diff --git a/release/scripts/ui/buttons_material.py b/release/scripts/ui/buttons_material.py
index ee7193da301..2415d636dab 100644
--- a/release/scripts/ui/buttons_material.py
+++ b/release/scripts/ui/buttons_material.py
@@ -665,16 +665,17 @@ class MATERIAL_PT_volume_lighting(VolumeButtonsPanel):
 		split = layout.split()
 		
 		col = split.column()
-		col.itemR(vol, "scattering_mode", text="")
+		col.itemR(vol, "lighting_mode", text="")
 		
 		col = split.column()
 		
-		if vol.scattering_mode == 'SINGLE_SCATTERING':
+		if vol.lighting_mode == 'SHADED':
+			col.itemR(vol, "external_shadows")
 			col.itemR(vol, "light_cache")
 			sub = col.column()
 			sub.active = vol.light_cache
 			sub.itemR(vol, "cache_resolution")
-		elif vol.scattering_mode in ('MULTIPLE_SCATTERING', 'SINGLE_PLUS_MULTIPLE_SCATTERING'):
+		elif vol.lighting_mode in ('MULTIPLE_SCATTERING', 'SHADED_PLUS_MULTIPLE_SCATTERING'):
 			sub = col.column()
 			sub.enabled = True
 			sub.active = False
diff --git a/source/blender/blenkernel/intern/material.c b/source/blender/blenkernel/intern/material.c
index cbd306f6d87..7e742dc5631 100644
--- a/source/blender/blenkernel/intern/material.c
+++ b/source/blender/blenkernel/intern/material.c
@@ -181,7 +181,7 @@ void init_material(Material *ma)
 	ma->vol.depth_cutoff = 0.01f;
 	ma->vol.stepsize_type = MA_VOL_STEP_RANDOMIZED;
 	ma->vol.stepsize = 0.2f;
-	ma->vol.shade_type = MA_VOL_SHADE_SINGLE;
+	ma->vol.shade_type = MA_VOL_SHADE_SHADED;
 	ma->vol.shadeflag |= MA_VOL_PRECACHESHADING;
 	ma->vol.precache_resolution = 50;
 	
diff --git a/source/blender/blenloader/intern/readfile.c b/source/blender/blenloader/intern/readfile.c
index 9367e2f4247..a3a56e9a075 100644
--- a/source/blender/blenloader/intern/readfile.c
+++ b/source/blender/blenloader/intern/readfile.c
@@ -9680,7 +9680,7 @@ static void do_versions(FileData *fd, Library *lib, Main *main)
 				ma->vol.depth_cutoff = 0.01f;
 				ma->vol.stepsize_type = MA_VOL_STEP_RANDOMIZED;
 				ma->vol.stepsize = 0.2f;
-				ma->vol.shade_type = MA_VOL_SHADE_SINGLE;
+				ma->vol.shade_type = MA_VOL_SHADE_SHADED;
 				ma->vol.shadeflag |= MA_VOL_PRECACHESHADING;
 				ma->vol.precache_resolution = 50;
 			}
diff --git a/source/blender/makesdna/DNA_material_types.h b/source/blender/makesdna/DNA_material_types.h
index a925b60ac33..36de890e6dc 100644
--- a/source/blender/makesdna/DNA_material_types.h
+++ b/source/blender/makesdna/DNA_material_types.h
@@ -374,15 +374,15 @@ typedef struct Material {
 #define MA_VOL_STEP_ADAPTIVE	2
 
 /* vol_shadeflag */
-#define MA_VOL_SHADED		1
-#define MA_VOL_RECVSHADOW	4
+#define MA_VOL_RECV_EXT_SHADOW	1
 #define MA_VOL_PRECACHESHADING	8
 
 /* vol_shading_type */
-#define MA_VOL_SHADE_NONE					0
-#define MA_VOL_SHADE_SINGLE					1
-#define MA_VOL_SHADE_MULTIPLE				2
-#define MA_VOL_SHADE_SINGLEPLUSMULTIPLE		3
+#define MA_VOL_SHADE_SHADELESS					0
+#define MA_VOL_SHADE_SHADOWED					2
+#define MA_VOL_SHADE_SHADED						1
+#define MA_VOL_SHADE_MULTIPLE					3
+#define MA_VOL_SHADE_SHADEDPLUSMULTIPLE			4
 
 #endif
 
diff --git a/source/blender/makesrna/intern/rna_material.c b/source/blender/makesrna/intern/rna_material.c
index 661b1c5e1c3..b05a7e59cc3 100644
--- a/source/blender/makesrna/intern/rna_material.c
+++ b/source/blender/makesrna/intern/rna_material.c
@@ -953,11 +953,12 @@ static void rna_def_material_volume(BlenderRNA *brna)
 	StructRNA *srna;
 	PropertyRNA *prop;
 
