diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index cd882a843..ae6b1333d 100755
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,5 +1,7 @@
 2009-08-11  Carsten Dominik  <carsten.dominik@gmail.com>
 
+	* org.el (org-format-latex): Avoid nested overlays.
+
 	* org-latex.el (org-export-latex-listings-langs): Add a few more
 	languages.
 
diff --git a/lisp/org.el b/lisp/org.el
index 639da00e1..6a37acd2d 100644
--- a/lisp/org.el
+++ b/lisp/org.el
@@ -13902,7 +13902,11 @@ The images can be removed again with \\[org-ctrl-c-ctrl-c]."
 	(while (re-search-forward re nil t)
 	  (when (and (or (not at) (equal (cdr at) (match-beginning n)))
 		     (not (get-text-property (match-beginning n)
-					     'org-protected)))
+					     'org-protected))
+		     (or (not overlays)
+			 (not (eq (get-char-property (match-beginning n)
+						     'org-overlay-type)
+				  'org-latex-overlay))))
 	    (setq txt (match-string n)
 		  beg (match-beginning n) end (match-end n)
 		  cnt (1+ cnt)
@@ -13926,7 +13930,13 @@ The images can be removed again with \\[org-ctrl-c-ctrl-c]."
 	     txt movefile opt forbuffer)
 	    (if overlays
 		(progn
+		  (mapc (lambda (o)
+			  (if (eq (org-overlay-get o 'org-overlay-type)
+				  'org-latex-overlay)
+			      (org-delete-overlay o)))
+			(org-overlays-in beg end))
 		  (setq ov (org-make-overlay beg end))
+		  (org-overlay-put ov 'org-overlay-type 'org-latex-overlay)
 		  (if (featurep 'xemacs)
 		      (progn
 			(org-overlay-put ov 'invisible t)