diff --git a/src/V3Begin.cpp b/src/V3Begin.cpp
index 636b029e1..b936e33bb 100644
--- a/src/V3Begin.cpp
+++ b/src/V3Begin.cpp
@@ -19,6 +19,7 @@
 //      Look for BEGINs
 //          BEGIN(VAR...) -> VAR ... {renamed}
 //      FOR -> WHILEs
+//      Move static function variables and their AstInitialStatic blocks before a function
 //
 // There are two scopes; named BEGINs change %m and variable scopes.
 // Unnamed BEGINs change only variable, not $display("%m") scope.
@@ -64,13 +65,14 @@ private:
     // STATE
     BeginState* const m_statep;  // Current global state
     AstNodeModule* m_modp = nullptr;  // Current module
-    const AstNodeFTask* m_ftaskp = nullptr;  // Current function/task
+    AstNodeFTask* m_ftaskp = nullptr;  // Current function/task
     AstNode* m_liftedp = nullptr;  // Local  nodes we are lifting into m_ftaskp
     string m_displayScope;  // Name of %m in $display/AstScopeName
     string m_namedScope;  // Name of begin blocks above us
     string m_unnamedScope;  // Name of begin blocks, including unnamed blocks
     int m_ifDepth = 0;  // Current if depth
     bool m_keepBegins = false;  // True if begins should not be inlined
+    std::set<AstVar*> m_staticFuncVars;  // Static variables from m_ftaskp
 
     // METHODS
 
@@ -121,6 +123,25 @@ private:
         }
     }
 
+    void renameAndStaticsRecurse(AstNode* const nodep) {
+        // Rename references and move InitialStatic items
+        if (AstVarRef* const varrefp = VN_CAST(nodep, VarRef)) {
+            const auto it = m_staticFuncVars.find(varrefp->varp());
+            if (it != m_staticFuncVars.end()) varrefp->name((*it)->name());
+        }
+
+        if (nodep->op1p()) renameAndStaticsRecurse(nodep->op1p());
+        if (nodep->op2p()) renameAndStaticsRecurse(nodep->op2p());
+        if (nodep->op3p()) renameAndStaticsRecurse(nodep->op3p());
+        if (nodep->op4p()) renameAndStaticsRecurse(nodep->op4p());
+        if (nodep->nextp()) renameAndStaticsRecurse(nodep->nextp());
+
+        if (VN_IS(nodep, InitialStatic)) {
+            nodep->unlinkFrBack();
+            m_ftaskp->addHereThisAsNext(nodep);
+        }
+    }
+
     // VISITORS
     void visit(AstFork* nodep) override {
         // Keep this begin to group its statements together
@@ -165,6 +186,7 @@ private:
             m_ftaskp = nodep;
             m_liftedp = nullptr;
             iterateChildren(nodep);
+            renameAndStaticsRecurse(nodep);
             if (m_liftedp) {
                 // Place lifted nodes at beginning of stmtsp, so Var nodes appear before referenced
                 if (AstNode* const stmtsp = nodep->stmtsp()) {
@@ -174,6 +196,7 @@ private:
                 nodep->addStmtsp(m_liftedp);
                 m_liftedp = nullptr;
             }
+            m_staticFuncVars.clear();
             m_ftaskp = nullptr;
         }
     }
@@ -210,7 +233,15 @@ private:
         }
     }
     void visit(AstVar* nodep) override {
-        if (m_unnamedScope != "") {
+        // If static variable, move it outside a function.
+        if (nodep->lifetime().isStatic() && m_ftaskp) {
+            const std::string newName = m_ftaskp->name() + "__Vstatic__" + nodep->name();
+            nodep->name(newName);
+            nodep->unlinkFrBack();
+            m_ftaskp->addHereThisAsNext(nodep);
+            m_staticFuncVars.insert(nodep);
+            nodep->funcLocal(false);
+        } else if (m_unnamedScope != "") {
             // Rename it
             nodep->name(dot(m_unnamedScope, nodep->name()));
             m_statep->userMarkChanged(nodep);
diff --git a/src/V3LinkDot.cpp b/src/V3LinkDot.cpp
index c87fd5198..03b8abbef 100644
--- a/src/V3LinkDot.cpp
+++ b/src/V3LinkDot.cpp
@@ -1176,9 +1176,6 @@ class LinkDotFindVisitor final : public VNVisitor {
         // Var: Remember its name for later resolution
         UASSERT_OBJ(m_curSymp && m_modSymp, nodep, "Var not under module?");
         iterateChildren(nodep);
-        if (nodep->isFuncLocal() && nodep->lifetime().isStatic()) {
-            nodep->v3warn(E_UNSUPPORTED, "Unsupported: 'static' function/task variables");
-        }
         if (!m_statep->forScopeCreation()) {
             // Find under either a task or the module's vars
             const VSymEnt* foundp = m_curSymp->findIdFallback(nodep->name());
diff --git a/src/V3LinkParse.cpp b/src/V3LinkParse.cpp
index 8aa45b271..7368edb62 100644
--- a/src/V3LinkParse.cpp
+++ b/src/V3LinkParse.cpp
@@ -148,8 +148,8 @@ private:
                     if (classPkgRefp && VN_IS(classPkgRefp->classOrPackageNodep(), Class)) {
                         // Class methods are automatic by default
                         m_lifetime = VLifetime::AUTOMATIC;
-                    } else if (nodep->dpiImport()) {
-                        // DPI-imported function don't have lifetime specifiers
+                    } else if (nodep->dpiImport() || VN_IS(nodep, Property)) {
+                        // DPI-imported functions and properties don't have lifetime specifiers
                         m_lifetime = VLifetime::NONE;
                     }
                     if (m_lifetime.isStatic() && hasStaticDeclAssignments(nodep)) {
@@ -222,12 +222,8 @@ private:
 