-	static EnumPropertyItem prop_scattering_items[] = {
-		{MA_VOL_SHADE_NONE, "NONE", 0, "None", ""},
-		{MA_VOL_SHADE_SINGLE, "SINGLE_SCATTERING", 0, "Single Scattering", ""},
+	static EnumPropertyItem prop_lighting_items[] = {
+		{MA_VOL_SHADE_SHADELESS, "SHADELESS", 0, "Shadeless", ""},
+		{MA_VOL_SHADE_SHADOWED, "SHADOWED", 0, "Shadowed", ""},
+		{MA_VOL_SHADE_SHADED, "SHADED", 0, "Shaded", ""},
 		{MA_VOL_SHADE_MULTIPLE, "MULTIPLE_SCATTERING", 0, "Multiple Scattering", ""},
-		{MA_VOL_SHADE_SINGLEPLUSMULTIPLE, "SINGLE_PLUS_MULTIPLE_SCATTERING", 0, "Single + Multiple Scattering", ""},
+		{MA_VOL_SHADE_SHADEDPLUSMULTIPLE, "SHADED_PLUS_MULTIPLE_SCATTERING", 0, "Shaded + Multiple Scattering", ""},
 		{0, NULL, 0, NULL, NULL}};
 
 	static EnumPropertyItem prop_stepsize_items[] = {
@@ -984,10 +985,15 @@ static void rna_def_material_volume(BlenderRNA *brna)
 	RNA_def_property_ui_text(prop, "Step Size", "Distance between subsequent volume depth samples.");
 	RNA_def_property_update(prop, 0, "rna_Material_update");
 	
-	prop= RNA_def_property(srna, "scattering_mode", PROP_ENUM, PROP_NONE);
+	prop= RNA_def_property(srna, "lighting_mode", PROP_ENUM, PROP_NONE);
 	RNA_def_property_enum_sdna(prop, NULL, "shade_type");
-	RNA_def_property_enum_items(prop, prop_scattering_items);
-	RNA_def_property_ui_text(prop, "Scattering Mode", "Method of shading, attenuating, and scattering light through the volume");
+	RNA_def_property_enum_items(prop, prop_lighting_items);
+	RNA_def_property_ui_text(prop, "Lighting Mode", "Method of shading, attenuating, and scattering light through the volume");
+	RNA_def_property_update(prop, 0, "rna_Material_update");
+	
+	prop= RNA_def_property(srna, "external_shadows", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "shadeflag", MA_VOL_RECV_EXT_SHADOW); /* use bitflags */
+	RNA_def_property_ui_text(prop, "External Shadows", "Receive shadows from sources outside the volume (temporary)");
 	RNA_def_property_update(prop, 0, "rna_Material_update");
 	
 	prop= RNA_def_property(srna, "light_cache", PROP_BOOLEAN, PROP_NONE);
diff --git a/source/blender/render/intern/source/convertblender.c b/source/blender/render/intern/source/convertblender.c
index b3784f26048..655c453eee7 100644
--- a/source/blender/render/intern/source/convertblender.c
+++ b/source/blender/render/intern/source/convertblender.c
@@ -942,7 +942,10 @@ static Material *give_render_material(Render *re, Object *ob, int nr)
 	
 	if(re->r.mode & R_SPEED) ma->texco |= NEED_UV;
 	
-	if(ma->material_type == MA_TYPE_VOLUME) ma->mode |= MA_TRANSP;
+	if(ma->material_type == MA_TYPE_VOLUME) {
+		ma->mode |= MA_TRANSP;
+		ma->mode &= ~MA_SHADBUF;
+	}
 	if((ma->mode & MA_TRANSP) && (ma->mode & MA_ZTRANSP))
 		re->flag |= R_ZTRA;
 	
diff --git a/source/blender/render/intern/source/volume_precache.c b/source/blender/render/intern/source/volume_precache.c
index 7ecaf83ae27..2d5d38a394f 100644
--- a/source/blender/render/intern/source/volume_precache.c
+++ b/source/blender/render/intern/source/volume_precache.c
@@ -401,7 +401,7 @@ void multiple_scattering_diffusion(Render *re, VolumePrecache *vp, Material *ma)
 	fac *= (energy_ss / energy_ms);
 	
 	/* blend multiple scattering back in the light cache */
-	if (shade_type == MA_VOL_SHADE_SINGLEPLUSMULTIPLE) {
+	if (shade_type == MA_VOL_SHADE_SHADEDPLUSMULTIPLE) {
 		/* conserve energy - half single, half multiple */
 		origf = 0.5f;
 		fac *= 0.5f;
@@ -713,7 +713,7 @@ void vol_precache_objectinstance_threads(Render *re, ObjectInstanceRen *obi, Mat
 	
 	lightcache_filter(obi->volume_precache);
 	
