diff --git a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/AbstractDependencyFilter.groovy b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/AbstractDependencyFilter.groovy
new file mode 100644
index 000000000..ca497e559
--- /dev/null
+++ b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/AbstractDependencyFilter.groovy
@@ -0,0 +1,120 @@
+package com.github.jengelman.gradle.plugins.shadow.internal
+
+import groovy.util.logging.Slf4j
+import org.gradle.api.Project
+import org.gradle.api.artifacts.Configuration
+import org.gradle.api.artifacts.Dependency
+import org.gradle.api.artifacts.ResolvedDependency
+import org.gradle.api.file.FileCollection
+import org.gradle.api.specs.Spec
+import org.gradle.api.specs.Specs
+
+@Slf4j
+abstract class AbstractDependencyFilter implements DependencyFilter {
+    private final Project project
+
+    protected final List<Spec<? super ResolvedDependency>> includeSpecs = []
+    protected final List<Spec<? super ResolvedDependency>> excludeSpecs = []
+
+    AbstractDependencyFilter(Project project) {
+        assert project
+        this.project = project
+    }
+
+    abstract protected void resolve(Set<ResolvedDependency> dependencies,
+                                    Set<ResolvedDependency> includedDependencies,
+                                    Set<ResolvedDependency> excludedDependencies)
+
+    FileCollection resolve(Configuration configuration) {
+        Set<ResolvedDependency> includedDeps = []
+        Set<ResolvedDependency> excludedDeps = []
+        resolve(configuration.resolvedConfiguration.firstLevelModuleDependencies, includedDeps, excludedDeps)
+        return project.files(configuration.files) - project.files(excludedDeps.collect {
+            it.moduleArtifacts*.file
+        }.flatten())
+    }
+
+    FileCollection resolve(Collection<Configuration> configurations) {
+        configurations.collect {
+            resolve(it)
+        }.sum() as FileCollection ?: project.files()
+    }
+
+    /**
+     * Exclude dependencies that match the provided spec.
+     *
+     * @param spec
+     * @return
+     */
+    DependencyFilter exclude(Spec<? super ResolvedDependency> spec) {
+        excludeSpecs << spec
+        return this
+    }
+
+    /**
+     * Include dependencies that match the provided spec.
+     *
+     * @param spec
+     * @return
+     */
+    DependencyFilter include(Spec<? super ResolvedDependency> spec) {
+        includeSpecs << spec
+        return this
+    }
+
+    /**
+     * Create a spec that matches the provided project notation on group, name, and version
+     * @param notation
+     * @return
+     */
+    Spec<? super ResolvedDependency> project(Map<String, ?> notation) {
+        dependency(project.dependencies.project(notation))
+    }
+
+    /**
+     * Create a spec that matches the default configuration for the provided project path on group, name, and version
+     *
+     * @param notation
+     * @return
+     */
+    Spec<? super ResolvedDependency> project(String notation) {
+        dependency(project.dependencies.project(path: notation, configuration: 'default'))
+    }
+
+    /**
+     * Create a spec that matches dependencies using the provided notation on group, name, and version
+     * @param notation
+     * @return
+     */
+    Spec<? super ResolvedDependency> dependency(Object notation) {
+        dependency(project.dependencies.create(notation))
+    }
+
+    /**
+     * Create a spec that matches the provided dependency on group, name, and version
+     * @param dependency
+     * @return
+     */
+    Spec<? super ResolvedDependency> dependency(Dependency dependency) {
+        this.dependency({ ResolvedDependency it ->
+            (!dependency.group || it.moduleGroup.matches(dependency.group)) &&
+                    (!dependency.name || it.moduleName.matches(dependency.name)) &&
+                    (!dependency.version || it.moduleVersion.matches(dependency.version))
+        })
+    }
+
+    /**
+     * Create a spec that matches the provided closure
+     * @param spec
+     * @return
+     */
+    Spec<? super ResolvedDependency> dependency(Closure spec) {
+        return Specs.<ResolvedDependency>convertClosureToSpec(spec)
+    }
+
