diff --git a/cmd/podman/common/build.go b/cmd/podman/common/build.go
index 82b5e1e678..2abf62520e 100644
--- a/cmd/podman/common/build.go
+++ b/cmd/podman/common/build.go
@@ -136,9 +136,8 @@ func DefineBuildFlags(cmd *cobra.Command, buildOpts *BuildFlagsWrapper, isFarmBu
 }
 
 func ParseBuildOpts(cmd *cobra.Command, args []string, buildOpts *BuildFlagsWrapper) (*entities.BuildOptions, error) {
-	if (cmd.Flags().Changed("squash") && cmd.Flags().Changed("layers")) ||
-		(cmd.Flags().Changed("squash-all") && cmd.Flags().Changed("squash")) {
-		return nil, errors.New("cannot specify --squash with --layers and --squash-all with --squash")
+	if cmd.Flags().Changed("squash-all") && cmd.Flags().Changed("squash") {
+		return nil, errors.New("cannot specify --squash-all with --squash")
 	}
 
 	if cmd.Flag("output").Changed && registry.IsRemote() {
diff --git a/test/e2e/build_test.go b/test/e2e/build_test.go
index a29619f2a9..c72aebfd42 100644
--- a/test/e2e/build_test.go
+++ b/test/e2e/build_test.go
@@ -190,12 +190,11 @@ var _ = Describe("Podman build", func() {
 		// Test if entire build is used from cache
 		Expect(session.OutputToString()).To(ContainSubstring("Using cache"))
 
-		session = podmanTest.Podman([]string{"inspect", "--format", "{{.RootFS.Layers}}", "test-squash-d"})
+		session = podmanTest.Podman([]string{"inspect", "--format", "{{.RootFS.Layers}}", "test"})
 		session.WaitWithDefaultTimeout()
 		Expect(session).Should(ExitCleanly())
 		// Check for one layers
 		Expect(strings.Fields(session.OutputToString())).To(HaveLen(1))
-
 	})
 
 	It("podman build Containerfile locations", func() {
diff --git a/test/system/070-build.bats b/test/system/070-build.bats
index 8926ac0fdd..2daf7edfac 100644
--- a/test/system/070-build.bats
+++ b/test/system/070-build.bats
@@ -1110,6 +1110,12 @@ EOF
     run_podman build -t build_test $tmpdir/link
 }
 
+@test "podman build --squash --squash-all should conflict" {
+    echo FROM scratch > $PODMAN_TMPDIR/Dockerfile
+    run_podman 125 build -t build_test --squash-all --squash $PODMAN_TMPDIR
+    is "$output" "Error: cannot specify --squash-all with --squash" "--squash and --sqaush-all should conflict"
+}
+
 @test "podman build --volumes-from conflict" {
     rand_content=$(random_string 50)