diff --git a/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.cnf b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.cnf
new file mode 100644
index 0000000000000..0e4bd533a096d
--- /dev/null
+++ b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.cnf
@@ -0,0 +1,4 @@
+!include my.cnf
+
+[mysqld.2]
+log-slave-updates
diff --git a/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.result b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.result
new file mode 100644
index 0000000000000..9637d54e3991a
--- /dev/null
+++ b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.result
@@ -0,0 +1,46 @@
+include/rpl_init.inc [topology=1->2, 1->3]
+# Set up
+CREATE TABLE t (a INT);
+include/save_master_pos.inc
+include/save_master_gtid.inc
+connection server_2;
+START SLAVE;
+include/sync_with_master_gtid.inc
+connection server_3;
+SET @save_gtid_ignore_duplicates= @@GLOBAL.gtid_ignore_duplicates;
+SET @@GLOBAL.gtid_ignore_duplicates= ON;
+START SLAVE IO_THREAD;
+include/sync_io_with_master.inc
+CHANGE MASTER 'bridge' TO
+master_host='127.0.0.1', master_port=SERVER_MYPORT_2, master_user='root';
+SET @@SESSION.default_master_connection= 'bridge';
+include/start_slave.inc
+include/sync_with_master_gtid.inc
+include/stop_slave.inc
+SET @@SESSION.default_master_connection= '';
+RESET SLAVE 'bridge' ALL;
+# Test
+SET @@GLOBAL.sql_slave_skip_counter= 100;
+START SLAVE SQL_THREAD;
+include/wait_for_slave_param.inc [Relay_Master_Log_File]
+include/wait_for_slave_param.inc [Exec_Master_Log_Pos]
+SELECT @@sql_slave_skip_counter;
+@@sql_slave_skip_counter
+100
+Skip_Counter = '100'
+connection server_1;
+DROP TABLE t;
+include/save_master_gtid.inc
+connection server_2;
+include/sync_with_master_gtid.inc
+connection server_3;
+include/sync_with_master_gtid.inc
+SHOW TABLES;
+Tables_in_test
+t
+# Tear down
+include/stop_slave.inc
+SET @@GLOBAL.sql_slave_skip_counter= 0;
+SET @@GLOBAL.gtid_ignore_duplicates= @save_gtid_ignore_duplicates;
+SET STATEMENT sql_log_bin=0 FOR DROP TABLE t;
+include/rpl_end.inc
diff --git a/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.test b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.test
new file mode 100644
index 0000000000000..6368b1077bab9
--- /dev/null
+++ b/mysql-test/suite/multi_source/gtid_ignore_duplicates_skip_counter.test
@@ -0,0 +1,70 @@
+# Test combining `@@gtid_ignore_duplicates` and `@@sql_slave_skip_counter`
+#
+# Reference: MDEV-38636 `@@sql_slave_skip_counter`
+# resets to 1 when skipping events by `@@gtid_ignore_duplicates`
+
+--let $rpl_topology= 1->2, 1->3
+--let $rpl_skip_start_slave= 1
+--source include/rpl_init.inc
+
+
+--echo # Set up
+
+# Create some events to trigger `@@gtid_ignore_duplicates` with
+CREATE TABLE t (a INT);
+--source include/save_master_pos.inc
+--source include/save_master_gtid.inc
+
+--connection server_2
+START SLAVE;
+--source include/sync_with_master_gtid.inc
+
+--connection server_3
+SET @save_gtid_ignore_duplicates= @@GLOBAL.gtid_ignore_duplicates;
+SET @@GLOBAL.gtid_ignore_duplicates= ON;
+
+# Queue the test events without processing (which increments `@@gtid_slave_pos`)
+START SLAVE IO_THREAD;
+--source include/sync_io_with_master.inc
+
+# Queue and process second copies of the events through another connection
+--replace_result $SERVER_MYPORT_2 SERVER_MYPORT_2
+eval CHANGE MASTER 'bridge' TO
+  master_host='127.0.0.1', master_port=$SERVER_MYPORT_2, master_user='root';
+  SET @@SESSION.default_master_connection= 'bridge';
+    --source include/start_slave.inc
+      --source include/sync_with_master_gtid.inc
+    --source include/stop_slave.inc
+  SET @@SESSION.default_master_connection= '';
+RESET SLAVE 'bridge' ALL;
+
+
+--echo # Test
+
+SET @@GLOBAL.sql_slave_skip_counter= 100;
+START SLAVE SQL_THREAD;
+--source include/sync_with_master.inc
+
+SELECT @@sql_slave_skip_counter;
+--let $status_items= Skip_Counter
+--source include/show_slave_status.inc
+
+--connection server_1
+  DROP TABLE t;
+  --source include/save_master_gtid.inc
+--connection server_2
+  --source include/sync_with_master_gtid.inc
+--connection server_3
+--source include/sync_with_master_gtid.inc
+SHOW TABLES; # The counter should continue to skip the DROP TABLE.
