diff --git a/examples/webgl_materials_variations_physical2.html b/examples/webgl_materials_variations_physical2.html
new file mode 100644
index 00000000000000..47b7ddb6d7974e
--- /dev/null
+++ b/examples/webgl_materials_variations_physical2.html
@@ -0,0 +1,250 @@
+<!DOCTYPE html>
+<html lang="en">
+	<head>
+		<title>three.js webgl - materials</title>
+		<meta charset="utf-8">
+		<meta name="viewport" content="width=device-width, user-scalable=no, minimum-scale=1.0, maximum-scale=1.0">
+		<style>
+					body {
+				color: #fff;
+				font-family:Monospace;
+				font-size:13px;
+				text-align:center;
+
+				background-color: #fff;
+				margin: 0px;
+				overflow: hidden;
+			}
+
+			#info {
+				position: absolute;
+				top: 0px; width: 100%;
+				padding: 5px;
+			}
+		</style>
+	</head>
+	<body>
+
+		<div id="container"></div>
+		<div id="info"><a href="http://threejs.org" target="_blank">three.js</a> - Physical Material Variantions v2 by <a href="http://clara.io/" target="_blank">Ben Houston</a>.</div>
+
+		<script src="../build/three.min.js"></script>
+		<script src="js/controls/OrbitControls.js"></script>
+		<script src="js/geometries/TextGeometry.js"></script>
+		<script src="js/utils/FontUtils.js"></script>
+		<script src="fonts/gentilis_regular.typeface.js"></script>
+
+		<script src="js/Detector.js"></script>
+		<script src="js/libs/stats.min.js"></script>
+
+		<script>
+
+			if ( ! Detector.webgl ) Detector.addGetWebGLMessage();
+
+			var container, stats;
+
+			var camera, scene, renderer, controls, objects = [];
+			var particleLight;
+
+			init();
+			animate();
+
+			function init() {
+
+				container = document.createElement( 'div' );
+				document.body.appendChild( container );
+
+				camera = new THREE.PerspectiveCamera( 40, window.innerWidth / window.innerHeight, 1, 2000 );
+				camera.position.set( 0.0, 400, 400 * 3.5 );
+
+				scene = new THREE.Scene();
+
+				// Materials
+
+				var imgTexture = THREE.ImageUtils.loadTexture( "textures/planets/moon_1024.jpg" );
+				imgTexture.wrapS = imgTexture.wrapT = THREE.RepeatWrapping;
+				imgTexture.anisotropy = 16;
+				imgTexture = null;
+
+				var shininess = 50, specular = 0x333333, bumpScale = 1, shading = THREE.SmoothShading;
+
+				var materials = [];
+
+				var path = "textures/cube/SwedishRoyalCastle/";
+				var format = '.jpg';
+				var urls = [
+						path + 'px' + format, path + 'nx' + format,
+						path + 'py' + format, path + 'ny' + format,
+						path + 'pz' + format, path + 'nz' + format
+					];
+
+				var reflectionCube = THREE.ImageUtils.loadTextureCube( urls );
+				reflectionCube.format = THREE.RGBFormat;
+
+				var cubeWidth = 400;
+				var numberOfSphersPerSide = 5;
+				var sphereRadius = ( cubeWidth / numberOfSphersPerSide ) * 0.8 * 0.5;
+				var stepSize = 1.0 / numberOfSphersPerSide;
+
+				var geometry = new THREE.SphereBufferGeometry( sphereRadius, 32, 16 );
+
+				var localReflectionCube;
+				
+				for( var alpha = 0, alphaIndex = 0; alpha <= 1.0; alpha += stepSize, alphaIndex ++ ) {
+
+					var roughness = 1.0 - alpha;
+
+					if( alphaIndex % 2 === 0 ) {
+						localReflectionCube = null;
+					}
+					else {
+						localReflectionCube = reflectionCube;
+					}
+
+					for( var beta = 0; beta <= 1.0; beta += stepSize ) {
+
+						var reflectivity = beta;
+
+						for( var gamma = 0; gamma <= 1.0; gamma += stepSize ) {
+
+							// basic monochromatic energy preservation
+							var diffuseColor = new THREE.Color( gamma, 0, 0 ).multiplyScalar( 1 - 0.08 );
+
+							var material = new THREE.MeshPhysicalMaterial( { map: imgTexture, bumpMap: imgTexture, bumpScale: bumpScale, color: diffuseColor, reflectivity: reflectivity, roughness: roughness, shading: THREE.SmoothShading, envMap: localReflectionCube } )
+
+							var mesh = new THREE.Mesh( geometry, material );
+
+							mesh.position.x = alpha * 400 - 200;
+							mesh.position.y = beta * 400 - 200;
+							mesh.position.z = gamma * 400 - 200;
+
+							objects.push( mesh );
+
+							scene.add( mesh );
+						}
+					}
+				}
+	
+				function addLabel( name, location ) {
+					var textGeo = new THREE.TextGeometry( name, {
+
+						size: 20,
+						height: 5,
+						curveSegments: 10,
+
+						font: 'gentilis',
+						weight: 'normal',
+						style: 'normal',
+
+						material: 0,
+						extrudeMaterial: 1
+
+					});
+
+					var textMaterial = new THREE.MeshBasicMaterial( { color: 0xffffff } );
+					var textMesh = new THREE.Mesh( textGeo, textMaterial );
+					textMesh.position.copy( location );
+					scene.add( textMesh );
+				}
+
+				addLabel( "+roughness", new THREE.Vector3( -350, 0, 0 ) );
+				addLabel( "-roughness", new THREE.Vector3( 350, 0, 0 ) );
+
+				addLabel( "-reflectivity", new THREE.Vector3( 0, -300, 0 ) );
+				addLabel( "+reflectivity", new THREE.Vector3( 0, 300, 0 ) );
+
+				addLabel( "-diffuse", new THREE.Vector3( 0, 0, -300 ) );
+				addLabel( "+diffuse", new THREE.Vector3( 0, 0, 300 ) );
+
+				particleLight = new THREE.Mesh( new THREE.SphereBufferGeometry( 4, 8, 8 ), new THREE.MeshBasicMaterial( { color: 0xffffff } ) );
+				scene.add( particleLight );
+
+				// Lights
+
+				scene.add( new THREE.AmbientLight( 0x222222 ) );
+
+				var directionalLight = new THREE.DirectionalLight( 0xffffff, 1 );
+				directionalLight.position.set( 1, 1, 1 ).normalize();
+				scene.add( directionalLight );
+
+				var pointLight = new THREE.PointLight( 0xffffff, 2, 800 );
+				particleLight.add( pointLight );
+
+				//
+
+				renderer = new THREE.WebGLRenderer( { antialias: true } );
+				renderer.setClearColor( 0x0a0a0a );
+				renderer.setPixelRatio( window.devicePixelRatio );
+				renderer.setSize( window.innerWidth, window.innerHeight );
+				renderer.sortObjects = true;
+
+				container.appendChild( renderer.domElement );
+
+				renderer.gammaInput = true;
+				renderer.gammaOutput = true;
+
+				//
+
+				stats = new Stats();
+				stats.domElement.style.position = 'absolute';
+				stats.domElement.style.top = '0px';
+
+				container.appendChild( stats.domElement );
+
+				controls = new THREE.OrbitControls( camera );
+				controls.target.set( 0, 0, 0 );
+				controls.update();
+
+				window.addEventListener( 'resize', onWindowResize, false );
+
+			}
+
+			function onWindowResize() {
+
+				camera.aspect = window.innerWidth / window.innerHeight;
+				camera.updateProjectionMatrix();
+
+				renderer.setSize( window.innerWidth, window.innerHeight );
+
+			}
+
+			//
+
+			function animate() {
+
+				requestAnimationFrame( animate );
+
+				render();
+				stats.update();
+
+			}
+
+			function render() {
+
+				var timer = Date.now() * 0.00025;
+
+				//camera.position.x = Math.cos( timer ) * 800;
+				//camera.position.z = Math.sin( timer ) * 800;
+
+				camera.lookAt( scene.position );
+
+				for ( var i = 0, l = objects.length; i < l; i ++ ) {
+
+					var object = objects[ i ];
+
+					object.rotation.y += 0.005;
+
+				}
+
+				particleLight.position.x = Math.sin( timer * 7 ) * 300;
+				particleLight.position.y = Math.cos( timer * 5 ) * 400;
+				particleLight.position.z = Math.cos( timer * 3 ) * 300;
+
+				renderer.render( scene, camera );
+
+			}
+
+		</script>
+
+	</body>
+</html>
diff --git a/src/renderers/shaders/ShaderChunk/envmap_pars_fragment.glsl b/src/renderers/shaders/ShaderChunk/envmap_pars_fragment.glsl
index d9471ded079e2e..81d6b55a6da2f8 100644
--- a/src/renderers/shaders/ShaderChunk/envmap_pars_fragment.glsl
+++ b/src/renderers/shaders/ShaderChunk/envmap_pars_fragment.glsl
@@ -1,6 +1,8 @@
-#ifdef USE_ENVMAP
+#if defined( USE_ENVMAP ) || defined( PHYSICAL )
 	uniform float reflectivity;
+#endif
 
