diff --git a/Changes b/Changes
index 8e139e7eb..93fd64859 100644
--- a/Changes
+++ b/Changes
@@ -19,6 +19,8 @@ indicates the contributor was also the author of the fix; Thanks!
 
 ****  Fix $signed casts under generates, bug999. [Clifford Wolf]
 
+****  Fix genvar constant propagation from package, bug1003. [Johan Bjork]
+
 
 * Verilator 3.878 2015-11-01
 
diff --git a/src/V3Simulate.h b/src/V3Simulate.h
index 60a0301b0..6be2813de 100644
--- a/src/V3Simulate.h
+++ b/src/V3Simulate.h
@@ -255,6 +255,7 @@ private:
     virtual void visit(AstVarRef* nodep, AstNUser*) {
 	if (jumpingOver(nodep)) return;
 	if (!optimizable()) return;  // Accelerate
+	nodep->varp()->iterateChildren(*this);
 	AstNode* vscp = varOrScope(nodep);
 
 	// We can't have non-delayed assignments with same value on LHS and RHS
@@ -282,10 +283,10 @@ private:
 		if (!m_params && (vscp->user1() & VU_LV)) clearOptimizable(nodep,"Var write & read");
 		vscp->user1( vscp->user1() | VU_RV);
 		bool isConst = nodep->varp()->isParam();
-		AstConst* constp = (isConst ? nodep->varp()->valuep()->castConst() : NULL);
-		if (isConst && constp) { // Propagate PARAM constants for constant function analysis
+		V3Number* nump = isConst ? fetchNumberNull(nodep->varp()->valuep()) : NULL;
+		if (isConst && nump) { // Propagate PARAM constants for constant function analysis
 		    if (!m_checkOnly && optimizable()) {
-			newNumber(vscp)->opAssign(constp->num());
+			newNumber(vscp)->opAssign(*nump);
 		    }
 		} else {
 		    if (m_checkOnly) varRefCb (nodep);
diff --git a/test_regress/t/t_func_const.v b/test_regress/t/t_func_const.v
index a783b8f8b..fa0ed25e7 100644
--- a/test_regress/t/t_func_const.v
+++ b/test_regress/t/t_func_const.v
@@ -3,6 +3,11 @@
 // This file ONLY is placed into the Public Domain, for any use,
 // without warranty, 2009 by Wilson Snyder.
 
+package testpackage;
+ localparam PARAM = 1024 >> 3;
+endpackage
+import testpackage::*;
+
 module t;
 
    localparam P4 = f_add(P3,1);
@@ -12,6 +17,7 @@ module t;
    localparam P18 = f_case(P4);
    localparam P6 = f_return(P4);
    localparam P3 = 3;
+   localparam P128 = f_package();
 
    typedef struct packed {
       logic [7:0] data;
@@ -42,10 +48,15 @@ module t;
       if (bigparam.first != 1'b1) $stop;
       if (bigparam.second != 1'b0) $stop;
       if (bigparam.data != 32'hfff12fff) $stop;
+      if (P128 != 128) $stop;
       $write("*-* All Finished *-*\n");
       $finish;
    end
 
+   function integer f_package();
+      return PARAM;
+   endfunction
+
    function integer f_add(input [31:0] a, input [31:0] b);
       f_add = a+b;
    endfunction