     void visit(AstVar* nodep) override {
         cleanFileline(nodep);
-        if (nodep->lifetime().isNone()) {
-            if (m_ftaskp) {
-                nodep->lifetime(VLifetime::AUTOMATIC);
-            } else {
-                nodep->lifetime(m_lifetime);
-            }
+        if (nodep->lifetime().isNone() && nodep->varType() != VVarType::PORT) {
+            nodep->lifetime(m_lifetime);
         }
         if (nodep->isParam() && !nodep->valuep()
             && nodep->fileline()->language() < V3LangCode::L1800_2009) {
diff --git a/src/V3Simulate.h b/src/V3Simulate.h
index 0fda5bec2..b77d89840 100644
--- a/src/V3Simulate.h
+++ b/src/V3Simulate.h
@@ -503,6 +503,15 @@ private:
         checkNodeInfo(nodep);
         iterateChildren(nodep);
     }
+    void visit(AstInitialStatic* nodep) override {
+        if (jumpingOver(nodep)) return;
+        if (!m_params) {
+            badNodeType(nodep);
+            return;
+        }
+        checkNodeInfo(nodep);
+        iterateChildren(nodep);
+    }
     void visit(AstNodeIf* nodep) override {
         if (jumpingOver(nodep)) return;
         UINFO(5, "   IF " << nodep << endl);
diff --git a/src/verilog.y b/src/verilog.y
index bdbd218af..7dcfb0258 100644
--- a/src/verilog.y
+++ b/src/verilog.y
@@ -3788,12 +3788,16 @@ for_initializationItem<nodep>:          // IEEE: variable_assignment + for_varia
         //                      // IEEE: for_variable_declaration
                 data_type idAny/*new*/ '=' expr
                         { VARRESET_NONLIST(VAR); VARDTYPE($1);
-                          $$ = VARDONEA($<fl>2, *$2, nullptr, nullptr);
+                          AstVar* const varp = VARDONEA($<fl>2, *$2, nullptr, nullptr);
+                          varp->lifetime(VLifetime::AUTOMATIC);
+                          $$ = varp;
                           $$->addNext(new AstAssign{$3, new AstVarRef{$<fl>2, *$2, VAccess::WRITE}, $4}); }
         //                      // IEEE-2012:
         |       yVAR data_type idAny/*new*/ '=' expr
                         { VARRESET_NONLIST(VAR); VARDTYPE($2);
-                          $$ = VARDONEA($<fl>3, *$3, nullptr, nullptr);
+                          AstVar* const varp = VARDONEA($<fl>3, *$3, nullptr, nullptr);
+                          varp->lifetime(VLifetime::AUTOMATIC);
+                          $$ = varp;
                           $$->addNext(new AstAssign{$4, new AstVarRef{$<fl>3, *$3, VAccess::WRITE}, $5}); }
         //                      // IEEE: variable_assignment
         //                      // UNSUP variable_lvalue below
diff --git a/test_regress/t/t_case_write1_tasks.v b/test_regress/t/t_case_write1_tasks.v
index be868734c..07ce93190 100644
--- a/test_regress/t/t_case_write1_tasks.v
+++ b/test_regress/t/t_case_write1_tasks.v
@@ -2066,7 +2066,7 @@ module t_case_write1_tasks ();
          endcase
       end
    endtask
-   task ozonef3;
+   task automatic ozonef3;
       input  [  31:0] foo;
       inout [STRLEN*8: 1] foobar;
       reg                 nacho;
@@ -2475,7 +2475,7 @@ module t_case_write1_tasks ();
          endcase
       end
    endtask
-   task dude;
+   task automatic dude;
       inout  [STRLEN*8: 1] foobar;
       reg [   7:0]         temp;
       integer              i;
@@ -2497,7 +2497,7 @@ module t_case_write1_tasks ();
       end
    endtask
 