+#ifdef USE_ENVMAP
 	#ifdef ENVMAP_TYPE_CUBE
 		uniform samplerCube envMap;
 	#else
diff --git a/src/renderers/shaders/ShaderChunk/lights_pars.glsl b/src/renderers/shaders/ShaderChunk/lights_pars.glsl
index 67abcf6127d239..050fac92b17ea3 100644
--- a/src/renderers/shaders/ShaderChunk/lights_pars.glsl
+++ b/src/renderers/shaders/ShaderChunk/lights_pars.glsl
@@ -159,7 +159,7 @@ uniform vec3 ambientLightColor;
 
 		envMapColor.rgb = inputToLinear( envMapColor.rgb );
 
-		return envMapColor.rgb * reflectivity;
+		return envMapColor.rgb;
 
 	}
 
diff --git a/src/renderers/shaders/ShaderChunk/lights_physical_fragment.glsl b/src/renderers/shaders/ShaderChunk/lights_physical_fragment.glsl
index 66f6591150b329..75cbe1bf47e728 100644
--- a/src/renderers/shaders/ShaderChunk/lights_physical_fragment.glsl
+++ b/src/renderers/shaders/ShaderChunk/lights_physical_fragment.glsl
@@ -1,4 +1,4 @@
 PhysicalMaterial material;
 material.diffuseColor = diffuseColor.rgb * ( 1.0 - metalnessFactor );
 material.specularRoughness = roughnessFactor * 0.5 + 0.5; // disney's remapping of [ 0, 1 ] roughness to [ 0.5, 1 ]
-material.specularColor = mix( vec3( 0.04 ), diffuseColor.rgb, metalnessFactor );
+material.specularColor = mix( vec3( 0.08 ) * reflectivity, diffuseColor.rgb, metalnessFactor );
