diff --git a/servers/pm/forkexit.c b/servers/pm/forkexit.c
index 68ef6df3c..638f29e96 100644
--- a/servers/pm/forkexit.c
+++ b/servers/pm/forkexit.c
@@ -368,6 +368,13 @@ int dump_core;			/* flag indicating whether to dump core */
 		/* 'rmp' now points to a child to be disinherited. */
 		rmp->mp_parent = INIT_PROC_NR;
 
+		/* If the process is making a VFS call, remember that we set
+		 * a new parent. This prevents FORK from replying to the wrong
+		 * parent upon completion.
+		 */
+		if (rmp->mp_flags & VFS_CALL)
+			rmp->mp_flags |= NEW_PARENT;
+
 		/* Notify new parent. */
 		if (rmp->mp_flags & ZOMBIE)
 			check_parent(rmp, TRUE /*try_cleanup*/);
diff --git a/servers/pm/main.c b/servers/pm/main.c
index 96d94787b..002f4926a 100644
--- a/servers/pm/main.c
+++ b/servers/pm/main.c
@@ -383,7 +383,7 @@ static void handle_vfs_reply()
 {
   struct mproc *rmp;
   endpoint_t proc_e;
-  int r, proc_n;
+  int r, proc_n, new_parent;
 
   /* PM_REBOOT is the only request not associated with a process.
    * Handle its reply first.
@@ -411,7 +411,8 @@ static void handle_vfs_reply()
   if (!(rmp->mp_flags & VFS_CALL))
 	panic("handle_vfs_reply: reply without request: %d", call_nr);
 
-  rmp->mp_flags &= ~VFS_CALL;
+  new_parent = rmp->mp_flags & NEW_PARENT;
+  rmp->mp_flags &= ~(VFS_CALL | NEW_PARENT);
 
   if (rmp->mp_flags & UNPAUSED)
   	panic("handle_vfs_reply: UNPAUSED set on entry: %d", call_nr);
@@ -453,28 +454,29 @@ static void handle_vfs_reply()
 
   case PM_FORK_REPLY:
 	/* Schedule the newly created process ... */
-	r = (OK);
+	r = OK;
 	if (rmp->mp_scheduler != KERNEL && rmp->mp_scheduler != NONE) {
 		r = sched_start_user(rmp->mp_scheduler, rmp);
 	}
 
 	/* If scheduling the process failed, we want to tear down the process
 	 * and fail the fork */
-	if (r != (OK)) {
+	if (r != OK) {
 		/* Tear down the newly created process */
 		rmp->mp_scheduler = NONE; /* don't try to stop scheduling */
 		exit_proc(rmp, -1, FALSE /*dump_core*/);
 
-		/* Wake up the parent with a failed fork */
-		setreply(rmp->mp_parent, -1);
-
+		/* Wake up the parent with a failed fork (unless dead) */
+		if (!new_parent)
+			setreply(rmp->mp_parent, -1);
 	}
 	else {
 		/* Wake up the child */
 		setreply(proc_n, OK);
 
-		/* Wake up the parent */
-		setreply(rmp->mp_parent, rmp->mp_pid);
+		/* Wake up the parent, unless the parent is already dead */
+		if (!new_parent)
+			setreply(rmp->mp_parent, rmp->mp_pid);
 	}
 
 	break;
diff --git a/servers/pm/mproc.h b/servers/pm/mproc.h
index 26f5dc1c7..ab2a2bd3f 100644
--- a/servers/pm/mproc.h
+++ b/servers/pm/mproc.h
@@ -84,6 +84,7 @@ EXTERN struct mproc {
 #define SIGSUSPENDED	0x00100	/* set by SIGSUSPEND system call */
 #define REPLY		0x00200	/* set if a reply message is pending */
 #define VFS_CALL       	0x00400	/* set if waiting for VFS (normal calls) */
+#define NEW_PARENT	0x00800	/* process's parent changed during VFS call */
 #define UNPAUSED	0x01000	/* VFS has replied to unpause request */
 #define PRIV_PROC	0x02000	/* system process, special privileges */
 #define PARTIAL_EXEC	0x04000	/* process got a new map but no content */
diff --git a/test/test79.c b/test/test79.c
index 3c7504e1e..b5948c673 100644
--- a/test/test79.c
+++ b/test/test79.c
@@ -36,6 +36,7 @@ enum {
 	JOB_BLOCK_PM,
 	JOB_BLOCK_VFS,
 	JOB_CALL_PM_VFS,
+	JOB_FORK,
 	NR_JOBS
 };
 
@@ -295,6 +296,27 @@ worker_proc(struct link *parent)
 		uid = getuid();
 		for (;;)
 			setuid(uid);
+		break;
+	case JOB_FORK:
+		/*
+		 * The child exits immediately; the parent kills the child
+		 * immediately.  The outcome mostly depends on scheduling.
+		 * Varying process priorities may yield different tests.
+		 */
+		for (;;) {
+			pid_t pid = fork();
+			switch (pid) {
+			case 0:
+				exit(0);
+			case -1:
+				e(1);
+				break;
+			default:
+				kill(pid, SIGKILL);
+				if (wait(NULL) != pid) e(0);
+			}
+		}
+		break;
 	default:
 		e(0);
 		exit(1);