diff --git a/doc/dynare.texi b/doc/dynare.texi
index b2ab3e7c4..691580797 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -5184,8 +5184,9 @@ any value of  @math{\bar a} of @math{a} is a  deterministic steady state for pro
 Note that the nonstationary variables in the model must be integrated processes (their first difference or k-difference must be stationary).
 
 @item selected_variables_only
+@anchor{selected_variables_only}
 Only run the smoother on the variables listed just after the
-@code{estimation} command. Default: run the smoother on all the
+@code{estimation} command. This options is incompatible with requesting classical frequentist forecasts and will be overridden in this case. Default: run the smoother on all the
 declared endogenous variables.
 
 @item cova_compute = @var{INTEGER}
diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index 99534d9f9..7c297dc0e 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -384,9 +384,15 @@ oo_.dr.restrict_columns = [ic; length(k2)+(1:nspred-npred)'];
 k3 = [];
 k3p = [];
 if options_.selected_variables_only
-    for i=1:size(var_list_,1)
-        k3 = [k3; strmatch(var_list_(i,:),M_.endo_names(dr.order_var,:), 'exact')];
-        k3p = [k3; strmatch(var_list_(i,:),M_.endo_names, 'exact')];
+    if options_.forecast > 0 && options_.mh_replic == 0 && ~options_.load_mh_file
+        fprintf('\nEstimation: The selected_variables_only option is incompatible with classical forecasts. It will be ignored.\n')
+        k3 = (1:M_.endo_nbr)';
+        k3p = (1:M_.endo_nbr)';    
+    else
+        for i=1:size(var_list_,1)
+            k3 = [k3; strmatch(var_list_(i,:),M_.endo_names(dr.order_var,:), 'exact')];
+            k3p = [k3; strmatch(var_list_(i,:),M_.endo_names, 'exact')];
+        end
     end
 else
     k3 = (1:M_.endo_nbr)';