-	if (ELEM(ma->vol.shade_type, MA_VOL_SHADE_MULTIPLE, MA_VOL_SHADE_SINGLEPLUSMULTIPLE))
+	if (ELEM(ma->vol.shade_type, MA_VOL_SHADE_MULTIPLE, MA_VOL_SHADE_SHADEDPLUSMULTIPLE))
 	{
 		multiple_scattering_diffusion(re, vp, ma);
 	}
@@ -721,8 +721,8 @@ void vol_precache_objectinstance_threads(Render *re, ObjectInstanceRen *obi, Mat
 
 static int using_lightcache(Material *ma)
 {
-	return (((ma->vol.shadeflag & MA_VOL_PRECACHESHADING) && (ma->vol.shade_type == MA_VOL_SHADE_SINGLE))
-		|| (ELEM(ma->vol.shade_type, MA_VOL_SHADE_MULTIPLE, MA_VOL_SHADE_SINGLEPLUSMULTIPLE)));
+	return (((ma->vol.shadeflag & MA_VOL_PRECACHESHADING) && (ma->vol.shade_type == MA_VOL_SHADE_SHADED))
+		|| (ELEM(ma->vol.shade_type, MA_VOL_SHADE_MULTIPLE, MA_VOL_SHADE_SHADEDPLUSMULTIPLE)));
 }
 
 /* loop through all objects (and their associated materials)
diff --git a/source/blender/render/intern/source/volumetric.c b/source/blender/render/intern/source/volumetric.c
index 381a32de027..cbb74ab752f 100644
--- a/source/blender/render/intern/source/volumetric.c
+++ b/source/blender/render/intern/source/volumetric.c
@@ -51,6 +51,7 @@
 #include "render_types.h"
 #include "pixelshading.h"
 #include "shading.h"
+#include "shadbuf.h"
 #include "texture.h"
 #include "volumetric.h"
 #include "volume_precache.h"
@@ -73,6 +74,61 @@ inline float luminance(float* col)
 
 /* tracing */
 
+static int vlr_check_intersect_solid(Isect *is, int ob, RayFace *face)
+{
+	VlakRen *vlr = (VlakRen*)face;
+	
+	/* solid material types only */
+	if (vlr->mat->material_type == MA_TYPE_SURFACE)
+		return 1;
+	else
+		return 0;
+}
+
+static float vol_get_shadow(ShadeInput *shi, LampRen *lar, float *co)
+{
+	float visibility = 1.f;
+	
+	if(lar->shb) {
+		float dot=1.f;
+		float dxco[3]={0.f, 0.f, 0.f}, dyco[3]={0.f, 0.f, 0.f};
+		
+		visibility = testshadowbuf(&R, lar->shb, co, dxco, dyco, 1.0, 0.0);		
+	} else if (lar->mode & LA_SHAD_RAY) {
+		/* trace shadow manually, no good lamp api atm */
+		Isect is;
+		const float maxsize = RE_ray_tree_max_size(R.raytree);
+		
+		
+		VecCopyf(is.start, co);
+		if(lar->type==LA_SUN || lar->type==LA_HEMI) {
+			is.end[0] = co[0] - lar->vec[0] * maxsize;
+			is.end[1] = co[1] - lar->vec[1] * maxsize;
+			is.end[2] = co[2] - lar->vec[2] * maxsize;
+		} else {
+			VecCopyf(is.end, lar->co);
+		}
+
+		is.mode= RE_RAY_MIRROR;
+		if(lar->mode & (LA_LAYER|LA_LAYER_SHADOW))
+			is.lay= lar->lay;	
+		else
+			is.lay= -1;
+		is.face_last= (RayFace*)lar->vlr_last[shi->thread];
+		is.ob_last= RAY_OBJECT_SET(&R, lar->obi_last[shi->thread]);
+		is.faceorig= NULL;
+		is.oborig= RAY_OBJECT_SET(&R, shi->obi);
+		
+		if(RE_ray_tree_intersect_check(R.raytree, &is, vlr_check_intersect_solid)) {
+			visibility = 0.f;
+		}
+		
+		lar->vlr_last[shi->thread]= (VlakRen*)is.face_last;
+		lar->obi_last[shi->thread]= RAY_OBJECT_GET(&R, is.ob_last);
+	}
+	return visibility;
+}
+
 static int vol_get_bounds(ShadeInput *shi, float *co, float *vec, float *hitco, Isect *isect, int intersect_type)
 {
 	float maxsize = RE_ray_tree_max_size(R.raytree);
@@ -448,9 +504,18 @@ void vol_shade_one_lamp(struct ShadeInput *shi, float *co, LampRen *lar, float *
 		VECCOPY(lv, lar->vec);
 	VecMulf(lv, -1.0f);
 	
-	if (shi->mat->vol.shade_type != MA_VOL_SHADE_NONE) {
+	if (shi->mat->vol.shade_type == MA_VOL_SHADE_SHADOWED) {
+		VecMulf(lacol, vol_get_shadow(shi, lar, co));
+	}
+	else if (shi->mat->vol.shade_type == MA_VOL_SHADE_SHADED)
+	{
 		Isect is;
 		
+		if (shi->mat->vol.shadeflag & MA_VOL_RECV_EXT_SHADOW) {
+			VecMulf(lacol, vol_get_shadow(shi, lar, co));
+			if (luminance(lacol) < 0.001f) return;
+		}
+		
 		/* find minimum of volume bounds, or lamp coord */
 		if (vol_get_bounds(shi, co, lv, hitco, &is, VOL_BOUNDS_SS)) {
 			float dist = VecLenf(co, hitco);