diff --git a/lib/checkmemoryleak.cpp b/lib/checkmemoryleak.cpp
index 592083eed..66b9fe8d0 100644
--- a/lib/checkmemoryleak.cpp
+++ b/lib/checkmemoryleak.cpp
@@ -1860,13 +1860,20 @@ void CheckMemoryLeakInFunction::simplifycode(Token *tok)
                 done = false;
             }
 
-            // Reduce "loop if break ; => ";"
+            // Reduce "loop if break|continue ; !!else" => ";"
             if (Token::Match(tok2->next(), "loop if break|continue ; !!else"))
             {
                 Token::eraseTokens(tok2, tok2->tokAt(4));
                 done = false;
             }
 
+            // Reduce "loop { if break|continue ; !!else" => "loop {"
+            if (Token::Match(tok2, "loop { if break|continue ; !!else"))
+            {
+                Token::eraseTokens(tok2->next(), tok2->tokAt(5));
+                done = false;
+            }
+
             // Replace "do ; loop ;" with ";"
             if (Token::simpleMatch(tok2, "; loop ;"))
             {
diff --git a/test/testmemleak.cpp b/test/testmemleak.cpp
index a8246de25..bb7164c5c 100644
--- a/test/testmemleak.cpp
+++ b/test/testmemleak.cpp
@@ -710,6 +710,7 @@ private:
         ASSERT_EQUALS("; exit ;", simplifycode("; alloc ; do { } loop ; exit ;"));
         ASSERT_EQUALS("; loop use ;", simplifycode("; loop { loop loop use ; } ;"));
         ASSERT_EQUALS("; }", simplifycode("; loop { if break ; break ; } ; }"));
+        ASSERT_EQUALS("; }", simplifycode("; loop { if continue ; if continue ; } ; }"));
 
         ASSERT_EQUALS("; alloc ;", simplifycode("; alloc ; while(!var) alloc ;"));