diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index db33081cde..66c4cca21f 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -1,3 +1,6 @@
+#### 0.11.0-alpha004 - 29.10.2014
+* Paket no longer leaves indirect dependencies in lockfile after remove command - https://github.com/fsprojects/Paket/pull/306 
+
 #### 0.11.0-alpha003 - 29.10.2014
 * BUGFIX: ALlow spaces ib quoted parameter parsing - https://github.com/fsprojects/Paket/pull/311
 
diff --git a/src/Paket.Core/UpdateProcess.fs b/src/Paket.Core/UpdateProcess.fs
index 34eaf1459b..a2097c3fa3 100644
--- a/src/Paket.Core/UpdateProcess.fs
+++ b/src/Paket.Core/UpdateProcess.fs
@@ -38,16 +38,17 @@ let updateWithModifiedDependenciesFile(dependenciesFile:DependenciesFile,package
         lockFile
     else
         let oldLockFile = LockFile.LoadFrom(lockFileName.FullName)
-        
+        let packageKeys = dependenciesFile.DirectDependencies |> Seq.map (fun kv -> kv.Key.ToLower()) |> Set.ofSeq
+
         let updatedDependenciesFile = 
             oldLockFile.ResolvedPackages 
             |> Seq.fold 
                     (fun (dependenciesFile : DependenciesFile) kv -> 
-                    let resolvedPackage = kv.Value
-                    if resolvedPackage.Name.ToLower() = package.ToLower() then dependenciesFile
-                    else 
-                        dependenciesFile.AddFixedPackage
-                            (resolvedPackage.Name, "== " + resolvedPackage.Version.ToString())) dependenciesFile
+                        let resolvedPackage = kv.Value
+                        let name = resolvedPackage.Name.ToLower()
+                        if name = package.ToLower() || not <| packageKeys.Contains name then dependenciesFile else 
+                        dependenciesFile.AddFixedPackage(resolvedPackage.Name, "== " + resolvedPackage.Version.ToString()))
+                    dependenciesFile
         
         let resolution = updatedDependenciesFile.Resolve(force)
         let resolvedPackages = resolution.ResolvedPackages.GetModelOrFail()