-   task big_case;
+   task automatic big_case;
       input  [  31:0] fd;
       input [  31:0]  foo;
       reg [STRLEN*8: 1] foobar;
diff --git a/test_regress/t/t_case_write2_tasks.v b/test_regress/t/t_case_write2_tasks.v
index cae09726e..ebd12bdb3 100644
--- a/test_regress/t/t_case_write2_tasks.v
+++ b/test_regress/t/t_case_write2_tasks.v
@@ -2067,7 +2067,7 @@ module t_case_write2_tasks ();
          endcase
       end
    endtask
-   task ozonef3;
+   task automatic ozonef3;
       input  [  31:0] foo;
       input [`FD_BITS]    fd;
       reg                 nacho;
@@ -2482,7 +2482,7 @@ module t_case_write2_tasks ();
       $fwrite(fd," dude");
    endtask
 
-   task big_case;
+   task automatic big_case;
       input  [  `FD_BITS] fd;
       input [  31:0]  foo;
       // verilator no_inline_task
diff --git a/test_regress/t/t_class_static.out b/test_regress/t/t_class_static.out
deleted file mode 100644
index 927221b52..000000000
--- a/test_regress/t/t_class_static.out
+++ /dev/null
@@ -1,6 +0,0 @@
-%Error-UNSUPPORTED: t/t_class_static.v:25:18: Unsupported: 'static' function/task variables
-                                            : ... In instance t
-   25 |       static int st = 2; st++; return st;
-      |                  ^~
-                    ... For error description see https://verilator.org/warn/UNSUPPORTED?v=latest
-%Error: Exiting due to
diff --git a/test_regress/t/t_class_static.pl b/test_regress/t/t_class_static.pl
index 8d48ddb75..b46d46042 100755
--- a/test_regress/t/t_class_static.pl
+++ b/test_regress/t/t_class_static.pl
@@ -11,13 +11,11 @@ if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); di
 scenarios(simulator => 1);
 
 compile(
-    fails => $Self->{vlt_all},  # Verilator unsupported, bug546
-    expect_filename => $Self->{golden_filename},
     );
 
 execute(
     check_finished => 1,
-    ) if !$Self->{vlt_all};
+    );
 
 ok(1);
 1;
diff --git a/test_regress/t/t_func_noinl.v b/test_regress/t/t_func_noinl.v
index 5631f30ab..2b280291b 100644
--- a/test_regress/t/t_func_noinl.v
+++ b/test_regress/t/t_func_noinl.v
@@ -76,7 +76,7 @@ module Test (/*AUTOARG*/
    input [31:0]           inp;
    output [31:0]          outp;
 
-   function [31:0] no_inline_function;
+   function automatic [31:0] no_inline_function;
       input [31:0]        var1;
       input [31:0]        var2;
       /*verilator no_inline_task*/
diff --git a/test_regress/t/t_hier_task.v b/test_regress/t/t_hier_task.v
index dfd3f7948..42fe3eff2 100644
--- a/test_regress/t/t_hier_task.v
+++ b/test_regress/t/t_hier_task.v
@@ -39,7 +39,7 @@ endmodule : mod_inner
 
 module mod_a_mon;
    bit y;
-   function void accessor;
+   function automatic void accessor;
       begin : accessor_block
          bit read_x = mod_a.u_inner.x;
          y = read_x;
diff --git a/test_regress/t/t_param_array3.v b/test_regress/t/t_param_array3.v
index 3d9d98fb1..667276578 100644
--- a/test_regress/t/t_param_array3.v
+++ b/test_regress/t/t_param_array3.v
@@ -18,12 +18,18 @@ module t;
    endfunction
 
    parameter int SUMS[3:0] = calc_sums();
+   parameter int SUMS1[3:0] = calc_sums();
 
    initial begin
       if (SUMS[0] != 4) $stop;
       if (SUMS[1] != 4+3) $stop;
       if (SUMS[2] != 4+3+2) $stop;
       if (SUMS[3] != 4+3+2+1) $stop;
+      // According to section 13.4.3 of IEEE Std 1800-2017,
+      // execution at elaboration has no effect on the initial values
+      // of the variables used either at simulation time or among
+      // multiple invocations of a function at elaboration time
+      if (SUMS1 != SUMS) $stop;
       $write("*-* All Finished *-*\n");
       $finish;
    end
diff --git a/test_regress/t/t_stacktrace.v b/test_regress/t/t_stacktrace.v
index c4662bf82..b8ad7e34d 100644
--- a/test_regress/t/t_stacktrace.v
+++ b/test_regress/t/t_stacktrace.v
@@ -6,7 +6,7 @@
 
 module t;
 
