diff --git a/simavr/sim/avr_ioport.c b/simavr/sim/avr_ioport.c
index 91cf106d3..b1dba73eb 100644
--- a/simavr/sim/avr_ioport.c
+++ b/simavr/sim/avr_ioport.c
@@ -155,27 +155,34 @@ avr_ioport_irq_notify(
 	avr_t * avr = p->io.avr;
 
 	int output = value & AVR_IOPORT_OUTPUT;
-	value &= 0xff;
 	uint8_t mask = 1 << irq->irq;
 	uint8_t ddr = avr->data[p->r_ddr];
+	uint8_t new_pin;
 
+	value &= 0xff;
+	new_pin = (avr->data[p->r_pin] & ~mask) | (value ? mask : 0);
 	if (output) {
-		if ((mask & ddr) == 0)
-			return;	   // TODO: stop further processing of IRQ.
-
-		// If the IRQ was marked as Output, also do the IO write.
+		uint8_t new_out;
+
+		new_out = (avr->data[p->r_port] & ~mask) | (value ? mask : 0);
+		if (mask & ddr) {
+			// If the IRQ was marked as Output, do the IO write.
+
+			avr_ioport_write(avr, p->r_port, new_out, p);
+			avr_core_watch_write(avr, p->r_pin, new_pin);
+		} else {
+			/* Set the PORT register so the output will be visible
+			 * when the corresponding DDR bit is set.
+			 * Real hardware does not do this.
+			 */
 
-		avr_ioport_write(avr,
-				 p->r_port,
-				 (avr->data[p->r_port] & ~mask) |
-				     (value ? mask : 0),
-				 p);
+			avr->data[p->r_port] = new_out;
+			return;	   // TODO: stop further processing of IRQ.
+		}
 	} else {
 		// Set the real PIN bit. Ignore DDR as it's masked when read.
 
-		avr_core_watch_write(avr, p->r_pin,
-							 (avr->data[p->r_pin] & ~mask) |
-								(value ? mask : 0));
+		avr_core_watch_write(avr, p->r_pin, new_pin);
 
 		/* BUG: If DDR bit is set here, there should be no
 		 * interrupt.  But a spurious IRQ call by the user