diff --git a/intern/cycles/kernel/geom/geom_bvh.h b/intern/cycles/kernel/geom/geom_bvh.h
index dd6abe32fec..59e811fa97e 100644
--- a/intern/cycles/kernel/geom/geom_bvh.h
+++ b/intern/cycles/kernel/geom/geom_bvh.h
@@ -123,6 +123,36 @@ CCL_NAMESPACE_BEGIN
 #include "geom_bvh_shadow.h"
 #endif
 
+#if defined(__VOLUME__)
+#define BVH_FUNCTION_NAME bvh_intersect_volume
+#define BVH_FUNCTION_FEATURES 0
+#include "geom_bvh_volume.h"
+#endif
+
+#if defined(__VOLUME__) && defined(__INSTANCING__)
+#define BVH_FUNCTION_NAME bvh_intersect_volume_instancing
+#define BVH_FUNCTION_FEATURES BVH_INSTANCING
+#include "geom_bvh_volume.h"
+#endif
+
+#if defined(__VOLUME__) && defined(__HAIR__)
+#define BVH_FUNCTION_NAME bvh_intersect_volume_hair
+#define BVH_FUNCTION_FEATURES BVH_INSTANCING|BVH_HAIR|BVH_HAIR_MINIMUM_WIDTH
+#include "geom_bvh_volume.h"
+#endif
+
+#if defined(__VOLUME__) && defined(__OBJECT_MOTION__)
+#define BVH_FUNCTION_NAME bvh_intersect_volume_motion
+#define BVH_FUNCTION_FEATURES BVH_INSTANCING|BVH_MOTION
+#include "geom_bvh_volume.h"
+#endif
+
+#if defined(__VOLUME__) && defined(__HAIR__) && defined(__OBJECT_MOTION__)
+#define BVH_FUNCTION_NAME bvh_intersect_volume_hair_motion
+#define BVH_FUNCTION_FEATURES BVH_INSTANCING|BVH_HAIR|BVH_HAIR_MINIMUM_WIDTH|BVH_MOTION
+#include "geom_bvh_volume.h"
+#endif
+
 /* to work around titan bug when using arrays instead of textures */
 #if !defined(__KERNEL_CUDA__) || defined(__KERNEL_CUDA_TEX_STORAGE__)
 ccl_device_inline
@@ -311,5 +341,50 @@ ccl_device_inline float3 ray_offset(float3 P, float3 Ng)
 #endif
 }
 
+/* to work around titan bug when using arrays instead of textures */
+#if !defined(__KERNEL_CUDA__) || defined(__KERNEL_CUDA_TEX_STORAGE__)
+ccl_device_inline
+#else
+ccl_device_noinline
+#endif
+bool scene_intersect_volume(KernelGlobals *kg,
+                            const Ray *ray,
+                            Intersection *isect)
+{
+#ifdef __OBJECT_MOTION__
+	if(kernel_data.bvh.have_motion) {
+#ifdef __HAIR__
+		if(kernel_data.bvh.have_curves)
+			return bvh_intersect_volume_hair_motion(kg, ray, isect);
+#endif /* __HAIR__ */
+
+		return bvh_intersect_volume_motion(kg, ray, isect);
+	}
+#endif /* __OBJECT_MOTION__ */
+
+#ifdef __HAIR__
+	if(kernel_data.bvh.have_curves)
+		return bvh_intersect_volume_hair(kg, ray, isect);
+#endif /* __HAIR__ */
+
+#ifdef __KERNEL_CPU__
+
+#ifdef __INSTANCING__
+	if(kernel_data.bvh.have_instancing)
+		return bvh_intersect_volume_instancing(kg, ray, isect);
+#endif /* __INSTANCING__ */
+
+	return bvh_intersect_volume(kg, ray, isect);
+#else /* __KERNEL_CPU__ */
+
+#ifdef __INSTANCING__
+	return bvh_intersect_volume_instancing(kg, ray, isect);
+#else
+	return bvh_intersect_volume(kg, ray, isect);
+#endif /* __INSTANCING__ */
+
+#endif /* __KERNEL_CPU__ */
+}
+
 CCL_NAMESPACE_END
 
