diff --git a/holoviews/core/data/xarray.py b/holoviews/core/data/xarray.py
index 702c95010f..fbbb944445 100644
--- a/holoviews/core/data/xarray.py
+++ b/holoviews/core/data/xarray.py
@@ -215,9 +215,17 @@ def retrieve_unit_and_label(dim):
             # not need to be canonicalized
             if any(len(da.coords[c].shape) > 1 for c in da.coords):
                 continue
-            undeclared = [
-                c for c in da.coords if c not in kdims and len(da[c].shape) == 1 and
-                da[c].shape[0] > 1]
+            undeclared = []
+            for c in da.coords:
+                if c in kdims or len(da[c].shape) != 1 or da[c].shape[0] <= 1:
+                    # Skip if coord is declared, represents irregular coordinates or is constant
+                    continue
+                elif all(d in kdims for d in da[c].dims):
+                    continue # Skip if coord is alias for another dimension
+                elif any(all(d in da[kd.name].dims for d in da[c].dims) for kd in kdims):
+                    # Skip if all the dims on the coord are present on another coord
+                    continue
+                undeclared.append(c)
             if undeclared:
                 raise DataError(
                     'The coordinates on the %r DataArray do not match the '
diff --git a/holoviews/tests/core/data/test_xarrayinterface.py b/holoviews/tests/core/data/test_xarrayinterface.py
index c3623d47aa..a262d5a4cc 100644
--- a/holoviews/tests/core/data/test_xarrayinterface.py
+++ b/holoviews/tests/core/data/test_xarrayinterface.py
@@ -60,6 +60,14 @@ def get_multi_dim_irregular_dataset(self):
                                 'time': pd.date_range('2014-09-06', periods=3),
                                 'reference_time': pd.Timestamp('2014-09-05')})
 
+    def test_ignore_dependent_dimensions_if_not_specified(self):
+        coords = OrderedDict([('time', [0, 1]), ('lat', [0, 1]), ('lon', [0, 1])])
+        da = xr.DataArray(np.arange(8).reshape((2, 2, 2)),
+                          coords, ['time', 'lat', 'lon']).assign_coords(
+                              lat1=xr.DataArray([2,3], dims=['lat']))
+        assert Dataset(da, ['time', 'lat', 'lon'], vdims='value').kdims == ['time', 'lat', 'lon']
+        assert Dataset(da, ['time', 'lat1', 'lon'], vdims='value').kdims == ['time', 'lat1', 'lon']
+
     def test_xarray_dataset_irregular_shape(self):
         ds = Dataset(self.get_multi_dim_irregular_dataset())
         shape = ds.interface.shape(ds, gridded=True)