diff --git a/test/datarate_test.cc b/test/datarate_test.cc
index d6b1b52..c0796df 100644
--- a/test/datarate_test.cc
+++ b/test/datarate_test.cc
@@ -901,8 +901,6 @@
   svc_params_.scaling_factor_num[1] = 288;
   svc_params_.scaling_factor_den[1] = 288;
   cfg_.rc_dropframe_thresh = 10;
-  // TODO(marpan): another test should be added for default/small kf_max_dist
-  // once https://bugs.chromium.org/p/webm/issues/detail?id=1150 is fixed.
   cfg_.kf_max_dist = 9999;
   ::libvpx_test::I420VideoSource video("hantro_collage_w352h288.yuv", 352, 288,
                                        30, 1, 0, 200);
@@ -918,10 +916,90 @@
             << " The datarate for the file exceeds the target by too much!";
     ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.15)
         << " The datarate for the file is lower than the target by too much!";
-    EXPECT_EQ(GetMismatchFrames(), (unsigned int) 0);
+    EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
   }
 }
 
+// Check basic rate targeting for 1 pass CBR SVC: 2 spatial layers and
+// 3 temporal layers. Run CIF clip with 1 thread. Use short key frame period.
+TEST_P(DatarateOnePassCbrSvc, OnePassCbrSvc2SpatialLayersSmallKf_dist) {
+  cfg_.rc_buf_initial_sz = 500;
+  cfg_.rc_buf_optimal_sz = 500;
+  cfg_.rc_buf_sz = 1000;
+  cfg_.rc_min_quantizer = 0;
+  cfg_.rc_max_quantizer = 63;
+  cfg_.rc_end_usage = VPX_CBR;
+  cfg_.g_lag_in_frames = 0;
+  cfg_.ss_number_layers = 2;
+  cfg_.ts_number_layers = 3;
+  cfg_.ts_rate_decimator[0] = 4;
+  cfg_.ts_rate_decimator[1] = 2;
+  cfg_.ts_rate_decimator[2] = 1;
+  cfg_.g_error_resilient = 1;
+  cfg_.g_threads = 1;
+  cfg_.temporal_layering_mode = 3;
+  svc_params_.scaling_factor_num[0] = 144;
+  svc_params_.scaling_factor_den[0] = 288;
+  svc_params_.scaling_factor_num[1] = 288;
+  svc_params_.scaling_factor_den[1] = 288;
+  cfg_.rc_dropframe_thresh = 10;
+  cfg_.kf_max_dist = 64;
+  ::libvpx_test::I420VideoSource video("hantro_collage_w352h288.yuv", 352, 288,
+                                       30, 1, 0, 200);
+  // TODO(wonkap/marpan): Check that effective_datarate for each layer hits the
+  // layer target_bitrate. Also check if test can pass at lower bitrate (~200k).
+  for (int i = 400; i <= 800; i += 200) {
+    cfg_.rc_target_bitrate = i;
+    ResetModel();
+    assign_layer_bitrates(&cfg_, &svc_params_, cfg_.ss_number_layers,
+        cfg_.ts_number_layers, cfg_.temporal_layering_mode);
+    ASSERT_NO_FATAL_FAILURE(RunLoop(&video));
+    ASSERT_GE(cfg_.rc_target_bitrate, file_datarate_ * 0.85)
+            << " The datarate for the file exceeds the target by too much!";
+    ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.15)
+        << " The datarate for the file is lower than the target by too much!";
+    EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
+  }
+}
+
+// Check basic rate targeting for 1 pass CBR SVC: 2 spatial layers and
+// 3 temporal layers. Run HD clip with 4 threads.
