diff --git a/test/bytecode_2.7_run/07_for_if_else-continue.pyc b/test/bytecode_2.7_run/07_for_if_else-continue.pyc
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index 00000000..e4894c38
Binary files /dev/null and b/test/bytecode_2.7_run/07_for_if_else-continue.pyc differ
diff --git a/test/simple_source/bug27+/07_for_if_else-continue.py b/test/simple_source/bug27+/07_for_if_else-continue.py
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+++ b/test/simple_source/bug27+/07_for_if_else-continue.py
@@ -0,0 +1,33 @@
+# Issue #413 on 2.7
+# Bug in handling CONTINUE in else block of if-then-else in a for loop
+
+"""This program is self-checking!"""
+def test1(a, r = None):
+    for b in a:
+        if b:
+            r = b
+        else:
+            continue
+            raise AssertionError("CONTINUE not followed")
+        if b:
+            pass
+    return r
+
+def test2(a, r = None):
+    for b in a:
+        if b:
+            #pass # No payload
+            continue
+            raise AssertionError("CONTINUE not followed")
+        else:
+            continue
+            raise AssertionError("CONTINUE not followed")
+        if b:
+            r = b
+        raise AssertionError("CONTINUE not followed")
+    return r
+
+assert test1([True]) == True, "Incorrect flow"
+assert test2([True]) is None, "Incorrect flow"
+assert test1([False]) is None, "Incorrect flow"
+assert test2([False]) is None, "Incorrect flow"