diff --git a/python/ray/local_mode_manager.py b/python/ray/local_mode_manager.py
index 3d9d70a85..11d74784a 100644
--- a/python/ray/local_mode_manager.py
+++ b/python/ray/local_mode_manager.py
@@ -5,6 +5,7 @@ from __future__ import print_function
 import copy
 import traceback
 
+import ray
 from ray import ObjectID
 from ray.utils import format_error_message
 from ray.exceptions import RayTaskError
@@ -20,7 +21,18 @@ class LocalModeObjectID(ObjectID):
             it equates to the object not existing in the object store. This is
             necessary because None is a valid object value.
     """
-    pass
+
+    def __copy__(self):
+        new = LocalModeObjectID(self.binary())
+        if hasattr(self, "value"):
+            new.value = self.value
+        return new
+
+    def __deepcopy__(self, memo=None):
+        new = LocalModeObjectID(self.binary())
+        if hasattr(self, "value"):
+            new.value = self.value
+        return new
 
 
 class LocalModeManager(object):
@@ -49,23 +61,37 @@ class LocalModeManager(object):
         Returns:
             LocalModeObjectIDs corresponding to the function return values.
         """
-        object_ids = [
+        return_ids = [
             LocalModeObjectID.from_random() for _ in range(num_return_vals)
         ]
-        try:
-            results = function(*copy.deepcopy(args), **copy.deepcopy(kwargs))
-            if num_return_vals == 1:
-                object_ids[0].value = results
+        new_args = []
+        for i, arg in enumerate(args):
+            if isinstance(arg, ObjectID):
+                new_args.append(ray.get(arg))
             else:
-                for object_id, result in zip(object_ids, results):
+                new_args.append(copy.deepcopy(arg))
+
+        new_kwargs = {}
+        for k, v in kwargs.items():
+            if isinstance(v, ObjectID):
+                new_kwargs[k] = ray.get(v)
+            else:
+                new_kwargs[k] = copy.deepcopy(v)
+
+        try:
+            results = function(*new_args, **new_kwargs)
+            if num_return_vals == 1:
+                return_ids[0].value = results
+            else:
+                for object_id, result in zip(return_ids, results):
                     object_id.value = result
         except Exception as e:
             backtrace = format_error_message(traceback.format_exc())
             task_error = RayTaskError(function_name, backtrace, e.__class__)
-            for object_id in object_ids:
+            for object_id in return_ids:
                 object_id.value = task_error
 
-        return object_ids
+        return return_ids
 
     def put_object(self, value):
         """Store an object in the emulated object store.
diff --git a/python/ray/tests/test_basic.py b/python/ray/tests/test_basic.py
index 6e8cadd5f..d229d1767 100644
--- a/python/ray/tests/test_basic.py
+++ b/python/ray/tests/test_basic.py
@@ -2227,6 +2227,17 @@ def test_local_mode(shutdown_only):
     _ = RemoteActor2.remote()
     assert ray.get(actor1.function1.remote()) == 0
 
+    # Test passing ObjectIDs.
+    @ray.remote
+    def direct_dep(input):
+        return input
+
+    @ray.remote
+    def indirect_dep(input):
+        return ray.get(direct_dep.remote(input[0]))
+
+    assert ray.get(indirect_dep.remote(["hello"])) == "hello"
+
 
 def test_resource_constraints(shutdown_only):
     num_workers = 20