+    protected boolean isIncluded(ResolvedDependency dependency) {
+        boolean include = includeSpecs.empty || includeSpecs.any { it.isSatisfiedBy(dependency) }
+        boolean exclude = !excludeSpecs.empty && excludeSpecs.any { it.isSatisfiedBy(dependency) }
+        return include && !exclude
+    }
+}
diff --git a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/DefaultDependencyFilter.groovy b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/DefaultDependencyFilter.groovy
index 3cb7dee7b..4734fedd1 100644
--- a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/DefaultDependencyFilter.groovy
+++ b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/DefaultDependencyFilter.groovy
@@ -2,114 +2,16 @@ package com.github.jengelman.gradle.plugins.shadow.internal
 
 import groovy.util.logging.Slf4j
 import org.gradle.api.Project
-import org.gradle.api.artifacts.Configuration
-import org.gradle.api.artifacts.Dependency
 import org.gradle.api.artifacts.ResolvedDependency
-import org.gradle.api.file.FileCollection
-import org.gradle.api.specs.Spec
-import org.gradle.api.specs.Specs
 
 @Slf4j
-class DefaultDependencyFilter implements DependencyFilter {
-
-    private final Project project
-
-    private final List<Spec<? super ResolvedDependency>> includeSpecs = []
-    private final List<Spec<? super ResolvedDependency>> excludeSpecs = []
+class DefaultDependencyFilter extends AbstractDependencyFilter {
 
     DefaultDependencyFilter(Project project) {
-        assert project
-        this.project = project
-    }
-
-    FileCollection resolve(Configuration configuration) {
-        Set<ResolvedDependency> includedDeps = []
-        Set<ResolvedDependency> excludedDeps = []
-        resolve(configuration.resolvedConfiguration.firstLevelModuleDependencies, includedDeps, excludedDeps)
-        return project.files(configuration.files) - project.files(excludedDeps.collect {
-            it.moduleArtifacts*.file
-        }.flatten())
-    }
-
-    FileCollection resolve(Collection<Configuration> configurations) {
-        configurations.collect {
-            resolve(it)
-        }.sum() as FileCollection ?: project.files()
-    }
-
-    /**
-     * Exclude dependencies that match the provided spec.
-     *
-     * @param spec
-     * @return
-     */
-    DependencyFilter exclude(Spec<? super ResolvedDependency> spec) {
-        excludeSpecs << spec
-        return this
-    }
-
-    /**
-     * Include dependencies that match the provided spec.
-     *
-     * @param spec
-     * @return
-     */
-    DependencyFilter include(Spec<? super ResolvedDependency> spec) {
-        includeSpecs << spec
-        return this
-    }
-
-    /**
-     * Create a spec that matches the provided project notation on group, name, and version
-     * @param notation
-     * @return
-     */
-    Spec<? super ResolvedDependency> project(Map<String, ?> notation) {
-        dependency(project.dependencies.project(notation))
-    }
-
-    /**
-     * Create a spec that matches the default configuration for the provided project path on group, name, and version
-     *
-     * @param notation
-     * @return
-     */
-    Spec<? super ResolvedDependency> project(String notation) {
-        dependency(project.dependencies.project(path: notation, configuration: 'default'))
+        super(project)
     }
 
-    /**
-     * Create a spec that matches dependencies using the provided notation on group, name, and version
-     * @param notation
-     * @return
-     */
-    Spec<? super ResolvedDependency> dependency(Object notation) {
-        dependency(project.dependencies.create(notation))
-    }
-
-    /**
-     * Create a spec that matches the provided dependency on group, name, and version
-     * @param dependency
-     * @return
-     */
-    Spec<? super ResolvedDependency> dependency(Dependency dependency) {
-        this.dependency({ ResolvedDependency it ->
-            (!dependency.group || it.moduleGroup.matches(dependency.group)) &&
-                    (!dependency.name || it.moduleName.matches(dependency.name)) &&
-                    (!dependency.version || it.moduleVersion.matches(dependency.version))
-        })
-    }
-
-    /**
-     * Create a spec that matches the provided closure
-     * @param spec
