diff --git a/sh.c b/sh.c
index 7215a640..ba547a85 100644
--- a/sh.c
+++ b/sh.c
@@ -111,7 +111,7 @@ int	exitset = 0;
 static time_t  chktim;		/* Time mail last checked */
 char *progname;
 int tcsh;
-struct funcargs *fargv = NULL;
+struct funccurr fcurr;
 
 /*
  * This preserves the input state of the shell. It is used by
@@ -1725,6 +1725,7 @@ static void
 srcunit(int unit, int onlyown, int hflg, Char **av)
 {
     struct saved_state st;
+    struct funcargs *fargv;
 
     st.SHIN = -1;	/* st_restore checks this */
 
@@ -1766,15 +1767,17 @@ srcunit(int unit, int onlyown, int hflg, Char **av)
      * then seek for an ending exit on the requested label.
      * Function arguments are passed to STRargv.
      * STRargv is reset after the function is done. */
-    if (fargv) {
+    if (fcurr.ready) {
 	Char funcexit[] = { 'e', 'x', 'i', 't', 0 },
-	     funcmain[] = { 'm', 'a', 'i', 'n', 0 };
+	     *funcmain = fcurr.ffile ?
+			 strsave(str2short(fcurr.ffile->file)) :
+			 ffile;
 	struct Strbuf aword = Strbuf_INIT;
+
 	Sgoal = fargv->v[0];
 	Stype = TC_GOTO;
-	fargv->eof = 0;
-
-	if (!fargv->prev)
+	fcurr.eof = 0;
+	if (!(fargv = fcurr.fargv)->prev || fcurr.src)
 	    while (1) {
 		(void) getword(&aword);
 		Strbuf_terminate(&aword);
@@ -1799,6 +1802,7 @@ srcunit(int unit, int onlyown, int hflg, Char **av)
 			}
 			last = 1;
 		    }
+		    fcurr.src = 0;
 
 		    break;
 		}
@@ -1807,6 +1811,8 @@ srcunit(int unit, int onlyown, int hflg, Char **av)
 
 		(void) getword(NULL);
 	    }
+	if (funcmain != ffile)
+	    xfree(funcmain);
 
 	setq(STRargv, &fargv->v[1], &shvhed, VAR_READWRITE);
 	gotolab(fargv->v[0]);
@@ -1826,11 +1832,11 @@ srcunit(int unit, int onlyown, int hflg, Char **av)
 		if (eq(aword.s, funcexit)) {
 		    int last = 1, eof = 0;
 
-		    fargv->eof = 1;
+		    fcurr.eof = 1;
 		    while (1) {
 			do {
 			    (void) getword(NULL);
-			    if ((intptr_t) getword(&aword) == (intptr_t) &fargv) {
+			    if (getword(&aword) == (1 << 1)) {
 				Strbuf_terminate(&aword);
 				eof = 1;
 				break;
@@ -2294,6 +2300,7 @@ dosource(Char **t, struct command *c)
     Char *f;
     int    hflg = 0;
     char *file;
+    struct funcfile **ffile = NULL;
 
     USE(c);
     t++;
@@ -2309,13 +2316,39 @@ dosource(Char **t, struct command *c)
     }
 
     f = globone(*t++, G_ERROR);
-    file = strsave(short2str(f));
+    fcurr.file = file = strsave(short2str(f));
     cleanup_push(file, xfree);
     xfree(f);
     t = glob_all_or_error(t);
     cleanup_push(t, blk_cleanup);
+    if (fcurr.fargv) {
+	if (*(ffile = &fcurr.ffile)) {
+	    (*ffile)->next = malloc(sizeof **ffile);
+	    (*ffile)->next->prev = *ffile;
+	    *ffile = (*ffile)->next;
+	    (*ffile)->file = fcurr.file;
+	} else {
+	    *ffile = malloc(sizeof **ffile);
+	    (*ffile)->prev = NULL;
+	    (*ffile)->file = fcurr.file;
+	}
+    }
+
+    fcurr.ready = 0;
+    fcurr.src = 1;
     if ((!srcfile(file, 0, hflg, t)) && (!hflg) && (!bequiet))
 	stderror(ERR_SYSTEM, file, strerror(errno));
+    if (ffile) {
+	if ((*ffile)->prev) {
+	    *ffile = (*ffile)->prev;
+	    free((*ffile)->next);
+	    fcurr.file = (*ffile)->file;
+	} else {
+	    fcurr.file = (*ffile)->file = NULL;
+	    free(*ffile);
+	    *ffile = NULL;
+	}
+    }
     cleanup_until(file);
 }
 
