Index: query.php
===================================================================
--- query.php	(revision 37921)
+++ query.php	(working copy)
@@ -1785,7 +1785,7 @@
 			$this->is_home = true;
 
 		// Correct is_* for page_on_front and page_for_posts
-		if ( $this->is_home && 'page' == get_option('show_on_front') && get_option('page_on_front') ) {
+		if ( $this->is_home && 'page' == get_option('show_on_front') && get_option('page_on_front') && !$this->is_paged ) {
 			$_query = wp_parse_args($this->query);
 			// pagename can be set and empty depending on matched rewrite rules. Ignore an empty pagename.
 			if ( isset($_query['pagename']) && '' == $_query['pagename'] )