diff --git a/shell/hush.c b/shell/hush.c
index a2649d069..ab067dd26 100644
--- a/shell/hush.c
+++ b/shell/hush.c
@@ -2131,6 +2131,8 @@ static int run_list(struct pipe *pi)
 				/* ctrl-C. We just stop doing whatever we were doing */
 				bb_putchar('\n');
 			}
+			loop_top = NULL;
+			depth_of_loop = 0;
 			rcode = 0;
 			goto ret;
 		}
@@ -2152,7 +2154,9 @@ static int run_list(struct pipe *pi)
 		debug_printf_exec(": rword=%d cond_code=%d skip_more=%d\n",
 				rword, cond_code, skip_more_for_this_rword);
 #if ENABLE_HUSH_LOOPS
-		if (rword == RES_WHILE || rword == RES_UNTIL || rword == RES_FOR) {
+		if ((rword == RES_WHILE || rword == RES_UNTIL || rword == RES_FOR)
+		 && loop_top == NULL /* avoid bumping depth_of_loop twice */
+		) {
 			/* start of a loop: remember where loop starts */
 			loop_top = pi;
 			depth_of_loop++;
diff --git a/shell/hush_test/hush-misc/continue1.right b/shell/hush_test/hush-misc/continue1.right
new file mode 100644
index 000000000..c4a5565bc
--- /dev/null
+++ b/shell/hush_test/hush-misc/continue1.right
@@ -0,0 +1,8 @@
+A:a
+A:b
+A:c
+OK1
+A:a
+A:b
+A:c
+OK2
diff --git a/shell/hush_test/hush-misc/continue1.tests b/shell/hush_test/hush-misc/continue1.tests
new file mode 100755
index 000000000..72d356660
--- /dev/null
+++ b/shell/hush_test/hush-misc/continue1.tests
@@ -0,0 +1,4 @@
+for v in a b c; do echo A:$v; continue 666; done
+echo OK1
+for v in a b c; do echo A:$v; continue 666; done
+echo OK2