diff --git a/Source/Core/Core/Src/PowerPC/Jit64/Jit.cpp b/Source/Core/Core/Src/PowerPC/Jit64/Jit.cpp
index f402f3542d..8db6e94bbf 100644
--- a/Source/Core/Core/Src/PowerPC/Jit64/Jit.cpp
+++ b/Source/Core/Core/Src/PowerPC/Jit64/Jit.cpp
@@ -158,7 +158,7 @@ ps_adds1
 
 */
 
-static int CODE_SIZE = 1024*1024*16;
+static int CODE_SIZE = 1024*1024*32;
 
 namespace CPUCompare
 {
diff --git a/Source/Core/Core/Src/PowerPC/Jit64/Jit_Branch.cpp b/Source/Core/Core/Src/PowerPC/Jit64/Jit_Branch.cpp
index 949fca58c8..aef25e9779 100644
--- a/Source/Core/Core/Src/PowerPC/Jit64/Jit_Branch.cpp
+++ b/Source/Core/Core/Src/PowerPC/Jit64/Jit_Branch.cpp
@@ -81,36 +81,39 @@ void Jit64::bx(UGeckoInstruction inst)
 	INSTRUCTION_START
 	JITDISABLE(Branch)
 
+	// We must always process the following sentence
+	// even if the blocks are merged by PPCAnalyst::Flatten().
 	if (inst.LK)
 		MOV(32, M(&LR), Imm32(js.compilerPC + 4));
+
+	// If this is not the last instruction of a block,
+	// we will skip the rest process.
+	// Because PPCAnalyst::Flatten() merged the blocks.
+	if (!js.isLastInstruction) {
+		return;
+	}
+
 	gpr.Flush(FLUSH_ALL);
 	fpr.Flush(FLUSH_ALL);
 
-	if (js.isLastInstruction)
-	{
-		u32 destination;
-		if (inst.AA)
-			destination = SignExt26(inst.LI << 2);
-		else
-			destination = js.compilerPC + SignExt26(inst.LI << 2);
+	u32 destination;
+	if (inst.AA)
+		destination = SignExt26(inst.LI << 2);
+	else
+		destination = js.compilerPC + SignExt26(inst.LI << 2);
 #ifdef ACID_TEST
-		if (inst.LK)
-			AND(32, M(&PowerPC::ppcState.cr), Imm32(~(0xFF000000)));
+	if (inst.LK)
+		AND(32, M(&PowerPC::ppcState.cr), Imm32(~(0xFF000000)));
 #endif
-		if (destination == js.compilerPC)
-		{
-			//PanicAlert("Idle loop detected at %08x", destination);
+	if (destination == js.compilerPC)
+	{
+		//PanicAlert("Idle loop detected at %08x", destination);
 		//	CALL(ProtectFunction(&CoreTiming::Idle, 0));
 		//	JMP(Asm::testExceptions, true);
-			// make idle loops go faster
-			js.downcountAmount += 8;
-		}
-		WriteExit(destination, 0);
-	}
-	else {
-		// TODO: investigate the good old method of merging blocks here.
-		PanicAlert("bx not last instruction of block"); // this should not happen
+		// make idle loops go faster
+		js.downcountAmount += 8;
 	}
+	WriteExit(destination, 0);
 }
 
 // TODO - optimize to hell and beyond
diff --git a/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL.cpp b/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL.cpp
index 71c96c3a6a..42b82a532e 100644
--- a/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL.cpp
+++ b/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL.cpp
@@ -152,7 +152,7 @@ ps_adds1
 
 */
 
-static int CODE_SIZE = 1024*1024*16;
+static int CODE_SIZE = 1024*1024*32;
 
 namespace CPUCompare
 {
diff --git a/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL_Branch.cpp b/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL_Branch.cpp
index e022489f9c..608d362032 100644
--- a/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL_Branch.cpp
+++ b/Source/Core/Core/Src/PowerPC/Jit64IL/JitIL_Branch.cpp
@@ -59,9 +59,18 @@ void JitIL::bx(UGeckoInstruction inst)
 	NORMALBRANCH_START
 	INSTRUCTION_START;
 
+	// We must always process the following sentence
+	// even if the blocks are merged by PPCAnalyst::Flatten().
 	if (inst.LK)
 		ibuild.EmitStoreLink(ibuild.EmitIntConst(js.compilerPC + 4));
 
+	// If this is not the last instruction of a block,
+	// we will skip the rest process.
+	// Because PPCAnalyst::Flatten() merged the blocks.
+	if (!js.isLastInstruction) {
+		return;
+	}
+
 	u32 destination;
 	if (inst.AA)
 		destination = SignExt26(inst.LI << 2);
diff --git a/Source/Core/Core/Src/PowerPC/PPCAnalyst.cpp b/Source/Core/Core/Src/PowerPC/PPCAnalyst.cpp
index 0f5744b516..55a322a5e0 100644
--- a/Source/Core/Core/Src/PowerPC/PPCAnalyst.cpp
+++ b/Source/Core/Core/Src/PowerPC/PPCAnalyst.cpp
@@ -40,10 +40,9 @@ namespace PPCAnalyst {
 
 using namespace std;
 
-enum
-{
-	CODEBUFFER_SIZE = 32000,
-};
+static const int CODEBUFFER_SIZE = 32000;
+// 0 does not perform block merging
+static const int FUNCTION_FOLLOWING_THRESHOLD = 0;
 
 CodeBuffer::CodeBuffer(int size)
 {
@@ -446,9 +445,15 @@ u32 Flatten(u32 address, int *realsize, BlockStats *st, BlockRegStats *gpa, Bloc
 			}
 			if (follow)
 				numFollows++;
-			if (numFollows > 1)
+			// TODO: Find the optimal value for FUNCTION_FOLLOWING_THRESHOLD.
+			//       If it is small, the performance will be down.
+			//       If it is big, the size of generated code will be big and
+			//       cache clearning will happen many times.
+			// TODO: Investivate the reason why
+			//       "0" is fastest in some games, MP2 for example.
+			if (numFollows > FUNCTION_FOLLOWING_THRESHOLD)
 				follow = false;
-			follow = false;
+
 			if (!follow)
 			{
 				if (opinfo->flags & FL_ENDBLOCK) //right now we stop early
@@ -460,7 +465,9 @@ u32 Flatten(u32 address, int *realsize, BlockStats *st, BlockRegStats *gpa, Bloc
 			}
 			else
 			{
-				code[i].skip = true;
+				// We don't "code[i].skip = true" here
+				// because bx may store a certain value to the link register.
+				// Instead, we skip a part of bx in Jit**::bx().
 				address = destination;
 			}
 		}