diff --git a/src/V3MergeCond.cpp b/src/V3MergeCond.cpp
index 538bbbb28..376daa47b 100644
--- a/src/V3MergeCond.cpp
+++ b/src/V3MergeCond.cpp
@@ -245,8 +245,8 @@ class CodeMotionAnalysisVisitor final : public VNVisitorConst {
     }
 
     void analyzeNode(AstNode* nodep) {
-        // If an impure node under a statement, mark that statement as impure
-        if (m_propsp && !nodep->isPure()) m_propsp->m_isFence = true;
+        // If impure, or branch, mark statement as fence
+        if (m_propsp && (!nodep->isPure() || nodep->isBrancher())) m_propsp->m_isFence = true;
         // Analyze children
         iterateChildrenConst(nodep);
     }
diff --git a/test_regress/t/t_merge_cond_motion_branch.py b/test_regress/t/t_merge_cond_motion_branch.py
new file mode 100755
index 000000000..f989a35fb
--- /dev/null
+++ b/test_regress/t/t_merge_cond_motion_branch.py
@@ -0,0 +1,18 @@
+#!/usr/bin/env python3
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2025 by Wilson Snyder. This program is free software; you
+# can redistribute it and/or modify it under the terms of either the GNU
+# Lesser General Public License Version 3 or the Perl Artistic License
+# Version 2.0.
+# SPDX-License-Identifier: LGPL-3.0-only OR Artistic-2.0
+
+import vltest_bootstrap
+
+test.scenarios('simulator')
+
+test.compile()
+
+test.execute()
+
+test.passes()
diff --git a/test_regress/t/t_merge_cond_motion_branch.v b/test_regress/t/t_merge_cond_motion_branch.v
new file mode 100644
index 000000000..73a538df0
--- /dev/null
+++ b/test_regress/t/t_merge_cond_motion_branch.v
@@ -0,0 +1,23 @@
+// DESCRIPTION: Verilator: Verilog Test module
+//
+// This file ONLY is placed under the Creative Commons Public Domain, for
+// any use, without warranty, 2025 by Wilson Snyder.
+// SPDX-License-Identifier: CC0-1.0
+
+// Based on ivtest's pr540.v by Steve Williams.
+module t;
+   bit fail = 0;
+   bit abort = 0;
+
+   initial begin
+      abort = 1; // Set here so it's non-constant, otherwise ifs gets folded
+      begin: block
+         if (abort) disable block;
+         fail = 1; // Don't try to move this in order to merge the 2 ifs
+         if (abort) $display("unreachable");
+      end
+      if (fail) $error("block disable FAILED");
+      $write("*-* All Finished *-*\n");
+      $finish(0);
+   end
+endmodule