diff --git a/Changes b/Changes
index ef7c31fde..1156d9d9b 100644
--- a/Changes
+++ b/Changes
@@ -31,6 +31,8 @@ The contributors that suggested a given feature are shown in []. Thanks!
 
 ****  Fix first clock edge and --x-initial-edge, bug1327. [Rupert Swarbrick]
 
+****  Fix compile error on tracing of string arrays, bug1338. [Iztok Jeras].
+
 
 * Verilator 3.926 2018-08-22
 
diff --git a/src/V3TraceDecl.cpp b/src/V3TraceDecl.cpp
index 256133592..d75428222 100644
--- a/src/V3TraceDecl.cpp
+++ b/src/V3TraceDecl.cpp
@@ -198,7 +198,11 @@ private:
 		       && m_traVscp->dtypep()->skipRefp() == nodep) {  // Nothing above this array
 		// Simple 1-D array, use exising V3EmitC runtime loop rather than unrolling
 		// This will put "(index)" at end of signal name for us
-		addTraceDecl(nodep->declRange(), 0);
+                if (m_traVscp->dtypep()->skipRefp()->isString()) {
+                    addIgnore("Unsupported: strings");
+                } else {
+                    addTraceDecl(nodep->declRange(), 0);
+                }
 	    } else {
 		// Unroll now, as have no other method to get right signal names
 		AstNodeDType* subtypep = nodep->subDTypep()->skipRefp();
@@ -278,7 +282,7 @@ private:
     }
     virtual void visit(AstBasicDType* nodep) {
 	if (m_traVscp) {
-	    if (nodep->keyword()==AstBasicDTypeKwd::STRING) {
+            if (nodep->isString()) {
 		addIgnore("Unsupported: strings");
 	    } else {
 		addTraceDecl(VNumRange(), 0);
diff --git a/test_regress/t/t_trace_complex.v b/test_regress/t/t_trace_complex.v
index da3fd399f..732e813a4 100644
--- a/test_regress/t/t_trace_complex.v
+++ b/test_regress/t/t_trace_complex.v
@@ -68,7 +68,7 @@ module t (clk);
       v_arrp <= ~v_arrp;
       v_arrp_arrp <= ~v_arrp_arrp;
       v_real <= v_real + 0.1;
-      v_string <= "foo";
+      v_string <= cyc[0] ? "foo" : "bar";
       v_arr_real[0] <= v_arr_real[0] + 0.2;
       v_arr_real[1] <= v_arr_real[1] + 0.3;
       for (integer b=3; b<=4; b++) begin
diff --git a/test_regress/t/t_trace_string.pl b/test_regress/t/t_trace_string.pl
new file mode 100755
index 000000000..b6ba517f5
--- /dev/null
+++ b/test_regress/t/t_trace_string.pl
@@ -0,0 +1,21 @@
+#!/usr/bin/perl
+if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); die; }
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2003 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.
+
+scenarios(simulator => 1);
+
+compile(
+    verilator_flags2 => ['--cc --trace'],
+    );
+
+execute(
+    check_finished => 1,
+    );
+
+ok(1);
+1;
diff --git a/test_regress/t/t_trace_string.v b/test_regress/t/t_trace_string.v
new file mode 100644
index 000000000..c72b05099
--- /dev/null
+++ b/test_regress/t/t_trace_string.v
@@ -0,0 +1,16 @@
+// DESCRIPTION: Verilator: Verilog Test module
+//
+// This file ONLY is placed into the Public Domain, for any use,
+// without warranty, 2018 by Wilson Snyder.
+
+module t (/*AUTOARG*/);
+
+   localparam string SVEC [0:7] = '{"zero", "one", "two", "three", "four", "five", "six", "seven"};
+
+   initial begin
+      $display("%s", SVEC[3'd1]);
+      $write("*-* All Finished *-*\n");
+      $finish;
+   end
+
+endmodule
diff --git a/test_regress/t/t_trace_string_lxt2.pl b/test_regress/t/t_trace_string_lxt2.pl
new file mode 100755
index 000000000..2a4758cc9
--- /dev/null
+++ b/test_regress/t/t_trace_string_lxt2.pl
@@ -0,0 +1,23 @@
+#!/usr/bin/perl
+if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); die; }
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2003 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.
+
+scenarios(simulator => 1);
+
+top_filename("t/t_trace_string.v");
+
+compile(
+    verilator_flags2 => ['--cc --trace'],
+    );
+
+execute(
+    check_finished => 1,
+    );
+
+ok(1);
+1;