-   task t;
+   task automatic t;
       // verilator no_inline_task
       string trace;
 
diff --git a/test_regress/t/t_var_nonamebegin.v b/test_regress/t/t_var_nonamebegin.v
index 164e5a3b8..2c366c5dd 100644
--- a/test_regress/t/t_var_nonamebegin.v
+++ b/test_regress/t/t_var_nonamebegin.v
@@ -67,7 +67,7 @@ module t (/*AUTOARG*/
       $finish;
    end
 
-   task tsk;
+   task automatic tsk;
       integer t1;
       $display("t1 {mod}.tsk %m");
       begin
diff --git a/test_regress/t/t_var_static.out b/test_regress/t/t_var_static.out
deleted file mode 100644
index 01e0c2fa9..000000000
--- a/test_regress/t/t_var_static.out
+++ /dev/null
@@ -1,14 +0,0 @@
-%Error-UNSUPPORTED: t/t_var_static.v:20:18: Unsupported: 'static' function/task variables
-                                          : ... In instance t
-   20 |       static int st = 2; st++; return st;
-      |                  ^~
-                    ... For error description see https://verilator.org/warn/UNSUPPORTED?v=latest
-%Error-UNSUPPORTED: t/t_var_static.v:30:18: Unsupported: 'static' function/task variables
-                                          : ... In instance t
-   30 |       static int st = 2; st++; return st;
-      |                  ^~
-%Error-UNSUPPORTED: t/t_var_static.v:40:18: Unsupported: 'static' function/task variables
-                                          : ... In instance t
-   40 |       static int st = 2; st++; return st;
-      |                  ^~
-%Error: Exiting due to
diff --git a/test_regress/t/t_var_static.pl b/test_regress/t/t_var_static.pl
index dc589151c..93a3a1be3 100755
--- a/test_regress/t/t_var_static.pl
+++ b/test_regress/t/t_var_static.pl
@@ -12,13 +12,11 @@ scenarios(simulator => 1);
 
 compile(
     verilator_flags2 => ['-Wno-IMPLICITSTATIC'],
-    fails => $Self->{vlt_all},  # Verilator unsupported, bug546
-    expect_filename => $Self->{golden_filename},
     );
 
 execute(
     check_finished => 1,
-    ) if !$Self->{vlt_all};
+    );
 
 ok(1);
 1;
diff --git a/test_regress/t/t_var_static.v b/test_regress/t/t_var_static.v
index 8dbc698ff..cb54f6a0c 100644
--- a/test_regress/t/t_var_static.v
+++ b/test_regress/t/t_var_static.v
@@ -6,6 +6,16 @@
 
 `define checkh(gotv,expv) do if ((gotv) !== (expv)) begin $write("%%Error: %s:%0d:  got='h%x exp='h%x\n", `__FILE__,`__LINE__, (gotv), (expv)); $stop; end while(0);
 
+function automatic int f_au_st_global ();
+   static int st = 0; st++; return st;
+endfunction
+
+package my_pkg;
+   function int f_no_st_pkg ();
+      static int st = 0; st++; return st;
+   endfunction
+endpackage
+
 module t (/*AUTOARG*/
    // Inputs
    clk
@@ -67,6 +77,11 @@ module t (/*AUTOARG*/
       v = f_au_au(); `checkh(v, 3);
       v = f_au_au(); `checkh(v,   3);
       //
+      v = f_au_st_global(); `checkh(v, 1);
+      v = f_au_st_global(); `checkh(v,   2);
+      v = my_pkg::f_no_st_pkg(); `checkh(v, 1);
+      v = my_pkg::f_no_st_pkg(); `checkh(v,   2);
+      //
    end
 
    int cyc = 0;
diff --git a/test_regress/t/t_var_static_param.out b/test_regress/t/t_var_static_param.out
deleted file mode 100644
index 2a08df190..000000000
--- a/test_regress/t/t_var_static_param.out
+++ /dev/null
@@ -1,6 +0,0 @@
-%Error-UNSUPPORTED: t/t_var_static_param.v:33:18: Unsupported: 'static' function/task variables
-                                                : ... In instance t.subb
-   33 |       static int st = 2; st += P; return st;
-      |                  ^~
-                    ... For error description see https://verilator.org/warn/UNSUPPORTED?v=latest
-%Error: Exiting due to
diff --git a/test_regress/t/t_var_static_param.pl b/test_regress/t/t_var_static_param.pl
index 8d48ddb75..b46d46042 100755
--- a/test_regress/t/t_var_static_param.pl
+++ b/test_regress/t/t_var_static_param.pl
@@ -11,13 +11,11 @@ if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); di
 scenarios(simulator => 1);
 
 compile(
-    fails => $Self->{vlt_all},  # Verilator unsupported, bug546
-    expect_filename => $Self->{golden_filename},
     );
 
 execute(
     check_finished => 1,
-    ) if !$Self->{vlt_all};
+    );
 
 ok(1);
 1;