diff --git a/collects/macro-debugger/analysis/private/get-references.rkt b/collects/macro-debugger/analysis/private/get-references.rkt
index 4f95a3c..ef3b887 100644
--- a/collects/macro-debugger/analysis/private/get-references.rkt
+++ b/collects/macro-debugger/analysis/private/get-references.rkt
@@ -130,8 +130,8 @@
        (recur/phase-up rhs)]
       [(p:define-values z1 z2 rs ?1 rhs)
        (recur rhs)]
-      [(p:begin-for-syntax z1 z2 rs ?1 prep body)
-       (recur prep)
+      [(p:begin-for-syntax z1 z2 rs ?1 prep body locals)
+       (recur prep locals)
        (recur/phase-up body)]
       [(p:#%expression z1 z2 rs ?1 inner untag)
        (recur inner)]
diff --git a/collects/macro-debugger/model/deriv-c.rkt b/collects/macro-debugger/model/deriv-c.rkt
index 4da99e5..bc2791e 100644
--- a/collects/macro-debugger/model/deriv-c.rkt
+++ b/collects/macro-debugger/model/deriv-c.rkt
@@ -108,7 +108,7 @@
 ;;     where BFSBody is one of
 ;;       - ModuleBegin/Phase
 ;;       - (list BeginForSyntaxLifts ... LDeriv))
-(define-struct (p:begin-for-syntax prule) (prep body) #:transparent)
+(define-struct (p:begin-for-syntax prule) (prep body locals) #:transparent)
 
 ;;   (make-p:stop <Base>)
 ;;   (make-p:unknown <Base>)
diff --git a/collects/macro-debugger/model/deriv-parser.rkt b/collects/macro-debugger/model/deriv-parser.rkt
index d238e74..965c488 100644
--- a/collects/macro-debugger/model/deriv-parser.rkt
+++ b/collects/macro-debugger/model/deriv-parser.rkt
@@ -321,8 +321,8 @@
                   phase-up (? EE/LetLifts) (? Eval) exit-prim)
       (make p:define-syntaxes $1 $8 null $3 $4 $6 $7)]
      [(enter-prim prim-begin-for-syntax ! (? PrepareEnv)
-                  phase-up (? ModuleBegin/Phase) exit-prim)
-      (make p:begin-for-syntax $1 $7 null $3 $4 $6)]
+                  phase-up (? ModuleBegin/Phase) (? Eval) exit-prim)
+      (make p:begin-for-syntax $1 $7 null $3 $4 $6 $7)]
      [(enter-prim prim-require (? Eval) exit-prim)
       (make p:require $1 $4 null #f $3)]
      [()
@@ -504,8 +504,8 @@
 
     (PrimBeginForSyntax
      (#:args e1 e2 rs)
-     [(prim-begin-for-syntax ! (? PrepareEnv) (? BeginForSyntax*))
-      (make p:begin-for-syntax e1 e2 rs $2 $3 $4)])
+     [(prim-begin-for-syntax ! (? PrepareEnv) (? BeginForSyntax*) (? Eval))
+      (make p:begin-for-syntax e1 e2 rs $2 $3 $4 $5)])
     (BeginForSyntax*
      [((? EL))
       (list $1)]
diff --git a/collects/macro-debugger/model/deriv-util.rkt b/collects/macro-debugger/model/deriv-util.rkt
index d68afcc..953ead9 100644
--- a/collects/macro-debugger/model/deriv-util.rkt
+++ b/collects/macro-debugger/model/deriv-util.rkt
@@ -36,7 +36,7 @@
 
 (define (ok-node? x)
   (check 'ok-node? node? "node" x)
-  (and (node-z1 x) #t))
+  (and (node-z2 x) #t))
 (define (interrupted-node? x)
   (check 'interrupted-node? node? "node" x)
   (not (node-z2 x)))
diff --git a/collects/macro-debugger/model/reductions.rkt b/collects/macro-debugger/model/reductions.rkt
index 7fe9d9a..9e3a7d4 100644
--- a/collects/macro-debugger/model/reductions.rkt
+++ b/collects/macro-debugger/model/reductions.rkt
@@ -270,7 +270,7 @@
         [! ?2]
         [Expr ?rhs rhs])]
 
-    [(Wrap p:begin-for-syntax (e1 e2 rs ?1 prep body))
+    [(Wrap p:begin-for-syntax (e1 e2 rs ?1 prep body locals))
      (R [! ?1]
         [#:pattern ?form]
         [PrepareEnv ?form prep]
@@ -278,7 +278,8 @@
         [#:parameterize ((phase (add1 (phase))))
           [#:if (module-begin/phase? body)
                 [[ModuleBegin/Phase ?forms body]]
-                [[BeginForSyntax ?forms body]]]])]
+                [[BeginForSyntax ?forms body]]]]
+        [LocalActions ?forms locals])]
 
     ;; Macros
     [(Wrap mrule (e1 e2 rs ?1 me1 locals me2 ?2 etx next))
diff --git a/collects/tests/macro-debugger/tests/regression.rkt b/collects/tests/macro-debugger/tests/regression.rkt
index 1be6b18..6b44695 100644
--- a/collects/tests/macro-debugger/tests/regression.rkt
+++ b/collects/tests/macro-debugger/tests/regression.rkt
@@ -205,4 +205,14 @@
                       (equal? (syntax->datum (state-e (step-s2 step)))
                               '(define y 12)))
                     "looking for m => define")))
-      ))
+
+    ;; Added 3/12/2012 based on bug from cce
+    (test-case "begin-for-syntax ends with phase1 eval"
+      (let ([d (trace '(module m '#%kernel
+                         (#%module-begin
+                          (#%require (for-syntax '#%kernel))
+                          (begin-for-syntax
+                           (syntax-local-value (quote-syntax lambda) void)))))])
+        (check-pred deriv? d)
+        (check-pred ok-node? d)))
+    ))