1 files changed, 5 insertions, 11 deletions

diff --git a/py/vm.c b/py/vm.c
index 498ecb491..bc596b0e8 100644
--- a/py/vm.c
+++ b/py/vm.c
@@ -1063,17 +1063,11 @@ unwind_jump:;
 
                 ENTRY(MP_BC_RETURN_VALUE):
                     MARK_EXC_IP_SELECTIVE();
-                    // These next 3 lines pop a try-finally exception handler, if one
-                    // is there on the exception stack.  Without this the finally block
-                    // is executed a second time when the return is executed, because
-                    // the try-finally exception handler is still on the stack.
-                    // TODO Possibly find a better way to handle this case.
-                    if (currently_in_except_block) {
-                        POP_EXC_BLOCK();
-                    }
 unwind_return:
+                    // Search for and execute finally handlers that aren't already active
                     while (exc_sp >= exc_stack) {
-                        if (MP_TAGPTR_TAG1(exc_sp->val_sp)) {
+                        if (!currently_in_except_block && MP_TAGPTR_TAG1(exc_sp->val_sp)) {
+                            // Found a finally handler that isn't active.
                             // Getting here the stack looks like:
                             //     (..., X, [iter0, iter1, ...,] ret_val)
                             // where X is pointed to by exc_sp->val_sp and in the case
@@ -1092,10 +1086,10 @@ unwind_return:
                             // done (when WITH_CLEANUP or END_FINALLY reached).
                             PUSH(MP_OBJ_NEW_SMALL_INT(-1));
                             ip = exc_sp->handler;
-                            exc_sp--;
+                            POP_EXC_BLOCK();
                             goto dispatch_loop;
                         }
-                        exc_sp--;
+                        POP_EXC_BLOCK();
                     }
                     nlr_pop();
                     code_state->sp = sp;