diff --git a/eclipse/project.xml b/eclipse/project.xml
index e091a6ed..768f3864 100644
--- a/eclipse/project.xml
+++ b/eclipse/project.xml
@@ -5,7 +5,7 @@
   <pomVersion>3</pomVersion>
   <id>maven-eclipse-plugin</id>
   <name>Maven Eclipse Plug-in</name>
-  <currentVersion>1.4</currentVersion>
+  <currentVersion>1.5-SNAPSHOT</currentVersion>
   <description>A plugin to generate various files for the Eclipse IDE and ease the use of Maven within that environment</description>
   <shortDescription>Eclipse Plugin for Maven</shortDescription>
   <url>http://maven.apache.org/reference/plugins/eclipse/</url>
diff --git a/eclipse/src/plugin-resources/templates/classpath.jelly b/eclipse/src/plugin-resources/templates/classpath.jelly
index f8a47439..fa35ce7c 100644
--- a/eclipse/src/plugin-resources/templates/classpath.jelly
+++ b/eclipse/src/plugin-resources/templates/classpath.jelly
@@ -84,7 +84,11 @@
           <!-- ignoring junit dependency as we've already created it -->
         </j:when>
         <j:otherwise>
-          <classpathentry kind="var" path="MAVEN_REPO${lib.urlPath}"/>
+          <!-- make sure it's a classpath dependency -->
+          <j:set var="isClasspath" value="${lib.dependency.isAddedToClasspath()}"/>
+          <j:if test="${isClasspath}">
+            <classpathentry kind="var" path="MAVEN_REPO${lib.urlPath}"/>
+          </j:if>
         </j:otherwise>
       </j:choose>
     </j:forEach>
diff --git a/eclipse/xdocs/changes.xml b/eclipse/xdocs/changes.xml
index 7ac472f5..9296f5d2 100644
--- a/eclipse/xdocs/changes.xml
+++ b/eclipse/xdocs/changes.xml
@@ -6,6 +6,13 @@
   </properties>
 
   <body>
+  
+    <release version="1.5" date="in CVS">
+      <action dev="dion" type="fix">
+        Only classpath dependencies are generated
+      </action>
+    </release>
+  
     <release version="1.4" date="2003-09-29">
       <action dev="epugh" type="add">
         Added support for referencing cactus tests in classpath.
