diff --git a/src/org/mozilla/javascript/Parser.java b/src/org/mozilla/javascript/Parser.java
index 9f3ec46eb2..a1d6cb6198 100644
--- a/src/org/mozilla/javascript/Parser.java
+++ b/src/org/mozilla/javascript/Parser.java
@@ -333,7 +333,6 @@ private int peekToken()
                 lineno++;
                 sawEOL = true;
             } else {
-                sawEOL = false;
                 if (compilerEnv.isRecordingComments()) {
                     recordComment(lineno);
                 }
diff --git a/testsrc/org/mozilla/javascript/tests/ParserTest.java b/testsrc/org/mozilla/javascript/tests/ParserTest.java
index 8678a4c314..144662b300 100644
--- a/testsrc/org/mozilla/javascript/tests/ParserTest.java
+++ b/testsrc/org/mozilla/javascript/tests/ParserTest.java
@@ -28,6 +28,16 @@ public void testAutoSemiColonBetweenNames() {
         assertEquals("z", third.getString());
     }
 
+    public void testParseAutoSemiColonBeforeNewlineAndComments() throws IOException {
+        AstRoot root = parseAsReader(
+        		"var s = 3\n"
+        		+ "/* */var t = 1;");
+        assertNotNull(root.getComments());
+        assertEquals(1, root.getComments().size());
+
+        assertEquals("var s = 3;\nvar t = 1;\n", root.toSource());
+    }
+
     public void testLinenoAssign() {
         AstRoot root = parse("\n\na = b");
         ExpressionStatement st = (ExpressionStatement) root.getFirstChild();