diff --git a/intern/cycles/kernel/geom/geom_bvh_volume.h b/intern/cycles/kernel/geom/geom_bvh_volume.h
new file mode 100644
index 00000000000..aac0a18647a
--- /dev/null
+++ b/intern/cycles/kernel/geom/geom_bvh_volume.h
@@ -0,0 +1,322 @@
+/*
+ * Adapted from code Copyright 2009-2010 NVIDIA Corporation,
+ * and code copyright 2009-2012 Intel Corporation
+ *
+ * Modifications Copyright 2011-2014, Blender Foundation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+/* This is a template BVH traversal function for volumes, where
+ * various features can be enabled/disabled. This way we can compile optimized
+ * versions for each case without new features slowing things down.
+ *
+ * BVH_INSTANCING: object instancing
+ * BVH_HAIR: hair curve rendering
+ * BVH_MOTION: motion blur rendering
+ *
+ */
+
+#define FEATURE(f) (((BVH_FUNCTION_FEATURES) & (f)) != 0)
+
+ccl_device bool BVH_FUNCTION_NAME(KernelGlobals *kg,
+                                  const Ray *ray,
+                                  Intersection *isect)
+{
+	/* todo:
+	 * - test if pushing distance on the stack helps (for non shadow rays)
+	 * - separate version for shadow rays
+	 * - likely and unlikely for if() statements
+	 * - test restrict attribute for pointers
+	 */
+
+	/* traversal stack in CUDA thread-local memory */
+	int traversalStack[BVH_STACK_SIZE];
+	traversalStack[0] = ENTRYPOINT_SENTINEL;
+
+	/* traversal variables in registers */
+	int stackPtr = 0;
+	int nodeAddr = kernel_data.bvh.root;
+
+	/* ray parameters in registers */
+	float3 P = ray->P;
+	float3 dir = bvh_clamp_direction(ray->D);
+	float3 idir = bvh_inverse_direction(dir);
+	int object = OBJECT_NONE;
+
+	const uint visibility = PATH_RAY_ALL_VISIBILITY;
+
+#if FEATURE(BVH_MOTION)
+	Transform ob_tfm;
+#endif
+
+	isect->t = ray->t;
+	isect->object = OBJECT_NONE;
+	isect->prim = PRIM_NONE;
+	isect->u = 0.0f;
+	isect->v = 0.0f;
+
+#if defined(__KERNEL_SSE2__)
+	const shuffle_swap_t shuf_identity = shuffle_swap_identity();
+	const shuffle_swap_t shuf_swap = shuffle_swap_swap();
+	
+	const ssef pn = cast(ssei(0, 0, 0x80000000, 0x80000000));
+	ssef Psplat[3], idirsplat[3];
+	shuffle_swap_t shufflexyz[3];
+
+	Psplat[0] = ssef(P.x);
+	Psplat[1] = ssef(P.y);
+	Psplat[2] = ssef(P.z);
+
+	ssef tsplat(0.0f, 0.0f, -isect->t, -isect->t);
+
+	gen_idirsplat_swap(pn, shuf_identity, shuf_swap, idir, idirsplat, shufflexyz);
+#endif
+
+	/* traversal loop */
+	do {
+		do {
+			/* traverse internal nodes */
+			while(nodeAddr >= 0 && nodeAddr != ENTRYPOINT_SENTINEL) {
+				bool traverseChild0, traverseChild1;
+				int nodeAddrChild1;
+
+#if !defined(__KERNEL_SSE2__)
+				/* Intersect two child bounding boxes, non-SSE version */
+				float t = isect->t;
+
+				/* fetch node data */
+				float4 node0 = kernel_tex_fetch(__bvh_nodes, nodeAddr*BVH_NODE_SIZE+0);
+				float4 node1 = kernel_tex_fetch(__bvh_nodes, nodeAddr*BVH_NODE_SIZE+1);
+				float4 node2 = kernel_tex_fetch(__bvh_nodes, nodeAddr*BVH_NODE_SIZE+2);
+				float4 cnodes = kernel_tex_fetch(__bvh_nodes, nodeAddr*BVH_NODE_SIZE+3);
+
+				/* intersect ray against child nodes */
+				NO_EXTENDED_PRECISION float c0lox = (node0.x - P.x) * idir.x;
+				NO_EXTENDED_PRECISION float c0hix = (node0.z - P.x) * idir.x;
+				NO_EXTENDED_PRECISION float c0loy = (node1.x - P.y) * idir.y;
+				NO_EXTENDED_PRECISION float c0hiy = (node1.z - P.y) * idir.y;
+				NO_EXTENDED_PRECISION float c0loz = (node2.x - P.z) * idir.z;
+				NO_EXTENDED_PRECISION float c0hiz = (node2.z - P.z) * idir.z;
+				NO_EXTENDED_PRECISION float c0min = max4(min(c0lox, c0hix), min(c0loy, c0hiy), min(c0loz, c0hiz), 0.0f);
+				NO_EXTENDED_PRECISION float c0max = min4(max(c0lox, c0hix), max(c0loy, c0hiy), max(c0loz, c0hiz), t);
+
+				NO_EXTENDED_PRECISION float c1lox = (node0.y - P.x) * idir.x;
+				NO_EXTENDED_PRECISION float c1hix = (node0.w - P.x) * idir.x;
+				NO_EXTENDED_PRECISION float c1loy = (node1.y - P.y) * idir.y;
+				NO_EXTENDED_PRECISION float c1hiy = (node1.w - P.y) * idir.y;
+				NO_EXTENDED_PRECISION float c1loz = (node2.y - P.z) * idir.z;
+				NO_EXTENDED_PRECISION float c1hiz = (node2.w - P.z) * idir.z;
+				NO_EXTENDED_PRECISION float c1min = max4(min(c1lox, c1hix), min(c1loy, c1hiy), min(c1loz, c1hiz), 0.0f);
+				NO_EXTENDED_PRECISION float c1max = min4(max(c1lox, c1hix), max(c1loy, c1hiy), max(c1loz, c1hiz), t);
+
+				/* decide which nodes to traverse next */
+#ifdef __VISIBILITY_FLAG__
+				/* this visibility test gives a 5% performance hit, how to solve? */
+				traverseChild0 = (c0max >= c0min) && (__float_as_uint(cnodes.z) & visibility);
+				traverseChild1 = (c1max >= c1min) && (__float_as_uint(cnodes.w) & visibility);
+#else
+				traverseChild0 = (c0max >= c0min);
+				traverseChild1 = (c1max >= c1min);
+#endif
+
+#else // __KERNEL_SSE2__
+				/* Intersect two child bounding boxes, SSE3 version adapted from Embree */
+
+				/* fetch node data */
+				const ssef *bvh_nodes = (ssef*)kg->__bvh_nodes.data + nodeAddr*BVH_NODE_SIZE;
+				const float4 cnodes = ((float4*)bvh_nodes)[3];
+
+				/* intersect ray against child nodes */
+				const ssef tminmaxx = (shuffle_swap(bvh_nodes[0], shufflexyz[0]) - Psplat[0]) * idirsplat[0];
+				const ssef tminmaxy = (shuffle_swap(bvh_nodes[1], shufflexyz[1]) - Psplat[1]) * idirsplat[1];
+				const ssef tminmaxz = (shuffle_swap(bvh_nodes[2], shufflexyz[2]) - Psplat[2]) * idirsplat[2];
+
+				/* calculate { c0min, c1min, -c0max, -c1max} */
+				ssef minmax = max(max(tminmaxx, tminmaxy), max(tminmaxz, tsplat));
+				const ssef tminmax = minmax ^ pn;
