diff --git a/ChangeLog b/ChangeLog
index f7f97bc0f..16a937e50 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2016-10-13  Peter Stephenson  <p.stephenson@samsung.com>
+
+	* 39625: Martijn Dekker: Src/loop.c, Test/A01grammar.ztst: case
+	needs to reset lastval if no pattern matched.
+
 2016-10-13  Oliver Kiddle  <opk@zsh.org>
 
 	* 39622: Test/Y03arguments.ztst: add test cases for recent
diff --git a/Src/loop.c b/Src/loop.c
index 94b61b7ed..b791a898d 100644
--- a/Src/loop.c
+++ b/Src/loop.c
@@ -584,7 +584,7 @@ execcase(Estate state, int do_exec)
     Wordcode end, next;
     wordcode code = state->pc[-1];
     char *word, *pat;
-    int npat, save, nalts, ialt, patok;
+    int npat, save, nalts, ialt, patok, anypatok;
     Patprog *spprog, pprog;
 
     end = state->pc + WC_CASE_SKIP(code);
@@ -592,6 +592,7 @@ execcase(Estate state, int do_exec)
     word = ecgetstr(state, EC_DUP, NULL);
     singsub(&word);
     untokenize(word);
+    anypatok = 0;
 
     cmdpush(CS_CASE);
     while (state->pc < end) {
@@ -648,7 +649,7 @@ execcase(Estate state, int do_exec)
 		    *spprog = pprog;
 	    }
 	    if (pprog && pattry(pprog, word))
-		patok = 1;
+		patok = anypatok = 1;
 	    state->pc += 2;
 	    nalts--;
 	}
@@ -679,6 +680,9 @@ execcase(Estate state, int do_exec)
 
     state->pc = end;
 
+    if (!anypatok)
+	lastval = 0;
+
     return lastval;
 }
 
diff --git a/Test/A01grammar.ztst b/Test/A01grammar.ztst
index 0e77f3ebc..e4b6870d7 100644
--- a/Test/A01grammar.ztst
+++ b/Test/A01grammar.ztst
@@ -763,6 +763,23 @@
     ;;
   esac
 0:case retains exit status for execution of cases
+>37
+
+  false
+  case stuff in
+    (nomatch) foo
+    ;;
+  esac
+  echo $?
+0:case sets exit status to zero if no patterns are matched
+>0
+
+  case match in
+    (match) true; false; (exit 37)
+    ;;
+  esac
+  echo $?
+0:case keeps exit status of last command executed in compound-list
 >37
 
   x=1