diff --git a/vvp/compile.h b/vvp/compile.h
index cccc2391a..f2e949d66 100644
--- a/vvp/compile.h
+++ b/vvp/compile.h
@@ -504,7 +504,7 @@ extern void compile_variable(char*label, char*name,
 			     int msb, int lsb, int vpi_type_code,
 			     bool signed_flag, bool local_flag);
 
-extern void compile_var_real(char*label, char*name);
+extern void compile_var_real(char*label, char*name, bool local_flag);
 extern void compile_var_string(char*label, char*name);
 extern void compile_var_darray(char*label, char*name, unsigned size);
 extern void compile_var_cobject(char*label, char*name);
diff --git a/vvp/parse.y b/vvp/parse.y
index bd8dba1bf..2fc3dc93c 100644
--- a/vvp/parse.y
+++ b/vvp/parse.y
@@ -763,8 +763,8 @@ statement
   | T_LABEL K_VAR_2U local_flag T_STRING ',' signed_t_number signed_t_number ';'
       { compile_variable($1, $4, $6, $7, vpiIntVar, false, $3); }
 
-  | T_LABEL K_VAR_R T_STRING ',' signed_t_number signed_t_number ';'
-      { compile_var_real($1, $3); }
+  | T_LABEL K_VAR_R local_flag T_STRING ',' signed_t_number signed_t_number ';'
+      { compile_var_real($1, $4, $3); }
 
   | T_LABEL K_VAR_STR T_STRING ';'
       { compile_var_string($1, $3); }
diff --git a/vvp/words.cc b/vvp/words.cc
index 630c430b0..6291a7646 100644
--- a/vvp/words.cc
+++ b/vvp/words.cc
@@ -35,7 +35,8 @@
 using namespace std;
 
 static void __compile_var_real(char*label, char*name,
-			       vvp_array_t array, unsigned long array_addr)
+			       vvp_array_t array, unsigned long array_addr,
+			       bool local_flag)
 {
       vvp_net_t*net = new vvp_net_t;
 
@@ -55,7 +56,8 @@ static void __compile_var_real(char*label, char*name,
 
       if (name) {
 	    assert(!array);
-	    vpip_attach_to_current_scope(obj);
+	    if (!local_flag)
+		  vpip_attach_to_current_scope(obj);
             if (!vpip_peek_current_scope()->is_automatic())
                   schedule_init_vector(vvp_net_ptr_t(net,0), 0.0);
       }
@@ -67,9 +69,9 @@ static void __compile_var_real(char*label, char*name,
       delete[] name;
 }
 
-void compile_var_real(char*label, char*name)
+void compile_var_real(char*label, char*name, bool local_flag)
 {
-      __compile_var_real(label, name, 0, 0);
+      __compile_var_real(label, name, 0, 0, local_flag);
 }
 
 void compile_var_string(char*label, char*name)