diff --git a/source/dub/generators/generator.d b/source/dub/generators/generator.d
index cba8f09..2c87ee9 100644
--- a/source/dub/generators/generator.d
+++ b/source/dub/generators/generator.d
@@ -383,45 +383,21 @@
 		visited.clear();
 
 		// 1. downwards inherits versions, debugVersions, and inheritable build settings
-		static void configureDependencies(const scope ref TargetInfo ti, TargetInfo[string] targets,
-											BuildSettings[string] dependBS, size_t level = 0)
+		static void configureDependencies(const scope ref TargetInfo ti, TargetInfo[string] targets, size_t level = 0)
 		{
 
-			static void applyForcedSettings(const scope ref BuildSettings forced, ref BuildSettings child) {
-				child.addDFlags(forced.dflags);
-			}
-
 			// do not use `visited` here as dependencies must inherit
 			// configurations from *all* of their parents
 			logDebug("%sConfigure dependencies of %s, deps:%(%s, %)", ' '.repeat(2 * level), ti.pack.name, ti.dependencies);
 			foreach (depname; ti.dependencies)
 			{
-				BuildSettings forcedSettings;
 				auto pti = &targets[depname];
 				mergeFromDependent(ti.buildSettings, pti.buildSettings);
-
-				if (auto matchedSettings = depname in dependBS)
-					forcedSettings = *matchedSettings;
-				else if (auto matchedSettings = "*" in dependBS)
-					forcedSettings = *matchedSettings;
-
-				applyForcedSettings(forcedSettings, pti.buildSettings);
-				configureDependencies(*pti, targets, ["*" : forcedSettings], level + 1);
+				configureDependencies(*pti, targets, level + 1);
 			}
 		}
 
-		BuildSettings[string] dependencyBuildSettings;
-		foreach (key, value; rootPackage.recipe.buildSettings.dependencyBuildSettings)
-		{
-			BuildSettings buildSettings;
-			if (auto target = key in targets)
-			{
-				value.getPlatformSettings(buildSettings, genSettings.platform, target.pack.path);
-				buildSettings.processVars(m_project, target.pack, buildSettings, genSettings, true);
-				dependencyBuildSettings[key] = buildSettings;
-			}
-		}
-		configureDependencies(*roottarget, targets, dependencyBuildSettings);
+		configureDependencies(*roottarget, targets);
 
 		// 2. add Have_dependency_xyz for all direct dependencies of a target
 		// (includes incorporated non-target dependencies and their dependencies)
@@ -529,6 +505,54 @@
 			overrideStringImports(targets[depname], *roottarget, targets,
 				roottarget.buildSettings.stringImportFiles);
 
+		// 6. downwards inherits dependency build settings
+		static void applyForcedSettings(const scope ref TargetInfo ti, TargetInfo[string] targets,
+											BuildSettings[string] dependBS, size_t level = 0)
+		{
+
+			static void apply(const scope ref BuildSettings forced, ref BuildSettings child) {
+				child.addDFlags(forced.dflags);
+			}
+
+			// apply to all dependencies
+			foreach (depname; ti.dependencies)
+			{
+				BuildSettings forcedSettings;
+				auto pti = &targets[depname];
+
+				// fetch the forced dependency build settings
+				if (auto matchedSettings = depname in dependBS)
+					forcedSettings = *matchedSettings;
+				else if (auto matchedSettings = "*" in dependBS)
+					forcedSettings = *matchedSettings;
+
+				apply(forcedSettings, pti.buildSettings);
+
+				// recursively apply forced settings to all dependencies of his dependency
+				applyForcedSettings(*pti, targets, ["*" : forcedSettings], level + 1);
+			}
+		}
+
+		// apply both top level and configuration level forced dependency build settings
+		foreach (configured_dbs; [
+			cast(const(BuildSettingsTemplate[string])) rootPackage.recipe.buildSettings.dependencyBuildSettings,
+			rootPackage.getBuildSettings(genSettings.config).dependencyBuildSettings])
+		{
+			BuildSettings[string] dependencyBuildSettings;
+			foreach (key, value; configured_dbs)
+			{
+				BuildSettings buildSettings;
+				if (auto target = key in targets)
+				{
+					// get platform specific build settings and process dub variables (BuildSettingsTemplate => BuildSettings)
+					value.getPlatformSettings(buildSettings, genSettings.platform, target.pack.path);
+					buildSettings.processVars(m_project, target.pack, buildSettings, genSettings, true);
+					dependencyBuildSettings[key] = buildSettings;
+				}
+			}
+			applyForcedSettings(*roottarget, targets, dependencyBuildSettings);
+		}
+
 		// remove targets without output
 		foreach (name; targets.keys)
 		{
diff --git a/test/depen-build-settings/.no_build_dmd b/test/depen-build-settings/.no_build_dmd
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/depen-build-settings/.no_build_dmd
diff --git a/test/depen-build-settings/.no_build_gdc b/test/depen-build-settings/.no_build_gdc
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/depen-build-settings/.no_build_gdc
diff --git a/test/depen-build-settings/depend/depend2/source/depend2.d b/test/depen-build-settings/depend/depend2/source/depend2.d
index 31b6367..3fff78b 100644
--- a/test/depen-build-settings/depend/depend2/source/depend2.d
+++ b/test/depen-build-settings/depend/depend2/source/depend2.d
@@ -1,5 +1,7 @@
 import std.stdio;
 
+version (must_be_defined) {} else static assert(0, "Expected must_be_defined to be set");
+
 extern (C) void depend2_func()
 {
 	writeln("depend2_func");
diff --git a/test/depen-build-settings/depend/source/depend.d b/test/depen-build-settings/depend/source/depend.d
index d9bb981..2db3cac 100644
--- a/test/depen-build-settings/depend/source/depend.d
+++ b/test/depen-build-settings/depend/source/depend.d
@@ -1,5 +1,7 @@
 import std.stdio;
 
+version (must_be_defined) {} else static assert(0, "Expected must_be_defined to be set");
+
 extern (C) void depend2_func();
 
 extern (C) void depend1_func()
diff --git a/test/depen-build-settings/dub.json b/test/depen-build-settings/dub.json
index 1769ac1..4e8ccfd 100644
--- a/test/depen-build-settings/dub.json
+++ b/test/depen-build-settings/dub.json
@@ -4,5 +4,15 @@
 
 	"dependencies": {
 		"depend1": { "version" : "*", "dflags" : ["-X"] }
-	}
+	},
+
+	"configurations": [
+		{
+			"name" : "defaultconfig",
+			"targetType": "executable",
+			"dependencies": {
+				"depend1": { "version" : "*", "dflags" : ["--d-version=must_be_defined"] }
+			}
+		}
+	]
 }
diff --git a/test/depen-build-settings/source/app.d b/test/depen-build-settings/source/app.d
index 8893119..dbba31e 100644
--- a/test/depen-build-settings/source/app.d
+++ b/test/depen-build-settings/source/app.d
@@ -3,10 +3,13 @@
 
 extern (C) void depend1_func();
 
+version (must_be_defined) static assert(0, "Expected must_be_defined not to be set");
+
 void main()
 {
 	writeln("Edit source/app.d to start your project.");
 	depend1_func();
+	assert(!exists("depen-build-settings.json"));
 	assert(exists("depend2.json"));
 	assert(exists("depend.json"));
 }