diff --git a/ctools.install b/ctools.install
index d50bc9f8..49c30bba 100644
--- a/ctools.install
+++ b/ctools.install
@@ -50,9 +50,14 @@ function ctools_schema() {
 function ctools_schema_4() {
   $schema = ctools_schema_3();
 
+  // Update the 'name' field to be 255 bytes long:
+  //   $schema['ctools_object_cache']['fields']['name']['length'] = 255;
   // Removed due to alternative database configuration issues.
   // @see https://www.drupal.org/project/ctools/issues/2941920
 
+  // Add the cache_panel_conf table.
+  $schema['cache_panel_conf'] = drupal_get_schema_unprocessed('system', 'cache');
+
   return $schema;
 }
 
@@ -297,3 +302,16 @@ function ctools_update_7003() {
     'description' => 'The name of the object this cache is attached to.',
   ));
 }
+
+/**
+ * Add the cache_panel_conf table.
+ */
+function ctools_update_7004() {
+  // Schema 4 is locked and should not be changed.
+  $schema = ctools_schema_4();
+
+  db_create_table('cache_panel_conf', $schema['cache_panel_conf']);
+
+  // Clear the old entries in the cache table.
+  cache_clear_all('view_panel_pane', 'cache', TRUE);
+}
diff --git a/views_content/plugins/content_types/views_panes.inc b/views_content/plugins/content_types/views_panes.inc
index afc98136..34534685 100644
--- a/views_content/plugins/content_types/views_panes.inc
+++ b/views_content/plugins/content_types/views_panes.inc
@@ -143,80 +143,12 @@ function views_content_views_panes_content_type_render($subtype, $conf, $panel_a
     return;
   }
 
+  $conf['pane_contexts'] = $contexts;
+  $conf['panel_args'] = $panel_args;
   $view->display_handler->set_pane_conf($conf);
 
-  $args = array();
-  $arguments = $view->display_handler->get_option('arguments');
-
-  $context_keys = isset($conf['context']) ? $conf['context'] : array();
-  foreach ($view->display_handler->get_argument_input() as $id => $argument) {
-    switch ($argument['type']) {
-      case 'context':
-        $key = array_shift($context_keys);
-        if (isset($contexts[$key])) {
-          if (strpos($argument['context'], '.')) {
-            list($context, $converter) = explode('.', $argument['context'], 2);
-            $args[] = ctools_context_convert_context($contexts[$key], $converter, array('sanitize' => FALSE));
-          }
-          else {
-            $args[] = $contexts[$key]->argument;
-          }
-        }
-        else {
-          $args[] = isset($arguments[$id]['exception']['value']) ? $arguments[$id]['exception']['value'] : 'all';
-        }
-        break;
-
-      case 'fixed':
-        $args[] = $argument['fixed'];
-        break;
-
-      case 'panel':
-        $args[] = isset($panel_args[$argument['panel']]) ? $panel_args[$argument['panel']] : NULL;
-        break;
-
-      case 'user':
-        $args[] = (isset($conf['arguments'][$id])  && $conf['arguments'][$id] !== '') ? ctools_context_keyword_substitute($conf['arguments'][$id], array(), $contexts) : NULL;
-        break;
-
-      case 'wildcard':
-        // Put in the wildcard.
-        $args[] = isset($arguments[$id]['wildcard']) ? $arguments[$id]['wildcard'] : '*';
-        break;
-
-      case 'none':
-      default:
-        // Put in NULL.
-        // views.module knows what to do with NULL (or missing) arguments.
-        $args[] = NULL;
-        break;
-    }
-  }
-
-  // Remove any trailing NULL arguments as these are non-args:
-  while (count($args) && end($args) === NULL) {
-    array_pop($args);
-  }
-
-  $view->set_arguments($args);
-
   $allow = $view->display_handler->get_option('allow');
 
-  if (!empty($conf['path'])) {
-    $conf['path'] = ctools_context_keyword_substitute($conf['path'], array(), $contexts);
-  }
-  if ($allow['path_override'] && !empty($conf['path'])) {
-    $view->override_path = $conf['path'];
-  }
-  elseif ($path = $view->display_handler->get_option('inherit_panels_path')) {
-    if (drupal_is_front_page()) {
-      $view->override_path = '';
-    }
-    else {
-      $view->override_path = $_GET['q'];
-    }
-  }
-
   $block = new stdClass();
   $block->module = 'views';
   $block->delta = $view->name . '-' . $display;
@@ -226,67 +158,6 @@ function views_content_views_panes_content_type_render($subtype, $conf, $panel_a
     $block->title_link = $view->get_url();
   }
 
