diff --git a/src/core/events.c b/src/core/events.c
index 35839bd94..160c088d3 100644
--- a/src/core/events.c
+++ b/src/core/events.c
@@ -29,6 +29,7 @@
 #include "backends/x11/meta-backend-x11.h"
 #include "compositor/meta-window-actor-private.h"
 #include "core/display-private.h"
+#include "core/keybindings-private.h"
 #include "core/window-private.h"
 #include "meta/meta-backend.h"
 
@@ -378,12 +379,21 @@ meta_display_handle_event (MetaDisplay        *display,
    * handled (because it's one of our hot-keys, or because we are
    * in a keyboard-grabbed mode like moving a window, we don't
    * want to pass the key event to the compositor or Wayland at all.
+   *
+   * Exception: modifier-only key events should still reach Wayland clients
+   * so they can handle modifier+click combinations (Ctrl+click, etc.).
+   * The keybinding handler just tracks modifier state for overlay key
+   * functionality, which doesn't conflict with clients also receiving
+   * the modifier events.
    */
   if (display->event_route != META_EVENT_ROUTE_COMPOSITOR_GRAB &&
       meta_keybindings_process_event (display, window, event))
     {
       bypass_clutter = TRUE;
-      bypass_wayland = TRUE;
+#ifdef HAVE_WAYLAND
+      if (!(IS_KEY_EVENT (event) && meta_keybindings_is_modifier (event->key.keyval)))
+#endif
+        bypass_wayland = TRUE;
       goto out;
     }
 
diff --git a/src/core/keybindings-private.h b/src/core/keybindings-private.h
index 1d42a8c55..0e3586869 100644
--- a/src/core/keybindings-private.h
+++ b/src/core/keybindings-private.h
@@ -139,6 +139,7 @@ void     meta_window_ungrab_all_keys        (MetaWindow  *window,
 gboolean meta_keybindings_process_event     (MetaDisplay        *display,
                                              MetaWindow         *window,
                                              const ClutterEvent *event);
+gboolean meta_keybindings_is_modifier       (xkb_keysym_t        keysym);
 int      meta_keybindings_get_mouse_zoom_modifiers (MetaDisplay *display);
 ClutterModifierType meta_display_get_window_grab_modifiers (MetaDisplay *display);
 
diff --git a/src/core/keybindings.c b/src/core/keybindings.c
index f533d7cf6..7e4cd6903 100644
--- a/src/core/keybindings.c
+++ b/src/core/keybindings.c
@@ -1953,8 +1953,8 @@ meta_display_unfreeze_keyboard (MetaDisplay *display, guint32 timestamp)
                  XIAsyncDevice, timestamp);
 }
 
-static gboolean
-is_modifier (xkb_keysym_t keysym)
+gboolean
+meta_keybindings_is_modifier (xkb_keysym_t keysym)
 {
   switch (keysym)
     {
@@ -2631,7 +2631,7 @@ process_keyboard_move_grab (MetaDisplay     *display,
     return TRUE;
 
   /* don't end grab on modifier key presses */
-  if (is_modifier (event->keyval))
+  if (meta_keybindings_is_modifier (event->keyval))
     return TRUE;
 
   meta_window_get_frame_rect (window, &frame_rect);
@@ -2885,7 +2885,7 @@ process_keyboard_resize_grab (MetaDisplay     *display,
     return TRUE;
 
   /* don't end grab on modifier key presses */
-  if (is_modifier (event->keyval))
+  if (meta_keybindings_is_modifier (event->keyval))
     return TRUE;
 
   if (event->keyval == CLUTTER_KEY_Escape)
diff --git a/src/wayland/meta-wayland-keyboard.c b/src/wayland/meta-wayland-keyboard.c
index 1f050e689..e3210fefa 100644
--- a/src/wayland/meta-wayland-keyboard.c
+++ b/src/wayland/meta-wayland-keyboard.c
@@ -529,6 +529,8 @@ meta_wayland_keyboard_enable (MetaWaylandKeyboard *keyboard)
   MetaBackend *backend = meta_get_backend ();
   ClutterBackend *clutter_backend = clutter_get_default_backend ();
 