+TEST_P(DatarateOnePassCbrSvc, OnePassCbrSvc2SpatialLayers4threads) {
+  cfg_.rc_buf_initial_sz = 500;
+  cfg_.rc_buf_optimal_sz = 500;
+  cfg_.rc_buf_sz = 1000;
+  cfg_.rc_min_quantizer = 0;
+  cfg_.rc_max_quantizer = 63;
+  cfg_.rc_end_usage = VPX_CBR;
+  cfg_.g_lag_in_frames = 0;
+  cfg_.ss_number_layers = 2;
+  cfg_.ts_number_layers = 3;
+  cfg_.ts_rate_decimator[0] = 4;
+  cfg_.ts_rate_decimator[1] = 2;
+  cfg_.ts_rate_decimator[2] = 1;
+  cfg_.g_error_resilient = 1;
+  cfg_.g_threads = 4;
+  cfg_.temporal_layering_mode = 3;
+  svc_params_.scaling_factor_num[0] = 144;
+  svc_params_.scaling_factor_den[0] = 288;
+  svc_params_.scaling_factor_num[1] = 288;
+  svc_params_.scaling_factor_den[1] = 288;
+  cfg_.rc_dropframe_thresh = 10;
+  cfg_.kf_max_dist = 9999;
+  ::libvpx_test::I420VideoSource video("niklas_1280_720_30.y4m", 1280, 720,
+                                       30, 1, 0, 300);
+  cfg_.rc_target_bitrate = 800;
+  ResetModel();
+  assign_layer_bitrates(&cfg_, &svc_params_, cfg_.ss_number_layers,
+      cfg_.ts_number_layers, cfg_.temporal_layering_mode);
+  ASSERT_NO_FATAL_FAILURE(RunLoop(&video));
+  ASSERT_GE(cfg_.rc_target_bitrate, file_datarate_ * 0.85)
+          << " The datarate for the file exceeds the target by too much!";
+  ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.15)
+      << " The datarate for the file is lower than the target by too much!";
+  EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
+}
+
 // Check basic rate targeting for 1 pass CBR SVC: 3 spatial layers and
 // 3 temporal layers. Run CIF clip with 1 thread.
 TEST_P(DatarateOnePassCbrSvc, OnePassCbrSvc3SpatialLayers) {
@@ -959,12 +1037,12 @@
           << " The datarate for the file exceeds the target by too much!";
   ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.22)
       << " The datarate for the file is lower than the target by too much!";
-  EXPECT_EQ(GetMismatchFrames(), (unsigned int) 0);
+  EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
 }
 
-// Check basic rate targeting for 1 pass CBR SVC: 2 spatial layers and
-// 3 temporal layers. Run HD clip with 4 threads.
-TEST_P(DatarateOnePassCbrSvc, OnePassCbrSvc2SpatialLayers4threads) {
+// Check basic rate targeting for 1 pass CBR SVC: 3 spatial layers and
+// 3 temporal layers. Run CIF clip with 1 thread. Use short key frame period.
+TEST_P(DatarateOnePassCbrSvc, OnePassCbrSvc3SpatialLayersSmallKf) {
   cfg_.rc_buf_initial_sz = 500;
   cfg_.rc_buf_optimal_sz = 500;
   cfg_.rc_buf_sz = 1000;
@@ -972,32 +1050,34 @@
   cfg_.rc_max_quantizer = 63;
   cfg_.rc_end_usage = VPX_CBR;
   cfg_.g_lag_in_frames = 0;
-  cfg_.ss_number_layers = 2;
+  cfg_.ss_number_layers = 3;
   cfg_.ts_number_layers = 3;
   cfg_.ts_rate_decimator[0] = 4;
   cfg_.ts_rate_decimator[1] = 2;
   cfg_.ts_rate_decimator[2] = 1;
   cfg_.g_error_resilient = 1;
-  cfg_.g_threads = 4;
+  cfg_.g_threads = 1;
   cfg_.temporal_layering_mode = 3;
-  svc_params_.scaling_factor_num[0] = 144;
+  svc_params_.scaling_factor_num[0] = 72;
   svc_params_.scaling_factor_den[0] = 288;
