diff --git a/docs/changes.txt b/docs/changes.txt
index 18b61b88ea..d822b9852f 100644
--- a/docs/changes.txt
+++ b/docs/changes.txt
@@ -575,6 +575,7 @@ All (GUI):
 - Set correct cursor when the mouse is over image map links in wxHTML (LukasK).
 - Add wxPropertyGridPageState::GetColumnFullWidth() (Teodor Petrov).
 - wxRTC: extracted XML utilities into a separate class for potential reuse.
+- wxPropertyGrid: improve composite flags handling (Jens Lody).
 
 wxGTK:
 
diff --git a/src/propgrid/props.cpp b/src/propgrid/props.cpp
index f1112a0ac8..c79faae159 100644
--- a/src/propgrid/props.cpp
+++ b/src/propgrid/props.cpp
@@ -1490,7 +1490,7 @@ wxString wxFlagsProperty::ValueToString( wxVariant& value,
     for ( i = 0; i < GetItemCount(); i++ )
     {
         int doAdd;
-        doAdd = ( flags & choices.GetValue(i) );
+        doAdd = ( (flags & choices.GetValue(i)) == choices.GetValue(i) );
 
         if ( doAdd )
         {
@@ -1578,7 +1578,7 @@ void wxFlagsProperty::RefreshChildren()
         if ( subVal != (m_oldValue & flag) )
             p->ChangeFlag( wxPG_PROP_MODIFIED, true );
 
-        p->SetValue( subVal?true:false );
+        p->SetValue( subVal == flag?true:false );
     }
 
     m_oldValue = flags;