diff --git a/test/bytecode_3.6/04_try_finally.pyc b/test/bytecode_3.6/04_try_finally.pyc
index 8f7ab09f..9e859661 100644
Binary files a/test/bytecode_3.6/04_try_finally.pyc and b/test/bytecode_3.6/04_try_finally.pyc differ
diff --git a/test/simple_source/bug36/04_try_finally.py b/test/simple_source/bug36/04_try_finally.py
index 1b2d2e49..ce3226e6 100644
--- a/test/simple_source/bug36/04_try_finally.py
+++ b/test/simple_source/bug36/04_try_finally.py
@@ -31,3 +31,18 @@ def handle_read(self):
         return why
 
     return data
+
+# From 3.6 contextlib
+# Bug is indentation of "return exc"
+# Also there are extra statements to remove exec,
+# which we hide (unless doing fragments).
+# Note: The indentation bug may be a result of using improper
+# grammar.
+def __exit__(self, type, value, traceback):
+    try:
+        value()
+    except StopIteration as exc:
+        return exc
+    except RuntimeError as exc:
+        return exc
+    return
diff --git a/uncompyle6/semantics/consts.py b/uncompyle6/semantics/consts.py
index 87b2d068..34ae5152 100644
--- a/uncompyle6/semantics/consts.py
+++ b/uncompyle6/semantics/consts.py
@@ -288,7 +288,10 @@ TABLE_DIRECT = {
     'except':           ( '%|except:\n%+%c%-', 3 ),
     'except_cond1':	    ( '%|except %c:\n', 1 ),
     'except_suite':     ( '%+%c%-%C', 0, (1, maxint, '') ),
+
+    # In Python 3.6, this is more complicated in the presence of "returns"
     'except_suite_finalize':     ( '%+%c%-%C', 1, (3, maxint, '') ),
+
     'pass':	            ( '%|pass\n', ),
     'STORE_FAST':	    ( '%{pattr}', ),
     'kv':		    ( '%c: %c', 3, 1 ),
diff --git a/uncompyle6/semantics/customize.py b/uncompyle6/semantics/customize.py
index df70c43d..c8fb2aad 100644
--- a/uncompyle6/semantics/customize.py
+++ b/uncompyle6/semantics/customize.py
@@ -609,6 +609,22 @@ def customize_for_version(self, is_pypy, version):
 
                 FSTRING_CONVERSION_MAP = {1: '!s', 2: '!r', 3: '!a'}
 
+                def n_except_suite_finalize(node):
+                    if node[1] == 'returns' and self.hide_internal:
+                        # Process node[1] only.
+                        # The code after "returns", e.g. node[3], is dead code.
+                        # Adding it is wrong as it dedents and another
+                        # exception handler "except_stmt" afterwards.
+                        # Note it is also possible that the grammar is wrong here.
+                        # and this should not be "except_stmt".
+                        self.indent_more()
+                        self.preorder(node[1])
+                        self.indent_less()
+                    else:
+                        self.default(node)
+                    self.prune()
+                self.n_except_suite_finalize = n_except_suite_finalize
+
                 def n_formatted_value(node):
                     if node[0] == 'LOAD_CONST':
                         self.write(node[0].attr)