diff --git a/src/engine.rs b/src/engine.rs
index de065023..ac747dfb 100644
--- a/src/engine.rs
+++ b/src/engine.rs
@@ -1714,7 +1714,7 @@ impl Engine {
 
             // Statement block
             Expr::Stmt(x, _) => {
-                self.eval_statements(scope, mods, state, lib, this_ptr, x.as_ref(), level)
+                self.eval_stmt_block(scope, mods, state, lib, this_ptr, x.as_ref(), level)
             }
 
             // lhs[idx_expr]
@@ -1848,8 +1848,8 @@ impl Engine {
             .map_err(|err| err.fill_position(expr.position()))
     }
 
-    /// Evaluate a list of statements.
-    pub(crate) fn eval_statements<'a>(
+    /// Evaluate a statements block.
+    pub(crate) fn eval_stmt_block<'a>(
         &self,
         scope: &mut Scope,
         mods: &mut Imports,
@@ -1859,6 +1859,7 @@ impl Engine {
         statements: impl IntoIterator<Item = &'a Stmt>,
         level: usize,
     ) -> Result<Dynamic, Box<EvalAltResult>> {
+        let prev_always_search = state.always_search;
         let prev_scope_len = scope.len();
         let prev_mods_len = mods.len();
         state.scope_level += 1;
@@ -1873,16 +1874,15 @@ impl Engine {
         mods.truncate(prev_mods_len);
         state.scope_level -= 1;
 
-        // The impact of an eval statement goes away at the end of a block
+        // The impact of new local variables goes away at the end of a block
         // because any new variables introduced will go out of scope
-        state.always_search = false;
+        state.always_search = prev_always_search;
 
         result
     }
 
     /// Evaluate a statement.
     ///
-    ///
     /// # Safety
     ///
     /// This method uses some unsafe code, mainly for avoiding cloning of local variable names via
@@ -2062,7 +2062,7 @@ impl Engine {
 
             // Block scope
             Stmt::Block(statements, _) => {
-                self.eval_statements(scope, mods, state, lib, this_ptr, statements, level)
+                self.eval_stmt_block(scope, mods, state, lib, this_ptr, statements, level)
             }
 
             // If statement
diff --git a/tests/eval.rs b/tests/eval.rs
index 28618fc5..7732bd25 100644
--- a/tests/eval.rs
+++ b/tests/eval.rs
@@ -8,7 +8,7 @@ fn test_eval() -> Result<(), Box<EvalAltResult>> {
         engine.eval::<INT>(
             r#"
                 eval("40 + 2")
-    "#
+            "#
         )?,
         42
     );
@@ -16,6 +16,33 @@ fn test_eval() -> Result<(), Box<EvalAltResult>> {
     Ok(())
 }
 
+#[test]
+fn test_eval_blocks() -> Result<(), Box<EvalAltResult>> {
+    let engine = Engine::new();
+
+    assert_eq!(
+        engine.eval::<INT>(
+            r#"
+                let x = 999;
+
+                eval("let x = x + 123");
+
+                let y = if x > 0 {
+                    eval("let x = 42");
+                    x
+                } else {
+                    0
+                };
+
+                x + y
+            "#
+        )?,
+        1164
+    );
+
+    Ok(())
+}
+
 #[test]
 #[cfg(not(feature = "no_function"))]
 fn test_eval_function() -> Result<(), Box<EvalAltResult>> {