diff --git a/parse.y b/parse.y
index 7963b0aaf6..43d7cc4a31 100644
--- a/parse.y
+++ b/parse.y
@@ -8019,7 +8019,7 @@ parser_yylex(struct parser_params *parser)
 	    if (token == tSTRING_END || token == tREGEXP_END || token == tLABEL_END) {
 		rb_gc_force_recycle((VALUE)lex_strterm);
 		lex_strterm = 0;
-		SET_LEX_STATE(token == tLABEL_END ? EXPR_BEG|EXPR_LABEL : EXPR_END);
+		SET_LEX_STATE(token == tLABEL_END ? EXPR_BEG|EXPR_LABEL : EXPR_ENDARG);
 	    }
 	}
 	return token;
diff --git a/test/ruby/test_syntax.rb b/test/ruby/test_syntax.rb
index e4f73b97cf..7742dd239a 100644
--- a/test/ruby/test_syntax.rb
+++ b/test/ruby/test_syntax.rb
@@ -898,6 +898,10 @@ eom
     assert_valid_syntax %q{a b(c d), 1 do end}, bug11873
     assert_valid_syntax %q{a b{c(d)}, 1 do end}, bug11873
     assert_valid_syntax %q{a b(c(d)), 1 do end}, bug11873
+    assert_valid_syntax %q{a b{c d}, "x" do end}, bug11873
+    assert_valid_syntax %q{a b(c d), "x" do end}, bug11873
+    assert_valid_syntax %q{a b{c(d)}, "x" do end}, bug11873
+    assert_valid_syntax %q{a b(c(d)), "x" do end}, bug11873
   end
 
   def test_block_after_cmdarg_in_paren
@@ -939,6 +943,15 @@ eom
     assert_equal(:ok, result)
   end
 
+  def test_brace_after_local_variable
+    obj = Object.new
+    def obj.m; yield; end
+    result = assert_nothing_raised(SyntaxError) do
+      obj.instance_eval("m = 1; m {:ok}")
+    end
+    assert_equal(:ok, result)
+  end
+
   def test_return_toplevel
     feature4840 = '[ruby-core:36785] [Feature #4840]'
     code = "#{<<~"begin;"}\n#{<<~"end;"}"
diff --git a/version.h b/version.h
index e7bef9faf5..3731e5bf2c 100644
--- a/version.h
+++ b/version.h
@@ -1,6 +1,6 @@
 #define RUBY_VERSION "2.4.2"
 #define RUBY_RELEASE_DATE "2017-07-23"
-#define RUBY_PATCHLEVEL 157
+#define RUBY_PATCHLEVEL 158
 
 #define RUBY_RELEASE_YEAR 2017
 #define RUBY_RELEASE_MONTH 7