diff --git a/ChangeLog b/ChangeLog
index e2e63054eb..6cbb13ffee 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+Fri Nov 30 15:24:37 2012  Nobuyoshi Nakada  <nobu@ruby-lang.org>
+
+	* parse.y (parser_yylex): fix false usage of local variable, it cannot
+	  appear in fname state [ruby-core:49659] [Bug #7408]
+
 Fri Nov 30 15:20:12 2012  Eric Hodel  <drbrain@segment7.net>
 
 	* lib/rubygems/package.rb:  Load YAML for building gems.
diff --git a/parse.y b/parse.y
index 2317796dc8..ae00b78b64 100644
--- a/parse.y
+++ b/parse.y
@@ -8019,7 +8019,7 @@ parser_yylex(struct parser_params *parser)
             ID ident = TOK_INTERN(!ENC_SINGLE(mb));
 
             set_yylval_name(ident);
-            if (!IS_lex_state_for(last_state, EXPR_DOT) &&
+            if (!IS_lex_state_for(last_state, EXPR_DOT|EXPR_FNAME) &&
 		is_local_id(ident) && lvar_defined(ident)) {
                 lex_state = EXPR_END;
             }
diff --git a/test/ruby/test_rubyoptions.rb b/test/ruby/test_rubyoptions.rb
index eca6823597..16656f0b24 100644
--- a/test/ruby/test_rubyoptions.rb
+++ b/test/ruby/test_rubyoptions.rb
@@ -533,6 +533,8 @@ class TestRubyOptions < Test::Unit::TestCase
     assert_in_out_err(["-we", "def foo\n""  1.times do |a| end\n""end"], "", [], [])
     feature6693 = '[ruby-core:46160]'
     assert_in_out_err(["-we", "def foo\n  _a=1\nend"], "", [], [], feature6693)
+    bug7408 = '[ruby-core:49659]'
+    assert_in_out_err(["-we", "def foo\n  a=1\n :a\nend"], "", [], ["-e:2: warning: assigned but unused variable - a"], bug7408)
   end
 
   def test_shadowing_variable