diff --git a/Python/compile.c b/Python/compile.c
index 0336959..a6c5ab6 100644
--- a/Python/compile.c
+++ b/Python/compile.c
@@ -81,7 +81,7 @@
 compiler IR.
 */
 
-enum fblocktype { WHILE_LOOP, FOR_LOOP, EXCEPT, FINALLY_TRY, FINALLY_END,
+enum fblocktype { WHILE_LOOP, FOR_LOOP, EXCEPT, FINALLY_TRY, FINALLY_TRY2, FINALLY_END,
                   WITH, ASYNC_WITH, HANDLER_CLEANUP };
 
 struct fblockinfo {
@@ -1664,7 +1664,12 @@
             return 1;
 
         case FINALLY_END:
+            info->fb_exit = NULL;
             ADDOP_I(c, POP_FINALLY, preserve_tos);
+            if (preserve_tos) {
+                ADDOP(c, ROT_TWO);
+            }
+            ADDOP(c, POP_TOP);
             return 1;
 
         case FOR_LOOP:
@@ -1684,6 +1689,19 @@
             ADDOP_JREL(c, CALL_FINALLY, info->fb_exit);
             return 1;
 
+        case FINALLY_TRY2:
+            ADDOP(c, POP_BLOCK);
+            if (preserve_tos) {
+                ADDOP(c, ROT_TWO);
+                ADDOP(c, POP_TOP);
+                ADDOP_JREL(c, CALL_FINALLY, info->fb_exit);
+            }
+            else {
+                ADDOP_JREL(c, CALL_FINALLY, info->fb_exit);
+                ADDOP(c, POP_TOP);
+            }
+            return 1;
+
         case WITH:
         case ASYNC_WITH:
             ADDOP(c, POP_BLOCK);
@@ -2869,17 +2887,47 @@
 static int
 compiler_try_finally(struct compiler *c, stmt_ty s)
 {
-    basicblock *body, *end;
+    basicblock *start, *newcurblock, *body, *end;
+    int break_finally = 1;
 
     body = compiler_new_block(c);
     end = compiler_new_block(c);
     if (body == NULL || end == NULL)
         return 0;
 
+    start = c->u->u_curblock;
+
+    /* `finally` block. Compile it first to determine if any of "break",
+       "continue" or "return" are used in it. */
+    compiler_use_next_block(c, end);
+    if (!compiler_push_fblock(c, FINALLY_END, end, end))
+        return 0;
+    VISIT_SEQ(c, stmt, s->v.Try.finalbody);
+    ADDOP(c, END_FINALLY);
+    break_finally = (c->u->u_fblock[c->u->u_nfblocks - 1].fb_exit == NULL);
+    if (break_finally) {
+        /* Pops a placeholder. See below */
+        ADDOP(c, POP_TOP);
+    }
+    compiler_pop_fblock(c, FINALLY_END, end);
+
+    newcurblock = c->u->u_curblock;
+    c->u->u_curblock = start;
+    start->b_next = NULL;
+
     /* `try` block */
+    c->u->u_lineno_set = 0;
+    c->u->u_lineno = s->lineno;
+    c->u->u_col_offset = s->col_offset;
+    if (break_finally) {
+        /* Pushes a placeholder for the value of "return" in the "try" block
+           to balance the stack for "break", "continue" and "return" in
+           the "finally" block. */
+        ADDOP_LOAD_CONST(c, Py_None);
+    }
     ADDOP_JREL(c, SETUP_FINALLY, end);
     compiler_use_next_block(c, body);
-    if (!compiler_push_fblock(c, FINALLY_TRY, body, end))
+    if (!compiler_push_fblock(c, break_finally ? FINALLY_TRY2 : FINALLY_TRY, body, end))
         return 0;
     if (s->v.Try.handlers && asdl_seq_LEN(s->v.Try.handlers)) {
         if (!compiler_try_except(c, s))
@@ -2890,15 +2938,11 @@
     }
     ADDOP(c, POP_BLOCK);
     ADDOP(c, BEGIN_FINALLY);
-    compiler_pop_fblock(c, FINALLY_TRY, body);
+    compiler_pop_fblock(c, break_finally ? FINALLY_TRY2 : FINALLY_TRY, body);
 
-    /* `finally` block */
-    compiler_use_next_block(c, end);
-    if (!compiler_push_fblock(c, FINALLY_END, end, NULL))
-        return 0;
-    VISIT_SEQ(c, stmt, s->v.Try.finalbody);
-    ADDOP(c, END_FINALLY);
-    compiler_pop_fblock(c, FINALLY_END, end);
+    c->u->u_curblock->b_next = end;
+    c->u->u_curblock = newcurblock;
+
     return 1;
 }