+  wl_array_init (&keyboard->pressed_keys);
+
   keyboard->settings = g_settings_new ("org.gnome.desktop.peripherals.keyboard");
   g_signal_connect (keyboard->settings, "changed",
                     G_CALLBACK (settings_changed), keyboard);
@@ -569,6 +571,8 @@ meta_wayland_keyboard_disable (MetaWaylandKeyboard *keyboard)
   wl_list_remove (&keyboard->focus_resource_list);
   wl_list_init (&keyboard->focus_resource_list);
 
+  wl_array_release (&keyboard->pressed_keys);
+
   g_clear_object (&keyboard->settings);
 }
 
@@ -580,6 +584,45 @@ evdev_code (const ClutterKeyEvent *event)
   return event->hardware_keycode - 8;
 }
 
+static void
+update_pressed_keys (MetaWaylandKeyboard *keyboard,
+                     uint32_t             evdev_code,
+                     gboolean             is_press)
+{
+  if (is_press)
+    {
+      uint32_t *end = (uint32_t *) ((char *) keyboard->pressed_keys.data +
+                                    keyboard->pressed_keys.size);
+      uint32_t *k;
+
+      for (k = keyboard->pressed_keys.data; k < end; k++)
+        {
+          if (*k == evdev_code)
+            return;
+        }
+
+      k = wl_array_add (&keyboard->pressed_keys, sizeof (*k));
+      if (k)
+        *k = evdev_code;
+    }
+  else
+    {
+      uint32_t *end = (uint32_t *) ((char *) keyboard->pressed_keys.data +
+                                    keyboard->pressed_keys.size);
+      uint32_t *k;
+
+      for (k = keyboard->pressed_keys.data; k < end; k++)
+        {
+          if (*k == evdev_code)
+            {
+              *k = *(end - 1);
+              keyboard->pressed_keys.size -= sizeof (*k);
+              return;
+            }
+        }
+    }
+}
+
 void
 meta_wayland_keyboard_update (MetaWaylandKeyboard *keyboard,
                               const ClutterKeyEvent *event)
@@ -594,6 +637,8 @@ meta_wayland_keyboard_update (MetaWaylandKeyboard *keyboard,
        (CLUTTER_EVENT_FLAG_SYNTHETIC | CLUTTER_EVENT_FLAG_INPUT_METHOD)) != 0)
     return;
 
+  update_pressed_keys (keyboard, evdev_code (event), is_press);
+
   /* If we get a key event but still have pending modifier state
    * changes from a previous event that didn't get cleared, we need to
    * send that state right away so that the new key event can be
@@ -698,30 +743,10 @@ static void
 broadcast_focus (MetaWaylandKeyboard *keyboard,
                  struct wl_resource  *resource)
 {
-  struct wl_array fake_keys;
-
-  /* We never want to send pressed keys to wayland clients on
-   * enter. The protocol says that we should send them, presumably so
-   * that clients can trigger their own key repeat routine in case
-   * they are given focus and a key is physically pressed.
-   *
-   * Unfortunately this causes some clients, in particular Xwayland,
-   * to register key events that they really shouldn't handle,
-   * e.g. on an Alt+Tab keybinding, where Alt is released before Tab,
-   * clients would see Tab being pressed on enter followed by a key
-   * release event for Tab, meaning that Tab would be processed by
-   * the client when it really shouldn't.
-   *
-   * Since the use case for the pressed keys array on enter seems weak
-   * to us, we'll just fake that there are no pressed keys instead
-   * which should be spec compliant even if it might not be true.
-   */
-  wl_array_init (&fake_keys);
-
-  keyboard_send_modifiers (keyboard, resource, keyboard->focus_serial);
   wl_keyboard_send_enter (resource, keyboard->focus_serial,
                           keyboard->focus_surface->resource,
-                          &fake_keys);
+                          &keyboard->pressed_keys);
+  keyboard_send_modifiers (keyboard, resource, keyboard->focus_serial);
 }
 
 void
diff --git a/src/wayland/meta-wayland-keyboard.h b/src/wayland/meta-wayland-keyboard.h
index 6e8a61674..9ed2a3156 100644
--- a/src/wayland/meta-wayland-keyboard.h
+++ b/src/wayland/meta-wayland-keyboard.h
@@ -95,6 +95,8 @@ struct _MetaWaylandKeyboard
   uint32_t key_up_keycode;
   uint32_t key_up_serial;
 
+  struct wl_array pressed_keys;
+
   MetaWaylandXkbInfo xkb_info;
   enum xkb_state_component mods_changed;
   xkb_mod_mask_t kbd_a11y_latched_mods;