diff --git a/src/comp/front/parser.rs b/src/comp/front/parser.rs
index 2db3fde13efb..c4f368a4a2f4 100644
--- a/src/comp/front/parser.rs
+++ b/src/comp/front/parser.rs
@@ -9,6 +9,7 @@ import std::either;
 import std::either::left;
 import std::either::right;
 import std::map::hashmap;
+import token::can_begin_expr;
 import driver::session;
 import util::common;
 import util::common::filename;
@@ -120,7 +121,6 @@ fn new_parser(session::session sess, ast::crate_cfg cfg,
                      ext::syntax_expander_table());
 }
 
-
 // These are the words that shouldn't be allowed as value identifiers,
 // because, if used at the start of a line, they will cause the line to be
 // interpreted as a specific kind of statement, which would be confusing.
@@ -841,14 +841,13 @@ fn parse_bottom_expr(&parser p) -> @ast::expr {
         lo = ex_ext.span.lo;
         ex = ex_ext.node;
     } else if (eat_word(p, "fail")) {
-        alt (p.peek()) {
-            case (token::SEMI) { ex = ast::expr_fail(none) }
-            case (token::RBRACE) { ex = ast::expr_fail(none) }
-            case (_) {
-                auto e = parse_expr(p);
-                hi = e.span.hi;
-                ex = ast::expr_fail(some(e));
-            }
+        if (can_begin_expr(p.peek())) {
+            auto e = parse_expr(p);
+            hi = e.span.hi;
+            ex = ast::expr_fail(some(e));
+        }
+        else {
+            ex = ast::expr_fail(none);
         }
     } else if (eat_word(p, "log")) {
         auto e = parse_expr(p);
diff --git a/src/comp/middle/trans.rs b/src/comp/middle/trans.rs
index b41553c385bd..44cab2120a02 100644
--- a/src/comp/middle/trans.rs
+++ b/src/comp/middle/trans.rs
@@ -5682,6 +5682,11 @@ fn trans_args(&@block_ctxt cx, ValueRef llenv, &option::t[ValueRef] llobj,
     auto arg_tys = type_of_explicit_args(cx.fcx.lcx.ccx, cx.sp, args);
     auto i = 0u;
     for (@ast::expr e in es) {
+        if (bcx.build.is_terminated()) {
+            // This means an earlier arg was divergent.
+            // So this arg can't be evaluated.
+            break;
+        }
         auto r = trans_arg_expr(bcx, args.(i), arg_tys.(i), e);
         bcx = r.bcx;
         llargs += [r.val];
diff --git a/src/test/run-fail/args-fail.rs b/src/test/run-fail/args-fail.rs
new file mode 100644
index 000000000000..07f47e0da849
--- /dev/null
+++ b/src/test/run-fail/args-fail.rs
@@ -0,0 +1,9 @@
+// xfail-stage0
+// error-pattern:meep
+fn f(int a, int b, @int c) {
+  fail "moop";
+}
+
+fn main() {
+  f(1, fail "meep", @42);
+}
\ No newline at end of file