diff --git a/lib/Cake/Model/Permission.php b/lib/Cake/Model/Permission.php
index 39c64ca57..303124b03 100644
--- a/lib/Cake/Model/Permission.php
+++ b/lib/Cake/Model/Permission.php
@@ -107,10 +107,10 @@ class Permission extends AppModel {
 			return false;
 		}
 
-		$inherited = array();
 		$acoIDs = Hash::extract($acoPath, '{n}.' . $this->Aco->alias . '.id');
 
 		$count = count($aroPath);
+		$inherited = array();
 		for ($i = 0; $i < $count; $i++) {
 			$permAlias = $this->alias;
 
@@ -129,13 +129,12 @@ class Permission extends AppModel {
 			$perms = Hash::extract($perms, '{n}.' . $this->alias);
 			foreach ($perms as $perm) {
 				if ($action === '*') {
-
 					foreach ($permKeys as $key) {
 						if (!empty($perm)) {
 							if ($perm[$key] == -1) {
 								return false;
-							} elseif ($perm[$key] == 1) {
-								$inherited[$key] = 1;
+							} elseif ($perm[$key] == 1 || $perm[$key] == 0) {
+								$inherited[$key] = $perm[$key];
 							}
 						}
 					}
diff --git a/lib/Cake/Test/Case/Console/Command/AclShellTest.php b/lib/Cake/Test/Case/Console/Command/AclShellTest.php
index 1d79c90e5..702b7a57f 100644
--- a/lib/Cake/Test/Case/Console/Command/AclShellTest.php
+++ b/lib/Cake/Test/Case/Console/Command/AclShellTest.php
@@ -253,7 +253,7 @@ class AclShellTest extends CakeTestCase {
 		$this->Task->args = array('AuthUser.2', 'ROOT/Controller1', 'create');
 		$this->Task->check();
 
-		$this->Task->args = array('AuthUser.2', 'ROOT/Controller1', '*');
+		$this->Task->args = array('AuthUser.2', 'ROOT/Controller1', 'delete');
 		$this->Task->check();
 	}
 
diff --git a/lib/Cake/Test/Case/Controller/Component/Acl/DbAclTest.php b/lib/Cake/Test/Case/Controller/Component/Acl/DbAclTest.php
index b1f927a58..99eccfe03 100644
--- a/lib/Cake/Test/Case/Controller/Component/Acl/DbAclTest.php
+++ b/lib/Cake/Test/Case/Controller/Component/Acl/DbAclTest.php
@@ -429,17 +429,44 @@ class DbAclTest extends CakeTestCase {
  * @return void
  */
 	public function testInherit() {
-		//parent doesn't have access inherit should still deny
+		// parent doesn't have access inherit should still deny
 		$this->assertFalse($this->Acl->check('Milton', 'smash', 'delete'));
 		$this->Acl->inherit('Milton', 'smash', 'delete');
 		$this->assertFalse($this->Acl->check('Milton', 'smash', 'delete'));
 
-		//inherit parent
+		// inherit parent
 		$this->assertFalse($this->Acl->check('Milton', 'smash', 'read'));
 		$this->Acl->inherit('Milton', 'smash', 'read');
 		$this->assertTrue($this->Acl->check('Milton', 'smash', 'read'));
 	}
 
+/**
+ * test inherit from deny method
+ *
+ * @return void
+ */
+	public function testInheritParentDeny() {
+		$this->Acl->Aco->create(array('parent_id' => null, 'alias' => 'world'));
+		$this->Acl->Aco->save();
+
+		$this->Acl->Aco->create(array('parent_id' => $this->Acl->Aco->id, 'alias' => 'town'));
+		$this->Acl->Aco->save();
+
+		$this->Acl->Aro->create(array('parent_id' => null, 'alias' => 'Jane'));
+		$this->Acl->Aro->save();
+
+		// Setup deny on create for parent
+		$this->Acl->allow('Jane', 'world', '*');
+		$this->Acl->deny('Jane', 'world', 'create');
+
+		// Setup inherit and specify allow for create on child.
+		$this->Acl->inherit('Jane', 'town', '*');
+		$this->Acl->allow('Jane', 'town', 'create');
+
+		$this->assertTrue($this->Acl->check('Jane', 'town', 'create'), 'Should have access due to override');
+		$this->assertTrue($this->Acl->check('Jane', 'town', '*'), 'Should have access due to inherit');
+	}
+
 /**
  * testDbGrant method
  *