-  // More link.
-  if ($allow['more_link']) {
-    if (empty($conf['more_link'])) {
-      $view->display_handler->set_option('use_more', FALSE);
-    }
-    else {
-      $view->display_handler->set_option('use_more', TRUE);
-      // Make sure the view runs the count query so we know whether or not the
-      // more link applies.
-      $view->get_total_rows = TRUE;
-    }
-  }
-
-  if ($allow['items_per_page'] && isset($conf['items_per_page'])) {
-    $view->set_items_per_page($conf['items_per_page']);
-  }
-
-  if ($allow['offset']) {
-    $view->set_offset($conf['offset']);
-  }
-
-  if ($allow['use_pager']) {
-    // Only set use_pager if they differ, this way we can avoid overwriting the
-    // pager type that Views uses.
-    $pager = $view->display_handler->get_option('pager');
-    if ($conf['use_pager'] && ($pager['type'] == 'none' || $pager['type'] == 'some')) {
-      $pager['type'] = 'full';
-    }
-    elseif (!$conf['use_pager']) {
-      $pager['type'] = $view->get_items_per_page() || !empty($pager['options']['items_per_page']) ? 'some' : 'none';
-    }
-
-    if ($conf['use_pager']) {
-      if (!isset($pager['options']['id']) || (isset($conf['pager_id']) && $pager['options']['id'] != $conf['pager_id'])) {
-        $pager['options']['id'] = (int) $conf['pager_id'];
-      }
-    }
-
-    $view->display_handler->set_option('pager', $pager);
-  }
-
-  if ($allow['fields_override']) {
-    if ($conf['fields_override']) {
-      $fields = $view->get_items('field');
-      foreach ($fields as $field => $field_display) {
-        $fields[$field]['exclude'] = empty($conf['fields_override'][$field]);
-      }
-      $view->display_handler->set_option('fields', $fields);
-
-    }
-  }
-
-  if ($allow['exposed_form'] && !empty($conf['exposed'])) {
-    foreach ($conf['exposed'] as $filter_name => $filter_value) {
-      if (!is_array($filter_value)) {
-        $conf['exposed'][$filter_name] = ctools_context_keyword_substitute($filter_value, array(), $contexts);
-      }
-    }
-    $view->set_exposed_input($conf['exposed']);
-  }
-
   $stored_feeds = drupal_add_feed();
 
   $block->content = $view->preview();
diff --git a/views_content/plugins/views/views_content_plugin_display_panel_pane.inc b/views_content/plugins/views/views_content_plugin_display_panel_pane.inc
index 801d3d61..a6384391 100644
--- a/views_content/plugins/views/views_content_plugin_display_panel_pane.inc
+++ b/views_content/plugins/views/views_content_plugin_display_panel_pane.inc
@@ -10,7 +10,7 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
    * this variable so that other modules can create alternate pane displays.
    */
   public $panel_pane_display = TRUE;
-  public $has_pane_conf = NULL;
+  private $view_pane_conf = NULL;
 
   /**
    * {@inheritdoc}
@@ -41,6 +41,7 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
       ),
     );
 
+    $options['exposed_form_overrides'] = array();
     $options['argument_input'] = array('default' => array());
     $options['link_to_view'] = array('default' => 0);
     $options['inherit_panels_path'] = array('default' => 0);
@@ -48,15 +49,20 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
     return $options;
   }
 
-
-  public function has_pane_conf() {
-    return isset($this->has_pane_conf);
-  }
-
-
+  /**
+   * Set the pane configuration. This happens when the pane is initially
+   * displayed.
+   *
+   * This method converts the pane configuration to views configuration and
+   * caches this configuration in order to apply it on AJAX requests for this
+   * view.
+   *
+   * @param array $conf*/
   public function set_pane_conf($conf = array()) {
-    $this->set_option('pane_conf', $conf);
-    $this->has_pane_conf = TRUE;
+    $viewconf = $this->build_views_conf_from_pane_conf($conf);
+    $this->view_pane_conf = $viewconf;
+    $this->view->dom_id = !empty($this->view->dom_id) ? $this->view->dom_id : md5($this->view->name . serialize($viewconf));
+    cache_set('view_panel_pane:' . $this->view->dom_id, $viewconf, 'cache_panel_conf');
   }
 
   /**
@@ -375,16 +381,6 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
     return $output;
   }
 
-
-  public function use_more() {
-    $allow = $this->get_option('allow');
-    if (!$allow['more_link'] || !$this->has_pane_conf()) {
-      return parent::use_more();
-    }
-    $conf = $this->get_option('pane_conf');
-    return (bool) $conf['more_link'];
-  }
-
   /**
    * {@inheritdoc}
    */
@@ -417,7 +413,6 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
     return $this->view->override_path;
   }
 
