Ambient Occlusion split up into:

Ambient occlusion: multiplied with direct lighting by default, add
is also still available and more blending methods might be added if
they are useful. This is fundamentally a non physical effect.

Environment lighting: always added as you would expect (though you can
subtract by specifying negative energy). This can be just white or take
colors or textures from the world.

Indirect lighting: only supported for AAO at the moment (and is still
too approximate), and also is always added. A factor is available to
specify how much is added, though value 1.0 is correct.

Also:
* Material ambient value now defaults to 1.0.
* Added Environment, Indirect and Emit pass.
* "Both" blending method is no longer available.
* Attenuation, sampling parameters are still shared, some could be split
  up, though if they are different this would affect performance.

21 files changed, 468 insertions, 228 deletions

diff --git a/source/blender/blenkernel/BKE_blender.h b/source/blender/blenkernel/BKE_blender.h
index 37b98565ea3..45df0913079 100644
--- a/source/blender/blenkernel/BKE_blender.h
+++ b/source/blender/blenkernel/BKE_blender.h
@@ -43,7 +43,7 @@ struct bContext;
 struct ReportList;
 
 #define BLENDER_VERSION			250
-#define BLENDER_SUBVERSION		14
+#define BLENDER_SUBVERSION		15
 
 #define BLENDER_MINVERSION		250
 #define BLENDER_MINSUBVERSION	0
diff --git a/source/blender/blenkernel/intern/material.c b/source/blender/blenkernel/intern/material.c
index 3567c061f04..2d4ff857b2a 100644
--- a/source/blender/blenkernel/intern/material.c
+++ b/source/blender/blenkernel/intern/material.c
@@ -112,7 +112,7 @@ void init_material(Material *ma)
 	ma->specr= ma->specg= ma->specb= 1.0;
 	ma->mirr= ma->mirg= ma->mirb= 1.0;
 	ma->spectra= 1.0;
-	ma->amb= 0.5;
+	ma->amb= 1.0;
 	ma->alpha= 1.0;
 	ma->spec= ma->hasize= 0.5;
 	ma->har= 50;
diff --git a/source/blender/blenkernel/intern/world.c b/source/blender/blenkernel/intern/world.c
index b5f8bc81b81..0b49808bf15 100644
--- a/source/blender/blenkernel/intern/world.c
+++ b/source/blender/blenkernel/intern/world.c
@@ -102,6 +102,9 @@ World *add_world(char *name)
 	wrld->aodist= 10.0f;
 	wrld->aosamp= 5;
 	wrld->aoenergy= 1.0f;
+	wrld->ao_env_energy= 1.0f;
+	wrld->ao_indirect_energy= 1.0f;
+	wrld->ao_indirect_bounces= 1;
 	wrld->aobias= 0.05f;
 	wrld->ao_samp_method = WO_AOSAMP_HAMMERSLEY;	
 	wrld->ao_approx_error= 0.25f;
diff --git a/source/blender/blenloader/intern/readfile.c b/source/blender/blenloader/intern/readfile.c
index c3457adc288..84b27ad44eb 100644
--- a/source/blender/blenloader/intern/readfile.c
+++ b/source/blender/blenloader/intern/readfile.c
@@ -10604,6 +10604,36 @@ static void do_versions(FileData *fd, Library *lib, Main *main)
 		}
 	}
 	
+	if (main->versionfile < 250 || (main->versionfile == 250 && main->subversionfile < 15)) {
+		World *wo;
+		Material *ma;
+
+		/* ambient default from 0.5f to 1.0f */
+		for(ma= main->mat.first; ma; ma=ma->id.next)
+			ma->amb *= 2.0f;
+
+		for(wo= main->world.first; wo; wo=wo->id.next) {
+			/* ao splitting into ao/env/indirect */
+			wo->ao_env_energy= wo->aoenergy;
+			wo->aoenergy= 1.0f;
+
+			if(wo->ao_indirect_bounces == 0)
+				wo->ao_indirect_bounces= 1;
+			else
+				wo->mode |= WO_INDIRECT_LIGHT;
+
+			if(wo->aomix == WO_AOSUB)
+				wo->ao_env_energy= -wo->ao_env_energy;
+			else if(wo->aomix == WO_AOADDSUB)
+				wo->mode |= WO_AMB_OCC;
+
+			wo->aomix= WO_AOMUL;
+
+			/* ambient default from 0.5f to 1.0f */
+			mul_v3_fl(&wo->ambr, 0.5f);
+			wo->ao_env_energy *= 0.5f;
+		}
+	}
 	
 	/* put 2.50 compatibility code here until next subversion bump */
 	//{
diff --git a/source/blender/makesdna/DNA_scene_types.h b/source/blender/makesdna/DNA_scene_types.h
index 4caae9e1dfc..636596f7af7 100644
--- a/source/blender/makesdna/DNA_scene_types.h
+++ b/source/blender/makesdna/DNA_scene_types.h
@@ -170,23 +170,25 @@ typedef struct SceneRenderLayer {
 #define SCE_LAY_NEG_ZMASK	0x80000
 
 /* srl->passflag */
-#define SCE_PASS_COMBINED	1
-#define SCE_PASS_Z			2
-#define SCE_PASS_RGBA		4
-#define SCE_PASS_DIFFUSE	8
-#define SCE_PASS_SPEC		16
-#define SCE_PASS_SHADOW		32
-#define SCE_PASS_AO			64
-#define SCE_PASS_REFLECT	128
-#define SCE_PASS_NORMAL		256
-#define SCE_PASS_VECTOR		512
-#define SCE_PASS_REFRACT	1024
-#define SCE_PASS_INDEXOB	2048
-#define SCE_PASS_UV			4096
-#define SCE_PASS_RADIO		8192 /* Radio removed, can use for new GI? */
-#define SCE_PASS_MIST		16384
-
-#define SCE_PASS_RAYHITS	32768
+#define SCE_PASS_COMBINED		1
+#define SCE_PASS_Z				2
+#define SCE_PASS_RGBA			4
+#define SCE_PASS_DIFFUSE		8
+#define SCE_PASS_SPEC			16
+#define SCE_PASS_SHADOW			32
+#define SCE_PASS_AO				64
+#define SCE_PASS_REFLECT		128
+#define SCE_PASS_NORMAL			256
+#define SCE_PASS_VECTOR			512
+#define SCE_PASS_REFRACT		1024
+#define SCE_PASS_INDEXOB		2048
+#define SCE_PASS_UV				4096
+#define SCE_PASS_RADIO			8192 /* Radio removed, can use for new GI? */
+#define SCE_PASS_MIST			16384
+#define SCE_PASS_RAYHITS		32768
+#define SCE_PASS_EMIT			65536
+#define SCE_PASS_ENVIRONMENT	131072
+#define SCE_PASS_INDIRECT		262144
 
 /* note, srl->passflag is treestore element 'nr' in outliner, short still... */
 
diff --git a/source/blender/makesdna/DNA_world_types.h b/source/blender/makesdna/DNA_world_types.h
index 9b3f78caee0..b79bc766d17 100644
--- a/source/blender/makesdna/DNA_world_types.h
+++ b/source/blender/makesdna/DNA_world_types.h
@@ -107,7 +107,7 @@ typedef struct World {
 	short aomode, aosamp, aomix, aocolor;
 	float ao_adapt_thresh, ao_adapt_speed_fac;
 	float ao_approx_error, ao_approx_correction;
-	float ao_indirect_energy;
+	float ao_indirect_energy, ao_env_energy, ao_pad2;
 	short ao_indirect_bounces, ao_pad;
 	short ao_samp_method, ao_gather_method, ao_approx_passes;
 	
@@ -142,13 +142,16 @@ typedef struct World {
 #define WO_STARS               2
 #define WO_DOF                 4
 #define WO_ACTIVITY_CULLING	   8
-#define WO_AMB_OCC	   		  16
+#define WO_ENV_LIGHT   		  16
 #define WO_DBVT_CULLING		  32
+#define WO_AMB_OCC   		  64
+#define WO_INDIRECT_LIGHT	  128
 
 /* aomix */
 #define WO_AOADD	0
-#define WO_AOSUB	1
-#define WO_AOADDSUB	2
+#define WO_AOSUB	1 /* deprecated */
+#define WO_AOADDSUB	2 /* deprecated */
+#define WO_AOMUL	3
 
 /* ao_samp_method - methods for sampling the AO hemi */
 #define WO_AOSAMP_CONSTANT			0
diff --git a/source/blender/makesrna/intern/rna_render.c b/source/blender/makesrna/intern/rna_render.c
index 8212423acd5..85fd33f6c63 100644
--- a/source/blender/makesrna/intern/rna_render.c
+++ b/source/blender/makesrna/intern/rna_render.c
@@ -369,6 +369,8 @@ static void rna_def_render_pass(BlenderRNA *brna)
 		{SCE_PASS_INDEXOB, "OBJECT_INDEX", 0, "Object Index", ""},
 		{SCE_PASS_UV, "UV", 0, "UV", ""},
 		{SCE_PASS_MIST, "MIST", 0, "Mist", ""},
+		{SCE_PASS_EMIT, "EMIT", 0, "Emit", ""},
+		{SCE_PASS_ENVIRONMENT, "ENVIRONMENT", 0, "Environment", ""},
 		{0, NULL, 0, NULL, NULL}};
 	
 	srna= RNA_def_struct(brna, "RenderPass", NULL);
diff --git a/source/blender/makesrna/intern/rna_scene.c b/source/blender/makesrna/intern/rna_scene.c
index 7e4fc9aa9e0..3f79a06566d 100644
--- a/source/blender/makesrna/intern/rna_scene.c
+++ b/source/blender/makesrna/intern/rna_scene.c
@@ -1142,6 +1142,24 @@ void rna_def_render_layer_common(StructRNA *srna, int scene)
 	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
 	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
 
