diff --git a/src/TextClass.cpp b/src/TextClass.cpp
index b282ba3802..a78343769a 100644
--- a/src/TextClass.cpp
+++ b/src/TextClass.cpp
@@ -63,6 +63,12 @@ namespace lyx {
 //
 int const LAYOUT_FORMAT = 60; //lasgouttes LongTableNoNumber => Unnumbered
 
+
+// Layout format for the current lyx file format. Controls which format is
+// targeted by Local Layout > Convert. In master, equal to LAYOUT_FORMAT.
+int const LYXFILE_LAYOUT_FORMAT = LAYOUT_FORMAT;
+
+
 namespace {
 
 class LayoutNamesEqual : public unary_function<Layout, bool> {
@@ -79,26 +85,29 @@ private:
 };
 
 
-bool layout2layout(FileName const & filename, FileName const & tempfile)
+bool layout2layout(FileName const & filename, FileName const & tempfile,
+                   int const format = LAYOUT_FORMAT)
 {
 	FileName const script = libFileSearch("scripts", "layout2layout.py");
 	if (script.empty()) {
 		LYXERR0("Could not find layout conversion "
-			  "script layout2layout.py.");
+		        "script layout2layout.py.");
 		return false;
 	}
 
 	ostringstream command;
 	command << os::python() << ' ' << quoteName(script.toFilesystemEncoding())
-		<< ' ' << quoteName(filename.toFilesystemEncoding())
-		<< ' ' << quoteName(tempfile.toFilesystemEncoding());
+	        << " -t " << format
+	        << ' ' << quoteName(filename.toFilesystemEncoding())
+	        << ' ' << quoteName(tempfile.toFilesystemEncoding());
 	string const command_str = command.str();
 
 	LYXERR(Debug::TCLASS, "Running `" << command_str << '\'');
 
 	cmd_ret const ret = runCommand(command_str);
 	if (ret.first != 0) {
-		LYXERR0("Could not run layout conversion script layout2layout.py.");
+		if (format == LAYOUT_FORMAT)
+			LYXERR0("Conversion of layout with layout2layout.py has failed.");
 		return false;
 	}
 	return true;
@@ -290,7 +299,7 @@ std::string TextClass::convert(std::string const & str)
 	os.close();
 	TempFile tmp2("convert_localXXXXXX.layout");
 	FileName const tempfile = tmp2.name();
-	bool success = layout2layout(fn, tempfile);
+	bool success = layout2layout(fn, tempfile, LYXFILE_LAYOUT_FORMAT);
 	if (!success)
 		return "";
 	ifstream is(tempfile.toFilesystemEncoding().c_str());
@@ -375,13 +384,13 @@ TextClass::ReturnValues TextClass::read(std::string const & str, ReadType rt)
 	os << str;
 	os.close();
 
-	// now try to convert it
-	bool const worx = convertLayoutFormat(tempfile, rt);
-	if (!worx) {
+	// now try to convert it to LAYOUT_FORMAT
+	if (!convertLayoutFormat(tempfile, rt)) {
 		LYXERR0("Unable to convert internal layout information to format "
 			<< LAYOUT_FORMAT);
 		return ERROR;
 	}
+
 	return OK_OLDFORMAT;
 }
 
diff --git a/src/TextClass.h b/src/TextClass.h
index 88f93036e0..22d426c86d 100644
--- a/src/TextClass.h
+++ b/src/TextClass.h
@@ -171,7 +171,8 @@ public:
 	ReturnValues read(Lexer & lex, ReadType rt = BASECLASS);
 	/// validates the layout information passed in str
 	static ReturnValues validate(std::string const & str);
-	///
+	/// \return the conversion of \param str to the latest layout format
+	/// compatible with the lyx format.
 	static std::string convert(std::string const & str);
 
 	///////////////////////////////////////////////////////////////////
@@ -514,6 +515,9 @@ std::ostream & operator<<(std::ostream & os, PageSides p);
 
 /// current format of layout files
 extern int const LAYOUT_FORMAT;
+/// layout format for the current lyx file format (usually equal to
+/// LAYOUT_FORMAT)
+extern int const LYXFILE_LAYOUT_FORMAT;
 
 
 } // namespace lyx
diff --git a/src/frontends/qt4/GuiDocument.cpp b/src/frontends/qt4/GuiDocument.cpp
index 3faa902936..e116001392 100644
--- a/src/frontends/qt4/GuiDocument.cpp
+++ b/src/frontends/qt4/GuiDocument.cpp
@@ -545,6 +545,15 @@ void LocalLayout::apply(BufferParams & params)
 }
 