-
   public function get_url() {
     if ($this->get_option('inherit_panels_path')) {
       return $this->get_path();
@@ -425,7 +420,6 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
     return parent::get_url();
   }
 
-
   public function uses_exposed_form_in_block() {
     // We'll always allow the exposed form in a block, regardless of path.
     return TRUE;
@@ -441,10 +435,202 @@ class views_content_plugin_display_panel_pane extends views_plugin_display {
    * displayed unless uses_exposed() returns TRUE.
    */
   public function displays_exposed() {
-    $conf = $this->get_option('allow');
+    $allow = $this->get_option('allow');
     // If this is set, the exposed form is part of pane configuration, not
     // rendered normally.
-    return empty($conf['exposed_form']);
+    return empty($allow['exposed_form']);
+  }
+
+  /**
+   * Load the view conf from cache and apply it to the view.
+   * 
+   * If the view conf is already loaded, apply it.
+   */
+  public function load_view_conf() {
+    if (empty($this->view_pane_conf)) {
+      if (empty($this->view->dom_id) || !($cache = cache_get('view_panel_pane:' . $this->view->dom_id, 'cache_panel_conf'))) {
+        return;
+      }
+      $this->view_pane_conf = $cache->data;
+    }
+
+    if (!empty($this->view_pane_conf)) {
+      $this->apply_view_conf();
+    }
+  }
+
+  /**
+   * Apply $this->view_pane_conf to the view.
+   */
+  private function apply_view_conf() {
+    $viewconf = $this->view_pane_conf;
+
+    if (isset($viewconf['override_path'])) {
+      $this->view->override_path = $viewconf['override_path'];
+    }
+
+    if (!empty($viewconf['options'])) {
+      foreach ($viewconf['options'] as $optionkey => $optionvalue) {
+        $this->set_option($optionkey, $optionvalue);
+      }
+    }
+
+    if (isset($viewconf['get_total_rows'])) {
+      $this->view->get_total_rows = $viewconf['get_total_rows'];
+    }
+
+    foreach ($viewconf as $key => $value) {
+      if (strncmp('set_', $key, 4) === 0) {
+        call_user_func(array($this->view, $key), $value);
+      }
+    }
+
+    if (isset($viewconf['fields_override'])) {
+      $fields = $this->view->get_items('field');
+      foreach ($fields as $field => $field_display) {
+        $fields[$field]['exclude'] = empty($viewconf['fields_override'][$field]);
+      }
+        $this->set_option('fields', $fields);
+    }
+  }
+
+  private function build_views_conf_from_pane_conf($conf) {
+    ctools_include('context');
+
+    $viewconf = array();
+    $options = array();
+
+    $contexts = $conf['pane_contexts'];
+    $args = array();
+    $arguments = $this->get_option('arguments');
+
+    $context_keys = isset($conf['context']) ? $conf['context'] : array();
+    foreach ($this->get_argument_input() as $id => $argument) {
+      switch ($argument['type']) {
+        case 'context':
+          $key = array_shift($context_keys);
+          if (isset($contexts[$key])) {
+            if (strpos($argument['context'], '.')) {
+              list($context, $converter) = explode('.', $argument['context'], 2);
+              $args[] = ctools_context_convert_context($contexts[$key], $converter, array('sanitize' => FALSE));
+            }
+            else {
+              $args[] = $contexts[$key]->argument;
+            }
+          }
+          else {
+            $args[] = isset($arguments[$id]['exception']['value']) ? $arguments[$id]['exception']['value'] : 'all';
+          }
+          break;
+
+        case 'fixed':
+          $args[] = $argument['fixed'];
+          break;
+
+        case 'panel':
+          $args[] = isset($conf['panel_args'][$argument['panel']]) ? $conf['panel_args'][$argument['panel']] : NULL;
+          break;
+
+        case 'user':
+          $args[] = (isset($conf['arguments'][$id]) && $conf['arguments'][$id] !== '') ? ctools_context_keyword_substitute($conf['arguments'][$id], array(), $contexts) : NULL;
+          break;
+
+        case 'wildcard':
+          // Put in the wildcard.
+          $args[] = isset($arguments[$id]['wildcard']) ? $arguments[$id]['wildcard'] : '*';
+          break;
+
+        case 'none':
+        default:
+          // Put in NULL.
+          // views.module knows what to do with NULL (or missing) arguments
+          $args[] = NULL;
+          break;
+      }
+    }
+
+    // remove any trailing NULL arguments as these are non-args:
+    while (count($args) && end($args) === NULL) {
+      array_pop($args);
+    }
+
+    $viewconf['set_arguments'] = $args;
+
+    $allow = $this->get_option('allow');
+
+    if ($allow['path_override'] && !empty($conf['path'])) {
+      $viewconf['override_path'] = ctools_context_keyword_substitute($conf['path'], array(), $contexts);
+    }
+    else {
+      if ($path = $this->get_option('inherit_panels_path')) {
+        if (drupal_is_front_page()) {
+          $viewconf['override_path'] = '';
+        }
+        else {
+          $viewconf['override_path'] = $_GET['q'];
+        }
+      }
+    }
+
+    // more link
+    if ($allow['more_link']) {
+      if (empty($conf['more_link'])) {
+        $options['use_more'] = FALSE;
+      }
+      else {
+        $options['use_more'] = TRUE;
+        // make sure the view runs the count query so we know whether or not the
+        // more link applies.
+        $viewconf['get_total_rows'] = TRUE;
+      }
+    }
+
+    if ($allow['items_per_page'] && isset($conf['items_per_page'])) {
+      $viewconf['set_items_per_page'] = $conf['items_per_page'];
+    }
+
+    if ($allow['offset']) {
+      $viewconf['set_offset'] = $conf['offset'];
+    }
+
+    if ($allow['use_pager']) {
+      // Only set use_pager if they differ, this way we can avoid overwriting the
+      // pager type that Views uses.
+      $pager = $this->get_option('pager');
+      if ($conf['use_pager'] && ($pager['type'] == 'none' || $pager['type'] == 'some')) {
+        $pager['type'] = 'full';
+      }
+      elseif (!$conf['use_pager'] && $pager['type'] != 'none' && $pager['type'] != 'some') {
+        $pager['type'] = $this->view->get_items_per_page() || !empty($pager['options']['items_per_page']) ? 'some' : 'none';
+      }
+
+      if ($conf['use_pager']) {
+        if (!isset($pager['options']['id']) || (isset($conf['pager_id']) && $pager['options']['id'] != $conf['pager_id'])) {
+          $pager['options']['id'] = (int) $conf['pager_id'];
+        }
+      }
+
+      $options['pager'] = $pager;
+    }
+
+    if ($allow['fields_override'] && $conf['fields_override']) {
+      $viewconf['fields_override'] = array_filter($conf['fields_override']);
+    }
+
+    if ($allow['exposed_form'] && !empty($conf['exposed'])) {
+      foreach ($conf['exposed'] as $filter_name => $filter_value) {
+        if (!is_array($filter_value)) {
+          $conf['exposed'][$filter_name] = ctools_context_keyword_substitute($filter_value, array(), $contexts);
+        }
+      }
+      $viewconf['set_exposed_input'] = $conf['exposed'];
+    }
+    
+    if (!empty($options)) {
+      $viewconf['options'] = $options;
+    }
+
+    return $viewconf;
   }
 
