diff --git a/gclient.py b/gclient.py
index f0a130300..72b001984 100755
--- a/gclient.py
+++ b/gclient.py
@@ -1799,6 +1799,9 @@ class Flattener(object):
     Arguments:
       dep (Dependency): dependency to process
     """
+    if not dep.deps_parsed:
+      dep.ParseDepsFile()
+
     self._allowed_hosts.update(dep.allowed_hosts)
 
     for key, value in dep.get_vars().iteritems():
diff --git a/testing_support/fake_repos.py b/testing_support/fake_repos.py
index 12139b251..ea74fccc9 100755
--- a/testing_support/fake_repos.py
+++ b/testing_support/fake_repos.py
@@ -298,7 +298,7 @@ class FakeReposBase(object):
 
 class FakeRepos(FakeReposBase):
   """Implements populateGit()."""
-  NB_GIT_REPOS = 10
+  NB_GIT_REPOS = 12
 
   def populateGit(self):
     # Testing:
@@ -593,12 +593,30 @@ deps = {
   # in recursedeps.
   'src/repo6': '/repo_6',
 }
+deps_os = {
+  'ios': {
+    'src/repo11': '/repo_11',
+  }
+}
 recursedeps = [
   'src/repo9',
+  'src/repo11',
 ]""",
       'origin': 'git/repo_10@1\n',
     })
 
+    self._commit_git('repo_11', {
+      'DEPS': """
+deps = {
+  'src/repo12': '/repo12',
+}""",
+      'origin': 'git/repo_11@1\n',
+    })
+
+    self._commit_git('repo_12', {
+      'origin': 'git/repo_12@1\n',
+    })
+
 
 class FakeRepoSkiaDEPS(FakeReposBase):
   """Simulates the Skia DEPS transition in Chrome."""
diff --git a/tests/gclient_smoketest.py b/tests/gclient_smoketest.py
index aa8a954b6..3a6dce207 100755
--- a/tests/gclient_smoketest.py
+++ b/tests/gclient_smoketest.py
@@ -879,7 +879,7 @@ class GClientSmokeGIT(GClientSmokeBase):
     self.assertFalse(os.path.exists(output_deps))
 
     self.gclient(['config', self.git_base + 'repo_10', '--name', 'src'])
-    self.gclient(['sync'])
+    self.gclient(['sync', '--process-all-deps'])
     self.gclient(['flatten', '-v', '-v', '-v', '--output-deps', output_deps])
 
     with open(output_deps) as f:
@@ -892,6 +892,11 @@ class GClientSmokeGIT(GClientSmokeBase):
         '    "url": "git://127.0.0.1:20000/git/repo_10",',
         '  },',
         '',
+        '  # src -> src/repo11 -> src/repo12',
+        '  "src/repo12": {',
+        '    "url": "/repo12",',
+        '  },',
+        '',
         '  # src -> src/repo6',
         '  "src/repo6": {',
         '    "url": "/repo_6",',
@@ -923,6 +928,14 @@ class GClientSmokeGIT(GClientSmokeBase):
         '',
         '  },',
         '',
+        '  "ios": {',
+        '    # src -> src/repo11',
+        '    "src/repo11": {',
+        '      "url": "/repo_11",',
+        '    },',
+        '',
+        '  },',
+        '',
         '  "mac": {',
         '    # src -> src/repo9 -> src/repo8 -> src/recursed_os_repo',
         '    "src/recursed_os_repo": {',