diff --git a/compiler/checker/checker.odin b/compiler/checker/checker.odin
index 46a8d17..70e0f26 100644
--- a/compiler/checker/checker.odin
+++ b/compiler/checker/checker.odin
@@ -12266,7 +12266,9 @@ build_value_block :: proc(
 ) -> (value: hir.Expr_Id, value_type: types.Type) {
 	checker := ctx.checker
 	n := len(body_stmts)
-	if n == 0 || checker.ast_module.statements[body_stmts[n - 1]].kind != .Yield {
+	if n == 0 ||
+	   checker.ast_module.statements[body_stmts[n - 1]].kind != .Yield ||
+	   symbol.is_valid(checker.ast_module.statements[body_stmts[n - 1]].label) {
 		// Build whatever is there so inner errors (and misplaced yields) surface, then
 		// report the missing trailing yield.
 		inner := build_block(ctx, body_stmts)
@@ -12657,6 +12659,21 @@ emit_value_branch :: proc(
 		emit_slot_assign(checker, out, slot^, value, span)
 		return true
 	}
+	if n == 1 {
+		block_stmt := checker.ast_module.statements[branch_stmts[0]]
+		if block_stmt.kind == .Block && symbol.is_valid(block_stmt.label) {
+			expected := slot_type^ if slot^ != hir.INVALID_LOCAL else types.INVALID
+			value, value_type := build_value_labeled_block(
+				ctx, out, block_stmt.body, block_stmt.label, expected, block_stmt.span,
+			)
+			if checker.module.exprs[value].kind == .Invalid {
+				return false
+			}
+			value = adopt_value_slot(ctx, slot, slot_type, value, value_type, span)
+			emit_slot_assign(checker, out, slot^, value, span)
+			return true
+		}
+	}
 	ends_in_yield := n > 0 &&
 		checker.ast_module.statements[branch_stmts[n - 1]].kind == .Yield &&
 		!symbol.is_valid(checker.ast_module.statements[branch_stmts[n - 1]].label)
diff --git a/compiler_tests.odin b/compiler_tests.odin
index 9684e0f..9854785 100644
--- a/compiler_tests.odin
+++ b/compiler_tests.odin
@@ -6268,6 +6268,40 @@ value_loop_label_does_not_shadow_own_yield_target :: proc(t: ^testing.T) {
 	testing.expect_value(t, len(diagnostics.items), 0)
 }
 
+@(test)
+labeled_block_supplies_value_if_branch_through_catch :: proc(t: ^testing.T) {
+	text := `Failure :: enum { bad }
+ScanResult :: struct { end usize }
+scan func() ScanResult ! Failure { return .bad }
+main func() i32 {
+	start usize = 3
+	end :: if (true) done: {
+		result :: scan() catch {
+			yield :done start
+		}
+		yield :done result.end
+	} else {
+		yield start
+	}
+	if (end == start) return 0
+	return 1
+}
+`
+	source_file := source.Source{path="test.bro", text=text}
+	diagnostics := source.init_diagnostics(&source_file)
+	defer source.destroy_diagnostics(&diagnostics)
+	symbols := symbol.init_table()
+	defer symbol.destroy_table(&symbols)
+	stream := lexer.lex(&source_file, &diagnostics, &symbols)
+	defer delete(stream.items)
+	ast_module := parser.parse(&stream, &source_file, &diagnostics)
+	defer ast.destroy_module(&ast_module)
+	hir_module := checker.check(&ast_module, &diagnostics, &symbols)
+	defer hir.destroy_module(&hir_module)
+
+	testing.expect_value(t, len(diagnostics.items), 0)
+}
+
 @(test)
 native_union_compiles_and_runs :: proc(t: ^testing.T) {
 	output := "/tmp/brolang-test-unions"