 }
diff --git a/views_content/views_content.module b/views_content/views_content.module
index 264408ac..11f8af03 100644
--- a/views_content/views_content.module
+++ b/views_content/views_content.module
@@ -118,6 +118,14 @@ function views_content_exposed_form_pane_render($subtype, $conf, $panel_args, $c
 
       $view->set_display($display_id);
       if (isset($view->display_handler)) {
+        // Make sure views_content_plugin_display_panel_pane->displays_exposed() returns TRUE for exposed forms in blocks.
+        if ($view->display_handler instanceof views_content_plugin_display_panel_pane) {
+          $conf['pane_contexts'] = $contexts;
+          $conf['panel_args'] = $panel_args;
+          $conf['show_exposed_form'] = TRUE;
+          $view->display_handler->set_pane_conf($conf);
+        }
+
         $block = (object) $view->display_handler->view_special_blocks($type);
         return $block;
       }
@@ -295,3 +303,24 @@ function views_content_get_pane_links_alter(&$links, $pane, $content_type) {
     );
   }
 }
+
+/**
+ * Implements hook_module_implements_alter()
+ */
+function views_content_module_implements_alter(&$implementations, $hook) {
+  if ($hook == 'views_pre_view') {
+    $group = $implementations['views_content'];
+    unset($implementations['views_content']);
+    $implementations = array('views_content' => $group) + $implementations;
+  }
+}
+
+/**
+ * Implements hook_views_pre_view()
+ */
+function views_content_views_pre_view(&$view) {
+  if ($view->display_handler instanceof views_content_plugin_display_panel_pane) {
+    // process the pane configuration to prevent loss when using ajax
+    $view->display_handler->load_view_conf();
+  }
+}