-     * @return
-     */
-    Spec<? super ResolvedDependency> dependency(Closure spec) {
-        return Specs.<ResolvedDependency>convertClosureToSpec(spec)
-    }
-
-
+    @Override
     protected void resolve(Set<ResolvedDependency> dependencies,
                            Set<ResolvedDependency> includedDependencies,
                            Set<ResolvedDependency> excludedDependencies) {
@@ -120,9 +22,4 @@ class DefaultDependencyFilter implements DependencyFilter {
         }
     }
 
-    protected boolean isIncluded(ResolvedDependency dependency) {
-        boolean include = includeSpecs.empty || includeSpecs.any { it.isSatisfiedBy(dependency) }
-        boolean exclude = !excludeSpecs.empty && excludeSpecs.any { it.isSatisfiedBy(dependency) }
-        return include && !exclude
-    }
 }
diff --git a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/MinimizeDependencyFilter.groovy b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/MinimizeDependencyFilter.groovy
new file mode 100644
index 000000000..762005ffc
--- /dev/null
+++ b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/internal/MinimizeDependencyFilter.groovy
@@ -0,0 +1,29 @@
+package com.github.jengelman.gradle.plugins.shadow.internal
+
+import groovy.util.logging.Slf4j
+import org.gradle.api.Project
+import org.gradle.api.artifacts.ResolvedDependency
+
+@Slf4j
+class MinimizeDependencyFilter extends AbstractDependencyFilter {
+    
+    MinimizeDependencyFilter(Project project) {
+        super(project)
+    }
+
+    @Override
+    protected void resolve(Set<ResolvedDependency> dependencies,
+                           Set<ResolvedDependency> includedDependencies,
+                           Set<ResolvedDependency> excludedDependencies) {
+
+        dependencies.each {
+            if (isIncluded(it) && !isParentExcluded(excludedDependencies, it) ? includedDependencies.add(it) : excludedDependencies.add(it)) {
+                resolve(it.children, includedDependencies, excludedDependencies)
+            }
+        }
+    }
+
+    private boolean isParentExcluded(Set<ResolvedDependency> excludedDependencies, ResolvedDependency dependency) {
+        excludedDependencies.any { dependency.parents.contains(it) }
+    }
+}
\ No newline at end of file
diff --git a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/tasks/ShadowJar.java b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/tasks/ShadowJar.java
index 159d90f6e..6130a3cdc 100644
--- a/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/tasks/ShadowJar.java
+++ b/src/main/groovy/com/github/jengelman/gradle/plugins/shadow/tasks/ShadowJar.java
@@ -9,8 +9,6 @@
 import com.github.jengelman.gradle.plugins.shadow.transformers.ServiceFileTransformer;
 import com.github.jengelman.gradle.plugins.shadow.transformers.Transformer;
 import groovy.lang.MetaClass;
-import java.io.File;
-import java.util.Set;
 import org.codehaus.groovy.runtime.InvokerHelper;
 import org.gradle.api.Action;
 import org.gradle.api.artifacts.Configuration;
@@ -45,7 +43,7 @@ public ShadowJar() {
         super();
         versionUtil = new GradleVersionUtil(getProject().getGradle().getGradleVersion());
         dependencyFilter = new DefaultDependencyFilter(getProject());
-        dependencyFilterForMinimize = new DefaultDependencyFilter(getProject());
+        dependencyFilterForMinimize = new MinimizeDependencyFilter(getProject());
         setManifest(new DefaultInheritManifest(getServices().get(FileResolver.class)));
         transformers = new ArrayList<>();
         relocators = new ArrayList<>();
diff --git a/src/test/groovy/com/github/jengelman/gradle/plugins/shadow/ShadowPluginSpec.groovy b/src/test/groovy/com/github/jengelman/gradle/plugins/shadow/ShadowPluginSpec.groovy
index 1ced02a7b..e354f26e3 100644
--- a/src/test/groovy/com/github/jengelman/gradle/plugins/shadow/ShadowPluginSpec.groovy
+++ b/src/test/groovy/com/github/jengelman/gradle/plugins/shadow/ShadowPluginSpec.groovy
@@ -321,6 +321,167 @@ class ShadowPluginSpec extends PluginSpecification {
         doesNotContain(serverOutput, ['client/Client.class'])
     }
 
+    /**
+     * 'Client', 'Server' and 'junit' are independent.
+     * Unused classes of 'client' and theirs dependencies shouldn't be removed.
