diff --git a/Src/exec.c b/Src/exec.c
index 43df8211a..711d8f374 100644
--- a/Src/exec.c
+++ b/Src/exec.c
@@ -1427,14 +1427,12 @@ execlist(Estate state, int dont_change_job, int exiting)
 	    goto sublist_done;
 	}
 	while (wc_code(code) == WC_SUBLIST) {
-	    int isend = (WC_SUBLIST_TYPE(code) == WC_SUBLIST_END);
+	    int isandor = WC_SUBLIST_TYPE(code) != WC_SUBLIST_END;
+	    int isnot = WC_SUBLIST_FLAGS(code) & WC_SUBLIST_NOT;
 	    next = state->pc + WC_SUBLIST_SKIP(code);
-	    if (!oldnoerrexit)
-		noerrexit = isend ? 0 : NOERREXIT_EXIT | NOERREXIT_RETURN;
-	    if (WC_SUBLIST_FLAGS(code) & WC_SUBLIST_NOT) {
-		/* suppress errexit for the commands in ! <list-of-commands> */
+	    /* suppress errexit for commands before && and || and after ! */
+	    if (isandor || isnot)
 		noerrexit = NOERREXIT_EXIT | NOERREXIT_RETURN;
-	    }
 	    switch (WC_SUBLIST_TYPE(code)) {
 	    case WC_SUBLIST_END:
 		/* End of sublist; just execute, ignoring status. */
@@ -1444,7 +1442,7 @@ execlist(Estate state, int dont_change_job, int exiting)
 		    execpline(state, code, ltype, (ltype & Z_END) && exiting);
 		state->pc = next;
 		/* suppress errexit for the command "! ..." */
-		if (WC_SUBLIST_FLAGS(code) & WC_SUBLIST_NOT)
+		if (isnot)
 		  this_noerrexit = 1;
 		goto sublist_done;
 		break;
diff --git a/Test/C03traps.ztst b/Test/C03traps.ztst
index a8880673f..b7132da81 100644
--- a/Test/C03traps.ztst
+++ b/Test/C03traps.ztst
@@ -670,6 +670,22 @@ F:Must be tested with a top-level script rather than source or function
 >before-out
 >before-in
 
+  (set -o err_return
+    fn() {
+      print before-in
+      { false; true } && true
+      print after-in
+    }
+    print before-out
+    fn && true
+    print after-out
+  )
+0:ERR_RETURN not triggered on LHS of "&&" in function on LHS of "&&" (regression test)
+>before-out
+>before-in
+>after-in
+>after-out
+
   mkdir -p zdotdir
   print >zdotdir/.zshenv '
   setopt norcs errreturn