diff --git a/CHANGES b/CHANGES
index e054dc24a..b186a7fc7 100644
--- a/CHANGES
+++ b/CHANGES
@@ -109,6 +109,8 @@ Features added
 
 * Support requests-2.0.0 (experimental) (refs: #3367)
 * (latex) PDF page margin dimensions may be customized (refs: #3387)
+* ``literalinclude`` directive allows combination of ``:pyobject:`` and
+  ``:lines:`` options (refs: #3416)
 
 Bugs fixed
 ----------
diff --git a/sphinx/directives/code.py b/sphinx/directives/code.py
index dc855e83d..bbe323391 100644
--- a/sphinx/directives/code.py
+++ b/sphinx/directives/code.py
@@ -170,7 +170,6 @@ class CodeBlock(Directive):
 
 class LiteralIncludeReader(object):
     INVALID_OPTIONS_PAIR = [
-        ('pyobject', 'lines'),
         ('lineno-match', 'lineno-start'),
         ('lineno-match', 'append'),
         ('lineno-match', 'prepend'),
diff --git a/tests/test_directive_code.py b/tests/test_directive_code.py
index c1d476250..f2ca9f040 100644
--- a/tests/test_directive_code.py
+++ b/tests/test_directive_code.py
@@ -65,6 +65,14 @@ def test_LiteralIncludeReader_pyobject3():
                        "        pass\n")
 
 
+def test_LiteralIncludeReader_pyobject_and_lines():
+    options = {'pyobject': 'Bar', 'lines': '2-'}
+    reader = LiteralIncludeReader(LITERAL_INC_PATH, options, DUMMY_CONFIG)
+    content, lines = reader.read()
+    assert content == ("    def baz():\n"
+                       "        pass\n")
+
+
 def test_LiteralIncludeReader_lines1():
     options = {'lines': '1-4'}
     reader = LiteralIncludeReader(LITERAL_INC_PATH, options, DUMMY_CONFIG)