+
+
+--echo # Tear down
+
+--source include/stop_slave.inc
+SET @@GLOBAL.sql_slave_skip_counter= 0;
+SET @@GLOBAL.gtid_ignore_duplicates= @save_gtid_ignore_duplicates;
+SET STATEMENT sql_log_bin=0 FOR DROP TABLE t;
+
+--let $rpl_only_running_threads= 1
+--source include/rpl_end.inc
diff --git a/sql/log_event_server.cc b/sql/log_event_server.cc
index 9ad2c5ebb1e28..c84fcc3e37978 100644
--- a/sql/log_event_server.cc
+++ b/sql/log_event_server.cc
@@ -660,6 +660,8 @@ Log_event::do_shall_skip(rpl_group_info *rgi)
                       rli->slave_skip_counter));
   if ((server_id == global_system_variables.server_id &&
        !(rli->replicate_same_server_id || (flags &  LOG_EVENT_ACCEPT_OWN_F))) ||
+      rgi->gtid_ignore_duplicate_state ==
+        rpl_group_info::GTID_DUPLICATE_IGNORE ||
       (rli->slave_skip_counter == 1 && rli->is_in_group()) ||
       (flags & LOG_EVENT_SKIP_REPLICATION_F &&
        opt_replicate_events_marked_for_skip != RPL_SKIP_REPLICATE))
@@ -2455,7 +2457,8 @@ Query_log_event::do_shall_skip(rpl_group_info *rgi)
       opt_replicate_events_marked_for_skip != RPL_SKIP_REPLICATE)
     DBUG_RETURN(Log_event::EVENT_SKIP_IGNORE);
 
-  if (rli->slave_skip_counter > 0)
+  if (rli->slave_skip_counter ||
+      rgi->gtid_ignore_duplicate_state == rpl_group_info::GTID_DUPLICATE_IGNORE)
   {
     if (is_begin())
     {
@@ -2466,6 +2469,9 @@ Query_log_event::do_shall_skip(rpl_group_info *rgi)
     if (is_commit() || is_rollback())
     {
       thd->variables.option_bits&= ~(OPTION_BEGIN | OPTION_GTID_BEGIN);
+      if (rgi->gtid_ignore_duplicate_state ==
+          rpl_group_info::GTID_DUPLICATE_IGNORE)
+        DBUG_RETURN(Log_event::EVENT_SKIP_IGNORE);
       DBUG_RETURN(Log_event::EVENT_SKIP_COUNT);
     }
   }
@@ -3993,7 +3999,8 @@ Gtid_log_event::do_shall_skip(rpl_group_info *rgi)
       opt_replicate_events_marked_for_skip != RPL_SKIP_REPLICATE)
     return Log_event::EVENT_SKIP_IGNORE;
 
-  if (rli->slave_skip_counter > 0)
+  if (rli->slave_skip_counter ||
+      rgi->gtid_ignore_duplicate_state == rpl_group_info::GTID_DUPLICATE_IGNORE)
   {
     if (!(flags2 & FL_STANDALONE))
     {
diff --git a/sql/slave.cc b/sql/slave.cc
index 893e24627bddc..20b7a9cb627d6 100644
--- a/sql/slave.cc
+++ b/sql/slave.cc
@@ -4540,13 +4540,6 @@ static int exec_relay_log_event(THD* thd, Relay_log_info* rli,
 #endif /* WITH_WSREP */
           DBUG_RETURN(1);
         }
-        /*
-          If we need to skip this event group (because the GTID was already
-          applied), then do it using the code for slave_skip_counter, which
-          is able to handle skipping until the end of the event group.
-        */
-        if (!res)
-          rli->slave_skip_counter= 1;
       }
     }