+     */
+    def 'exclude a project from minimize '() {
+        given:
+        file('settings.gradle') << """
+            include 'client', 'server'
+        """.stripIndent()
+
+        file('client/src/main/java/client/Client.java') << """
+            package client;
+            public class Client {}
+        """.stripIndent()
+
+        file('client/build.gradle') << """
+            apply plugin: 'java'
+            repositories { maven { url "${repo.uri}" } }
+        """.stripIndent()
+
+        file('server/src/main/java/server/Server.java') << """
+            package server;
+            public class Server {}
+        """.stripIndent()
+
+        file('server/build.gradle') << """
+            apply plugin: 'java'
+            apply plugin: 'com.github.johnrengelman.shadow'
+
+            shadowJar {
+                minimize {
+                    exclude(project(':client'))
+                }
+            }
+
+            repositories { maven { url "${repo.uri}" } }
+            dependencies { compile project(':client') }
+        """.stripIndent()
+
+        File serverOutput = file('server/build/libs/server-all.jar')
+
+        when:
+        runner.withArguments(':server:shadowJar', '--stacktrace').withDebug(true).build()
+
+        then:
+        contains(serverOutput, [
+                'client/Client.class',
+                'server/Server.class'
+        ])
+    }
+
+    /**
+     * 'Client', 'Server' and 'junit' are independent.
+     * Unused classes of 'client' and theirs dependencies shouldn't be removed.
+     */
+    def 'exclude a project from minimize - shall not exclude transitive dependencies that are used in subproject'() {
+        given:
+        file('settings.gradle') << """
+            include 'client', 'server'
+        """.stripIndent()
+
+        file('client/src/main/java/client/Client.java') << """
+            package client;
+            import junit.framework.TestCase;
+            public class Client extends TestCase {
+                public static void main(String[] args) {} 
+            }
+        """.stripIndent()
+
+        file('client/build.gradle') << """
+            apply plugin: 'java'
+            repositories { maven { url "${repo.uri}" } }
+            dependencies { compile 'junit:junit:3.8.2' }
+        """.stripIndent()
+
+        file('server/src/main/java/server/Server.java') << """
+            package server;
+            public class Server {}
+        """.stripIndent()
+
+        file('server/build.gradle') << """
+            apply plugin: 'java'
+            apply plugin: 'com.github.johnrengelman.shadow'
+
+            shadowJar {
+                minimize {
+                    exclude(project(':client'))
+                }
+            }
+
+            repositories { maven { url "${repo.uri}" } }
+            dependencies { compile project(':client') }
+        """.stripIndent()
+
+        File serverOutput = file('server/build/libs/server-all.jar')
+
+        when:
+        runner.withArguments(':server:shadowJar', '--stacktrace').withDebug(true).build()
+
+        then:
+        contains(serverOutput, [
+                'client/Client.class',
+                'server/Server.class',
+                'junit/framework/TestCase.class'
+        ])
+    }
+
+    /**
+     * 'Client', 'Server' and 'junit' are independent.
+     * Unused classes of 'client' and theirs dependencies shouldn't be removed.
+     */
+    def 'exclude a project from minimize - shall not exclude transitive dependencies from subproject that are not used'() {
+        given:
+        file('settings.gradle') << """
+            include 'client', 'server'
+        """.stripIndent()
+
+        file('client/src/main/java/client/Client.java') << """
+            package client;
+            public class Client { }
+        """.stripIndent()
+
+        file('client/build.gradle') << """
+            apply plugin: 'java'
+            repositories { maven { url "${repo.uri}" } }
+            dependencies { compile 'junit:junit:3.8.2' }
+        """.stripIndent()
+
+        file('server/src/main/java/server/Server.java') << """
+            package server;
+            public class Server {}
+        """.stripIndent()
+
+        file('server/build.gradle') << """
+            apply plugin: 'java'
+            apply plugin: 'com.github.johnrengelman.shadow'
+
+            shadowJar {
+                minimize {
+                    exclude(project(':client'))
+                }
+            }
+
+            repositories { maven { url "${repo.uri}" } }
+            dependencies { compile project(':client') }
+        """.stripIndent()
+
+        File serverOutput = file('server/build/libs/server-all.jar')
+
+        when:
+        runner.withArguments(':server:shadowJar', '--stacktrace').withDebug(true).build()
+
+        then:
+        contains(serverOutput, [
+                'client/Client.class',
+                'server/Server.class',
+                'junit/framework/TestCase.class'
+        ])
+    }
+
+
     /**
      * 'api' used as api for 'impl', and depended on 'lib'. 'junit' is independent.
      * The minimize shall remove 'junit', but not 'api'.