diff --git a/src/cmd/ksh93/sh/subshell.c b/src/cmd/ksh93/sh/subshell.c
index d18a7aa62..64d1100f8 100644
--- a/src/cmd/ksh93/sh/subshell.c
+++ b/src/cmd/ksh93/sh/subshell.c
@@ -662,7 +662,9 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 			job.bktick_waitall = 0;
 			if(comsub!=1 && shp->spid)
 			{
+				int e = shp->exitval;
 				job_wait(shp->spid);
+				shp->exitval = e;
 				if(shp->pipepid==shp->spid)
 					shp->spid = 0;
 				shp->pipepid = 0;
diff --git a/src/cmd/ksh93/tests/functions.sh b/src/cmd/ksh93/tests/functions.sh
index 63f6450d4..535985f15 100755
--- a/src/cmd/ksh93/tests/functions.sh
+++ b/src/cmd/ksh93/tests/functions.sh
@@ -1275,5 +1275,36 @@ $SHELL <<- \EOF
 EOF
 [[ $? == 2 ]] && err_exit 'Over-shifting in a POSIX function does not terminate the script if the function call has a redirection'
 
+# ======
+# https://bugzilla.redhat.com/1116508
+expect=$'13/37/1/1'
+actual=$(
+	foo() {
+		print foo | read
+		return 13
+	}
+	out=$(foo)
+	print -n $?/
+	foo() {
+		print foo | read
+		ls /dev/null
+		return 37
+	}
+	out=$(foo)
+	print -n $?/
+	foo() {
+		print foo | ! read
+	}
+	out=$(foo)
+	print -n $?/
+	foo() {
+		! true
+	}
+	out=$(foo)
+	print -n $?
+)
+[[ $actual == "$expect" ]] || err_exit "wrong exit status from function invoked by command substitution" \
+	"(expected $(printf %q "$expect"), got $(printf %q "$actual"))"
+
 # ======
 exit $((Errors<125?Errors:125))