diff --git a/Src/exec.c b/Src/exec.c
index ce0c1f1ad..dc5d5dd23 100644
--- a/Src/exec.c
+++ b/Src/exec.c
@@ -451,7 +451,10 @@ execcursh(Estate state, int do_exec)
     cmdpop();
 
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
 
     return lastval;
 }
@@ -1442,8 +1445,6 @@ execlist(Estate state, int dont_change_job, int exiting)
 		    execsimple(state);
 		else
 		    execpline(state, code, ltype, (ltype & Z_END) && exiting);
-		if (!locallevel || unset(ERRRETURN))
-		    this_noerrexit = noerrexit;
 		state->pc = next;
 		goto sublist_done;
 		break;
@@ -1536,6 +1537,7 @@ sublist_done:
 	     */
 	    int oerrexit_opt = opts[ERREXIT];
 	    opts[ERREXIT] = 0;
+	    oldnoerrexit = noerrexit;
 	    noerrexit = NOERREXIT_EXIT | NOERREXIT_RETURN;
 	    exiting = donetrap;
 	    ret = lastval;
diff --git a/Src/loop.c b/Src/loop.c
index be5261369..cd2f5340b 100644
--- a/Src/loop.c
+++ b/Src/loop.c
@@ -208,7 +208,10 @@ execfor(Estate state, int do_exec)
     loops--;
     simple_pline = old_simple_pline;
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
     return lastval;
 }
 
@@ -336,7 +339,10 @@ execselect(Estate state, UNUSED(int do_exec))
     loops--;
     simple_pline = old_simple_pline;
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
     return lastval;
 }
 
@@ -478,7 +484,10 @@ execwhile(Estate state, UNUSED(int do_exec))
     popheap();
     loops--;
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
     return lastval;
 }
 
@@ -532,7 +541,10 @@ execrepeat(Estate state, UNUSED(int do_exec))
     loops--;
     simple_pline = old_simple_pline;
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
     return lastval;
 }
 
@@ -587,7 +599,10 @@ execif(Estate state, int do_exec)
 	    lastval = 0;
     }
     state->pc = end;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
 
     return lastval;
 }
@@ -701,7 +716,10 @@ execcase(Estate state, int do_exec)
 
     if (!anypatok)
 	lastval = 0;
-    this_noerrexit = (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END);
+    if (WC_SUBLIST_TYPE(*end) != WC_SUBLIST_END)
+	this_noerrexit = noerrexit;
+    else
+	this_noerrexit = 1;
 
     return lastval;
 }
diff --git a/Test/E01options.ztst b/Test/E01options.ztst
index d38fbed74..939a11a7a 100644
--- a/Test/E01options.ztst
+++ b/Test/E01options.ztst
@@ -385,6 +385,113 @@
 1:ERR_RETURN with additional levels
 >Executed
 
+  (
+    setopt ERR_EXIT
+    { false } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from simple brace expression
+
+  (
+    setopt ERR_EXIT
+    { false && true } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from conditional brace expression
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    { if true; then false; true; fi } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "if" with simple body
+
+  (
+    setopt ERR_EXIT
+    { if true; then false && true; fi } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "if" with conditional body
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    { if false; then :; else false; true; fi } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "else" with simple body
+
+  (
+    setopt ERR_EXIT
+    { if false; then :; else false && true; fi } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "else" with conditional body
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    { case x in; (*) false;; esac } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "case" with simple body
+
+  (
+    setopt ERR_EXIT
+    { case x in; (*) false && true;; esac } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "case" with conditional body
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    { for _ in 1; do false; true; done } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "for" with simple body
+
+  (
+    setopt ERR_EXIT
+    { for _ in 1; do false && true; done } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "for" with conditional body
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    () { { while ((argv[1]--)); do false; true; done
+         } always { print INSIDE: $? } } 1
+    print OUTSIDE
+  )
+1:ERR_EXIT from "while" with simple body
+
+  (
+    setopt ERR_EXIT
+    () { { while ((argv[1]--)); do false && true; done
+         } always { print INSIDE: $? } } 1
+    print OUTSIDE
+  )
+1:ERR_EXIT from "while" with conditional body
+>INSIDE: 1
+
+  (
+    setopt ERR_EXIT
+    { repeat $; do false; done } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "repeat" with simple body
+
+  (
+    setopt ERR_EXIT
+    { repeat 1; do false && true; done } always { print INSIDE: $? }
+    print OUTSIDE
+  )
+1:ERR_EXIT from "repeat" with conditional body
+>INSIDE: 1
+
   (print before; setopt noexec; print after)
 0:NO_EXEC option
 >before