+
+				const sseb lrhit = tminmax <= shuffle<2, 3, 0, 1>(tminmax);
+
+				/* decide which nodes to traverse next */
+#ifdef __VISIBILITY_FLAG__
+				/* this visibility test gives a 5% performance hit, how to solve? */
+				traverseChild0 = (movemask(lrhit) & 1) && (__float_as_uint(cnodes.z) & visibility);
+				traverseChild1 = (movemask(lrhit) & 2) && (__float_as_uint(cnodes.w) & visibility);
+#else
+				traverseChild0 = (movemask(lrhit) & 1);
+				traverseChild1 = (movemask(lrhit) & 2);
+#endif
+#endif // __KERNEL_SSE2__
+
+				nodeAddr = __float_as_int(cnodes.x);
+				nodeAddrChild1 = __float_as_int(cnodes.y);
+
+				if(traverseChild0 && traverseChild1) {
+					/* both children were intersected, push the farther one */
+#if !defined(__KERNEL_SSE2__)
+					bool closestChild1 = (c1min < c0min);
+#else
+					bool closestChild1 = tminmax[1] < tminmax[0];
+#endif
+
+					if(closestChild1) {
+						int tmp = nodeAddr;
+						nodeAddr = nodeAddrChild1;
+						nodeAddrChild1 = tmp;
+					}
+
+					++stackPtr;
+					traversalStack[stackPtr] = nodeAddrChild1;
+				}
+				else {
+					/* one child was intersected */
+					if(traverseChild1) {
+						nodeAddr = nodeAddrChild1;
+					}
+					else if(!traverseChild0) {
+						/* neither child was intersected */
+						nodeAddr = traversalStack[stackPtr];
+						--stackPtr;
+					}
+				}
+			}
+
+			/* if node is leaf, fetch triangle list */
+			if(nodeAddr < 0) {
+				float4 leaf = kernel_tex_fetch(__bvh_nodes, (-nodeAddr-1)*BVH_NODE_SIZE+(BVH_NODE_SIZE-1));
+				int primAddr = __float_as_int(leaf.x);
+
+#if FEATURE(BVH_INSTANCING)
+				if(primAddr >= 0) {
+#endif
+					int primAddr2 = __float_as_int(leaf.y);
+
+					/* pop */
+					nodeAddr = traversalStack[stackPtr];
+					--stackPtr;
+
+					/* primitive intersection */
+					for(; primAddr < primAddr2; primAddr++) {
+						/* only primitives from volume object */
+						uint tri_object = (object == OBJECT_NONE)? kernel_tex_fetch(__prim_object, primAddr): object;
+						int object_flag = kernel_tex_fetch(__object_flag, tri_object);
+
+						if((object_flag & SD_OBJECT_HAS_VOLUME) == 0) {
+							continue;
+						}
+
+						/* intersect ray against primitive */
+						uint type = kernel_tex_fetch(__prim_type, primAddr);
+
+						switch(type & PRIMITIVE_ALL) {
+							case PRIMITIVE_TRIANGLE: {
+								triangle_intersect(kg, isect, P, dir, visibility, object, primAddr);
+								break;
+							}
+#if FEATURE(BVH_MOTION)
+							case PRIMITIVE_MOTION_TRIANGLE: {
+								motion_triangle_intersect(kg, isect, P, dir, ray->time, visibility, object, primAddr);
+								break;
+							}
+#endif
+#if FEATURE(BVH_HAIR)
+							case PRIMITIVE_CURVE:
+							case PRIMITIVE_MOTION_CURVE: {
+								if(kernel_data.curve.curveflags & CURVE_KN_INTERPOLATE) 
+									bvh_cardinal_curve_intersect(kg, isect, P, dir, visibility, object, primAddr, ray->time, type, NULL, 0, 0);
+								else
+									bvh_curve_intersect(kg, isect, P, dir, visibility, object, primAddr, ray->time, type, NULL, 0, 0);
+								break;
+							}
+#endif
+							default: {
+								break;
+							}
+						}
+					}
+				}
+#if FEATURE(BVH_INSTANCING)
+				else {
+					/* instance push */
+					object = kernel_tex_fetch(__prim_object, -primAddr-1);
+					int object_flag = kernel_tex_fetch(__object_flag, object);
+
+					if(object_flag & SD_OBJECT_HAS_VOLUME) {
+
+#if FEATURE(BVH_MOTION)
+						bvh_instance_motion_push(kg, object, ray, &P, &dir, &idir, &isect->t, &ob_tfm);
+#else
+						bvh_instance_push(kg, object, ray, &P, &dir, &idir, &isect->t);
+#endif
+
+#if defined(__KERNEL_SSE2__)
+						Psplat[0] = ssef(P.x);
+						Psplat[1] = ssef(P.y);
+						Psplat[2] = ssef(P.z);
+
+						tsplat = ssef(0.0f, 0.0f, -isect->t, -isect->t);
+
+						gen_idirsplat_swap(pn, shuf_identity, shuf_swap, idir, idirsplat, shufflexyz);
+#endif
+
+						++stackPtr;
+						traversalStack[stackPtr] = ENTRYPOINT_SENTINEL;
+
+						nodeAddr = kernel_tex_fetch(__object_node, object);
+					}
+					else {
+						/* pop */
+						nodeAddr = traversalStack[stackPtr];
+						--stackPtr;
+					}
+				}
+			}
+#endif
+		} while(nodeAddr != ENTRYPOINT_SENTINEL);
+
+#if FEATURE(BVH_INSTANCING)
+		if(stackPtr >= 0) {
+			kernel_assert(object != OBJECT_NONE);
+
+			/* instance pop */
+#if FEATURE(BVH_MOTION)
+			bvh_instance_motion_pop(kg, object, ray, &P, &dir, &idir, &isect->t, &ob_tfm);
+#else
+			bvh_instance_pop(kg, object, ray, &P, &dir, &idir, &isect->t);
+#endif
+
+#if defined(__KERNEL_SSE2__)
+			Psplat[0] = ssef(P.x);
+			Psplat[1] = ssef(P.y);
+			Psplat[2] = ssef(P.z);
+
+			tsplat = ssef(0.0f, 0.0f, -isect->t, -isect->t);
+
+			gen_idirsplat_swap(pn, shuf_identity, shuf_swap, idir, idirsplat, shufflexyz);
+#endif
+
+			object = OBJECT_NONE;
+			nodeAddr = traversalStack[stackPtr];
+			--stackPtr;
+		}
+#endif
+	} while(nodeAddr != ENTRYPOINT_SENTINEL);
+
+	return (isect->prim != PRIM_NONE);
+}
+
+#undef FEATURE
+#undef BVH_FUNCTION_NAME
+#undef BVH_FUNCTION_FEATURES
+
diff --git a/intern/cycles/kernel/kernel_types.h b/intern/cycles/kernel/kernel_types.h
index 7c95f8cf14a..34585ad8de6 100644
--- a/intern/cycles/kernel/kernel_types.h
+++ b/intern/cycles/kernel/kernel_types.h
@@ -615,8 +615,10 @@ enum ShaderDataFlag {
 	SD_OBJECT_MOTION = 1048576,			/* has object motion blur */
 	SD_TRANSFORM_APPLIED = 2097152,		/* vertices have transform applied */
 	SD_NEGATIVE_SCALE_APPLIED = 4194304,	/* vertices have negative scale applied */
+	SD_OBJECT_HAS_VOLUME = 8388608,		/* object has a volume shader */
 
