diff --git a/src/cmd/ksh93/bltins/typeset.c b/src/cmd/ksh93/bltins/typeset.c
index 4ddeb2789..7dc246fd9 100644
--- a/src/cmd/ksh93/bltins/typeset.c
+++ b/src/cmd/ksh93/bltins/typeset.c
@@ -1398,7 +1398,7 @@ static int unall(int argc, char **argv, register Dt_t *troot, Shell_t* shp)
 		}
 		else if(troot==shp->alias_tree)
 			r = 1;
-		else if(troot==shp->fun_tree && troot!=shp->fun_base && nv_search(name,shp->fun_base,0))
+		else if(troot==shp->fun_tree && troot!=shp->fun_base)
 			nv_open(name,troot,NV_NOSCOPE);	/* create dummy virtual subshell node without NV_FUNCTION attribute */
 	}
 	sh_popcontext(shp,&buff);
diff --git a/src/cmd/ksh93/tests/subshell.sh b/src/cmd/ksh93/tests/subshell.sh
index bde31f1e6..2ba5cbe90 100755
--- a/src/cmd/ksh93/tests/subshell.sh
+++ b/src/cmd/ksh93/tests/subshell.sh
@@ -693,6 +693,12 @@ got=$(
 [[ $got == "$exp" ]] || err_exit 'unset -f fails in forked subshells if a function is defined before forking' \
 	"(expected $(printf %q "$exp"), got $(printf %q "$got"))"
 
+# function set in subshell, unset in subshell of that subshell
+exp='*: f: not found'
+got=$( f() { echo WRONG; }; ( unset -f f; PATH=/dev/null f 2>&1 ) )
+[[ $got == $exp ]] || err_exit 'unset -f fails in sub-subshell on function set in subshell' \
+	"(expected match of $(printf %q "$exp"), got $(printf %q "$got"))"
+
 # ======
 # Unsetting or redefining aliases within subshells