+	prop= RNA_def_property(srna, "pass_emit", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "passflag", SCE_PASS_EMIT);
+	RNA_def_property_ui_text(prop, "Emit", "Deliver emission pass.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
+	prop= RNA_def_property(srna, "pass_environment", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "passflag", SCE_PASS_ENVIRONMENT);
+	RNA_def_property_ui_text(prop, "Environment", "Deliver environment lighting pass.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
+	prop= RNA_def_property(srna, "pass_indirect", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "passflag", SCE_PASS_INDIRECT);
+	RNA_def_property_ui_text(prop, "Indirect", "Deliver indirect lighting pass.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
 	prop= RNA_def_property(srna, "pass_specular_exclude", PROP_BOOLEAN, PROP_NONE);
 	RNA_def_property_boolean_sdna(prop, NULL, "pass_xor", SCE_PASS_SPEC);
 	RNA_def_property_ui_text(prop, "Specular Exclude", "Exclude specular pass from combined.");
@@ -1171,6 +1189,24 @@ void rna_def_render_layer_common(StructRNA *srna, int scene)
 	RNA_def_property_ui_text(prop, "Refraction Exclude", "Exclude raytraced refraction pass from combined.");
 	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
 	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
+	prop= RNA_def_property(srna, "pass_emit_exclude", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "pass_xor", SCE_PASS_EMIT);
+	RNA_def_property_ui_text(prop, "Emit Exclude", "Exclude emission pass from combined.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
+	prop= RNA_def_property(srna, "pass_environment_exclude", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "pass_xor", SCE_PASS_ENVIRONMENT);
+	RNA_def_property_ui_text(prop, "Environment Exclude", "Exclude environment pass from combined.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
+
+	prop= RNA_def_property(srna, "pass_indirect_exclude", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "pass_xor", SCE_PASS_INDIRECT);
+	RNA_def_property_ui_text(prop, "Indirect Exclude", "Exclude indirect pass from combined.");
+	if(scene) RNA_def_property_update(prop, NC_SCENE|ND_RENDER_OPTIONS, "rna_SceneRenderLayer_pass_update");
+	else RNA_def_property_clear_flag(prop, PROP_EDITABLE);
 }
 
 static void rna_def_scene_game_data(BlenderRNA *brna)
diff --git a/source/blender/makesrna/intern/rna_world.c b/source/blender/makesrna/intern/rna_world.c
index 4046fc266da..c2af18193b2 100644
--- a/source/blender/makesrna/intern/rna_world.c
+++ b/source/blender/makesrna/intern/rna_world.c
@@ -45,9 +45,9 @@
 #include "WM_api.h"
 #include "WM_types.h"
 
-static PointerRNA rna_World_ambient_occlusion_get(PointerRNA *ptr)
+static PointerRNA rna_World_lighting_get(PointerRNA *ptr)
 {
-	return rna_pointer_inherit_refine(ptr, &RNA_WorldAmbientOcclusion, ptr->id.data);
+	return rna_pointer_inherit_refine(ptr, &RNA_WorldLighting, ptr->id.data);
 }
 
 static PointerRNA rna_World_stars_get(PointerRNA *ptr)
@@ -182,15 +182,14 @@ static void rna_def_world_mtex(BlenderRNA *brna)
 	RNA_def_property_update(prop, 0, "rna_World_update");
 }
 
-static void rna_def_ambient_occlusion(BlenderRNA *brna)
+static void rna_def_lighting(BlenderRNA *brna)
 {
 	StructRNA *srna;
 	PropertyRNA *prop;
 
 	static EnumPropertyItem blend_mode_items[] = {
+		{WO_AOMUL, "MULTIPLY", 0, "Multiply", "Multiply direct lighting with ambient occlusion, darkening the result."},
 		{WO_AOADD, "ADD", 0, "Add", "Add light and shadow."},
-		{WO_AOSUB, "SUBTRACT", 0, "Subtract", "Subtract light and shadow (needs a normal light to make anything visible.)"},
-		{WO_AOADDSUB, "BOTH", 0, "Both", "Both lighten and darken."},
 		{0, NULL, 0, NULL, NULL}};
 
 	static EnumPropertyItem prop_color_items[] = {
@@ -210,14 +209,78 @@ static void rna_def_ambient_occlusion(BlenderRNA *brna)
 		{WO_AOGATHER_APPROX, "APPROXIMATE", 0, "Approximate", "Inaccurate, but faster and without noise."},
 		{0, NULL, 0, NULL, NULL}};
 
-	srna= RNA_def_struct(brna, "WorldAmbientOcclusion", NULL);
+	srna= RNA_def_struct(brna, "WorldLighting", NULL);
 	RNA_def_struct_sdna(srna, "World");
 	RNA_def_struct_nested(brna, srna, "World");
-	RNA_def_struct_ui_text(srna, "Ambient Occlusion", "Ambient occlusion settings for a World datablock.");
+	RNA_def_struct_ui_text(srna, "Lighting", "Lighting for a World datablock.");
 
-	prop= RNA_def_property(srna, "enabled", PROP_BOOLEAN, PROP_NONE);
+	/* ambient occlusion */
+	prop= RNA_def_property(srna, "use_ambient_occlusion", PROP_BOOLEAN, PROP_NONE);
 	RNA_def_property_boolean_sdna(prop, NULL, "mode", WO_AMB_OCC);
-	RNA_def_property_ui_text(prop, "Enabled", "Use Ambient Occlusion to add light based on distance between elements, creating the illusion of omnipresent light");
+	RNA_def_property_ui_text(prop, "Use Ambient Occlusion", "Use Ambient Occlusion to add shadowing based on distance between objects.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "ao_factor", PROP_FLOAT, PROP_FACTOR);
+	RNA_def_property_float_sdna(prop, NULL, "aoenergy");
+	RNA_def_property_range(prop, 0, INT_MAX);
+	RNA_def_property_ui_range(prop, 0, 1, 0.1, 2);
+	RNA_def_property_ui_text(prop, "Factor", "Factor for ambient occlusion blending blending.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "ao_blend_mode", PROP_ENUM, PROP_NONE);
+	RNA_def_property_enum_sdna(prop, NULL, "aomix");
+	RNA_def_property_enum_items(prop, blend_mode_items);
+	RNA_def_property_ui_text(prop, "Blend Mode", "Defines how AO mixes with material shading.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	/* environment lighting */
+	prop= RNA_def_property(srna, "use_environment_lighting", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "mode", WO_ENV_LIGHT);
+	RNA_def_property_ui_text(prop, "Use Environment Lighting", "Add light coming from the environment.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "environment_energy", PROP_FLOAT, PROP_NONE);
+	RNA_def_property_float_sdna(prop, NULL, "ao_env_energy");
+	RNA_def_property_ui_range(prop, 0, FLT_MAX, 0.1, 2);
+	RNA_def_property_ui_text(prop, "Environment Color", "Defines the strength of environment light.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "environment_color", PROP_ENUM, PROP_NONE);
+	RNA_def_property_enum_sdna(prop, NULL, "aocolor");
+	RNA_def_property_enum_items(prop, prop_color_items);
+	RNA_def_property_ui_text(prop, "Environment Color", "Defines where the color of the environment light comes from.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	/* indirect lighting */
+	prop= RNA_def_property(srna, "use_indirect_lighting", PROP_BOOLEAN, PROP_NONE);
+	RNA_def_property_boolean_sdna(prop, NULL, "mode", WO_INDIRECT_LIGHT);
+	RNA_def_property_ui_text(prop, "Use Indirect Lighting", "Add indirect light bouncing of surrounding objects.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "indirect_factor", PROP_FLOAT, PROP_FACTOR);
+	RNA_def_property_float_sdna(prop, NULL, "ao_indirect_energy");
+	RNA_def_property_range(prop, 0, INT_MAX);
+	RNA_def_property_ui_range(prop, 0, 1, 0.1, 2);
+	RNA_def_property_ui_text(prop, "Indirect Factor", "Factor for how much surrounding objects contribute to light.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "indirect_bounces", PROP_INT, PROP_UNSIGNED);
+	RNA_def_property_int_sdna(prop, NULL, "ao_indirect_bounces");
+	RNA_def_property_range(prop, 1, INT_MAX);
+	RNA_def_property_ui_text(prop, "Bounces", "Number of indirect diffuse light bounces to use for approximate ambient occlusion.");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	/* gathering parameters */
+	prop= RNA_def_property(srna, "gather_method", PROP_ENUM, PROP_NONE);
+	RNA_def_property_enum_sdna(prop, NULL, "ao_gather_method");
+	RNA_def_property_enum_items(prop, prop_gather_method_items);
+	RNA_def_property_ui_text(prop, "Gather Method", "");
+	RNA_def_property_update(prop, 0, "rna_World_update");
+
+	prop= RNA_def_property(srna, "passes", PROP_INT, PROP_NONE);
+	RNA_def_property_int_sdna(prop, NULL, "ao_approx_passes");
+	RNA_def_property_range(prop, 0, 10);
+	RNA_def_property_ui_text(prop, "Passes", "Number of preprocessing passes to reduce overocclusion (for Approximate).");
 	RNA_def_property_update(prop, 0, "rna_World_update");
 
 	prop= RNA_def_property(srna, "distance", PROP_FLOAT, PROP_DISTANCE);
@@ -230,12 +293,6 @@ static void rna_def_ambient_occlusion(BlenderRNA *brna)
 	RNA_def_property_ui_text(prop, "Strength", "Distance attenuation factor, the higher, the 'shorter' the shadows.");
 	RNA_def_property_update(prop, 0, "rna_World_update");
 
-	prop= RNA_def_property(srna, "energy", PROP_FLOAT, PROP_NONE);
-	RNA_def_property_float_sdna(prop, NULL, "aoenergy");
-	RNA_def_property_ui_range(prop, 0, 10, 0.1, 3);
-	RNA_def_property_ui_text(prop, "Energy", "Amount of enerygy generated by ambient occlusion.");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
 	prop= RNA_def_property(srna, "bias", PROP_FLOAT, PROP_NONE);
 	RNA_def_property_float_sdna(prop, NULL, "aobias");
 	RNA_def_property_range(prop, 0, 0.5);
@@ -283,46 +340,11 @@ static void rna_def_ambient_occlusion(BlenderRNA *brna)
 	RNA_def_property_ui_text(prop, "Samples", "Amount of ray samples. Higher values give smoother results and longer rendering times");
 	RNA_def_property_update(prop, 0, "rna_World_update");
 
-	prop= RNA_def_property(srna, "blend_mode", PROP_ENUM, PROP_NONE);
-	RNA_def_property_enum_sdna(prop, NULL, "aomix");
-	RNA_def_property_enum_items(prop, blend_mode_items);
-	RNA_def_property_ui_text(prop, "Blend Mode", "Defines how AO mixes with material shading.");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
-	prop= RNA_def_property(srna, "color", PROP_ENUM, PROP_NONE);
-	RNA_def_property_enum_sdna(prop, NULL, "aocolor");
-	RNA_def_property_enum_items(prop, prop_color_items);
-	RNA_def_property_ui_text(prop, "Color", "Defines the color of the AO light");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
 	prop= RNA_def_property(srna, "sample_method", PROP_ENUM, PROP_NONE);
 	RNA_def_property_enum_sdna(prop, NULL, "ao_samp_method");
 	RNA_def_property_enum_items(prop, prop_sample_method_items);
 	RNA_def_property_ui_text(prop, "Sample Method", "Method for generating shadow samples (for Raytrace).");
 	RNA_def_property_update(prop, 0, "rna_World_update");
-
-	prop= RNA_def_property(srna, "gather_method", PROP_ENUM, PROP_NONE);
-	RNA_def_property_enum_sdna(prop, NULL, "ao_gather_method");
-	RNA_def_property_enum_items(prop, prop_gather_method_items);
-	RNA_def_property_ui_text(prop, "Gather Method", "");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
-	prop= RNA_def_property(srna, "passes", PROP_INT, PROP_NONE);
-	RNA_def_property_int_sdna(prop, NULL, "ao_approx_passes");
-	RNA_def_property_range(prop, 0, 10);
-	RNA_def_property_ui_text(prop, "Passes", "Number of preprocessing passes to reduce overocclusion (for Approximate).");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
-	prop= RNA_def_property(srna, "indirect_energy", PROP_FLOAT, PROP_UNSIGNED);
-	RNA_def_property_float_sdna(prop, NULL, "ao_indirect_energy");
-	RNA_def_property_ui_range(prop, 0, 10, 0.1, 3);
-	RNA_def_property_ui_text(prop, "Indirect", "Use approximate ambient occlusion for indirect diffuse lighting.");
-	RNA_def_property_update(prop, 0, "rna_World_update");
-
-	prop= RNA_def_property(srna, "indirect_bounces", PROP_INT, PROP_UNSIGNED);
-	RNA_def_property_int_sdna(prop, NULL, "ao_indirect_bounces");
-	RNA_def_property_ui_text(prop, "Bounces", "Number of indirect diffuse light bounces to use for approximate ambient occlusion.");
-	RNA_def_property_update(prop, 0, "rna_World_update");
 }
 
 static void rna_def_world_mist(BlenderRNA *brna)
@@ -499,11 +521,11 @@ void RNA_def_world(BlenderRNA *brna)
 	RNA_def_property_update(prop, 0, "rna_World_update");
 
 	/* nested structs */
-	prop= RNA_def_property(srna, "ambient_occlusion", PROP_POINTER, PROP_NONE);
+	prop= RNA_def_property(srna, "lighting", PROP_POINTER, PROP_NONE);
 	RNA_def_property_flag(prop, PROP_NEVER_NULL);
-	RNA_def_property_struct_type(prop, "WorldAmbientOcclusion");
-	RNA_def_property_pointer_funcs(prop, "rna_World_ambient_occlusion_get", NULL, NULL);
-	RNA_def_property_ui_text(prop, "Ambient Occlusion", "World ambient occlusion settings.");
+	RNA_def_property_struct_type(prop, "WorldLighting");
+	RNA_def_property_pointer_funcs(prop, "rna_World_lighting_get", NULL, NULL);
+	RNA_def_property_ui_text(prop, "Lighting", "World lighting settings.");
 
 	prop= RNA_def_property(srna, "mist", PROP_POINTER, PROP_NONE);
 	RNA_def_property_flag(prop, PROP_NEVER_NULL);
@@ -517,7 +539,7 @@ void RNA_def_world(BlenderRNA *brna)
 	RNA_def_property_pointer_funcs(prop, "rna_World_stars_get", NULL, NULL);
 	RNA_def_property_ui_text(prop, "Stars", "World stars settings.");
 
-	rna_def_ambient_occlusion(brna);
+	rna_def_lighting(brna);
 	rna_def_world_mist(brna);
 	rna_def_world_stars(brna);
 	rna_def_world_mtex(brna);
diff --git a/source/blender/render/extern/include/RE_shader_ext.h b/source/blender/render/extern/include/RE_shader_ext.h
index 28d88e1f8b4..a7c0f9511a5 100644
--- a/source/blender/render/extern/include/RE_shader_ext.h
+++ b/source/blender/render/extern/include/RE_shader_ext.h
@@ -49,10 +49,13 @@ typedef struct ShadeResult
 	float combined[4];
 	float col[4];
 	float alpha, mist, z;
+	float emit[3];
 	float diff[3];		/* no ramps, shadow, etc */
 	float spec[3];
 	float shad[3];
 	float ao[3];
+	float env[3];
+	float indirect[3];
 	float refl[3];
 	float refr[3];
 	float nor[3];
@@ -153,7 +156,7 @@ typedef struct ShadeInput
 	float dxstrand, dystrand;
 	
 	/* AO is a pre-process now */
-	float ao[3], indirect[3];
+	float ao[3], indirect[3], env[3];
 	
 	int xs, ys;				/* pixel to be rendered */
 	int mask;				/* subsample mask */
diff --git a/source/blender/render/intern/include/render_types.h b/source/blender/render/intern/include/render_types.h
index d41851db5ff..ba995621a98 100644
--- a/source/blender/render/intern/include/render_types.h
+++ b/source/blender/render/intern/include/render_types.h
@@ -399,6 +399,7 @@ typedef struct StrandSurface {
 	float (*co)[3];
 	/* for occlusion caching */
 	float (*ao)[3];
+	float (*env)[3];
 	float (*indirect)[3];
 	/* for speedvectors */
 	float (*prevco)[3], (*nextco)[3];
diff --git a/source/blender/render/intern/include/rendercore.h b/source/blender/render/intern/include/rendercore.h
index 250fbc000cb..e97ab1de9bb 100644
--- a/source/blender/render/intern/include/rendercore.h
+++ b/source/blender/render/intern/include/rendercore.h
@@ -99,7 +99,7 @@ RayObject* makeraytree_object(Render *re, ObjectInstanceRen *obi);
 
 extern void ray_shadow(ShadeInput *, LampRen *, float *);
 extern void ray_trace(ShadeInput *, ShadeResult *);
-extern void ray_ao(ShadeInput *, float *);
+extern void ray_ao(ShadeInput *, float *, float *);
 extern void init_jitter_plane(LampRen *lar);
 extern void init_ao_sphere(struct World *wrld);
 extern void init_render_qmcsampler(Render *re);
diff --git a/source/blender/render/intern/source/convertblender.c b/source/blender/render/intern/source/convertblender.c
index 63782223c33..a8afc40f04d 100644
--- a/source/blender/render/intern/source/convertblender.c
+++ b/source/blender/render/intern/source/convertblender.c
@@ -1701,7 +1701,7 @@ static int render_new_particle_system(Render *re, ObjectRen *obr, ParticleSystem
 
 			if(re->r.mode & R_SPEED)
 				dosurfacecache= 1;
-			else if((re->wrld.mode & WO_AMB_OCC) && (re->wrld.ao_gather_method == WO_AOGATHER_APPROX))
+			else if((re->wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) && (re->wrld.ao_gather_method == WO_AOGATHER_APPROX))
 				if(ma->amb != 0.0f)
 					dosurfacecache= 1;
 
@@ -3811,7 +3811,7 @@ void init_render_world(Render *re)
 			while(re->wrld.aosamp*re->wrld.aosamp < re->osa) 
 				re->wrld.aosamp++;
 		if(!(re->r.mode & R_RAYTRACE) && (re->wrld.ao_gather_method == WO_AOGATHER_RAYTRACE))
-			re->wrld.mode &= ~WO_AMB_OCC;
+			re->wrld.mode &= ~(WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT);
 	}
 	else {
 		memset(&re->wrld, 0, sizeof(World));
@@ -4849,7 +4849,7 @@ void RE_Database_FromScene(Render *re, Scene *scene, int use_camera_view)
 	if(re->r.mode & R_RAYTRACE) {
 		init_render_qmcsampler(re);
 
-		if(re->wrld.mode & WO_AMB_OCC)
+		if(re->wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT))
 			if (re->wrld.ao_samp_method == WO_AOSAMP_CONSTANT)
 				init_ao_sphere(&re->wrld);
 	}
@@ -4925,7 +4925,7 @@ void RE_Database_FromScene(Render *re, Scene *scene, int use_camera_view)
 			project_renderdata(re, projectverto, re->r.mode & R_PANORAMA, 0, 1);
 		
 		/* Occlusion */
-		if((re->wrld.mode & WO_AMB_OCC) && !re->test_break(re->tbh))
+		if((re->wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) && !re->test_break(re->tbh))
 			if(re->wrld.ao_gather_method == WO_AOGATHER_APPROX)
 				if(re->r.renderer==R_INTERN)
 					if(re->r.mode & R_SHADOW)
@@ -5537,7 +5537,7 @@ void RE_Database_Baking(Render *re, Scene *scene, int type, Object *actob)
 	if(re->r.mode & R_RAYTRACE) {
 		init_render_qmcsampler(re);
 		
-		if(re->wrld.mode & WO_AMB_OCC)
+		if(re->wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT))
 			if (re->wrld.ao_samp_method == WO_AOSAMP_CONSTANT)
 				init_ao_sphere(&re->wrld);
 	}
@@ -5569,7 +5569,7 @@ void RE_Database_Baking(Render *re, Scene *scene, int type, Object *actob)
 			makeraytree(re);
 	
 	/* occlusion */
-	if((re->wrld.mode & WO_AMB_OCC) && !re->test_break(re->tbh))
+	if((re->wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) && !re->test_break(re->tbh))
 		if(re->wrld.ao_gather_method == WO_AOGATHER_APPROX)
 			if(re->r.mode & R_SHADOW)
 				make_occ_tree(re);
diff --git a/source/blender/render/intern/source/occlusion.c b/source/blender/render/intern/source/occlusion.c
index 40fcc2b399a..d06339f75cc 100644
--- a/source/blender/render/intern/source/occlusion.c
+++ b/source/blender/render/intern/source/occlusion.c
@@ -64,7 +64,7 @@
 #define CACHE_STEP 3
 
 typedef struct OcclusionCacheSample {
-	float co[3], n[3], ao[3], indirect[3], intensity, dist2;
+	float co[3], n[3], ao[3], env[3], indirect[3], intensity, dist2;
 	int x, y, filled;
 } OcclusionCacheSample;
 
@@ -120,6 +120,7 @@ typedef struct OcclusionThread {
 	Render *re;
 	StrandSurface *mesh;
 	float (*faceao)[3];
+	float (*faceenv)[3];
 	float (*faceindirect)[3];
 	int begin, end;
 	int thread;
@@ -1375,19 +1376,19 @@ static void occ_compute_passes(Render *re, OcclusionTree *tree, int totpass)
 	MEM_freeN(occ);
 }
 
-static void sample_occ_tree(Render *re, OcclusionTree *tree, OccFace *exclude, float *co, float *n, int thread, int onlyshadow, float *ao, float *indirect)
+static void sample_occ_tree(Render *re, OcclusionTree *tree, OccFace *exclude, float *co, float *n, int thread, int onlyshadow, float *ao, float *env, float *indirect)
 {
 	float nn[3], bn[3], fac, occ, occlusion, correction, rad[3];
-	int aocolor;
+	int envcolor;
 
-	aocolor= re->wrld.aocolor;
+	envcolor= re->wrld.aocolor;
 	if(onlyshadow)
-		aocolor= WO_AOPLAIN;
+		envcolor= WO_AOPLAIN;
 
 	VECCOPY(nn, n);
 	negate_v3(nn);
 
-	occ_lookup(tree, thread, exclude, co, nn, &occ, (tree->doindirect)? rad: NULL, (aocolor)? bn: NULL);
+	occ_lookup(tree, thread, exclude, co, nn, &occ, (tree->doindirect)? rad: NULL, (env && envcolor)? bn: NULL);
 
 	correction= re->wrld.ao_approx_correction;
 
@@ -1396,13 +1397,20 @@ static void sample_occ_tree(Render *re, OcclusionTree *tree, OccFace *exclude, f
 	if(correction != 0.0f)
 		occlusion += correction*exp(-occ);
 
-	if(aocolor) {
+	if(env) {
 		/* sky shading using bent normal */
-		if(ELEM(aocolor, WO_AOSKYCOL, WO_AOSKYTEX)) {
+		if(ELEM(envcolor, WO_AOSKYCOL, WO_AOSKYTEX)) {
 			fac= 0.5*(1.0f+bn[0]*re->grvec[0]+ bn[1]*re->grvec[1]+ bn[2]*re->grvec[2]);
-			ao[0]= (1.0f-fac)*re->wrld.horr + fac*re->wrld.zenr;
-			ao[1]= (1.0f-fac)*re->wrld.horg + fac*re->wrld.zeng;
-			ao[2]= (1.0f-fac)*re->wrld.horb + fac*re->wrld.zenb;
+			env[0]= (1.0f-fac)*re->wrld.horr + fac*re->wrld.zenr;
+			env[1]= (1.0f-fac)*re->wrld.horg + fac*re->wrld.zeng;
+			env[2]= (1.0f-fac)*re->wrld.horb + fac*re->wrld.zenb;
+
+			mul_v3_fl(env, occlusion);
+		}
+		else {
+			env[0]= occlusion;
+			env[1]= occlusion;
+			env[2]= occlusion;
 		}
 #if 0
 		else {	/* WO_AOSKYTEX */
@@ -1416,10 +1424,9 @@ static void sample_occ_tree(Render *re, OcclusionTree *tree, OccFace *exclude, f
 			shadeSkyView(ao, co, bn, dxyview);
 		}
 #endif
-
-		mul_v3_fl(ao, occlusion);
 	}
-	else {
+
+	if(ao) {
 		ao[0]= occlusion;
 		ao[1]= occlusion;
 		ao[2]= occlusion;
@@ -1447,7 +1454,7 @@ static OcclusionCacheSample *find_occ_sample(OcclusionCache *cache, int x, int y
 		return &cache->sample[y*cache->w + x];
 }
 
-static int sample_occ_cache(OcclusionTree *tree, float *co, float *n, int x, int y, int thread, float *ao, float *indirect)
+static int sample_occ_cache(OcclusionTree *tree, float *co, float *n, int x, int y, int thread, float *ao, float *env, float *indirect)
 {
 	OcclusionCache *cache;
 	OcclusionCacheSample *samples[4], *sample;
@@ -1468,6 +1475,7 @@ static int sample_occ_cache(OcclusionTree *tree, float *co, float *n, int x, int
 			dist2= INPR(d, d);
 			if(dist2 < 0.5f*sample->dist2 && INPR(sample->n, n) > 0.98f) {
 				VECCOPY(ao, sample->ao);
+				VECCOPY(env, sample->env);
 				VECCOPY(indirect, sample->indirect);
 				return 1;
 			}
@@ -1495,6 +1503,7 @@ static int sample_occ_cache(OcclusionTree *tree, float *co, float *n, int x, int
 
 	/* compute weighted interpolation between samples */
 	zero_v3(ao);
+	zero_v3(env);
 	zero_v3(indirect);
 	totw= 0.0f;
 
@@ -1522,12 +1531,14 @@ static int sample_occ_cache(OcclusionTree *tree, float *co, float *n, int x, int
 
 		totw += w;
 		madd_v3_v3fl(ao, samples[i]->ao, w);
+		madd_v3_v3fl(env, samples[i]->env, w);
 		madd_v3_v3fl(indirect, samples[i]->indirect, w);
 	}
 
 	if(totw >= 0.9f) {
 		totw= 1.0f/totw;
 		mul_v3_fl(ao, totw);
+		mul_v3_fl(env, totw);
 		mul_v3_fl(indirect, totw);
 		return 1;
 	}
@@ -1553,16 +1564,21 @@ static void sample_occ_surface(ShadeInput *shi)
 		interp_weights_face_v3(w, co1, co2, co3, co4, strand->vert->co);
 
 		zero_v3(shi->ao);
+		zero_v3(shi->env);
 		zero_v3(shi->indirect);
 
 		madd_v3_v3fl(shi->ao, mesh->ao[face[0]], w[0]);
+		madd_v3_v3fl(shi->env, mesh->env[face[0]], w[0]);
 		madd_v3_v3fl(shi->indirect, mesh->indirect[face[0]], w[0]);
 		madd_v3_v3fl(shi->ao, mesh->ao[face[1]], w[1]);
+		madd_v3_v3fl(shi->env, mesh->env[face[1]], w[1]);
 		madd_v3_v3fl(shi->indirect, mesh->indirect[face[1]], w[1]);
 		madd_v3_v3fl(shi->ao, mesh->ao[face[2]], w[2]);
+		madd_v3_v3fl(shi->env, mesh->env[face[2]], w[2]);
 		madd_v3_v3fl(shi->indirect, mesh->indirect[face[2]], w[2]);
 		if(face[3]) {
 			madd_v3_v3fl(shi->ao, mesh->ao[face[3]], w[3]);
+			madd_v3_v3fl(shi->env, mesh->env[face[3]], w[3]);
 			madd_v3_v3fl(shi->indirect, mesh->indirect[face[3]], w[3]);
 		}
 	}
@@ -1570,6 +1586,7 @@ static void sample_occ_surface(ShadeInput *shi)
 		shi->ao[0]= 1.0f;
 		shi->ao[1]= 1.0f;
 		shi->ao[2]= 1.0f;
+		zero_v3(shi->env);
 		zero_v3(shi->indirect);
 	}
 }
@@ -1581,7 +1598,7 @@ static void *exec_strandsurface_sample(void *data)
 	OcclusionThread *othread= (OcclusionThread*)data;
 	Render *re= othread->re;
 	StrandSurface *mesh= othread->mesh;
-	float ao[3], indirect[3], co[3], n[3], *co1, *co2, *co3, *co4;
+	float ao[3], env[3], indirect[3], co[3], n[3], *co1, *co2, *co3, *co4;
 	int a, *face;
 
 	for(a=othread->begin; a<othread->end; a++) {
@@ -1602,8 +1619,9 @@ static void *exec_strandsurface_sample(void *data)
 		}
 		negate_v3(n);
 
-		sample_occ_tree(re, re->occlusiontree, NULL, co, n, othread->thread, 0, ao, indirect);
+		sample_occ_tree(re, re->occlusiontree, NULL, co, n, othread->thread, 0, ao, env, indirect);
 		VECCOPY(othread->faceao[a], ao);
+		VECCOPY(othread->faceenv[a], env);
 		VECCOPY(othread->faceindirect[a], indirect);
 	}
 
@@ -1616,7 +1634,7 @@ void make_occ_tree(Render *re)
 	OcclusionTree *tree;
 	StrandSurface *mesh;
 	ListBase threads;
-	float ao[3], indirect[3], (*faceao)[3], (*faceindirect)[3];
+	float ao[3], env[3], indirect[3], (*faceao)[3], (*faceenv)[3], (*faceindirect)[3];
 	int a, totface, totthread, *face, *count;
 
 	/* ugly, needed for occ_face */
@@ -1630,7 +1648,7 @@ void make_occ_tree(Render *re)
 	if(tree) {
 		if(re->wrld.ao_approx_passes > 0)
 			occ_compute_passes(re, tree, re->wrld.ao_approx_passes);
-		if(tree->doindirect && re->wrld.ao_indirect_bounces > 1)
+		if(tree->doindirect && (re->wrld.mode & WO_INDIRECT_LIGHT))
 			occ_compute_bounces(re, tree, re->wrld.ao_indirect_bounces);
 
 		for(mesh=re->strandsurface.first; mesh; mesh=mesh->next) {
@@ -1639,6 +1657,7 @@ void make_occ_tree(Render *re)
 
 			count= MEM_callocN(sizeof(int)*mesh->totvert, "OcclusionCount");
 			faceao= MEM_callocN(sizeof(float)*3*mesh->totface, "StrandSurfFaceAO");
+			faceenv= MEM_callocN(sizeof(float)*3*mesh->totface, "StrandSurfFaceEnv");
 			faceindirect= MEM_callocN(sizeof(float)*3*mesh->totface, "StrandSurfFaceIndirect");
 
 			totthread= (mesh->totface > 10000)? re->r.threads: 1;
@@ -1646,6 +1665,7 @@ void make_occ_tree(Render *re)
 			for(a=0; a<totthread; a++) {
 				othreads[a].re= re;
 				othreads[a].faceao= faceao;
+				othreads[a].faceenv= faceenv;
 				othreads[a].faceindirect= faceindirect;
 				othreads[a].thread= a;
 				othreads[a].mesh= mesh;
@@ -1669,20 +1689,25 @@ void make_occ_tree(Render *re)
 				face= mesh->face[a];
 
 				VECCOPY(ao, faceao[a]);
+				VECCOPY(env, faceenv[a]);
 				VECCOPY(indirect, faceindirect[a]);
 
 				VECADD(mesh->ao[face[0]], mesh->ao[face[0]], ao);
+				VECADD(mesh->env[face[0]], mesh->env[face[0]], env);
 				VECADD(mesh->indirect[face[0]], mesh->indirect[face[0]], indirect);
 				count[face[0]]++;
 				VECADD(mesh->ao[face[1]], mesh->ao[face[1]], ao);
+				VECADD(mesh->env[face[1]], mesh->env[face[1]], env);
 				VECADD(mesh->indirect[face[1]], mesh->indirect[face[1]], indirect);
 				count[face[1]]++;
 				VECADD(mesh->ao[face[2]], mesh->ao[face[2]], ao);
+				VECADD(mesh->env[face[2]], mesh->env[face[2]], env);
 				VECADD(mesh->indirect[face[2]], mesh->indirect[face[2]], indirect);
 				count[face[2]]++;
 
 				if(face[3]) {
 					VECADD(mesh->ao[face[3]], mesh->ao[face[3]], ao);
+					VECADD(mesh->env[face[3]], mesh->env[face[3]], env);
 					VECADD(mesh->indirect[face[3]], mesh->indirect[face[3]], indirect);
 					count[face[3]]++;
 				}
@@ -1691,12 +1716,14 @@ void make_occ_tree(Render *re)
 			for(a=0; a<mesh->totvert; a++) {
 				if(count[a]) {
 					mul_v3_fl(mesh->ao[a], 1.0f/count[a]);
+					mul_v3_fl(mesh->env[a], 1.0f/count[a]);
 					mul_v3_fl(mesh->indirect[a], 1.0f/count[a]);
 				}
 			}
 
 			MEM_freeN(count);
 			MEM_freeN(faceao);
+			MEM_freeN(faceenv);
 			MEM_freeN(faceindirect);
 		}
 	}
@@ -1723,12 +1750,12 @@ void sample_occ(Render *re, ShadeInput *shi)
 			sample_occ_surface(shi);
 		}
 		/* try to get result from the cache if possible */
-		else if(shi->depth!=0 || !sample_occ_cache(tree, shi->co, shi->vno, shi->xs, shi->ys, shi->thread, shi->ao, shi->indirect)) {
+		else if(shi->depth!=0 || !sample_occ_cache(tree, shi->co, shi->vno, shi->xs, shi->ys, shi->thread, shi->ao, shi->env, shi->indirect)) {
 			/* no luck, let's sample the occlusion */
 			exclude.obi= shi->obi - re->objectinstance;
 			exclude.facenr= shi->vlr->index;
 			onlyshadow= (shi->mat->mode & MA_ONLYSHADOW);
-			sample_occ_tree(re, tree, &exclude, shi->co, shi->vno, shi->thread, onlyshadow, shi->ao, shi->indirect);
+			sample_occ_tree(re, tree, &exclude, shi->co, shi->vno, shi->thread, onlyshadow, shi->ao, shi->env, shi->indirect);
 
 			/* fill result into sample, each time */
 			if(tree->cache) {
@@ -1739,8 +1766,10 @@ void sample_occ(Render *re, ShadeInput *shi)
 					VECCOPY(sample->co, shi->co);
 					VECCOPY(sample->n, shi->vno);
 					VECCOPY(sample->ao, shi->ao);
+					VECCOPY(sample->env, shi->env);
 					VECCOPY(sample->indirect, shi->indirect);
 					sample->intensity= MAX3(sample->ao[0], sample->ao[1], sample->ao[2]);
+					sample->intensity= MAX2(sample->intensity, MAX3(sample->env[0], sample->env[1], sample->env[2]));
 					sample->intensity= MAX2(sample->intensity, MAX3(sample->indirect[0], sample->indirect[1], sample->indirect[2]));
 					sample->dist2= INPR(shi->dxco, shi->dxco) + INPR(shi->dyco, shi->dyco);
 					sample->filled= 1;
@@ -1753,6 +1782,10 @@ void sample_occ(Render *re, ShadeInput *shi)
 		shi->ao[1]= 1.0f;
 		shi->ao[2]= 1.0f;
 
+		shi->env[0]= 0.0f;
+		shi->env[1]= 0.0f;
+		shi->env[2]= 0.0f;
+
 		shi->indirect[0]= 0.0f;
 		shi->indirect[1]= 0.0f;
 		shi->indirect[2]= 0.0f;
@@ -1823,13 +1856,15 @@ void cache_occ_samples(Render *re, RenderPart *pa, ShadeSample *ssamp)
 				onlyshadow= (shi->mat->mode & MA_ONLYSHADOW);
 				exclude.obi= shi->obi - re->objectinstance;
 				exclude.facenr= shi->vlr->index;
-				sample_occ_tree(re, tree, &exclude, shi->co, shi->vno, shi->thread, onlyshadow, shi->ao, shi->indirect);
+				sample_occ_tree(re, tree, &exclude, shi->co, shi->vno, shi->thread, onlyshadow, shi->ao, shi->env, shi->indirect);
 
 				VECCOPY(sample->co, shi->co);
 				VECCOPY(sample->n, shi->vno);
 				VECCOPY(sample->ao, shi->ao);
+				VECCOPY(sample->env, shi->env);
 				VECCOPY(sample->indirect, shi->indirect);
 				sample->intensity= MAX3(sample->ao[0], sample->ao[1], sample->ao[2]);
+				sample->intensity= MAX2(sample->intensity, MAX3(sample->env[0], sample->env[1], sample->env[2]));
 				sample->intensity= MAX2(sample->intensity, MAX3(sample->indirect[0], sample->indirect[1], sample->indirect[2]));
 				sample->dist2= INPR(shi->dxco, shi->dxco) + INPR(shi->dyco, shi->dyco);
 				sample->x= shi->xs;
diff --git a/source/blender/render/intern/source/pipeline.c b/source/blender/render/intern/source/pipeline.c
index ff7d0d90a06..eaafeec3a8a 100644
--- a/source/blender/render/intern/source/pipeline.c
+++ b/source/blender/render/intern/source/pipeline.c
@@ -309,6 +309,12 @@ static char *get_pass_name(int passtype, int channel)
 		if(channel==2) return "Color.B";
 		return "Color.A";
 	}
+	if(passtype == SCE_PASS_EMIT) {
+		if(channel==-1) return "Emit";
+		if(channel==0) return "Emit.R";
+		if(channel==1) return "Emit.G";
+		return "Emit.B";
+	}
 	if(passtype == SCE_PASS_DIFFUSE) {
 		if(channel==-1) return "Diffuse";
 		if(channel==0) return "Diffuse.R";
@@ -333,6 +339,18 @@ static char *get_pass_name(int passtype, int channel)
 		if(channel==1) return "AO.G";
 		return "AO.B";
 	}
+	if(passtype == SCE_PASS_ENVIRONMENT) {
+		if(channel==-1) return "Environment";
+		if(channel==0) return "Environment.R";
+		if(channel==1) return "Environment.G";
+		return "Environment.B";
+	}
+	if(passtype == SCE_PASS_INDIRECT) {
+		if(channel==-1) return "Indirect";
+		if(channel==0) return "Indirect.R";
+		if(channel==1) return "Indirect.G";
+		return "Indirect.B";
+	}
 	if(passtype == SCE_PASS_REFLECT) {
 		if(channel==-1) return "Reflect";
 		if(channel==0) return "Reflect.R";
@@ -390,6 +408,9 @@ static int passtype_from_name(char *str)
 	if(strcmp(str, "Color")==0)
 		return SCE_PASS_RGBA;
 
+	if(strcmp(str, "Emit")==0)
+		return SCE_PASS_EMIT;
+
 	if(strcmp(str, "Diffuse")==0)
 		return SCE_PASS_DIFFUSE;
 
@@ -402,6 +423,12 @@ static int passtype_from_name(char *str)
 	if(strcmp(str, "AO")==0)
 		return SCE_PASS_AO;
 
+	if(strcmp(str, "Environment")==0)
+		return SCE_PASS_ENVIRONMENT;
+
+	if(strcmp(str, "Indirect")==0)
+		return SCE_PASS_INDIRECT;
+
 	if(strcmp(str, "Reflect")==0)
 		return SCE_PASS_REFLECT;
 
@@ -572,12 +599,18 @@ static RenderResult *new_render_result(Render *re, rcti *partrct, int crop, int
 			render_layer_add_pass(rr, rl, 3, SCE_PASS_UV);
 		if(srl->passflag  & SCE_PASS_RGBA)
 			render_layer_add_pass(rr, rl, 4, SCE_PASS_RGBA);
+		if(srl->passflag  & SCE_PASS_EMIT)
+			render_layer_add_pass(rr, rl, 3, SCE_PASS_EMIT);
 		if(srl->passflag  & SCE_PASS_DIFFUSE)
 			render_layer_add_pass(rr, rl, 3, SCE_PASS_DIFFUSE);
 		if(srl->passflag  & SCE_PASS_SPEC)
 			render_layer_add_pass(rr, rl, 3, SCE_PASS_SPEC);
 		if(srl->passflag  & SCE_PASS_AO)
 			render_layer_add_pass(rr, rl, 3, SCE_PASS_AO);
+		if(srl->passflag  & SCE_PASS_ENVIRONMENT)
+			render_layer_add_pass(rr, rl, 3, SCE_PASS_ENVIRONMENT);
+		if(srl->passflag  & SCE_PASS_INDIRECT)
+			render_layer_add_pass(rr, rl, 3, SCE_PASS_INDIRECT);
 		if(srl->passflag  & SCE_PASS_SHADOW)
 			render_layer_add_pass(rr, rl, 3, SCE_PASS_SHADOW);
 		if(srl->passflag  & SCE_PASS_REFLECT)
diff --git a/source/blender/render/intern/source/rayshade.c b/source/blender/render/intern/source/rayshade.c
index 5bdc1276a91..d35521e92ac 100644
--- a/source/blender/render/intern/source/rayshade.c
+++ b/source/blender/render/intern/source/rayshade.c
@@ -1829,7 +1829,7 @@ static float *sphere_sampler(int type, int resol, int thread, int xs, int ys)
 	}
 }
 
-static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
+static void ray_ao_qmc(ShadeInput *shi, float *ao, float *env)
 {
 	Isect isec;
 	RayHint point_hint;
@@ -1845,8 +1845,8 @@ static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
 	int samples=0;
 	int max_samples = R.wrld.aosamp*R.wrld.aosamp;
 	
-	float dxyview[3], skyadded=0, div;
-	int aocolor;
+	float dxyview[3], skyadded=0;
+	int envcolor;
 	
 	RE_RC_INIT(isec, *shi);
 	isec.orig.ob   = shi->obi;
@@ -1866,15 +1866,15 @@ static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
 	RE_rayobject_hint_bb( R.raytree, &point_hint, isec.start, isec.start );
 	isec.hint = &point_hint;
 
-	
-	shadfac[0]= shadfac[1]= shadfac[2]= 0.0f;
+	zero_v3(ao);
+	zero_v3(env);
 	
 	/* prevent sky colors to be added for only shadow (shadow becomes alpha) */
-	aocolor= R.wrld.aocolor;
+	envcolor= R.wrld.aocolor;
 	if(shi->mat->mode & MA_ONLYSHADOW)
-		aocolor= WO_AOPLAIN;
+		envcolor= WO_AOPLAIN;
 	
-	if(aocolor == WO_AOSKYTEX) {
+	if(envcolor == WO_AOSKYTEX) {
 		dxyview[0]= 1.0f/(float)R.wrld.aosamp;
 		dxyview[1]= 1.0f/(float)R.wrld.aosamp;
 		dxyview[2]= 0.0f;
@@ -1927,7 +1927,7 @@ static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
 			if (R.wrld.aomode & WO_AODIST) fac+= exp(-isec.labda*R.wrld.aodistfac); 
 			else fac+= 1.0f;
 		}
-		else if(aocolor!=WO_AOPLAIN) {
+		else if(envcolor!=WO_AOPLAIN) {
 			float skycol[4];
 			float skyfac, view[3];
 			
@@ -1936,18 +1936,18 @@ static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
 			view[2]= -dir[2];
 			normalize_v3(view);
 			
-			if(aocolor==WO_AOSKYCOL) {
+			if(envcolor==WO_AOSKYCOL) {
 				skyfac= 0.5*(1.0f+view[0]*R.grvec[0]+ view[1]*R.grvec[1]+ view[2]*R.grvec[2]);
-				shadfac[0]+= (1.0f-skyfac)*R.wrld.horr + skyfac*R.wrld.zenr;
-				shadfac[1]+= (1.0f-skyfac)*R.wrld.horg + skyfac*R.wrld.zeng;
-				shadfac[2]+= (1.0f-skyfac)*R.wrld.horb + skyfac*R.wrld.zenb;
+				env[0]+= (1.0f-skyfac)*R.wrld.horr + skyfac*R.wrld.zenr;
+				env[1]+= (1.0f-skyfac)*R.wrld.horg + skyfac*R.wrld.zeng;
+				env[2]+= (1.0f-skyfac)*R.wrld.horb + skyfac*R.wrld.zenb;
 			}
 			else {	/* WO_AOSKYTEX */
 				shadeSkyView(skycol, isec.start, view, dxyview, shi->thread);
 				shadeSunView(skycol, shi->view);
-				shadfac[0]+= skycol[0];
-				shadfac[1]+= skycol[1];
-				shadfac[2]+= skycol[2];
+				env[0]+= skycol[0];
+				env[1]+= skycol[1];
+				env[2]+= skycol[2];
 			}
 			skyadded++;
 		}
@@ -1965,29 +1965,27 @@ static void ray_ao_qmc(ShadeInput *shi, float *shadfac)
 		}
 	}
 	
-	if(aocolor!=WO_AOPLAIN && skyadded) {
-		div= (1.0f - fac/(float)samples)/((float)skyadded);
-		
-		shadfac[0]*= div;	// average color times distances/hits formula
-		shadfac[1]*= div;	// average color times distances/hits formula
-		shadfac[2]*= div;	// average color times distances/hits formula
-	} else {
-		shadfac[0]= shadfac[1]= shadfac[2]= 1.0f - fac/(float)samples;
-	}
+	/* average color times distances/hits formula */
+	ao[0]= ao[1]= ao[2]= 1.0f - fac/(float)samples;
+
+	if(envcolor!=WO_AOPLAIN && skyadded)
+		mul_v3_fl(env, (1.0f - fac/(float)samples)/((float)skyadded));
+	else
+		copy_v3_v3(env, ao);
 	
 	if (qsa)
 		release_thread_qmcsampler(&R, shi->thread, qsa);
 }
 
 /* extern call from shade_lamp_loop, ambient occlusion calculus */
-static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
+static void ray_ao_spheresamp(ShadeInput *shi, float *ao, float *env)
 {
 	Isect isec;
 	RayHint point_hint;
-	float *vec, *nrm, div, bias, sh=0.0f;
+	float *vec, *nrm, bias, sh=0.0f;
 	float maxdist = R.wrld.aodist;
 	float dxyview[3];
-	int j= -1, tot, actual=0, skyadded=0, aocolor, resol= R.wrld.aosamp;
+	int j= -1, tot, actual=0, skyadded=0, envcolor, resol= R.wrld.aosamp;
 	
 	RE_RC_INIT(isec, *shi);
 	isec.orig.ob   = shi->obi;
@@ -2007,7 +2005,8 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 	RE_rayobject_hint_bb( R.raytree, &point_hint, isec.start, isec.start );
 	isec.hint = &point_hint;
 
-	shadfac[0]= shadfac[1]= shadfac[2]= 0.0f;
+	zero_v3(ao);
+	zero_v3(env);
 
 	/* bias prevents smoothed faces to appear flat */
 	if(shi->vlr->flag & R_SMOOTH) {
@@ -2020,9 +2019,9 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 	}
 
 	/* prevent sky colors to be added for only shadow (shadow becomes alpha) */
-	aocolor= R.wrld.aocolor;
+	envcolor= R.wrld.aocolor;
 	if(shi->mat->mode & MA_ONLYSHADOW)
-		aocolor= WO_AOPLAIN;
+		envcolor= WO_AOPLAIN;
 	
 	if(resol>32) resol= 32;
 	
@@ -2031,7 +2030,7 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 	// warning: since we use full sphere now, and dotproduct is below, we do twice as much
 	tot= 2*resol*resol;
 
-	if(aocolor == WO_AOSKYTEX) {
+	if(envcolor == WO_AOSKYTEX) {
 		dxyview[0]= 1.0f/(float)resol;
 		dxyview[1]= 1.0f/(float)resol;
 		dxyview[2]= 0.0f;
@@ -2063,7 +2062,7 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 				if (R.wrld.aomode & WO_AODIST) sh+= exp(-isec.labda*R.wrld.aodistfac); 
 				else sh+= 1.0f;
 			}
-			else if(aocolor!=WO_AOPLAIN) {
+			else if(envcolor!=WO_AOPLAIN) {
 				float skycol[4];
 				float fac, view[3];
 				
@@ -2072,18 +2071,18 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 				view[2]= -vec[2];
 				normalize_v3(view);
 				
-				if(aocolor==WO_AOSKYCOL) {
+				if(envcolor==WO_AOSKYCOL) {
 					fac= 0.5*(1.0f+view[0]*R.grvec[0]+ view[1]*R.grvec[1]+ view[2]*R.grvec[2]);
-					shadfac[0]+= (1.0f-fac)*R.wrld.horr + fac*R.wrld.zenr;
-					shadfac[1]+= (1.0f-fac)*R.wrld.horg + fac*R.wrld.zeng;
-					shadfac[2]+= (1.0f-fac)*R.wrld.horb + fac*R.wrld.zenb;
+					env[0]+= (1.0f-fac)*R.wrld.horr + fac*R.wrld.zenr;
+					env[1]+= (1.0f-fac)*R.wrld.horg + fac*R.wrld.zeng;
+					env[2]+= (1.0f-fac)*R.wrld.horb + fac*R.wrld.zenb;
 				}
 				else {	/* WO_AOSKYTEX */
 					shadeSkyView(skycol, isec.start, view, dxyview, shi->thread);
 					shadeSunView(skycol, shi->view);
-					shadfac[0]+= skycol[0];
-					shadfac[1]+= skycol[1];
-					shadfac[2]+= skycol[2];
+					env[0]+= skycol[0];
+					env[1]+= skycol[1];
+					env[2]+= skycol[2];
 				}
 				skyadded++;
 			}
@@ -2095,28 +2094,25 @@ static void ray_ao_spheresamp(ShadeInput *shi, float *shadfac)
 	if(actual==0) sh= 1.0f;
 	else sh = 1.0f - sh/((float)actual);
 	
-	if(aocolor!=WO_AOPLAIN && skyadded) {
-		div= sh/((float)skyadded);
-		
-		shadfac[0]*= div;	// average color times distances/hits formula
-		shadfac[1]*= div;	// average color times distances/hits formula
-		shadfac[2]*= div;	// average color times distances/hits formula
-	}
-	else {
-		shadfac[0]= shadfac[1]= shadfac[2]= sh;
-	}
+	/* average color times distances/hits formula */
+	ao[0]= ao[1]= ao[2]= sh;
+
+	if(envcolor!=WO_AOPLAIN && skyadded)
+		mul_v3_fl(env, sh/((float)skyadded));
+	else
+		copy_v3_v3(env, ao);
 }
 
-void ray_ao(ShadeInput *shi, float *shadfac)
+void ray_ao(ShadeInput *shi, float *ao, float *env)
 {
 	/* Unfortunately, the unusual way that the sphere sampler calculates roughly twice as many
 	 * samples as are actually traced, and skips them based on bias and OSA settings makes it very difficult
 	 * to reuse code between these two functions. This is the easiest way I can think of to do it
 	 * --broken */
 	if (ELEM(R.wrld.ao_samp_method, WO_AOSAMP_HAMMERSLEY, WO_AOSAMP_HALTON))
-		ray_ao_qmc(shi, shadfac);
+		ray_ao_qmc(shi, ao, env);
 	else if (R.wrld.ao_samp_method == WO_AOSAMP_CONSTANT)
-		ray_ao_spheresamp(shi, shadfac);
+		ray_ao_spheresamp(shi, ao, env);
 }
 
 static void ray_shadow_jittered_coords(ShadeInput *shi, int max, float jitco[RE_MAX_OSA][3], int *totjitco)
diff --git a/source/blender/render/intern/source/rendercore.c b/source/blender/render/intern/source/rendercore.c
index e99d2bfa0f6..dec826faa65 100644
--- a/source/blender/render/intern/source/rendercore.c
+++ b/source/blender/render/intern/source/rendercore.c
@@ -459,6 +459,9 @@ static void add_filt_passes(RenderLayer *rl, int curmask, int rectx, int offset,
 				col= shr->col;
 				pixsize= 4;
 				break;
+			case SCE_PASS_EMIT:
+				col= shr->emit;
+				break;
 			case SCE_PASS_DIFFUSE:
 				col= shr->diff;
 				break;
@@ -471,6 +474,12 @@ static void add_filt_passes(RenderLayer *rl, int curmask, int rectx, int offset,
 			case SCE_PASS_AO:
 				col= shr->ao;
 				break;
+			case SCE_PASS_ENVIRONMENT:
+				col= shr->env;
+				break;
+			case SCE_PASS_INDIRECT:
+				col= shr->indirect;
+				break;
 			case SCE_PASS_REFLECT:
 				col= shr->refl;
 				break;
@@ -557,6 +566,9 @@ static void add_passes(RenderLayer *rl, int offset, ShadeInput *shi, ShadeResult
 				col= shr->col;
 				pixsize= 4;
 				break;
+			case SCE_PASS_EMIT:
+				col= shr->emit;
+				break;
 			case SCE_PASS_DIFFUSE:
 				col= shr->diff;
 				break;
@@ -569,6 +581,12 @@ static void add_passes(RenderLayer *rl, int offset, ShadeInput *shi, ShadeResult
 			case SCE_PASS_AO:
 				col= shr->ao;
 				break;
+			case SCE_PASS_ENVIRONMENT:
+				col= shr->env;
+				break;
+			case SCE_PASS_INDIRECT:
+				col= shr->indirect;
+				break;
 			case SCE_PASS_REFLECT:
 				col= shr->refl;
 				break;
@@ -2117,10 +2135,7 @@ static void bake_shade(void *handle, Object *ob, ShadeInput *shi, int quad, int
 	if(bs->type==RE_BAKE_AO) {
 		ambient_occlusion(shi);
 
-		if(R.r.bake_flag & R_BAKE_NORMALIZE)
-			VECCOPY(shr.combined, shi->ao)
-		else
-			ambient_occlusion_to_diffuse(shi, shr.combined);
+		VECCOPY(shr.combined, shi->ao)
 	}
 	else {
 		if (bs->type==RE_BAKE_SHADOW) /* Why do shadows set the color anyhow?, ignore material color for baking */
diff --git a/source/blender/render/intern/source/shadeinput.c b/source/blender/render/intern/source/shadeinput.c
index fd1e27ab28a..38241878300 100644
--- a/source/blender/render/intern/source/shadeinput.c
+++ b/source/blender/render/intern/source/shadeinput.c
@@ -1319,11 +1319,11 @@ void shade_samples_do_AO(ShadeSample *ssamp)
 	if(!(R.r.mode & R_RAYTRACE) && !(R.wrld.ao_gather_method == WO_AOGATHER_APPROX))
 		return;
 	
-	if(R.wrld.mode & WO_AMB_OCC) {
+	if(R.wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) {
 		shi= &ssamp->shi[0];
 
-		if(((shi->passflag & SCE_PASS_COMBINED) && (shi->combinedflag & SCE_PASS_AO))
-			|| (shi->passflag & SCE_PASS_AO))
+		if(((shi->passflag & SCE_PASS_COMBINED) && (shi->combinedflag & (SCE_PASS_AO|SCE_PASS_ENVIRONMENT|SCE_PASS_INDIRECT)))
+			|| (shi->passflag & (SCE_PASS_AO|SCE_PASS_ENVIRONMENT|SCE_PASS_INDIRECT)))
 			for(sample=0, shi= ssamp->shi; sample<ssamp->tot; shi++, sample++)
 				if(!(shi->mode & MA_SHLESS))
 					ambient_occlusion(shi);		/* stores in shi->ao[] */
diff --git a/source/blender/render/intern/source/shadeoutput.c b/source/blender/render/intern/source/shadeoutput.c
index e9386bb0d94..4192966b1fa 100644
--- a/source/blender/render/intern/source/shadeoutput.c
+++ b/source/blender/render/intern/source/shadeoutput.c
@@ -1013,41 +1013,69 @@ void ambient_occlusion(ShadeInput *shi)
 	if((R.wrld.ao_gather_method == WO_AOGATHER_APPROX) && shi->mat->amb!=0.0f)
 		sample_occ(&R, shi);
 	else if((R.r.mode & R_RAYTRACE) && shi->mat->amb!=0.0f)
-		ray_ao(shi, shi->ao);
+		ray_ao(shi, shi->ao, shi->env);
 	else
 		shi->ao[0]= shi->ao[1]= shi->ao[2]= 1.0f;
 }
 
 
 /* wrld mode was checked for */
-void ambient_occlusion_to_diffuse(ShadeInput *shi, float *diff)
+static void ambient_occlusion_apply(ShadeInput *shi, ShadeResult *shr)
 {
-	if((R.r.mode & R_RAYTRACE) || R.wrld.ao_gather_method == WO_AOGATHER_APPROX) {
-		if(shi->amb!=0.0f) {
-			float f= R.wrld.aoenergy*shi->amb;
-
-			if (R.wrld.aomix==WO_AOADDSUB) {
-				diff[0] = 2.0f*shi->ao[0]-1.0f;
-				diff[1] = 2.0f*shi->ao[1]-1.0f;
-				diff[2] = 2.0f*shi->ao[2]-1.0f;
-			}
-			else if (R.wrld.aomix==WO_AOSUB) {
-				diff[0] = shi->ao[0]-1.0f;
-				diff[1] = shi->ao[1]-1.0f;
-				diff[2] = shi->ao[2]-1.0f;
-			}
-			else {
-				VECCOPY(diff, shi->ao);
-			}
-			
-			VECMUL(diff, f);
-			madd_v3_v3fl(diff, shi->indirect, R.wrld.ao_indirect_energy*shi->amb);
+	float f= R.wrld.aoenergy;
+	float tmp[3], tmpspec[3];
+
+	if(!((R.r.mode & R_RAYTRACE) || R.wrld.ao_gather_method == WO_AOGATHER_APPROX))
+		return;
+	if(f == 0.0f)
+		return;
+
+	if(R.wrld.aomix==WO_AOADD) {
+		shr->combined[0] += shi->ao[0]*shi->r*shi->refl*f;
+		shr->combined[1] += shi->ao[1]*shi->g*shi->refl*f;
+		shr->combined[2] += shi->ao[2]*shi->b*shi->refl*f;
+	}
+	else if(R.wrld.aomix==WO_AOMUL) {
+		mul_v3_v3v3(tmp, shr->combined, shi->ao);
+		mul_v3_v3v3(tmpspec, shr->spec, shi->ao);
+
+		if(f == 1.0f) {
+			copy_v3_v3(shr->combined, tmp);
+			copy_v3_v3(shr->spec, tmpspec);
+		}
+		else {
+			interp_v3_v3v3(shr->combined, shr->combined, tmp, f);
+			interp_v3_v3v3(shr->spec, shr->spec, tmpspec, f);
 		}
-		else
-			diff[0]= diff[1]= diff[2]= 0.0f;
 	}
-	else
-		diff[0]= diff[1]= diff[2]= 0.0f;
+}
+
+static void environment_lighting_apply(ShadeInput *shi, ShadeResult *shr)
+{
+	float f= R.wrld.ao_env_energy*shi->amb;
+
+	if(!((R.r.mode & R_RAYTRACE) || R.wrld.ao_gather_method == WO_AOGATHER_APPROX))
+		return;
+	if(f == 0.0f)
+		return;
+	
+	shr->combined[0] += shi->env[0]*shi->r*shi->refl*f;
+	shr->combined[1] += shi->env[1]*shi->g*shi->refl*f;
+	shr->combined[2] += shi->env[2]*shi->b*shi->refl*f;
+}
+
+static void indirect_lighting_apply(ShadeInput *shi, ShadeResult *shr)
+{
+	float f= R.wrld.ao_indirect_energy;
+
+	if(!((R.r.mode & R_RAYTRACE) || R.wrld.ao_gather_method == WO_AOGATHER_APPROX))
+		return;
+	if(f == 0.0f)
+		return;
+
+	shr->combined[0] += shi->indirect[0]*shi->r*shi->refl*f;
+	shr->combined[1] += shi->indirect[1]*shi->g*shi->refl*f;
+	shr->combined[2] += shi->indirect[2]*shi->b*shi->refl*f;
 }
 
 /* result written in shadfac */
@@ -1510,7 +1538,7 @@ static void shade_lamp_loop_only_shadow(ShadeInput *shi, ShadeResult *shr)
 	}
 	
 	/* quite disputable this...  also note it doesn't mirror-raytrace */	
-	if((R.wrld.mode & WO_AMB_OCC) && shi->amb!=0.0f) {
+	if((R.wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) && shi->amb!=0.0f) {
 		float f;
 		
 		f= 1.0f - shi->ao[0];
@@ -1520,12 +1548,8 @@ static void shade_lamp_loop_only_shadow(ShadeInput *shi, ShadeResult *shr)
 			shr->alpha += f;
 			shr->alpha *= f;
 		}
-		else if(R.wrld.aomix==WO_AOSUB) {
-			shr->alpha += f;
-		}
-		else {
+		else if(R.wrld.aomix==WO_AOMUL) {
 			shr->alpha *= f;
-			shr->alpha += f;
 		}
 	}
 }
@@ -1600,25 +1624,26 @@ void shade_lamp_loop(ShadeInput *shi, ShadeResult *shr)
 	}
 
 	if( (ma->mode & (MA_VERTEXCOL|MA_VERTEXCOLP))== MA_VERTEXCOL ) {	// vertexcolor light
-		shr->diff[0]= shi->r*(shi->emit+shi->vcol[0]);
-		shr->diff[1]= shi->g*(shi->emit+shi->vcol[1]);
-		shr->diff[2]= shi->b*(shi->emit+shi->vcol[2]);
+		shr->emit[0]= shi->r*(shi->emit+shi->vcol[0]);
+		shr->emit[1]= shi->g*(shi->emit+shi->vcol[1]);
+		shr->emit[2]= shi->b*(shi->emit+shi->vcol[2]);
 	}
 	else {
-		shr->diff[0]= shi->r*shi->emit;
-		shr->diff[1]= shi->g*shi->emit;
-		shr->diff[2]= shi->b*shi->emit;
+		shr->emit[0]= shi->r*shi->emit;
+		shr->emit[1]= shi->g*shi->emit;
+		shr->emit[2]= shi->b*shi->emit;
 	}
-	VECCOPY(shr->shad, shr->diff);
 	
 	/* AO pass */
-	if(R.wrld.mode & WO_AMB_OCC) {
-		if(((passflag & SCE_PASS_COMBINED) && (shi->combinedflag & SCE_PASS_AO))
-			|| (passflag & SCE_PASS_AO)) {
+	if(R.wrld.mode & (WO_AMB_OCC|WO_ENV_LIGHT|WO_INDIRECT_LIGHT)) {
+		if(((passflag & SCE_PASS_COMBINED) && (shi->combinedflag & (SCE_PASS_AO|SCE_PASS_ENVIRONMENT|SCE_PASS_INDIRECT)))
+			|| (passflag & (SCE_PASS_AO|SCE_PASS_ENVIRONMENT|SCE_PASS_INDIRECT))) {
 			/* AO was calculated for scanline already */
 			if(shi->depth)
 				ambient_occlusion(shi);
 			VECCOPY(shr->ao, shi->ao);
+			VECCOPY(shr->env, shi->env); // XXX multiply
+			VECCOPY(shr->indirect, shi->indirect); // XXX multiply
 		}
 	}
 	
@@ -1727,6 +1752,19 @@ void shade_lamp_loop(ShadeInput *shi, ShadeResult *shr)
 	
 	/* from now stuff everything in shr->combined: ambient, AO, radio, ramps, exposure */
 	if(!(ma->sss_flag & MA_DIFF_SSS) || !sss_pass_done(&R, ma)) {
+		/* add AO in combined? */
+		if(R.wrld.mode & WO_AMB_OCC)
+			if(shi->combinedflag & SCE_PASS_AO)
+				ambient_occlusion_apply(shi, shr);
+
+		if(R.wrld.mode & WO_ENV_LIGHT)
+			if(shi->combinedflag & SCE_PASS_ENVIRONMENT)
+				environment_lighting_apply(shi, shr);
+
+		if(R.wrld.mode & WO_INDIRECT_LIGHT)
+			if(shi->combinedflag & SCE_PASS_INDIRECT)
+				indirect_lighting_apply(shi, shr);
+		
 		shr->combined[0]+= shi->ambr;
 		shr->combined[1]+= shi->ambg;
 		shr->combined[2]+= shi->ambb;
@@ -1738,22 +1776,6 @@ void shade_lamp_loop(ShadeInput *shi, ShadeResult *shr)
 			shr->combined[2]+= shi->b*shi->amb*shi->rad[2];
 		}*/
 		
-		/* add AO in combined? */
-		if(R.wrld.mode & WO_AMB_OCC) {
-			if(shi->combinedflag & SCE_PASS_AO) {
-				float aodiff[3];
-				ambient_occlusion_to_diffuse(shi, aodiff);
-				
-				shr->combined[0] += shi->r*aodiff[0];
-				shr->combined[1] += shi->g*aodiff[1];
-				shr->combined[2] += shi->b*aodiff[2];
-				
-				if (shr->combined[0] < 0.f) shr->combined[0]= 0.f;
-				if (shr->combined[1] < 0.f) shr->combined[1]= 0.f;
-				if (shr->combined[2] < 0.f) shr->combined[2]= 0.f;
-			}
-		}
-		
 		if(ma->mode & MA_RAMP_COL) ramp_diffuse_result(shr->combined, shi);
 	}
 
@@ -1775,10 +1797,12 @@ void shade_lamp_loop(ShadeInput *shi, ShadeResult *shr)
 			
 	}
 	
-	/* and add spec */
+	/* and add emit and spec */
+	if(shi->combinedflag & SCE_PASS_EMIT)
+		VECADD(shr->combined, shr->combined, shr->emit);
 	if(shi->combinedflag & SCE_PASS_SPEC)
 		VECADD(shr->combined, shr->combined, shr->spec);
-
+	
 	/* modulate by the object color */
 	if((ma->shade_flag & MA_OBCOLOR) && shi->obr->ob) {
 		if(!(ma->sss_flag & MA_DIFF_SSS) || !sss_pass_done(&R, ma)) {
diff --git a/source/blender/render/intern/source/strand.c b/source/blender/render/intern/source/strand.c
index 2b1c121539e..279d53d050c 100644
--- a/source/blender/render/intern/source/strand.c
+++ b/source/blender/render/intern/source/strand.c
@@ -222,6 +222,8 @@ void interpolate_shade_result(ShadeResult *shr1, ShadeResult *shr2, float t, Sha
 			interpolate_vec3(shr1->nor, shr2->nor, t, negt, shr->nor);
 			normalize_v3(shr->nor);
 		}
+		if(addpassflag & SCE_PASS_EMIT)
+			interpolate_vec3(shr1->emit, shr2->emit, t, negt, shr->emit);
 		if(addpassflag & SCE_PASS_DIFFUSE)
 			interpolate_vec3(shr1->diff, shr2->diff, t, negt, shr->diff);
 		if(addpassflag & SCE_PASS_SPEC)
@@ -230,6 +232,10 @@ void interpolate_shade_result(ShadeResult *shr1, ShadeResult *shr2, float t, Sha
 			interpolate_vec3(shr1->shad, shr2->shad, t, negt, shr->shad);
 		if(addpassflag & SCE_PASS_AO)
 			interpolate_vec3(shr1->ao, shr2->ao, t, negt, shr->ao);
+		if(addpassflag & SCE_PASS_ENVIRONMENT)
+			interpolate_vec3(shr1->env, shr2->env, t, negt, shr->env);
+		if(addpassflag & SCE_PASS_INDIRECT)
+			interpolate_vec3(shr1->indirect, shr2->indirect, t, negt, shr->indirect);
 		if(addpassflag & SCE_PASS_REFLECT)
 			interpolate_vec3(shr1->refl, shr2->refl, t, negt, shr->refl);
 		if(addpassflag & SCE_PASS_REFRACT)
@@ -963,6 +969,7 @@ StrandSurface *cache_strand_surface(Render *re, ObjectRen *obr, DerivedMesh *dm,
 		mesh->totface= totface;
 		mesh->face= MEM_callocN(sizeof(int)*4*mesh->totface, "StrandSurfFaces");
 		mesh->ao= MEM_callocN(sizeof(float)*3*mesh->totvert, "StrandSurfAO");
+		mesh->env= MEM_callocN(sizeof(float)*3*mesh->totvert, "StrandSurfEnv");
 		mesh->indirect= MEM_callocN(sizeof(float)*3*mesh->totvert, "StrandSurfIndirect");
 		BLI_addtail(&re->strandsurface, mesh);
 	}
@@ -1002,6 +1009,7 @@ void free_strand_surface(Render *re)
 		if(mesh->prevco) MEM_freeN(mesh->prevco);
 		if(mesh->nextco) MEM_freeN(mesh->nextco);
 		if(mesh->ao) MEM_freeN(mesh->ao);
+		if(mesh->env) MEM_freeN(mesh->env);
 		if(mesh->indirect) MEM_freeN(mesh->indirect);
 		if(mesh->face) MEM_freeN(mesh->face);
 	}
diff --git a/source/blender/render/intern/source/zbuf.c b/source/blender/render/intern/source/zbuf.c
index ac3474e51e5..484dbdd37a3 100644
--- a/source/blender/render/intern/source/zbuf.c
+++ b/source/blender/render/intern/source/zbuf.c
@@ -3516,6 +3516,9 @@ void merge_transp_passes(RenderLayer *rl, ShadeResult *shr)
 				col= shr->col;
 				pixsize= 4;
 				break;
+			case SCE_PASS_EMIT:
+				col= shr->emit;
+				break;
 			case SCE_PASS_DIFFUSE:
 				col= shr->diff;
 				break;
@@ -3528,6 +3531,12 @@ void merge_transp_passes(RenderLayer *rl, ShadeResult *shr)
 			case SCE_PASS_AO:
 				col= shr->ao;
 				break;
+			case SCE_PASS_ENVIRONMENT:
+				col= shr->env;
+				break;
+			case SCE_PASS_INDIRECT:
+				col= shr->indirect;
+				break;
 			case SCE_PASS_REFLECT:
 				col= shr->refl;
 				break;
@@ -3615,6 +3624,9 @@ void add_transp_passes(RenderLayer *rl, int offset, ShadeResult *shr, float alph
 				fp= rpass->rect + 4*offset;
 				addAlphaOverFloat(fp, shr->col);
 				break;
+			case SCE_PASS_EMIT:
+				col= shr->emit;
+				break;
 			case SCE_PASS_DIFFUSE:
 				col= shr->diff;
 				break;
@@ -3627,6 +3639,12 @@ void add_transp_passes(RenderLayer *rl, int offset, ShadeResult *shr, float alph
 			case SCE_PASS_AO:
 				col= shr->ao;
 				break;
+			case SCE_PASS_ENVIRONMENT:
+				col= shr->env;
+				break;
+			case SCE_PASS_INDIRECT:
+				col= shr->indirect;
+				break;
 			case SCE_PASS_REFLECT:
 				col= shr->refl;
 				break;
@@ -3851,6 +3869,9 @@ static int addtosamp_shr(ShadeResult *samp_shr, ShadeSample *ssamp, int addpassf
 					if(addpassflag & SCE_PASS_NORMAL)
 						addvecmul(samp_shr->nor, shr->nor, fac);
 
+					if(addpassflag & SCE_PASS_EMIT)
+						addvecmul(samp_shr->emit, shr->emit, fac);
+
 					if(addpassflag & SCE_PASS_DIFFUSE)
 						addvecmul(samp_shr->diff, shr->diff, fac);
 					
@@ -3863,6 +3884,12 @@ static int addtosamp_shr(ShadeResult *samp_shr, ShadeSample *ssamp, int addpassf
 					if(addpassflag & SCE_PASS_AO)
 						addvecmul(samp_shr->ao, shr->ao, fac);
 
+					if(addpassflag & SCE_PASS_ENVIRONMENT)
+						addvecmul(samp_shr->env, shr->env, fac);
+
+					if(addpassflag & SCE_PASS_INDIRECT)
+						addvecmul(samp_shr->indirect, shr->indirect, fac);
+
 					if(addpassflag & SCE_PASS_REFLECT)
 						addvecmul(samp_shr->refl, shr->refl, fac);