diff --git a/sh.func.c b/sh.func.c
index 55027d7f..185b994e 100644
--- a/sh.func.c
+++ b/sh.func.c
@@ -1096,8 +1096,8 @@ getword(struct Strbuf *wp)
 	break;
 
     case TC_EXIT:
-	if (fargv->eof)
-	    return (intptr_t) &fargv;
+	if (fcurr.eof)
+	    return 1 << 1;
 	setname(short2str(Sgoal));
 	stderror(ERR_NAME | ERR_NOTFOUND, "exit");
 	break;
@@ -2729,16 +2729,19 @@ getYN(const char *prompt)
 void
 dofunction(Char **v, struct command *t)
 {
+    char *file;
+    struct funcargs **fargv;
+
     if (!dolzero)
 	stderror(ERR_FUNC);
 
-    if (fargv) {
-	fargv->next = malloc(sizeof *fargv);
-	fargv->next->prev = fargv;
-	fargv = fargv->next;
+    if (*(fargv = &fcurr.fargv)) {
+	(*fargv)->next = malloc(sizeof **fargv);
+	(*fargv)->next->prev = *fargv;
+	*fargv = (*fargv)->next;
     } else {
-	fargv = malloc(sizeof *fargv);
-	fargv->prev = NULL;
+	*fargv = malloc(sizeof **fargv);
+	(*fargv)->prev = NULL;
     }
 
     {
@@ -2752,18 +2755,23 @@ dofunction(Char **v, struct command *t)
 	}
 
 	vh[i] = NULL;
-	fargv->v = vh;
+	(*fargv)->v = vh;
     }
+    fcurr.ready = 1;
 
-    srcfile(short2str(ffile), 0, 0, NULL);
+    if (!srcfile(file = fcurr.file ? fcurr.file :
+		 strsave(short2str(ffile)), 0, 0, NULL))
+	stderror(ERR_SYSTEM, file, strerror(errno));
+    if (file != fcurr.file)
+	xfree(file);
     /* Reset STRargv on function exit. */
     setv(STRargv, NULL, VAR_READWRITE);
 
-    if (fargv->prev) {
-	fargv = fargv->prev;
-	free(fargv->next);
+    if ((*fargv)->prev) {
+	*fargv = (*fargv)->prev;
+	free((*fargv)->next);
     } else {
-	free(fargv);
-	fargv = NULL;
+	free(*fargv);
+	*fargv = NULL;
     }
 }
diff --git a/sh.h b/sh.h
index f91c7cda..3d63fea1 100644
--- a/sh.h
+++ b/sh.h
@@ -1308,12 +1308,22 @@ extern int    filec;
 /* Function variable(s) and function(s). */
 extern Char *Sgoal;
 extern int Stype;
-extern struct funcargs {
-    Char **v;
-    int eof;
-    struct funcargs *prev,
-		    *next;
-} *fargv;
+extern struct funccurr {
+    struct funcargs {
+	Char **v;
+	struct funcargs *prev,
+			*next;
+    } *fargv;
+    struct funcfile {
+	char *file;
+	struct funcfile *prev,
+			*next;
+    } *ffile;
+    char *file;
+    int eof,
+	src,
+	ready;
+} fcurr;
 extern int getword(struct Strbuf *);
 extern int srcfile(const char *, int, int, Char **);