diff --git a/python/ray/actor.py b/python/ray/actor.py
index 65ddc266f..d1f034cc6 100644
--- a/python/ray/actor.py
+++ b/python/ray/actor.py
@@ -501,6 +501,7 @@ class ActorHandle(object):
         self._ray_actor_method_cpus = actor_method_cpus
         self._ray_actor_driver_id = actor_driver_id
         self._ray_previous_actor_handle_id = previous_actor_handle_id
+        self._ray_previously_generated_actor_handle_id = None
 
     def _actor_method_call(self,
                            method_name,
@@ -554,10 +555,22 @@ class ActorHandle(object):
 
         is_actor_checkpoint_method = (method_name == "__ray_checkpoint__")
 
+        # Right now, if the actor handle has been pickled, we create a
+        # temporary actor handle id for invocations.
+        # TODO(pcm): This still leads to a lot of actor handles being
+        # created, there should be a better way to handle pickled
+        # actor handles.
         if self._ray_actor_handle_id is None:
             actor_handle_id = compute_actor_handle_id_non_forked(
                 self._ray_actor_id, self._ray_previous_actor_handle_id,
                 worker.current_task_id)
+            # Each new task creates a new actor handle id, so we need to
+            # reset the actor counter to 0
+            if (actor_handle_id !=
+                    self._ray_previously_generated_actor_handle_id):
+                self._ray_actor_counter = 0
+                self._ray_previously_generated_actor_handle_id = (
+                    actor_handle_id)
         else:
             actor_handle_id = self._ray_actor_handle_id
 
diff --git a/test/actor_test.py b/test/actor_test.py
index 49d51835c..13aeb78f7 100644
--- a/test/actor_test.py
+++ b/test/actor_test.py
@@ -1968,6 +1968,28 @@ def test_pickling_actor_handle(ray_start_regular):
     ray.get(new_f.method.remote())
 
 
+def test_pickled_actor_handle_call_in_method_twice(ray_start_regular):
+    @ray.remote
+    class Actor1(object):
+        def f(self):
+            return 1
+
+    @ray.remote
+    class Actor2(object):
+        def __init__(self, constructor):
+            self.actor = constructor()
+
+        def step(self):
+            ray.get(self.actor.f.remote())
+
+    a = Actor1.remote()
+
+    b = Actor2.remote(lambda: a)
+
+    ray.get(b.step.remote())
+    ray.get(b.step.remote())
+
+
 def test_register_and_get_named_actors(ray_start_regular):
     # TODO(heyucongtom): We should test this from another driver.