diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 2f285dae98f..e2e6d82a031 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2004-11-30  James A. Morrison  <phython@gcc.gnu.org>
+
+	PR middle-end/18596
+	* c-decl.c (grokdeclarator): Reset DECL_INTIAL to error_mark_node
+	on errors.
+
 2004-11-30  Richard Kenner  <kenner@vlsi1.ultra.nyu.edu>
 
 	* expr.c (expand_expr_real_1, case NOP_EXPR): Properly handle
diff --git a/gcc/c-decl.c b/gcc/c-decl.c
index 3c8dbeef733..ea26da44a3c 100644
--- a/gcc/c-decl.c
+++ b/gcc/c-decl.c
@@ -4428,8 +4428,15 @@ grokdeclarator (const struct c_declarator *declarator,
       }
     else if (TREE_CODE (type) == FUNCTION_TYPE)
       {
+	decl = build_decl (FUNCTION_DECL, declarator->u.id, type);
+	decl = build_decl_attribute_variant (decl, decl_attr);
+
 	if (storage_class == csc_register || threadp)
-	  error ("invalid storage class for function %qs", name);
+	  {
+	    error ("invalid storage class for function %qs", name);
+	    if (DECL_INITIAL (decl) != NULL_TREE)
+	      DECL_INITIAL (decl) = error_mark_node;
+	   }
 	else if (current_scope != file_scope)
 	  {
 	    /* Function declaration not at file scope.  Storage
@@ -4443,12 +4450,13 @@ grokdeclarator (const struct c_declarator *declarator,
 		  pedwarn ("invalid storage class for function %qs", name);
 	      }
 	    if (storage_class == csc_static)
-	      error ("invalid storage class for function %qs", name);
+	      {
+	        error ("invalid storage class for function %qs", name);
+		if (DECL_INITIAL (decl) != NULL_TREE)
+		  DECL_INITIAL (decl) = error_mark_node;
+	      }
 	  }
 
-	decl = build_decl (FUNCTION_DECL, declarator->u.id, type);
-	decl = build_decl_attribute_variant (decl, decl_attr);
-
 	DECL_LANG_SPECIFIC (decl) = GGC_CNEW (struct lang_decl);
 
 	if (pedantic && type_quals && !DECL_IN_SYSTEM_HEADER (decl))
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index f45e21b2e1f..981a45ca199 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,7 @@
+2004-11-30  James A. Morrison  <phython@gcc.gnu.org>
+
+	* gcc.dg/pr18596-1.c: New test.
+
 2004-11-30  Ben Elliston  <bje@au.ibm.com>
 
 	* g++.old-deja/g++.other/decl5.C: Remove remaining XFAILs.
diff --git a/gcc/testsuite/gcc.dg/pr18596-1.c b/gcc/testsuite/gcc.dg/pr18596-1.c
new file mode 100644
index 00000000000..055d60a4a75
--- /dev/null
+++ b/gcc/testsuite/gcc.dg/pr18596-1.c
@@ -0,0 +1,7 @@
+/* { dg-do compile } */
+int f(int i)
+{
+  static int g(); /* { dg-warning "invalid storage class" } */
+  static int g() { return i; } /* { dg-warning "invalid storage class" } */
+  return g();
+}