-  svc_params_.scaling_factor_num[1] = 288;
+  svc_params_.scaling_factor_num[1] = 144;
   svc_params_.scaling_factor_den[1] = 288;
+  svc_params_.scaling_factor_num[2] = 288;
+  svc_params_.scaling_factor_den[2] = 288;
   cfg_.rc_dropframe_thresh = 10;
-  cfg_.kf_max_dist = 9999;
+  cfg_.kf_max_dist = 32;
   ::libvpx_test::I420VideoSource video("niklas_1280_720_30.y4m", 1280, 720,
                                        30, 1, 0, 300);
   cfg_.rc_target_bitrate = 800;
   ResetModel();
   assign_layer_bitrates(&cfg_, &svc_params_, cfg_.ss_number_layers,
-      cfg_.ts_number_layers, cfg_.temporal_layering_mode);
+     cfg_.ts_number_layers, cfg_.temporal_layering_mode);
   ASSERT_NO_FATAL_FAILURE(RunLoop(&video));
   ASSERT_GE(cfg_.rc_target_bitrate, file_datarate_ * 0.85)
           << " The datarate for the file exceeds the target by too much!";
-  ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.15)
+  ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.30)
       << " The datarate for the file is lower than the target by too much!";
-  EXPECT_EQ(GetMismatchFrames(), (unsigned int) 0);
+  EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
 }
 
 // Check basic rate targeting for 1 pass CBR SVC: 3 spatial layers and
@@ -1037,7 +1117,7 @@
           << " The datarate for the file exceeds the target by too much!";
   ASSERT_LE(cfg_.rc_target_bitrate, file_datarate_ * 1.22)
       << " The datarate for the file is lower than the target by too much!";
-  EXPECT_EQ(GetMismatchFrames(), (unsigned int) 0);
+  EXPECT_EQ(static_cast<unsigned int>(0), GetMismatchFrames());
 }
 
 VP8_INSTANTIATE_TEST_CASE(DatarateTestLarge, ALL_TEST_MODES);
diff --git a/vp9/encoder/vp9_encoder.c b/vp9/encoder/vp9_encoder.c
index 6d6915c..332db30 100644
--- a/vp9/encoder/vp9_encoder.c
+++ b/vp9/encoder/vp9_encoder.c
@@ -3983,6 +3983,8 @@
       ++cm->current_video_frame;
       cpi->ext_refresh_frame_flags_pending = 0;
       cpi->svc.rc_drop_superframe = 1;
+      if (cpi->use_svc)
+        vp9_inc_frame_in_layer(cpi);
       return;
     }
   }
diff --git a/vp9/encoder/vp9_ratectrl.c b/vp9/encoder/vp9_ratectrl.c
index d64b5c5..7804b71 100644
--- a/vp9/encoder/vp9_ratectrl.c
+++ b/vp9/encoder/vp9_ratectrl.c
@@ -1594,14 +1594,15 @@
   int target = rc->avg_frame_bandwidth;
   int layer = LAYER_IDS_TO_IDX(cpi->svc.spatial_layer_id,
       cpi->svc.temporal_layer_id, cpi->svc.number_temporal_layers);
-
+  // Periodic key frames is based on the super-frame counter
+  // (svc.current_superframe), also only base spatial layer is key frame.
   if ((cm->current_video_frame == 0) ||
       (cpi->frame_flags & FRAMEFLAGS_KEY) ||
-      (cpi->oxcf.auto_key && (rc->frames_since_key %
-          cpi->oxcf.key_freq == 0))) {
+      (cpi->oxcf.auto_key &&
+       (cpi->svc.current_superframe % cpi->oxcf.key_freq == 0) &&
+       cpi->svc.spatial_layer_id == 0)) {
     cm->frame_type = KEY_FRAME;
     rc->source_alt_ref_active = 0;
-
     if (is_two_pass_svc(cpi)) {
       cpi->svc.layer_context[layer].is_key_frame = 1;
       cpi->ref_frame_flags &=