diff --git a/src/pathfinder/npf/npf.cpp b/src/pathfinder/npf/npf.cpp
index e8e13f5fd8..4f277cdcc7 100644
--- a/src/pathfinder/npf/npf.cpp
+++ b/src/pathfinder/npf/npf.cpp
@@ -469,8 +469,9 @@ static int32 NPFRailPathCost(AyStar *as, AyStarNode *current, OpenListNode *pare
 						}
 					}
 				}
-				/* Record the state of this signal */
-				NPFSetFlag(current, NPF_FLAG_LAST_SIGNAL_RED, true);
+				/* Record the state of this signal. Path signals are assumed to
+				 * be green as the signal state of them has no meaning for this. */
+				NPFSetFlag(current, NPF_FLAG_LAST_SIGNAL_RED, !IsPbsSignal(sigtype));
 			} else {
 				/* Record the state of this signal */
 				NPFSetFlag(current, NPF_FLAG_LAST_SIGNAL_RED, false);
diff --git a/src/pathfinder/yapf/yapf_costrail.hpp b/src/pathfinder/yapf/yapf_costrail.hpp
index 5c445843a2..4b965f2e08 100644
--- a/src/pathfinder/yapf/yapf_costrail.hpp
+++ b/src/pathfinder/yapf/yapf_costrail.hpp
@@ -587,8 +587,8 @@ no_entry_cost: // jump here at the beginning if the node has no parent (it is th
 				if (n.m_last_red_signal_type == SIGTYPE_EXIT) {
 					/* last signal was red pre-signal-exit */
 					extra_cost += Yapf().PfGetSettings().rail_lastred_exit_penalty;
-				} else {
-					/* last signal was red, but not exit */
+				} else if (!IsPbsSignal(n.m_last_red_signal_type)) {
+					/* Last signal was red, but not exit or path signal. */
 					extra_cost += Yapf().PfGetSettings().rail_lastred_penalty;
 				}
 			}