diff --git a/README b/README
index aff1a6ea0..b1d1ca5de 100644
--- a/README
+++ b/README
@@ -231,6 +231,11 @@ Cogl API changes for Clutter 1.2
   clip state and switching to/from offscreen rendering will automatically
   save and restore the clip state.
 
+* cogl_material_copy() was added. It is advised that developers use
+  this instead of cogl_material_new() when creating a material that is in some
+  way derived from another. This will allow Cogl to track material
+  ancestries/similarities and reduce the cost of GPU state changes.
+
 Release Notes for Clutter 1.0
 -------------------------------
 
diff --git a/clutter/cogl/cogl/cogl-context.c b/clutter/cogl/cogl/cogl-context.c
index 34c65d08c..a05745bb4 100644
--- a/clutter/cogl/cogl/cogl-context.c
+++ b/clutter/cogl/cogl/cogl-context.c
@@ -64,6 +64,8 @@ cogl_create_context (void)
   _cogl_create_context_driver (_context);
   _cogl_features_init ();
 
+  _cogl_material_init_default_material ();
+
   _context->enable_flags = 0;
   _context->color_alpha = 0;
 
@@ -79,7 +81,7 @@ cogl_create_context (void)
   _context->flushed_matrix_mode = COGL_MATRIX_MODELVIEW;
   _context->texture_units = NULL;
 
-  _context->default_material = cogl_material_new ();
+  _context->simple_material = cogl_material_new ();
   _context->source_material = NULL;
 
   _context->default_gl_texture_2d_tex = COGL_INVALID_HANDLE;
@@ -137,7 +139,7 @@ cogl_create_context (void)
                                 0, /* auto calc row stride */
                                 default_texture_data);
 
-  cogl_set_source (_context->default_material);
+  cogl_set_source (_context->simple_material);
   _cogl_material_flush_gl_state (_context->source_material, NULL);
   enable_flags =
     _cogl_material_get_cogl_enable_flags (_context->source_material);
@@ -166,8 +168,8 @@ _cogl_destroy_context ()
   if (_context->default_gl_texture_rect_tex)
     cogl_handle_unref (_context->default_gl_texture_rect_tex);
 
-  if (_context->default_material)
-    cogl_handle_unref (_context->default_material);
+  if (_context->simple_material)
+    cogl_handle_unref (_context->simple_material);
 
   if (_context->journal)
     g_array_free (_context->journal, TRUE);
@@ -182,6 +184,9 @@ _cogl_destroy_context ()
   if (_context->quad_indices_short)
     cogl_handle_unref (_context->quad_indices_short);
 
+  if (_context->default_material)
+    cogl_handle_unref (_context->default_material);
+
   g_free (_context);
 }
 
diff --git a/clutter/cogl/cogl/cogl-context.h b/clutter/cogl/cogl/cogl-context.h
index d10664f30..da7bb207b 100644
--- a/clutter/cogl/cogl/cogl-context.h
+++ b/clutter/cogl/cogl/cogl-context.h
@@ -44,6 +44,8 @@ typedef struct
   CoglFeatureFlags  feature_flags;
   gboolean          features_cached;
 
+  CoglHandle        default_material;
+
   /* Enable cache */
   gulong            enable_flags;
   guint8            color_alpha;
@@ -62,7 +64,7 @@ typedef struct
   GList            *texture_units;
 
   /* Materials */
-  CoglHandle        default_material;
+  CoglHandle        simple_material;
   CoglHandle	    source_material;
 
   /* Textures */
diff --git a/clutter/cogl/cogl/cogl-material-private.h b/clutter/cogl/cogl/cogl-material-private.h
index 83ddaa48c..c70ea304f 100644
--- a/clutter/cogl/cogl/cogl-material-private.h
+++ b/clutter/cogl/cogl/cogl-material-private.h
@@ -156,6 +156,15 @@ struct _CoglMaterial
  * able to fill your geometry according to a given Cogl material.
  */
 
+/*
+ * _cogl_material_init_default_material:
+ *
+ * This initializes the first material owned by the Cogl context. All
+ * subsequently instantiated materials created via the cogl_material_new()
+ * API will initially be a copy of this material.
+ */
+void
+_cogl_material_init_default_material (void);
 
 /*
  * cogl_material_get_cogl_enable_flags:
diff --git a/clutter/cogl/cogl/cogl-material.c b/clutter/cogl/cogl/cogl-material.c
index 1f0ed068b..b7ed041c2 100644
--- a/clutter/cogl/cogl/cogl-material.c
+++ b/clutter/cogl/cogl/cogl-material.c
@@ -57,6 +57,8 @@
 #define glBlendEquationSeparate ctx->drv.pf_glBlendEquationSeparate
 #endif
 
+static CoglHandle _cogl_material_layer_copy (CoglHandle layer_handle);
+
 static void _cogl_material_free (CoglMaterial *tex);
 static void _cogl_material_layer_free (CoglMaterialLayer *layer);
 
@@ -71,17 +73,19 @@ _cogl_material_error_quark (void)
   return g_quark_from_static_string ("cogl-material-error-quark");
 }
 
-CoglHandle
-cogl_material_new (void)
+void
+_cogl_material_init_default_material (void)
 {
   /* Create new - blank - material */
-  CoglMaterial *material = g_new0 (CoglMaterial, 1);
+  CoglMaterial *material = g_slice_new0 (CoglMaterial);
   GLubyte *unlit = material->unlit;
   GLfloat *ambient = material->ambient;
   GLfloat *diffuse = material->diffuse;
   GLfloat *specular = material->specular;
   GLfloat *emission = material->emission;
 
+  _COGL_GET_CONTEXT (ctx, NO_RETVAL);
+
   /* Use the same defaults as the GL spec... */
   unlit[0] = 0xff; unlit[1] = 0xff; unlit[2] = 0xff; unlit[3] = 0xff;
   material->flags |= COGL_MATERIAL_FLAG_DEFAULT_COLOR;
@@ -116,9 +120,34 @@ cogl_material_new (void)
   material->layers = NULL;
   material->n_layers = 0;
 
+  ctx->default_material = _cogl_material_handle_new (material);
+}
+
+CoglHandle
+cogl_material_copy (CoglHandle handle)
+{
+  CoglMaterial *material = g_slice_new (CoglMaterial);
+  GList *l;
+
+  _COGL_GET_CONTEXT (ctx, COGL_INVALID_HANDLE);
+
+  memcpy (material, handle, sizeof (CoglMaterial));
+
+  material->layers = g_list_copy (material->layers);
+  for (l = material->layers; l; l = l->next)
+    l->data = _cogl_material_layer_copy (l->data);
+
   return _cogl_material_handle_new (material);
 }
 
+CoglHandle
+cogl_material_new (void)
+{
+  _COGL_GET_CONTEXT (ctx, COGL_INVALID_HANDLE);
+
+  return cogl_material_copy (ctx->default_material);
+}
+
 static void
 _cogl_material_free (CoglMaterial *material)
 {
@@ -128,7 +157,7 @@ _cogl_material_free (CoglMaterial *material)
   g_list_foreach (material->layers,
 		  (GFunc)cogl_handle_unref, NULL);
   g_list_free (material->layers);
-  g_free (material);
+  g_slice_free (CoglMaterial, material);
 }
 
 static gboolean
@@ -727,7 +756,7 @@ _cogl_material_get_layer (CoglMaterial *material,
   /* possibly flush primitives referencing the current state... */
   _cogl_material_pre_change_notify (material, FALSE, NULL);
 
