diff --git a/Doc/reference/compound_stmts.rst b/Doc/reference/compound_stmts.rst
index d7792f1..153e85b 100644
--- a/Doc/reference/compound_stmts.rst
+++ b/Doc/reference/compound_stmts.rst
@@ -321,8 +321,8 @@
 is executed.  If there is a saved exception it is re-raised at the end of the
 :keyword:`finally` clause.  If the :keyword:`finally` clause raises another
 exception, the saved exception is set as the context of the new exception.
-If the :keyword:`finally` clause executes a :keyword:`return` or :keyword:`break`
-statement, the saved exception is discarded::
+If the :keyword:`finally` clause executes a :keyword:`return`, :keyword:`break`
+or :keyword:`continue` statement, the saved exception is discarded::
 
    >>> def f():
    ...     try:
@@ -343,10 +343,7 @@
 
 When a :keyword:`return`, :keyword:`break` or :keyword:`continue` statement is
 executed in the :keyword:`try` suite of a :keyword:`try`...\ :keyword:`finally`
-statement, the :keyword:`finally` clause is also executed 'on the way out.' A
-:keyword:`continue` statement is illegal in the :keyword:`finally` clause. (The
-reason is a problem with the current implementation --- this restriction may be
-lifted in the future).
+statement, the :keyword:`finally` clause is also executed 'on the way out.'
 
 The return value of a function is determined by the last :keyword:`return`
 statement executed.  Since the :keyword:`finally` clause always executes, a
@@ -366,6 +363,10 @@
 and information on using the :keyword:`raise` statement to generate exceptions
 may be found in section :ref:`raise`.
 
+.. versionchanged:: 3.8
+   Prior to Python 3.8, a :keyword:`continue` statement was illegal in the
+   :keyword:`finally` clause due to a problem with the implementation.
+
 
 .. _with:
 .. _as:
diff --git a/Doc/reference/simple_stmts.rst b/Doc/reference/simple_stmts.rst
index ef9a5f0..9186210 100644
--- a/Doc/reference/simple_stmts.rst
+++ b/Doc/reference/simple_stmts.rst
@@ -686,9 +686,8 @@
    continue_stmt: "continue"
 
 :keyword:`continue` may only occur syntactically nested in a :keyword:`for` or
-:keyword:`while` loop, but not nested in a function or class definition or
-:keyword:`finally` clause within that loop.  It continues with the next
-cycle of the nearest enclosing loop.
+:keyword:`while` loop, but not nested in a function or class definition within
+that loop.  It continues with the next cycle of the nearest enclosing loop.
 
 When :keyword:`continue` passes control out of a :keyword:`try` statement with a
 :keyword:`finally` clause, that :keyword:`finally` clause is executed before