diff --git a/odoo/modules/db.py b/odoo/modules/db.py
index 3a432f0fecb..e37317288ae 100644
--- a/odoo/modules/db.py
+++ b/odoo/modules/db.py
@@ -75,12 +75,33 @@ def initialize(cr):
 
     # Install recursively all auto-installing modules
     while True:
-        cr.execute("""SELECT m.name FROM ir_module_module m WHERE m.auto_install AND state != 'to install'
-                      AND NOT EXISTS (
-                          SELECT 1 FROM ir_module_module_dependency d JOIN ir_module_module mdep ON (d.name = mdep.name)
-                                   WHERE d.module_id = m.id AND mdep.state != 'to install'
-                      )""")
+        # this selects all the auto_install modules whose auto_install_required
+        # deps are marked as to install
+        cr.execute("""
+        SELECT m.name FROM ir_module_module m
+        WHERE m.auto_install
+        AND state != 'to install'
+        AND NOT EXISTS (
+            SELECT 1 FROM ir_module_module_dependency d
+            JOIN ir_module_module mdep ON (d.name = mdep.name)
+            WHERE d.module_id = m.id
+              AND d.auto_install_required
+              AND mdep.state != 'to install'
+        )""")
         to_auto_install = [x[0] for x in cr.fetchall()]
+        # however if the module has non-required deps we need to install
+        # those, so merge-in the modules which have a dependen*t* which is
+        # *either* to_install or in to_auto_install and merge it in?
+        cr.execute("""
+        SELECT d.name FROM ir_module_module_dependency d
+        JOIN ir_module_module m ON (d.module_id = m.id)
+        JOIN ir_module_module mdep ON (d.name = mdep.name)
+        WHERE (m.state = 'to install' OR m.name = any(%s))
+            -- don't re-mark marked modules
+        AND NOT (mdep.state = 'to install' OR mdep.name = any(%s))
+        """, [to_auto_install, to_auto_install])
+        to_auto_install.extend(x[0] for x in cr.fetchall())
+
         if not to_auto_install: break
         cr.execute("""UPDATE ir_module_module SET state='to install' WHERE name in %s""", (tuple(to_auto_install),))
 
diff --git a/odoo/modules/loading.py b/odoo/modules/loading.py
index e256711e06f..c9ff470833f 100644
--- a/odoo/modules/loading.py
+++ b/odoo/modules/loading.py
@@ -377,22 +377,7 @@ def load_modules(db, force_demo=False, status=None, update_module=False):
 
             _check_module_names(cr, itertools.chain(tools.config['init'], tools.config['update']))
 
-            # auto-install module second pass: recursive bit in db.py handles
-            # auto_install modules with no dependencies or where all
-            # dependencies are auto_install, couldn't get it to work with
-            # non-required auto_install deps so here
-            cr.execute("""
-            SELECT m.name FROM ir_module_module m
-            WHERE m.auto_install
-            AND m.state != 'installed'
-            AND NOT EXISTS (
-                SELECT 1 FROM ir_module_module_dependency d
-                JOIN ir_module_module mdep ON (d.name = mdep.name)
-                WHERE d.module_id = m.id
-                  AND d.auto_install_required
-                  AND mdep.state NOT IN ('installed', 'to install')
-            )""")
-            module_names = [k for k, v in tools.config['init'].items() if v] + [x[0] for x in cr.fetchall()]
+            module_names = [k for k, v in tools.config['init'].items() if v]
             if module_names:
                 modules = Module.search([('state', '=', 'uninstalled'), ('name', 'in', module_names)])
                 if modules: