diff --git a/hw/kdrive/ephyr/ephyr.c b/hw/kdrive/ephyr/ephyr.c
index 95670eb24..ad8dab1a9 100644
--- a/hw/kdrive/ephyr/ephyr.c
+++ b/hw/kdrive/ephyr/ephyr.c
@@ -38,7 +38,10 @@
 #endif
 #include "ephyr.h"
 
+#include "inputstr.h"
+
 extern int KdTsPhyScreen;
+extern DeviceIntPtr pKdKeyboard;
 
 static int mouseState = 0;
 
@@ -564,6 +567,65 @@ ephyrScreenFini (KdScreenInfo *screen)
 {
 }
 
+/*  
+ * Port of Mark McLoughlin's Xnest fix for focus in + modifier bug.
+ * See https://bugs.freedesktop.org/show_bug.cgi?id=3030
+ */
+void
+ephyrUpdateModifierState(unsigned int state)
+{
+  DeviceIntPtr pkeydev;
+  KeyClassPtr  keyc;
+  int          i;
+  CARD8        mask;
+
+  pkeydev = LookupKeyboardDevice();
+
+  if (!pkeydev)
+      return;
+
+  keyc = pkeydev->key;
+
+  if (keyc->state == state)
+    return;
+
+  for (i = 0, mask = 1; i < 8; i++, mask <<= 1) 
+    {
+      int key;
+      
+      /* Modifier is down, but shouldn't be   */
+      if ((keyc->state & mask) && !(state & mask)) 
+	{
+	  int count = keyc->modifierKeyCount[i];
+	  
+	  for (key = 0; key < MAP_LENGTH; key++)
+	    if (keyc->modifierMap[key] & mask) 
+	      {
+		int bit;
+		BYTE *kptr;
+		
+		kptr = &keyc->down[key >> 3];
+		bit = 1 << (key & 7);
+		
+		if (*kptr & bit)
+		  KdEnqueueKeyboardEvent(key, TRUE); /* release */
+		
+		if (--count == 0)
+		  break;
+	      }
+	}
+       
+      /* Modifier shoud be down, but isn't   */
+      if (!(keyc->state & mask) && (state & mask))
+	for (key = 0; key < MAP_LENGTH; key++)
+	  if (keyc->modifierMap[key] & mask) 
+	    {
+	      KdEnqueueKeyboardEvent(key, FALSE); /* press */
+	      break;
+	    }
+    }
+}
+
 void
 ephyrPoll(void)
 {
@@ -592,12 +654,12 @@ ephyrPoll(void)
 	  break;
 
 	case EPHYR_EV_KEY_PRESS:
-
+	  ephyrUpdateModifierState(ev.data.key_down.state);
 	  KdEnqueueKeyboardEvent (ev.data.key_down.scancode, FALSE);
 	  break;
 
 	case EPHYR_EV_KEY_RELEASE:
-
+	  ephyrUpdateModifierState(ev.data.key_up.state);
 	  KdEnqueueKeyboardEvent (ev.data.key_up.scancode, TRUE);
 	  break;
 
diff --git a/hw/kdrive/ephyr/ephyr.h b/hw/kdrive/ephyr/ephyr.h
index d7c9ecdb4..0e84cdbc3 100644
--- a/hw/kdrive/ephyr/ephyr.h
+++ b/hw/kdrive/ephyr/ephyr.h
@@ -142,6 +142,9 @@ ephyrShadowUpdate (ScreenPtr pScreen, shadowBufPtr pBuf);
 
 #endif
 
+void
+ephyrUpdateModifierState(unsigned int state);
+
 extern KdMouseFuncs EphyrMouseFuncs;
 
 extern KdKeyboardFuncs	EphyrKeyboardFuncs;
diff --git a/hw/kdrive/ephyr/hostx.c b/hw/kdrive/ephyr/hostx.c
index 301b3e26b..3454f2785 100644
--- a/hw/kdrive/ephyr/hostx.c
+++ b/hw/kdrive/ephyr/hostx.c
@@ -29,11 +29,11 @@
 #include <stdio.h>
 #include <unistd.h>
 #include <string.h> 		/* for memset */
+#include <time.h>
 
 #include <sys/ipc.h>
 #include <sys/shm.h>
 #include <sys/time.h>
-#include <time.h>
 
 #include <X11/Xlib.h>
 #include <X11/Xutil.h>
@@ -733,7 +733,8 @@ hostx_get_event(EphyrHostXEvent *ev)
 
 	case KeyPress:
 	  {
-	    ev->type = EPHYR_EV_KEY_PRESS;
+	    ev->type  = EPHYR_EV_KEY_PRESS;
+	    ev->data.key_down.state = xev.xkey.state;
 	    ev->data.key_down.scancode = xev.xkey.keycode;  
 	    return 1;
 	  }
@@ -779,6 +780,7 @@ hostx_get_event(EphyrHostXEvent *ev)
            * kdrive all togeather. 
  	   */
 	  ev->type = EPHYR_EV_KEY_RELEASE;
+	  ev->data.key_up.state = xev.xkey.state;
 	  ev->data.key_up.scancode = xev.xkey.keycode;
 	  return 1;
 
diff --git a/hw/kdrive/ephyr/hostx.h b/hw/kdrive/ephyr/hostx.h
index 73e7e04a1..08ed036d4 100644
--- a/hw/kdrive/ephyr/hostx.h
+++ b/hw/kdrive/ephyr/hostx.h
@@ -69,10 +69,12 @@ struct EphyrHostXEvent
 
     struct key_up {
       int scancode;
+      int state;
     } key_up;
 
     struct key_down {
       int scancode;
+      int state;
     } key_down;
 
   } data;