diff --git a/mysql-test/suite/rpl/r/rpl_parallel_multilevel2.result b/mysql-test/suite/rpl/r/rpl_parallel_multilevel2.result
new file mode 100644
index 00000000000..47bf2ff887f
--- /dev/null
+++ b/mysql-test/suite/rpl/r/rpl_parallel_multilevel2.result
@@ -0,0 +1,52 @@
+include/rpl_init.inc [topology=1->2->3]
+*** MDEV-7668: Intermediate master groups CREATE with INSERT, causing parallel replication failure ***
+SET @old_updates= @@GLOBAL.binlog_direct_non_transactional_updates;
+SET GLOBAL binlog_direct_non_transactional_updates=OFF;
+SET SESSION binlog_direct_non_transactional_updates=OFF;
+ALTER TABLE mysql.gtid_slave_pos ENGINE=InnoDB;
+CREATE TABLE t1 (a int PRIMARY KEY, b INT) ENGINE=InnoDB;
+include/stop_slave.inc
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+SET GLOBAL slave_parallel_threads=10;
+SET @old_commit_count=@@GLOBAL.binlog_commit_wait_count;
+SET GLOBAL binlog_commit_wait_count=2;
+SET @old_commit_usec=@@GLOBAL.binlog_commit_wait_usec;
+SET GLOBAL binlog_commit_wait_usec=2000000;
+SET @old_updates= @@GLOBAL.binlog_direct_non_transactional_updates;
+SET GLOBAL binlog_direct_non_transactional_updates=OFF;
+SET SESSION binlog_direct_non_transactional_updates=OFF;
+CHANGE MASTER TO master_use_gtid=current_pos;
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=10;
+CHANGE MASTER TO master_use_gtid=current_pos;
+BEGIN;
+CREATE TEMPORARY TABLE t2 (a INT PRIMARY KEY) ENGINE=MEMORY;
+COMMIT;
+INSERT INTO t2 VALUES (1);
+INSERT INTO t1 SELECT a, a*10 FROM t2;
+DROP TABLE t2;
+include/save_master_gtid.inc
+include/start_slave.inc
+include/sync_with_master_gtid.inc
+SELECT * FROM t1 ORDER BY a;
+a	b
+1	10
+include/start_slave.inc
+include/sync_with_master_gtid.inc
+SELECT * FROM t1 ORDER BY a;
+a	b
+1	10
+include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+SET GLOBAL binlog_commit_wait_count=@old_commit_count;
+SET GLOBAL binlog_commit_wait_usec=@old_commit_usec;
+SET GLOBAL binlog_direct_non_transactional_updates= @old_updates;
+include/start_slave.inc
+include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+include/start_slave.inc
+SET GLOBAL binlog_direct_non_transactional_updates= @old_updates;
+CALL mtr.add_suppression("Statement accesses nontransactional table as well as transactional or temporary table");
+DROP TABLE t1;
+include/rpl_end.inc
diff --git a/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.cnf b/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.cnf
new file mode 100644
index 00000000000..4e1d3878f03
--- /dev/null
+++ b/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.cnf
@@ -0,0 +1,17 @@
+!include ../my.cnf
+
+[mysqld.1]
+log-slave-updates
+loose-innodb
+
+[mysqld.2]
+log-slave-updates
+loose-innodb
+
+[mysqld.3]
+log-slave-updates
+loose-innodb
+
+[ENV]
+SERVER_MYPORT_3=		@mysqld.3.port
+SERVER_MYSOCK_3=		@mysqld.3.socket
diff --git a/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.test b/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.test
new file mode 100644
index 00000000000..4125394ef80
--- /dev/null
+++ b/mysql-test/suite/rpl/t/rpl_parallel_multilevel2.test
@@ -0,0 +1,80 @@
+--source include/have_innodb.inc
+--let $rpl_topology=1->2->3
+--source include/rpl_init.inc
+
+--echo *** MDEV-7668: Intermediate master groups CREATE with INSERT, causing parallel replication failure ***
+
+--connection server_1
+SET @old_updates= @@GLOBAL.binlog_direct_non_transactional_updates;
+SET GLOBAL binlog_direct_non_transactional_updates=OFF;
+SET SESSION binlog_direct_non_transactional_updates=OFF;
+ALTER TABLE mysql.gtid_slave_pos ENGINE=InnoDB;
+CREATE TABLE t1 (a int PRIMARY KEY, b INT) ENGINE=InnoDB;
+--save_master_pos
+
+--connection server_2
+--sync_with_master
+--save_master_pos
+--source include/stop_slave.inc
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+SET GLOBAL slave_parallel_threads=10;
+SET @old_commit_count=@@GLOBAL.binlog_commit_wait_count;
+SET GLOBAL binlog_commit_wait_count=2;
+SET @old_commit_usec=@@GLOBAL.binlog_commit_wait_usec;
+SET GLOBAL binlog_commit_wait_usec=2000000;
+SET @old_updates= @@GLOBAL.binlog_direct_non_transactional_updates;
+SET GLOBAL binlog_direct_non_transactional_updates=OFF;
+SET SESSION binlog_direct_non_transactional_updates=OFF;
+CHANGE MASTER TO master_use_gtid=current_pos;
+
+--connection server_3
+--sync_with_master
+--save_master_pos
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+--source include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=10;
+CHANGE MASTER TO master_use_gtid=current_pos;
+
+
+--connection server_1
+
+BEGIN;
+CREATE TEMPORARY TABLE t2 (a INT PRIMARY KEY) ENGINE=MEMORY;
+COMMIT;
+INSERT INTO t2 VALUES (1);
+INSERT INTO t1 SELECT a, a*10 FROM t2;
+DROP TABLE t2;
+--source include/save_master_gtid.inc
+
+--connection server_2
+--source include/start_slave.inc
+--source include/sync_with_master_gtid.inc
+SELECT * FROM t1 ORDER BY a;
+
+--connection server_3
+--source include/start_slave.inc
+--source include/sync_with_master_gtid.inc
+SELECT * FROM t1 ORDER BY a;
+
+
+# Clean up
+
+--connection server_2
+--source include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+SET GLOBAL binlog_commit_wait_count=@old_commit_count;
+SET GLOBAL binlog_commit_wait_usec=@old_commit_usec;
+SET GLOBAL binlog_direct_non_transactional_updates= @old_updates;
+--source include/start_slave.inc
+
+--connection server_3
+--source include/stop_slave.inc
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+--source include/start_slave.inc
+
+--connection server_1
+SET GLOBAL binlog_direct_non_transactional_updates= @old_updates;
+CALL mtr.add_suppression("Statement accesses nontransactional table as well as transactional or temporary table");
+DROP TABLE t1;
+
+--source include/rpl_end.inc
diff --git a/sql/sql_base.cc b/sql/sql_base.cc
index d4fb2a8b8bb..9aa9d1e0266 100644
--- a/sql/sql_base.cc
+++ b/sql/sql_base.cc
@@ -661,20 +661,23 @@ static void mark_temp_tables_as_free_for_reuse(THD *thd)
     DBUG_VOID_RETURN;
   }
   
