diff --git a/tools/js-optimizer.js b/tools/js-optimizer.js
index 7989f1f49..49bc5d129 100644
--- a/tools/js-optimizer.js
+++ b/tools/js-optimizer.js
@@ -3105,7 +3105,6 @@ function outline(ast) {
     // Generate new function
     if (codeInfo.hasReturn || codeInfo.hasBreak || codeInfo.hasContinue) {
       // we need to capture all control flow using a top-level labeled one-time loop in the outlined function
-      code = [['label', 'OL', ['do', ['num', 0], ['block', code]]]];
       var breakCapturers = 0;
       var continueCapturers = 0;
       traverse(code, function(node, type) {
@@ -3158,6 +3157,7 @@ function outline(ast) {
           continueCapturers--;
         }
       });
+      code = [['label', 'OL', ['do', ['num', 0], ['block', code]]]]; // do this after processing, to not confuse breakCapturers etc.
       // read the control data at the callsite to the outlined function
       if (codeInfo.hasReturn) {
         reps.push(makeIf(
diff --git a/tools/test-js-optimizer-asm-outline1-output.js b/tools/test-js-optimizer-asm-outline1-output.js
index 0949865ab..b89402c66 100644
--- a/tools/test-js-optimizer-asm-outline1-output.js
+++ b/tools/test-js-optimizer-asm-outline1-output.js
@@ -37,6 +37,20 @@ function lin3() {
  }
  return 20;
 }
+function lin4() {
+ while (1) {
+  c(1);
+  c(2);
+  c(3);
+  c(4);
+  lin4$1(sp);
+  lin4$0(sp);
+  if (HEAP32[sp + 0 >> 2] == 1) {
+   break;
+  }
+ }
+ return 20;
+}
 function lin$0(sp) {
  sp = sp | 0;
  c(13);
@@ -105,4 +119,29 @@ function lin3$1(sp) {
  c(12);
  c(13);
 }
+function lin4$0(sp) {
+ sp = sp | 0;
+ OL : do {
+  c(13);
+  c(14);
+  c(15);
+  c(16);
+  c(17);
+  c(18);
+  c(19);
+  c(20);
+  HEAP32[sp + 0 >> 2] = 1, break OL;
+ } while (0);
+}
+function lin4$1(sp) {
+ sp = sp | 0;
+ c(5);
+ c(6);
+ c(7);
+ c(8);
+ c(9);
+ c(10);
+ c(11);
+ c(12);
+}
 
diff --git a/tools/test-js-optimizer-asm-outline1.js b/tools/test-js-optimizer-asm-outline1.js
index 9d41b7270..b8c1b28fb 100644
--- a/tools/test-js-optimizer-asm-outline1.js
+++ b/tools/test-js-optimizer-asm-outline1.js
@@ -70,5 +70,31 @@ function lin3() {
   }
   return 20;
 }
+function lin4() {
+  while (1) {
+    c(1);
+    c(2);
+    c(3);
+    c(4);
+    c(5);
+    c(6);
+    c(7);
+    c(8);
+    c(9);
+    c(10);
+    c(11);
+    c(12);
+    c(13);
+    c(14);
+    c(15);
+    c(16);
+    c(17);
+    c(18);
+    c(19);
+    c(20);
+    break;
+  }
+  return 20;
+}
 // EMSCRIPTEN_GENERATED_FUNCTIONS
 // EXTRA_INFO: { "sizeToOutline": 30 }