diff --git a/Source/cmExecutionStatus.h b/Source/cmExecutionStatus.h
index 14e14543b..730283769 100644
--- a/Source/cmExecutionStatus.h
+++ b/Source/cmExecutionStatus.h
@@ -40,12 +40,16 @@ public:
     this->ReturnInvoked = false;
     this->BreakInvoked = false;
     this->ContinueInvoked = false;
+    this->NestedError = false;
   }
+  void SetNestedError(bool val) { this->NestedError = val; }
+  bool GetNestedError() { return this->NestedError; }
 
 private:
   bool ReturnInvoked;
   bool BreakInvoked;
   bool ContinueInvoked;
+  bool NestedError;
 };
 
 #endif
diff --git a/Source/cmFunctionCommand.cxx b/Source/cmFunctionCommand.cxx
index f0e4854bf..40c54dbdc 100644
--- a/Source/cmFunctionCommand.cxx
+++ b/Source/cmFunctionCommand.cxx
@@ -76,7 +76,7 @@ public:
 };
 
 bool cmFunctionHelperCommand::InvokeInitialPass(
-  const std::vector<cmListFileArgument>& args, cmExecutionStatus&)
+  const std::vector<cmListFileArgument>& args, cmExecutionStatus& inStatus)
 {
   // Expand the argument list to the function.
   std::vector<std::string> expandedArgs;
@@ -129,11 +129,11 @@ bool cmFunctionHelperCommand::InvokeInitialPass(
   for (unsigned int c = 0; c < this->Functions.size(); ++c) {
     cmExecutionStatus status;
     if (!this->Makefile->ExecuteCommand(this->Functions[c], status) ||
-        (cmSystemTools::GetErrorOccuredFlag() &&
-         !cmSystemTools::GetFatalErrorOccured())) {
+        status.GetNestedError()) {
       // The error message should have already included the call stack
       // so we do not need to report an error here.
       functionScope.Quiet();
+      inStatus.SetNestedError(true);
       return false;
     }
     if (status.GetReturnInvoked()) {
diff --git a/Source/cmMacroCommand.cxx b/Source/cmMacroCommand.cxx
index 9d312eebc..ee9dc8af7 100644
--- a/Source/cmMacroCommand.cxx
+++ b/Source/cmMacroCommand.cxx
@@ -159,11 +159,11 @@ bool cmMacroHelperCommand::InvokeInitialPass(
     }
     cmExecutionStatus status;
     if (!this->Makefile->ExecuteCommand(newLFF, status) ||
-        (cmSystemTools::GetErrorOccuredFlag() &&
-         !cmSystemTools::GetFatalErrorOccured())) {
+        status.GetNestedError()) {
       // The error message should have already included the call stack
       // so we do not need to report an error here.
       macroScope.Quiet();
+      inStatus.SetNestedError(true);
       return false;
     }
     if (status.GetReturnInvoked()) {
diff --git a/Source/cmMakefile.cxx b/Source/cmMakefile.cxx
index 11ccca122..e5a5e6e27 100644
--- a/Source/cmMakefile.cxx
+++ b/Source/cmMakefile.cxx
@@ -117,6 +117,11 @@ cmMakefile::~cmMakefile()
 void cmMakefile::IssueMessage(cmake::MessageType t,
                               std::string const& text) const
 {
+  if (!this->ExecutionStatusStack.empty()) {
+    if ((t == cmake::FATAL_ERROR) || (t == cmake::INTERNAL_ERROR)) {
+      this->ExecutionStatusStack.back()->SetNestedError(true);
+    }
+  }
   this->GetCMakeInstance()->IssueMessage(t, text, this->GetBacktrace());
 }
 
