diff --git a/src/diff/children.js b/src/diff/children.js
index 22b7a61c9c..b44d5168e8 100644
--- a/src/diff/children.js
+++ b/src/diff/children.js
@@ -303,14 +303,11 @@ function constructNewChildrenArray(newParentVNode, renderResult, oldChildren) {
 				if (remainingOldChildren > newChildrenLength - skewedIndex) {
 					skew += matchingIndex - skewedIndex;
 				} else {
-					// ### Change from keyed: I think this was missing from the algo...
 					skew--;
 				}
 			} else if (matchingIndex < skewedIndex) {
 				if (matchingIndex == skewedIndex - 1) {
 					skew = matchingIndex - skewedIndex;
-				} else {
-					skew = 0;
 				}
 			} else {
 				skew = 0;
@@ -429,7 +426,10 @@ function findMatchingIndex(
 
 	if (
 		oldVNode === null ||
-		(oldVNode && key == oldVNode.key && type === oldVNode.type)
+		(oldVNode &&
+			key == oldVNode.key &&
+			type === oldVNode.type &&
+			(oldVNode._flags & MATCHED) === 0)
 	) {
 		return skewedIndex;
 	} else if (shouldSearch) {
diff --git a/test/browser/render.test.js b/test/browser/render.test.js
index 075b6ad39f..ae42ce2720 100644
--- a/test/browser/render.test.js
+++ b/test/browser/render.test.js
@@ -1357,6 +1357,133 @@ describe('render()', () => {
 		expect(scratch.innerHTML).to.equal('<div><div></div><div>B</div></div>');
 	});
 
+	it('should reconcile children in right order', () => {
+		let data = ['A', 'B', 'C', 'D', 'E'];
+		render(
+			<ul>
+				{data.map(d => (
+					<li key={d}>{d}</li>
+				))}
+			</ul>,
+			scratch
+		);
+
+		expect(scratch.textContent).to.equal('ABCDE');
+
+		data = ['B', 'E', 'C', 'D'];
+		render(
+			<ul>
+				{data.map(d => (
+					<li key={d}>{d}</li>
+				))}
+			</ul>,
+			scratch
+		);
+		expect(scratch.textContent).to.equal('BECD');
+	});
+
+	it('should reconcile children in right order #2', () => {
+		let data = ['A', 'B', 'C', 'D', 'E'];
+		render(
+			<ul>
+				{data.map(d => (
+					<li key={d}>{d}</li>
+				))}
+			</ul>,
+			scratch
+		);
+
+		expect(scratch.textContent).to.equal('ABCDE');
+
+		data = ['B', 'E', 'D', 'C'];
+		render(
+			<ul>
+				{data.map(d => (
+					<li key={d}>{d}</li>
+				))}
+			</ul>,
+			scratch
+		);
+		expect(scratch.textContent).to.equal('BEDC');
+	});
+
+	it('should reconcile children in right order #3', () => {
+		render(
+			<div>
+				<p>_A1</p>
+				<p>_A2</p>
+				<h2>_A3</h2>
+				<p>_A4</p>
+				<h2>_A5</h2>
+				<p>_A6</p>
+				<h2>_A7</h2>
+				<p>_A8</p>
+			</div>,
+			scratch
+		);
+
+		render(
+			<div>
+				<p>_B1</p>
+				<p>_B2</p>
+				<p>_B3</p>
+				<h2>_B4</h2>
+				<p>_B5</p>
+				<p>_B6</p>
+				<h2>_B7</h2>
+				<p>_B8</p>
+			</div>,
+			scratch
+		);
+
+		expect(serializeHtml(scratch)).to.equal(
+			'<div><p>_B1</p><p>_B2</p><p>_B3</p><h2>_B4</h2><p>_B5</p><p>_B6</p><h2>_B7</h2><p>_B8</p></div>'
+		);
+	});
+
+	it('should reconcile children in right order #4', () => {
+		render(
+			<div>
+				<p>_A1</p>
+				<p>_A2</p>
+				<div>_A3</div>
+				<h2>_A4</h2>
+				<p>_A5</p>
+				<div>_A6</div>
+				<h2>_A7</h2>
+				<p>_A8</p>
+				<div>_A9</div>
+				<h2>_A10</h2>
+				<p>_A11</p>
+				<div>_A12</div>
+			</div>,
+			scratch
+		);
+
+		render(
+			<div>
+				<p>_B1</p>
+				<p>_B2</p>
+				<p>_B3</p>
+				<h2>_B4</h2>
+				<p>_B5</p>
+				<p>_B6</p>
+				<p>_B7</p>
+				<h2>_B8</h2>
+				<p>_B9</p>
+				<p>_B10</p>
+				<p>_B11</p>
+				<p>_B12</p>
+				<h2>_B13</h2>
+			</div>,
+			scratch
+		);
+
+		expect(serializeHtml(scratch)).to.equal(
+			'<div><p>_B1</p><p>_B2</p><p>_B3</p><h2>_B4</h2><p>_B5</p><p>_B6</p><p>_B7</p><h2>_B8</h2><p>_B9</p><p>_B10</p><p>_B11</p><p>_B12</p><h2>_B13</h2></div>'
+    );
+  });
+
 	it('should not crash or repeatedly add the same child when replacing a matched vnode with null (mixed dom-types)', () => {
 		const B = () => <div>B</div>;