-  layer = g_new0 (CoglMaterialLayer, 1);
+  layer = g_slice_new0 (CoglMaterialLayer);
 
   layer_handle = _cogl_material_layer_handle_new (layer);
   layer->index = index_;
@@ -1016,7 +1045,7 @@ _cogl_material_layer_free (CoglMaterialLayer *layer)
 {
   if (layer->texture != COGL_INVALID_HANDLE)
     cogl_handle_unref (layer->texture);
-  g_free (layer);
+  g_slice_free (CoglMaterialLayer, layer);
 }
 
 void
@@ -1140,6 +1169,21 @@ _cogl_material_layer_get_flags (CoglHandle layer_handle)
   return layer->flags & COGL_MATERIAL_LAYER_FLAG_HAS_USER_MATRIX;
 }
 
+static CoglHandle
+_cogl_material_layer_copy (CoglHandle layer_handle)
+{
+  CoglMaterialLayer *layer =
+    _cogl_material_layer_pointer_from_handle (layer_handle);
+  CoglMaterialLayer *layer_copy = g_slice_new (CoglMaterialLayer);
+
+  memcpy (layer_copy, layer, sizeof (CoglMaterialLayer));
+
+  if (layer_copy->texture != COGL_INVALID_HANDLE)
+    cogl_handle_ref (layer_copy->texture);
+
+  return _cogl_material_layer_handle_new (layer_copy);
+}
+
 static guint
 get_n_args_for_combine_func (GLint func)
 {
@@ -1926,10 +1970,10 @@ cogl_set_source_texture (CoglHandle texture_handle)
 
   g_return_if_fail (texture_handle != COGL_INVALID_HANDLE);
 
-  cogl_material_set_layer (ctx->default_material, 0, texture_handle);
+  cogl_material_set_layer (ctx->simple_material, 0, texture_handle);
   cogl_color_set_from_4ub (&white, 0xff, 0xff, 0xff, 0xff);
-  cogl_material_set_color (ctx->default_material, &white);
-  cogl_set_source (ctx->default_material);
+  cogl_material_set_color (ctx->simple_material, &white);
+  cogl_set_source (ctx->simple_material);
 }
 
 CoglMaterialFilter
diff --git a/clutter/cogl/cogl/cogl-material.h b/clutter/cogl/cogl/cogl-material.h
index 5e4527de6..bfed4ee66 100644
--- a/clutter/cogl/cogl/cogl-material.h
+++ b/clutter/cogl/cogl/cogl-material.h
@@ -90,6 +90,24 @@ CoglHandle cogl_material_new (void);
 
 #ifndef COGL_DISABLE_DEPRECATED
 
+/**
+ * cogl_material_copy:
+ *
+ * Creates a new material handle with the configuration copied from the
+ * source material.
+ *
+ * We would strongly advise developers to always aim to use
+ * cogl_material_copy() instead of cogl_material_new() whenever there will
+ * be any similarity between two materials. Copying a material helps Cogl
+ * keep track of a materials ancestry which we may use to help minimize GPU
+ * state changes.
+ *
+ * Returns: a handle to the new material
+ *
+ * Since: 1.2
+ */
+CoglHandle cogl_material_copy (CoglHandle source);
+
 /**
  * cogl_material_ref:
  * @handle: a @CoglHandle.
diff --git a/clutter/cogl/cogl/cogl.c b/clutter/cogl/cogl/cogl.c
index 1c660552e..04917e872 100644
--- a/clutter/cogl/cogl/cogl.c
+++ b/clutter/cogl/cogl/cogl.c
@@ -328,13 +328,13 @@ cogl_set_source_color (const CoglColor *color)
   _COGL_GET_CONTEXT (ctx, NO_RETVAL);
 
   /* In case cogl_set_source_texture was previously used... */
-  cogl_material_remove_layer (ctx->default_material, 0);
+  cogl_material_remove_layer (ctx->simple_material, 0);
 
   premultiplied = *color;
   cogl_color_premultiply (&premultiplied);
-  cogl_material_set_color (ctx->default_material, &premultiplied);
+  cogl_material_set_color (ctx->simple_material, &premultiplied);
 
-  cogl_set_source (ctx->default_material);
+  cogl_set_source (ctx->simple_material);
 }
 
 void