diff --git a/Changes b/Changes
index 7605b6256..0330a600e 100644
--- a/Changes
+++ b/Changes
@@ -16,6 +16,7 @@ indicates the contributor was also the author of the fix; Thanks!
 
 ****  Fix false command not found warning in makefiles. [Ruben Diez]
 
+****  Fix hang when functions inside begin block. [David Welch]
 
 * Verilator 3.831 2012/01/20
 
diff --git a/src/V3Begin.cpp b/src/V3Begin.cpp
index fb4fe8920..752d94886 100644
--- a/src/V3Begin.cpp
+++ b/src/V3Begin.cpp
@@ -70,9 +70,20 @@ private:
 	m_modp = NULL;
     }
     virtual void visit(AstNodeFTask* nodep, AstNUser*) {
-	m_ftaskp = nodep;
-	nodep->iterateChildren(*this);
-	m_ftaskp = NULL;
+	UINFO(8,"  "<<nodep<<endl);
+	// BEGIN wrapping a function rename that function, but don't affect the inside function's variables
+	// We then restart with empty naming; so that any begin's inside the function will rename inside the function
+	string oldScope = m_namedScope;
+	string oldUnnamed = m_unnamedScope;
+	{
+	    m_namedScope = "";
+	    m_unnamedScope = "";
+	    m_ftaskp = nodep;
+	    nodep->iterateChildren(*this);
+	    m_ftaskp = NULL;
+	}
+	m_namedScope = oldScope;
+	m_unnamedScope = oldUnnamed;
     }
     virtual void visit(AstBegin* nodep, AstNUser*) {
 	// Begin blocks were only useful in variable creation, change names and delete
@@ -80,7 +91,7 @@ private:
 	string oldScope = m_namedScope;
 	string oldUnnamed = m_unnamedScope;
 	{
-	    //UINFO(8,"nname "<<m_namedScope<<endl);
+	    UINFO(8,"nname "<<m_namedScope<<endl);
 	    if (nodep->name() != "") {  // Else unneeded unnamed block
 		// Create data for dotted variable resolution
 		string dottedname = nodep->name() + "__DOT__";  // So always found
diff --git a/test_regress/t/t_func_gen.pl b/test_regress/t/t_func_gen.pl
new file mode 100755
index 000000000..7058e622f
--- /dev/null
+++ b/test_regress/t/t_func_gen.pl
@@ -0,0 +1,18 @@
+#!/usr/bin/perl
+if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); die; }
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2003 by Wilson Snyder. This program is free software; you can
+# redistribute it and/or modify it under the terms of either the GNU
+# Lesser General Public License Version 3 or the Perl Artistic License
+# Version 2.0.
+
+compile (
+	 );
+
+execute (
+	 check_finished=>1,
+     );
+
+ok(1);
+1;
diff --git a/test_regress/t/t_func_gen.v b/test_regress/t/t_func_gen.v
new file mode 100644
index 000000000..bd55f1f61
--- /dev/null
+++ b/test_regress/t/t_func_gen.v
@@ -0,0 +1,21 @@
+module t (/*AUTOARG*/
+   // Inputs
+   clk
+   );
+   input clk;
+   genvar g;
+   generate
+      for (g=0; g<1; g++)
+	begin : picker
+	   function [3:0] pick;
+	      input [3:0]      randnum;
+	      pick = randnum+g[3:0];
+	   endfunction
+	   always @(posedge clk) begin
+	      if (pick(3)!=3+g[3:0]) $stop;
+	      $write("*-* All Finished *-*\n");
+	      $finish;
+	   end
+	end
+   endgenerate
+endmodule