diff --git a/Src/exec.c b/Src/exec.c
index e955e85df..916a3567d 100644
--- a/Src/exec.c
+++ b/Src/exec.c
@@ -1485,7 +1485,9 @@ execlist(Estate state, int dont_change_job, int exiting)
 	    next = state->pc + WC_SUBLIST_SKIP(code);
 	    /* suppress errexit for commands before && and || and after ! */
 	    if (isandor || isnot)
-		noerrexit |= NOERREXIT_EXIT | NOERREXIT_RETURN;
+		noerrexit = oldnoerrexit | NOERREXIT_EXIT | NOERREXIT_RETURN;
+	    else
+		noerrexit = oldnoerrexit;
 	    switch (WC_SUBLIST_TYPE(code)) {
 	    case WC_SUBLIST_END:
 		/* End of sublist; just execute, ignoring status. */
diff --git a/Test/C03traps.ztst b/Test/C03traps.ztst
index de57765a0..9fefdf713 100644
--- a/Test/C03traps.ztst
+++ b/Test/C03traps.ztst
@@ -995,6 +995,25 @@ F:Must be tested with a top-level script rather than source or function
 ?loop 0
 ?loop 1
 
+  ( set -e; true && {false; echo NOT REACHED} )
+  ( trap "print Trapped!" ERR; true && {false} )
+  ( trap "print Trapped!" ERR; true && if true; then false; fi )
+  ( trap "print Trapped!" ERR; true && {false} always {true} )
+  ( true && (set -e; false; echo NOT REACHED) )
+  ( true && (trap "print Trapped!" ERR; false) )
+  ( true && { set -e; false; echo NOT REACHED } )
+  ( true && { trap "print Trapped!" ERR; false } )
+  ( set -e; true && (false; echo one) || echo two )
+  ( set -e; true && { false; echo one; } || echo two )
+0:ERR_EXIT is triggered by last command in an AND-OR list
+>Trapped!
+>Trapped!
+>Trapped!
+>Trapped!
+>Trapped!
+>one
+>one
+
   if zmodload zsh/system 2>/dev/null; then
   (
     trap 'echo TERM; exit 2' TERM