-  thd->lock_temporary_tables();
-  for (TABLE *table= thd->temporary_tables ; table ; table= table->next)
+  if (thd->temporary_tables)
   {
-    if ((table->query_id == thd->query_id) && ! table->open_by_handler)
-      mark_tmp_table_for_reuse(table);
-  }
-  thd->unlock_temporary_tables();
-  if (thd->rgi_slave)
-  {
-    /*
-      Temporary tables are shared with other by sql execution threads.
-      As a safety messure, clear the pointer to the common area.
-    */
-    thd->temporary_tables= 0;
+    thd->lock_temporary_tables();
+    for (TABLE *table= thd->temporary_tables ; table ; table= table->next)
+    {
+      if ((table->query_id == thd->query_id) && ! table->open_by_handler)
+        mark_tmp_table_for_reuse(table);
+    }
+    thd->unlock_temporary_tables();
+    if (thd->rgi_slave)
+    {
+      /*
+        Temporary tables are shared with other by sql execution threads.
+        As a safety messure, clear the pointer to the common area.
+      */
+      thd->temporary_tables= 0;
+    }
   }
   DBUG_VOID_RETURN;
 }
@@ -5586,6 +5589,14 @@ TABLE *open_table_uncached(THD *thd, handlerton *hton,
               (uint) thd->variables.server_id,
               (ulong) thd->variables.pseudo_thread_id));
 
+  if (add_to_temporary_tables_list)
+  {
+    /* Temporary tables are not safe for parallel replication. */
+    if (thd->rgi_slave && thd->rgi_slave->is_parallel_exec &&
+        thd->wait_for_prior_commit())
+      return NULL;
+  }
+
   /* Create the cache_key for temporary tables */
   key_length= create_tmp_table_def_key(thd, cache_key, db, table_name);
 
@@ -5822,6 +5833,25 @@ bool open_temporary_table(THD *thd, TABLE_LIST *tl)
     DBUG_RETURN(FALSE);
   }
 
+  /*
+    Temporary tables are not safe for parallel replication. They were
+    designed to be visible to one thread only, so have no table locking.
+    Thus there is no protection against two conflicting transactions
+    committing in parallel and things like that.
+
+    So for now, anything that uses temporary tables will be serialised
+    with anything before it, when using parallel replication.
+
+    ToDo: We might be able to introduce a reference count or something
+    on temp tables, and have slave worker threads wait for it to reach
+    zero before being allowed to use the temp table. Might not be worth
+    it though, as statement-based replication using temporary tables is
+    in any case rather fragile.
+  */
+  if (thd->rgi_slave && thd->rgi_slave->is_parallel_exec &&
+      thd->wait_for_prior_commit())
+    DBUG_RETURN(true);
+
 #ifdef WITH_PARTITION_STORAGE_ENGINE
   if (tl->partition_names)
   {