diff --git a/mysql-test/extra/binlog_tests/database.test b/mysql-test/extra/binlog_tests/database.test
index 11a8f53a6d7..2e445f98adf 100644
--- a/mysql-test/extra/binlog_tests/database.test
+++ b/mysql-test/extra/binlog_tests/database.test
@@ -13,3 +13,18 @@ create trigger tr1 before insert on t1 for each row insert into t2 values (2*new
 create procedure sp1 (a int) insert into t1 values(a);
 drop database testing_1;
 source include/show_binlog_events.inc;
+
+# BUG#38773: DROP DATABASE cause switch to stmt-mode when there are
+# temporary tables open
+
+use test;
+reset master;
+create temporary table tt1 (a int);
+create table t1 (a int);
+insert into t1 values (1);
+disable_warnings;
+drop database if exists mysqltest1;
+enable_warnings;
+insert into t1 values (1);
+drop table tt1, t1;
+source include/show_binlog_events.inc;
diff --git a/mysql-test/suite/binlog/r/binlog_database.result b/mysql-test/suite/binlog/r/binlog_database.result
index 7121d458077..d64d902217b 100644
--- a/mysql-test/suite/binlog/r/binlog_database.result
+++ b/mysql-test/suite/binlog/r/binlog_database.result
@@ -17,6 +17,22 @@ master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost`
 master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost` PROCEDURE `sp1`(a int)
 insert into t1 values(a)
 master-bin.000001	#	Query	#	#	drop database testing_1
+use test;
+reset master;
+create temporary table tt1 (a int);
+create table t1 (a int);
+insert into t1 values (1);
+drop database if exists mysqltest1;
+insert into t1 values (1);
+drop table tt1, t1;
+show binlog events from <binlog_start>;
+Log_name	Pos	Event_type	Server_id	End_log_pos	Info
+master-bin.000001	#	Query	#	#	use `test`; create temporary table tt1 (a int)
+master-bin.000001	#	Query	#	#	use `test`; create table t1 (a int)
+master-bin.000001	#	Query	#	#	use `test`; insert into t1 values (1)
+master-bin.000001	#	Query	#	#	drop database if exists mysqltest1
+master-bin.000001	#	Query	#	#	use `test`; insert into t1 values (1)
+master-bin.000001	#	Query	#	#	use `test`; drop table tt1, t1
 set binlog_format=mixed;
 reset master;
 create database testing_1;
@@ -36,6 +52,22 @@ master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost`
 master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost` PROCEDURE `sp1`(a int)
 insert into t1 values(a)
 master-bin.000001	#	Query	#	#	drop database testing_1
+use test;
+reset master;
+create temporary table tt1 (a int);
+create table t1 (a int);
+insert into t1 values (1);
+drop database if exists mysqltest1;
+insert into t1 values (1);
+drop table tt1, t1;
+show binlog events from <binlog_start>;
+Log_name	Pos	Event_type	Server_id	End_log_pos	Info
+master-bin.000001	#	Query	#	#	use `test`; create temporary table tt1 (a int)
+master-bin.000001	#	Query	#	#	use `test`; create table t1 (a int)
+master-bin.000001	#	Query	#	#	use `test`; insert into t1 values (1)
+master-bin.000001	#	Query	#	#	drop database if exists mysqltest1
+master-bin.000001	#	Query	#	#	use `test`; insert into t1 values (1)
+master-bin.000001	#	Query	#	#	use `test`; drop table tt1, t1
 set binlog_format=row;
 reset master;
 create database testing_1;
@@ -55,6 +87,27 @@ master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost`
 master-bin.000001	#	Query	#	#	use `testing_1`; CREATE DEFINER=`root`@`localhost` PROCEDURE `sp1`(a int)
 insert into t1 values(a)
 master-bin.000001	#	Query	#	#	drop database testing_1
+use test;
+reset master;
+create temporary table tt1 (a int);
+create table t1 (a int);
+insert into t1 values (1);
+drop database if exists mysqltest1;
+insert into t1 values (1);
+drop table tt1, t1;
+show binlog events from <binlog_start>;
+Log_name	Pos	Event_type	Server_id	End_log_pos	Info
+master-bin.000001	#	Query	#	#	use `test`; create table t1 (a int)
+master-bin.000001	#	Query	#	#	use `test`; BEGIN
+master-bin.000001	#	Table_map	#	#	table_id: # (test.t1)
+master-bin.000001	#	Write_rows	#	#	table_id: # flags: STMT_END_F
+master-bin.000001	#	Query	#	#	use `test`; COMMIT
+master-bin.000001	#	Query	#	#	drop database if exists mysqltest1
+master-bin.000001	#	Query	#	#	use `test`; BEGIN
+master-bin.000001	#	Table_map	#	#	table_id: # (test.t1)
+master-bin.000001	#	Write_rows	#	#	table_id: # flags: STMT_END_F
+master-bin.000001	#	Query	#	#	use `test`; COMMIT
+master-bin.000001	#	Query	#	#	use `test`; DROP TABLE `t1` /* generated by server */
 show databases;
 Database
 information_schema
diff --git a/sql/sql_db.cc b/sql/sql_db.cc
index bb55f5f7a4f..52d9e42bc82 100644
--- a/sql/sql_db.cc
+++ b/sql/sql_db.cc
@@ -883,13 +883,6 @@ bool mysql_rm_db(THD *thd,char *db,bool if_exists, bool silent)
 
   VOID(pthread_mutex_lock(&LOCK_mysql_create_db));
 
-  /*
-    This statement will be replicated as a statement, even when using
-    row-based replication. The flag will be reset at the end of the
-    statement.
-  */
-  thd->clear_current_stmt_binlog_row_based();
-
   length= build_table_filename(path, sizeof(path), db, "", "", 0);
   strmov(path+length, MY_DB_OPT_FILE);		// Append db option file name
   del_dbopt(path);				// Remove dboption hash entry
@@ -914,8 +907,21 @@ bool mysql_rm_db(THD *thd,char *db,bool if_exists, bool silent)
     remove_db_from_cache(db);
     pthread_mutex_unlock(&LOCK_open);
 
-    
     error= -1;
+    /*
+      We temporarily disable the binary log while dropping the objects
+      in the database. Since the DROP DATABASE statement is always
+      replicated as a statement, execution of it will drop all objects
+      in the database on the slave as well, so there is no need to
+      replicate the removal of the individual objects in the database
+      as well.
+
+      This is more of a safety precaution, since normally no objects
+      should be dropped while the database is being cleaned, but in
+      the event that a change in the code to remove other objects is
+      made, these drops should still not be logged.
+     */
+    tmp_disable_binlog(thd);
     if ((deleted= mysql_rm_known_files(thd, dirp, db, path, 0,
                                        &dropped_tables)) >= 0)
     {
@@ -927,6 +933,7 @@ bool mysql_rm_db(THD *thd,char *db,bool if_exists, bool silent)
 #endif
       error = 0;
     }
+    reenable_binlog(thd);
   }
   if (!silent && deleted>=0)
   {