diff --git a/collects/tests/mzscheme/read.ss b/collects/tests/mzscheme/read.ss
index 8c136b0634..cff3c9bd60 100644
--- a/collects/tests/mzscheme/read.ss
+++ b/collects/tests/mzscheme/read.ss
@@ -198,6 +198,7 @@
 (test '(5) readstr "(#| #| #| #| hi |# |# |# |# 5)")
 (test '(10 1) readstr "(10 #|z#|#f|#z|# 1)")
 (test 17 readstr "#|z#|#f|#z|# 17")
+(test 17 readstr "#|#|x|#|# 17")
 
 (err/rt-test (readstr "#\\silly") exn:fail:read?)
 (err/rt-test (readstr "#\\nully") exn:fail:read?)
diff --git a/src/mzscheme/src/read.c b/src/mzscheme/src/read.c
index 4b192019eb..0101e6a9e0 100644
--- a/src/mzscheme/src/read.c
+++ b/src/mzscheme/src/read.c
@@ -1200,6 +1200,7 @@ read_inner_inner(Scheme_Object *port, Scheme_Object *stxsrc, Scheme_Hash_Table *
 		    return NULL;
 		  goto start_over;
 		}
+		ch = 0; /* So we don't count '#' toward an opening "#|" */
 	      } else if ((ch2 == '#') && (ch == '|')) {
 		depth++;
 		ch = 0; /* So we don't count '|' toward a closing "|#" */
@@ -3521,6 +3522,7 @@ skip_whitespace_comments(Scheme_Object *port, Scheme_Object *stxsrc,
       if ((ch2 == blockc_2) && (ch == blockc_1)) {
 	if (!(depth--))
 	  goto start_over;
+	ch = 0; /* So we don't count '#' toward an opening "#|" */
       } else if ((ch2 == blockc_1) && (ch == blockc_2)) {
 	depth++;
 	ch = 0; /* So we don't count '|' toward a closing "|#" */