diff --git a/ivtest/ivltests/final3.v b/ivtest/ivltests/final3.v
new file mode 100644
index 000000000..b943e9656
--- /dev/null
+++ b/ivtest/ivltests/final3.v
@@ -0,0 +1,20 @@
+// Check that sub-blocks with variable declarations inside final procedures get
+// executed
+
+
+module test;
+
+  final begin
+    static int x = -1;
+    for (int i = 0; i < 1; i++) begin
+      x = i;
+    end
+
+    if (x === 0) begin
+      $display("PASSED");
+    end else begin
+      $display("FAILED");
+    end
+  end
+
+endmodule
diff --git a/ivtest/regress-vvp.list b/ivtest/regress-vvp.list
index 31e20b9e1..8b0ce376c 100644
--- a/ivtest/regress-vvp.list
+++ b/ivtest/regress-vvp.list
@@ -23,6 +23,7 @@ dffsynth9			vvp_tests/dffsynth9.json
 dffsynth10			vvp_tests/dffsynth10.json
 dffsynth11			vvp_tests/dffsynth11.json
 dumpfile			vvp_tests/dumpfile.json
+final3				vvp_tests/final3.json
 macro_str_esc			vvp_tests/macro_str_esc.json
 memsynth1			vvp_tests/memsynth1.json
 param-width			vvp_tests/param-width.json
diff --git a/ivtest/vvp_tests/final3.json b/ivtest/vvp_tests/final3.json
new file mode 100644
index 000000000..99b4572c5
--- /dev/null
+++ b/ivtest/vvp_tests/final3.json
@@ -0,0 +1,5 @@
+{
+    "type"          : "normal",
+    "source"        : "final3.v",
+    "iverilog-args" : [ "-g2009" ]
+}
diff --git a/vvp/schedule.cc b/vvp/schedule.cc
index 78920dee9..961aa36e6 100644
--- a/vvp/schedule.cc
+++ b/vvp/schedule.cc
@@ -855,6 +855,7 @@ void schedule_final_vthread(vthread_t thr)
       struct vthread_event_s*cur = new vthread_event_s;
 
       cur->thr = thr;
+      vthread_mark_final(thr);
       vthread_mark_scheduled(thr);
 
       schedule_final_event(cur);
diff --git a/vvp/vthread.cc b/vvp/vthread.cc
index 2b35315b0..02c7c179d 100644
--- a/vvp/vthread.cc
+++ b/vvp/vthread.cc
@@ -833,6 +833,19 @@ void vthread_mark_scheduled(vthread_t thr)
       }
 }
 
+void vthread_mark_final(vthread_t thr)
+{
+      /*
+       * The behavior in a final thread is the same as in a function. Any
+       * child thread will be executed immediately rather than being
+       * scheduled.
+       */
+      while (thr != 0) {
+	    thr->i_am_in_function = 1;
+	    thr = thr->wait_next;
+      }
+}
+
 void vthread_delay_delete()
 {
       if (running_thread)
diff --git a/vvp/vthread.h b/vvp/vthread.h
index 75d7929c8..1658c6839 100644
--- a/vvp/vthread.h
+++ b/vvp/vthread.h
@@ -51,6 +51,11 @@ extern vthread_t vthread_new(vvp_code_t sa, __vpiScope*scope);
  */
 extern void vthread_mark_scheduled(vthread_t thr);
 
+/*
+ * This function marks the thread as being a final procedure.
+ */
+extern void vthread_mark_final(vthread_t thr);
+
 /*
  * This function causes deletion of the currently running thread to
  * be delayed until after all sync events have been processed for the