@@ -277,19 +282,11 @@ bool cmMakefile::ExecuteCommand(const cmListFileFunction& lff,
       if (this->GetCMakeInstance()->GetTrace()) {
         this->PrintCommandTrace(lff);
       }
-
-      bool hadPreviousNonFatalError = cmSystemTools::GetErrorOccuredFlag() &&
-        !cmSystemTools::GetFatalErrorOccured();
-      cmSystemTools::ResetErrorOccuredFlag();
-
+      // Try invoking the command.
       bool invokeSucceeded = pcmd->InvokeInitialPass(lff.Arguments, status);
-      bool hadNestedError = cmSystemTools::GetErrorOccuredFlag() &&
-        !cmSystemTools::GetFatalErrorOccured();
-      if (hadPreviousNonFatalError) {
-        cmSystemTools::SetErrorOccured();
-      }
+      bool hadNestedError = status.GetNestedError();
       if (!invokeSucceeded || hadNestedError) {
-        if (!hadNestedError && !cmSystemTools::GetFatalErrorOccured()) {
+        if (!hadNestedError) {
           // The command invocation requested that we report an error.
           this->IssueMessage(cmake::FATAL_ERROR, pcmd->GetError());
         }
diff --git a/Tests/RunCMake/Configure/ContinueAfterError-result.txt b/Tests/RunCMake/Configure/ContinueAfterError-result.txt
new file mode 100644
index 000000000..d00491fd7
--- /dev/null
+++ b/Tests/RunCMake/Configure/ContinueAfterError-result.txt
@@ -0,0 +1 @@
+1
diff --git a/Tests/RunCMake/Configure/ContinueAfterError-stderr.txt b/Tests/RunCMake/Configure/ContinueAfterError-stderr.txt
new file mode 100644
index 000000000..f40a3ef65
--- /dev/null
+++ b/Tests/RunCMake/Configure/ContinueAfterError-stderr.txt
@@ -0,0 +1,13 @@
+^CMake Error at ContinueAfterError.cmake:[0-9]+ \(message\):
+  error in loop body
+Call Stack \(most recent call first\):
+  ContinueAfterError.cmake:[0-9]+ \(m\)
+  ContinueAfterError.cmake:[0-9]+ \(f\)
+  CMakeLists.txt:[0-9]+ \(include\)
++
+CMake Error at ContinueAfterError.cmake:[0-9]+ \(message\):
+  error in loop body
+Call Stack \(most recent call first\):
+  ContinueAfterError.cmake:[0-9]+ \(m\)
+  ContinueAfterError.cmake:[0-9]+ \(f\)
+  CMakeLists.txt:[0-9]+ \(include\)$
diff --git a/Tests/RunCMake/Configure/ContinueAfterError-stdout.txt b/Tests/RunCMake/Configure/ContinueAfterError-stdout.txt
new file mode 100644
index 000000000..f03aa0741
--- /dev/null
+++ b/Tests/RunCMake/Configure/ContinueAfterError-stdout.txt
@@ -0,0 +1,11 @@
+-- before f
+--  start f
+--   start m
+--    start loop body
+--    end loop body
+--    start loop body
+--    end loop body
+--   end m
+--  end f
+-- after f
+-- Configuring incomplete, errors occurred!
diff --git a/Tests/RunCMake/Configure/ContinueAfterError.cmake b/Tests/RunCMake/Configure/ContinueAfterError.cmake
new file mode 100644
index 000000000..d094390b2
--- /dev/null
+++ b/Tests/RunCMake/Configure/ContinueAfterError.cmake
@@ -0,0 +1,19 @@
+macro(m)
+  message(STATUS "  start m")
+  foreach(i 1 2)
+    message(STATUS "   start loop body")
+    message(SEND_ERROR "error in loop body")
+    message(STATUS "   end loop body")
+  endforeach()
+  message(STATUS "  end m")
+endmacro()
+
+function(f)
+  message(STATUS " start f")
+  m()
+  message(STATUS " end f")
+endfunction()
+
+message(STATUS "before f")
+f()
+message(STATUS "after f")
diff --git a/Tests/RunCMake/Configure/RunCMakeTest.cmake b/Tests/RunCMake/Configure/RunCMakeTest.cmake
index 58e1a2a98..91adb4e78 100644
--- a/Tests/RunCMake/Configure/RunCMakeTest.cmake
+++ b/Tests/RunCMake/Configure/RunCMakeTest.cmake
@@ -1,5 +1,6 @@
 include(RunCMake)
 
+run_cmake(ContinueAfterError)
 run_cmake(CustomTargetAfterError)
 run_cmake(ErrorLogs)
 run_cmake(FailCopyFileABI)