diff --git a/HISTORY.rst b/HISTORY.rst
index 3df3a341..90250fa8 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -14,7 +14,7 @@ PlatformIO 3.0
 * Unit Testing for Embedded (`docs <http://docs.platformio.org/en/latest/platforms/unit_testing.html>`__)
   (`issue #408 <https://github.com/platformio/platformio/issues/408>`_)
 * New Library Build System: intelligent dependency finder that interprets
-  C Preprocessor conditional macros
+  C Preprocessor conditional macros, `library deep search <http://docs.platformio.org/en/latest/projectconf.html#lib-deep-search>`__
   (`issue #432 <https://github.com/platformio/platformio/issues/432>`_)
 * Show detailed build information about dependent libraries
   (`issue #617 <https://github.com/platformio/platformio/issues/617>`_)
diff --git a/docs/projectconf.rst b/docs/projectconf.rst
index 8572d229..89eaf6c4 100644
--- a/docs/projectconf.rst
+++ b/docs/projectconf.rst
@@ -620,24 +620,59 @@ Example:
     [env:ignore_some_libs]
     lib_ignore = SPI,EngduinoV3_ID123
 
-``lib_dfcyclic``
-^^^^^^^^^^^^^^^^
+``lib_deep_search``
+^^^^^^^^^^^^^^^^^^^
 
-Control cyclic (recursive) behavior for ``Library Dependency Finder (LDF)``.
-By default, this option is turned OFF (``lib_dfcyclic=False``) and means that
-``LDF`` will find only libraries which are included in source files from the
-project :ref:`projectconf_pio_src_dir`.
+By default, this option is turned OFF (``lib_deep_search = false``) and means
+that ``Library Dependency Finder (LDF)`` will looking only for the libraries
+that are mentioned (using ``#include <...>``) in the source files from the
+project :ref:`projectconf_pio_src_dir`. Also, ``LDF`` analyzes nested
+``#include <...>`` by default.
 
-If you want to enable cyclic (recursive, nested) search, please set this option
-to ``True``. Founded library will be treated like a new source files and
+If you want to enable deep search, please set this option to ``true``.
+Founded library will be treated like a new source files and
 ``LDF`` will search dependencies for it.
 
-Example:
+For example, there are 2 libraries:
 
-.. code-block:: ini
+* Library "Foo" with files:
 
-    [env:libs_with_enabled_ldf_cyclic]
-    lib_dfcyclic = True
+  - ``Foo/foo.h``
+  - ``Foo/foo.cpp``
+
+* Library "Bar" with files:
+
+  - ``Bar/bar.h``
+  - ``Bar/bar.cpp``
+
+:Case 1:
+
+  * ``lib_deep_search = false``
+  * ``Foo/foo.h`` depends on "Bar" library (contains ``#include <bar.h>``)
+  * ``#include <foo.h>`` is located in the one of the project source files
+
+  Here are nested includes (``project file > foo.h > bar.h``) and ``LDF`` will
+  find both libraries "Foo" and "Bar".
+
+:Case 2:
+
+  * ``lib_deep_search = false``
+  * ``Foo/foo.cpp`` depends on "Bar" library (contains ``#include <bar.h>``)
+  * ``#include <foo.h>`` is located in the one of the project source files
+
+  In this case, ``LDF`` will not find "Bar" library because it doesn't know
+  about CPP file (``Foo/foo.cpp``).
+
+:Case 3:
+
+  * ``lib_deep_search = true``
+  * ``Foo/foo.cpp`` depends on "Bar" library (contains ``#include <bar.h>``)
+  * ``#include <foo.h>`` is located in the one of the project source files
+
+  Firstly, ``LDF`` finds "Foo" library, then it parses all sources from "Foo"
+  library and finds ``Foo/foo.cpp`` that depends on ``#include <bar.h>``.
+  Secondly, it will parse all sources from "Bar" library and this operation
+  continues until all dependent libraries will not be parsed.
 
 -----------
 
diff --git a/platformio/builder/main.py b/platformio/builder/main.py
index 94b1e41b..37ad9648 100644
--- a/platformio/builder/main.py
+++ b/platformio/builder/main.py
@@ -41,7 +41,7 @@ commonvars.AddVariables(
     ("SRC_BUILD_FLAGS",),
     ("BUILD_UNFLAGS",),
     ("SRC_FILTER",),
-    ("LIB_DFCYCLIC",),
+    ("LIB_DEEP_SEARCH",),
     ("LIB_IGNORE",),
     ("LIB_USE",),
 
diff --git a/platformio/builder/tools/piolib.py b/platformio/builder/tools/piolib.py
index ae3ba1dc..c11ceca4 100644
--- a/platformio/builder/tools/piolib.py
+++ b/platformio/builder/tools/piolib.py
@@ -204,7 +204,7 @@ def find_and_build_deps(env, lib_builders, scanner,
     for lb in target_lbs:
         libs.append(lb.build())
 
-    if env.get("LIB_DFCYCLIC", "").lower() == "true":
+    if env.get("LIB_DEEP_SEARCH", "").lower() == "true":
         for lb in target_lbs:
             libs.extend(find_and_build_deps(
                 env, lib_builders, scanner, lb.src_dir, lb.src_filter))
diff --git a/platformio/commands/run.py b/platformio/commands/run.py
index fca60880..e2d735d6 100644
--- a/platformio/commands/run.py
+++ b/platformio/commands/run.py
@@ -101,7 +101,7 @@ class EnvironmentProcessor(object):
         "INSTALL_LIBS": "LIB_INSTALL",
         "IGNORE_LIBS": "LIB_IGNORE",
         "USE_LIBS": "LIB_USE",
-        "LDF_CYCLIC": "LIB_DFCYCLIC",
+        "LIB_DFCYCLIC": "LIB_DEEP_SEARCH",
         "SRCBUILD_FLAGS": "SRC_BUILD_FLAGS"
     }