-	SD_OBJECT_FLAGS = (SD_HOLDOUT_MASK|SD_OBJECT_MOTION|SD_TRANSFORM_APPLIED|SD_NEGATIVE_SCALE_APPLIED)
+	SD_OBJECT_FLAGS = (SD_HOLDOUT_MASK|SD_OBJECT_MOTION|SD_TRANSFORM_APPLIED|
+	                   SD_NEGATIVE_SCALE_APPLIED|SD_OBJECT_HAS_VOLUME)
 };
 
 struct KernelGlobals;
diff --git a/intern/cycles/kernel/kernel_volume.h b/intern/cycles/kernel/kernel_volume.h
index 794ce925777..dd947a54530 100644
--- a/intern/cycles/kernel/kernel_volume.h
+++ b/intern/cycles/kernel/kernel_volume.h
@@ -985,9 +985,7 @@ ccl_device void kernel_volume_stack_init(KernelGlobals *kg,
 	      enclosed_index < VOLUME_STACK_SIZE - 1)
 	{
 		Intersection isect;
-		if(!scene_intersect(kg, &volume_ray, PATH_RAY_ALL_VISIBILITY,
-		                    &isect, NULL, 0.0f, 0.0f))
-		{
+		if(!scene_intersect_volume(kg, &volume_ray, &isect)) {
 			break;
 		}
 
