symbols in regular objects, or in other dynamic libraries.  In the
+  latter case the library is not linked if it is found in a DT_NEEDED
+  entry of one of the libraries already linked.
+
 * Add new option --use-nul-prefixed-import-tables to dlltool to allow fall-
   back to old import table generation with null element prefix.
 
diff --git a/ld/ChangeLog b/ld/ChangeLog
index 6333383cd3d..13c05c6cf07 100644
--- a/ld/ChangeLog
+++ b/ld/ChangeLog
@@ -1,3 +1,7 @@
+2009-01-31  Alan Modra  <amodra@bigpond.net.au>
+
+	* ld.texinfo (--as-needed): Update.
+
 2009-01-29  Andrew Jenner  <andrew@codesourcery.com>
 
 	* emultempl/armelf.em: Correct formatting of help text for
diff --git a/ld/ld.texinfo b/ld/ld.texinfo
index 1d909897c93..ae8e2b7df5e 100644
--- a/ld/ld.texinfo
+++ b/ld/ld.texinfo
@@ -1093,9 +1093,11 @@ This option affects ELF DT_NEEDED tags for dynamic libraries mentioned
 on the command line after the @option{--as-needed} option.  Normally,
 the linker will add a DT_NEEDED tag for each dynamic library mentioned
 on the command line, regardless of whether the library is actually
-needed.  @option{--as-needed} causes DT_NEEDED tags to only be emitted
-for libraries that satisfy some symbol reference from regular objects
-which is undefined at the point that the library was linked.
+needed.  @option{--as-needed} causes a DT_NEEDED tag to only be emitted
+for a library that satisfies a symbol reference from regular objects
+which is undefined at the point that the library was linked, or, if
+the library is not found in the DT_NEEDED lists of other libraries
+linked up to that point, a reference from another dynamic library.
 @option{--no-as-needed} restores the default behaviour.
 
 @kindex --add-needed