diff --git a/lib/dependencies/LoaderPlugin.js b/lib/dependencies/LoaderPlugin.js
index b978fc6d9cb..efce35e6ab4 100644
--- a/lib/dependencies/LoaderPlugin.js
+++ b/lib/dependencies/LoaderPlugin.js
@@ -47,7 +47,7 @@ class LoaderPlugin {
 							],
 							true,
 							"lm",
-							false,
+							true,
 							err => {
 								compilation.semaphore.acquire(() => {
 									if (err) return callback(err);
diff --git a/test/cases/loaders/issue-4959/a.js b/test/cases/loaders/issue-4959/a.js
new file mode 100644
index 00000000000..6cd1d0075d4
--- /dev/null
+++ b/test/cases/loaders/issue-4959/a.js
@@ -0,0 +1 @@
+module.exports = "a";
diff --git a/test/cases/loaders/issue-4959/b.js b/test/cases/loaders/issue-4959/b.js
new file mode 100644
index 00000000000..554e527d5dc
--- /dev/null
+++ b/test/cases/loaders/issue-4959/b.js
@@ -0,0 +1 @@
+module.exports = require("c");
diff --git a/test/cases/loaders/issue-4959/c.js b/test/cases/loaders/issue-4959/c.js
new file mode 100644
index 00000000000..f55ffed587c
--- /dev/null
+++ b/test/cases/loaders/issue-4959/c.js
@@ -0,0 +1 @@
+module.exports = "c";
diff --git a/test/cases/loaders/issue-4959/index.js b/test/cases/loaders/issue-4959/index.js
new file mode 100644
index 00000000000..8e0c5179704
--- /dev/null
+++ b/test/cases/loaders/issue-4959/index.js
@@ -0,0 +1,3 @@
+it("should resolve module dependencies recursively", function() {
+	require("!./loaders/index!a").should.be.eql("c");
+});
diff --git a/test/cases/loaders/issue-4959/loaders/index.js b/test/cases/loaders/issue-4959/loaders/index.js
new file mode 100644
index 00000000000..a9877df5e40
--- /dev/null
+++ b/test/cases/loaders/issue-4959/loaders/index.js
@@ -0,0 +1,9 @@
+module.exports = function() {
+	var callback = this.async();
+	this.loadModule("b", function(error) {
+		if (error) {
+			return callback(error);
+		}
+		callback(null, "module.exports = require('b');");
+	});
+};
diff --git a/test/cases/loaders/issue-4959/package.json b/test/cases/loaders/issue-4959/package.json
new file mode 100644
index 00000000000..240a86856fb
--- /dev/null
+++ b/test/cases/loaders/issue-4959/package.json
@@ -0,0 +1,7 @@
+{
+	"browser": {
+		"a": "./a.js",
+		"b": "./b.js",
+		"c": "./c.js"
+	}
+}