diff --git a/docs/source/changelog.rst b/docs/source/changelog.rst
index 8beeb99f55..434d7ffabd 100644
--- a/docs/source/changelog.rst
+++ b/docs/source/changelog.rst
@@ -12,7 +12,7 @@ Changelog
     * Fixes
         * Fixed entity set deserialization (:pr:`720`)
         * Added error message when DateTimeIndex is a variable but not set as the time_index (:pr:`723`)
-        * Fixed CumCount and other group-by transform primitives that take ID as input (:pr:`733`)
+        * Fixed CumCount and other group-by transform primitives that take ID as input (:pr:`733`, :pr:`754`)
         * Fix progress bar undercounting (:pr:`743`)
 	* Updated training_window error assertion to only check against observations (:pr:`728`)
         * Don't delete the whole destination folder while saving entityset (:pr:`717`)
diff --git a/featuretools/synthesis/deep_feature_synthesis.py b/featuretools/synthesis/deep_feature_synthesis.py
index a8696ed904..90a8ab2c88 100644
--- a/featuretools/synthesis/deep_feature_synthesis.py
+++ b/featuretools/synthesis/deep_feature_synthesis.py
@@ -517,16 +517,24 @@ def _build_transform_features(self, all_features, entity, max_depth=0,
                                                         entity,
                                                         new_max_depth,
                                                         input_types,
-                                                        groupby_prim,
-                                                        require_direct_input=require_direct_input)
+                                                        groupby_prim)
             # get IDs to use as groupby
             id_matches = self._features_by_type(all_features=all_features,
                                                 entity=entity,
                                                 max_depth=new_max_depth,
                                                 variable_type=set([Id]))
+            # If require_direct_input, require a DirectFeature in input or as a
+            # groupby, and don't create features of inputs/groupbys which are
+            # all direct features with the same relationship path
             for matching_input in matching_inputs:
                 if all(bf.number_output_features == 1 for bf in matching_input):
                     for id_groupby in id_matches:
+                        if require_direct_input and (
+                            _all_direct_and_same_path(matching_input + (id_groupby,)) or
+                            not any([isinstance(feature, DirectFeature) for
+                                     feature in (matching_input + (id_groupby, ))])
+                        ):
+                            continue
                         new_f = GroupByTransformFeature(list(matching_input),
                                                         groupby=id_groupby,
                                                         primitive=groupby_prim)
diff --git a/featuretools/tests/synthesis/test_deep_feature_synthesis.py b/featuretools/tests/synthesis/test_deep_feature_synthesis.py
index 7a6abb3caa..fa1ad04db1 100644
--- a/featuretools/tests/synthesis/test_deep_feature_synthesis.py
+++ b/featuretools/tests/synthesis/test_deep_feature_synthesis.py
@@ -271,6 +271,17 @@ def test_make_groupby_features(es):
                               "CUM_SUM(value) by session_id"))
 
 
+def test_make_indirect_groupby_features(es):
+    dfs_obj = DeepFeatureSynthesis(target_entity_id='log',
+                                   entityset=es,
+                                   agg_primitives=[],
+                                   trans_primitives=[],
+                                   groupby_trans_primitives=['cum_sum'])
+    features = dfs_obj.build_features()
+    assert (feature_with_name(features,
+                              "CUM_SUM(products.rating) by session_id"))
+
+
 def test_make_groupby_features_with_id(es):
     dfs_obj = DeepFeatureSynthesis(target_entity_id='sessions',
                                    entityset=es,