 
+void LocalLayout::hideConvert()
+{
+	convertPB->setEnabled(false);
+	convertLB->setText("");
+	convertPB->hide();
+	convertLB->hide();
+}
+
+
 void LocalLayout::textChanged()
 {
 	static const QString message =
@@ -556,15 +565,14 @@ void LocalLayout::textChanged()
 		validated_ = true;
 		validatePB->setEnabled(false);
 		validLB->setText("");
-		convertPB->hide();
-		convertLB->hide();
+		hideConvert();
 		changed();
 	} else if (!validatePB->isEnabled()) {
 		// if that's already enabled, we shouldn't need to do anything.
 		validated_ = false;
 		validLB->setText(message);
 		validatePB->setEnabled(true);
-		convertPB->setEnabled(false);
+		hideConvert();
 		changed();
 	}
 }
@@ -574,44 +582,52 @@ void LocalLayout::convert() {
 	string const layout =
 		fromqstr(locallayoutTE->document()->toPlainText().trimmed());
 	string const newlayout = TextClass::convert(layout);
-	LYXERR0(newlayout);
-	if (newlayout.empty()) {
-		Alert::error(_("Conversion Failed!"),
-		      _("Failed to convert local layout to current format."));
-	} else {
+	if (!newlayout.empty())
 		locallayoutTE->setPlainText(toqstr(newlayout));
-	}
 	validate();
 }
 
 
 void LocalLayout::convertPressed() {
 	convert();
+	hideConvert();
 	changed();
 }
 
 
 void LocalLayout::validate() {
-	static const QString valid = qt_("Layout is valid!");
-	static const QString vtext =
-		toqstr("<p style=\"font-weight: bold; \">")
-		  + valid + toqstr("</p>");
-	static const QString invalid = qt_("Layout is invalid!");
-	static const QString ivtext =
-		toqstr("<p style=\"color: #c00000; font-weight: bold; \">")
-		  + invalid + toqstr("</p>");
-
+	// Bold text
+	static const QString vpar("<p style=\"font-weight: bold;\">%1</p>");
+	// Flashy red bold text
+	static const QString ivpar("<p style=\"color: #c00000; font-weight: bold; \">"
+	                           "%1</p>");
 	string const layout =
 		fromqstr(locallayoutTE->document()->toPlainText().trimmed());
 	if (!layout.empty()) {
 		TextClass::ReturnValues const ret = TextClass::validate(layout);
 		validated_ = (ret == TextClass::OK) || (ret == TextClass::OK_OLDFORMAT);
 		validatePB->setEnabled(false);
-		validLB->setText(validated_ ? vtext : ivtext);
+		validLB->setText(validated_ ? vpar.arg(qt_("Layout is valid!"))
+		                            : ivpar.arg(qt_("Layout is invalid!")));
 		if (ret == TextClass::OK_OLDFORMAT) {
 			convertPB->show();
-			convertPB->setEnabled(true);
-			convertLB->setText(qt_("Convert to current format"));
+			// Testing conversion to LYXFILE_LAYOUT_FORMAT at this point
+			// already.
+			if (TextClass::convert(layout).empty()) {
+				// Conversion failed. If LAYOUT_FORMAT > LYXFILE_LAYOUT_FORMAT,
+				// then maybe the layout is still valid, but its format is more
+				// recent than LYXFILE_LAYOUT_FORMAT. However, if LAYOUT_FORMAT
+				// == LYXFILE_LAYOUT_FORMAT then something is definitely wrong.
+				convertPB->setEnabled(false);
+				const QString text = (LAYOUT_FORMAT == LYXFILE_LAYOUT_FORMAT)
+					? ivpar.arg(qt_("Conversion to current format impossible!"))
+					: vpar.arg(qt_("Conversion to current stable format "
+					               "impossible."));
+				convertLB->setText(text);
+			} else {
+				convertPB->setEnabled(true);
+				convertLB->setText(qt_("Convert to current format"));
+			}
 			convertLB->show();
 		} else {
 			convertPB->hide();
diff --git a/src/frontends/qt4/GuiDocument.h b/src/frontends/qt4/GuiDocument.h
index 097abfff65..e0d42c9470 100644
--- a/src/frontends/qt4/GuiDocument.h
+++ b/src/frontends/qt4/GuiDocument.h
@@ -322,6 +322,7 @@ Q_SIGNALS:
 private:
 	void validate();
 	void convert();
+	void hideConvert();
 private Q_SLOTS:
 	void textChanged();
 	void validatePressed();