diff --git a/b2/test/subcont b/b2/test/subcont
new file mode 100755
index 0000000..f22141f
--- /dev/null
+++ b/b2/test/subcont
@@ -0,0 +1,129 @@
+#!/bin/bash
+. ./Common
+
+###############################################################################
+
+tst "substitutions: continue" -ds -q <<EOF
+!-s
+in = blah
+out = x
+in = (?)(*) {
+	out = \$out\$1\$1
+	in = \$2
+	continue
+}
+EOF
+
+expect <<EOF
+in=blah
+out=x
+in=RE {
+    out=\${out}\$1\$1
+    in=\$2
+    continue in
+}
+in=
+out=xbbllaahh
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: named continue to inner block" -q x=abc <<EOF
+!-s
+z = x
+x = (?)(*) {
+	x = \$2
+	y = \$x
+	y = (*)(?) {
+		z = \$z\$y\$2
+		y = \$1
+		continue y
+	}
+}
+EOF
+
+expect <<EOF
+z=xbccbb
+x=bc
+y=
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: named continue to outer block" -q x=abc <<EOF
+!-s
+z = x
+x = (?)(*) {
+	x = \$2
+	y = \$x
+	y = (*)(?) {
+		z = \$z\$y\$2
+		y = \$1
+		continue x
+	}
+}
+EOF
+
+expect <<EOF
+z=xbcccc
+x=
+y=
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: continue to \$" -ds -q <<EOF
+!-s
+in = blah
+out = x
+in = ?(*) {
+	in = \$1
+	out = \${out}+
+	continue \$
+}
+EOF
+
+expect <<EOF
+in=blah
+out=x
+in=RE {
+    in=\$1
+    out=\${out}+
+    continue in
+}
+in=
+out=x++++
+EOF
+
+#------------------------------------------------------------------------------
+
+tst_fail "substitutions: continue inside block" <<EOF
+!-s
+foo = * {
+	continue
+	bar = x
+}
+EOF
+
+expect <<EOF
+s:3: syntax error
+EOF
+
+#------------------------------------------------------------------------------
+
+tst_fail "substitutions: named continue to unknown block" -q <<EOF
+!-s
+x = foo
+x = * {
+	y = \$x
+	y = * {
+		continue z
+	}
+}
+EOF
+
+expect <<EOF
+s:8: cannot find "z"
+EOF
+
+###############################################################################