diff --git a/intern/cycles/render/mesh.cpp b/intern/cycles/render/mesh.cpp
index 54cfab42a97..cc141b771d1 100644
--- a/intern/cycles/render/mesh.cpp
+++ b/intern/cycles/render/mesh.cpp
@@ -1034,13 +1034,9 @@ void MeshManager::device_update(Device *device, DeviceScene *dscene, Scene *scen
 
 	/* update normals */
 	foreach(Mesh *mesh, scene->meshes) {
-		mesh->has_volume = false;
 		foreach(uint shader, mesh->used_shaders) {
 			if(scene->shaders[shader]->need_update_attributes)
 				mesh->need_update = true;
-			if(scene->shaders[shader]->has_volume) {
-				mesh->has_volume = true;
-			}
 		}
 
 		if(mesh->need_update) {
diff --git a/intern/cycles/render/object.cpp b/intern/cycles/render/object.cpp
index 1f148d34ea6..1966fe4bb7f 100644
--- a/intern/cycles/render/object.cpp
+++ b/intern/cycles/render/object.cpp
@@ -342,9 +342,26 @@ void ObjectManager::device_update_transforms(Device *device, DeviceScene *dscene
 		objects[offset+9] = make_float4(ob->dupli_generated[0], ob->dupli_generated[1], ob->dupli_generated[2], __int_as_float(numkeys));
 		objects[offset+10] = make_float4(ob->dupli_uv[0], ob->dupli_uv[1], __int_as_float(numsteps), __int_as_float(numverts));
 
+		/* That's a bit weird place to update mesh flags, but we do it here
+		 * because  object needs to know if it's a volume or not and mesh needs
+		 * to have the updated.
+		 *
+		 * TODO(sergey): Check on whether we can reshuffle update order in scene.
+		 */
+		if(ob->mesh->need_update) {
+			foreach(uint shader, ob->mesh->used_shaders) {
+				if(scene->shaders[shader]->has_volume) {
+					ob->mesh->has_volume = true;
+					break;
+				}
+			}
+		}
+
 		/* object flag */
 		if(ob->use_holdout)
 			flag |= SD_HOLDOUT_MASK;
+		if(ob->mesh->has_volume)
+			flag |= SD_OBJECT_HAS_VOLUME;
 		object_flag[i] = flag;
 
 		/* have curves */