diff --git a/b2/test/subbreak b/b2/test/subbreak
new file mode 100755
index 0000000..9d16815
--- /dev/null
+++ b/b2/test/subbreak
@@ -0,0 +1,153 @@
+#!/bin/bash
+. ./Common
+
+###############################################################################
+
+tst "substitutions: break alone" -ds -q <<EOF
+!-s
+in = blah
+out = x
+in = (?)(*) {
+	out=\$out\$in
+	break		/* does nothing useful */
+}
+EOF
+
+expect <<EOF
+in=blah
+out=x
+in=RE {
+    out=\${out}\${in}
+    break in
+}
+in=blah
+out=xblah
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: named break to inner block" -ds -q <<EOF
+!-s
+in = blah
+out = x
+in = (?)(*) {
+	out=\$out\$in
+	break in	/* does nothing useful */
+}
+EOF
+
+expect <<EOF
+in=blah
+out=x
+in=RE {
+    out=\${out}\${in}
+    break in
+}
+in=blah
+out=xblah
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: named break to outer block (taken)" -q doit=y <<EOF
+!-s
+in = blah
+out = x
+in = (?)(*) {
+	out=\$out\$in
+	doit = y {
+		break in
+	}
+	out=\$out\$in
+}
+EOF
+
+expect <<EOF
+in=blah
+out=xblah
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: named break to outer block (not taken)" -q doit=n <<EOF
+!-s
+in = blah
+out = x
+in = (?)(*) {
+	out=\$out\$in
+	doit = y {
+		break in
+	}
+	out=\$out\$in
+}
+EOF
+
+expect <<EOF
+in=blah
+out=xblahblah
+EOF
+
+#------------------------------------------------------------------------------
+
+tst "substitutions: break with continue" -q <<EOF
+!-s
+res = x
+res = * {
+	res = \${res}x
+	/*
+	 * We use a temporary variable here because the variable name also
+	 * serves as a jump label. Alternatively, we could use a dummy
+	 * variable for the outer block.
+	 */
+	tmp = \$res
+	tmp = ????? { break res }
+	continue
+}
+EOF
+
+expect <<EOF
+res=xxxxx
+tmp=xxxxx
+EOF
+
+#------------------------------------------------------------------------------
+
+tst_fail "substitutions: break inside block " -q <<EOF
+!-s
+foo = x
+foo = * {
+	break bar
+	foo = x
+}
+EOF
+
+expect <<EOF
+s:5: unreachable code
+EOF
+
+#------------------------------------------------------------------------------
+
+tst_fail "substitutions: named break to unknown block" -q <<EOF
+!-s
+foo = x
+foo = * {
+	break bar
+}
+EOF
+
+expect <<EOF
+s:5: cannot find "bar"
+EOF
+
+#------------------------------------------------------------------------------
+
+tst_fail "substitutions: break without block" -q <<EOF
+!-s
+break
+EOF
+
+expect <<EOF
+s:2: jump without block
+EOF
+
+###############################################################################