diff --git a/mysql-test/suite/compat/oracle/r/sp.result b/mysql-test/suite/compat/oracle/r/sp.result
index aa52cda9937..53ca49c8ef1 100644
--- a/mysql-test/suite/compat/oracle/r/sp.result
+++ b/mysql-test/suite/compat/oracle/r/sp.result
@@ -252,3 +252,101 @@ CREATE TABLE begin (begin INT);
 DROP TABLE begin;
 CREATE TABLE end (end INT);
 DROP TABLE end;
+# Testing top-level declarations
+CREATE PROCEDURE p1 (p1 OUT VARCHAR2(10))
+AS
+p2 VARCHAR(10);
+BEGIN
+p2:='p1new';
+p1:=p2;
+END;
+/
+SET @p1='p1';
+CALL p1(@p1);
+SELECT @p1;
+@p1
+p1new
+DROP PROCEDURE p1;
+CREATE FUNCTION f1 (p1 VARCHAR2(10)) RETURNS VARCHAR(20)
+AS
+p2 VARCHAR(10);
+BEGIN
+p2:='new';
+RETURN CONCAT(p1, p2);
+END;
+/
+SET @p1='p1';
+SELECT f1(@p1);
+f1(@p1)
+p1new
+DROP FUNCTION f1;
+# Testing non-top declarations
+CREATE PROCEDURE p1 (p1 OUT VARCHAR2(10))
+AS
+BEGIN
+DECLARE
+p2 VARCHAR(10);
+BEGIN
+p2:='p1new';
+p1:=p2;
+END;
+DECLARE
+t1 VARCHAR(10);
+t2 VARCHAR(10);
+BEGIN
+END;
+END;
+/
+SET @p1='p1';
+CALL p1(@p1);
+SELECT @p1;
+@p1
+p1new
+DROP PROCEDURE p1;
+CREATE FUNCTION f1 (p1 VARCHAR2(10)) RETURNS VARCHAR(20)
+AS
+BEGIN
+DECLARE
+p2 VARCHAR(10);
+BEGIN
+p2:='new';
+RETURN CONCAT(p1, p2);
+END;
+DECLARE
+t1 VARCHAR(10);
+t2 VARCHAR(10);
+BEGIN
+END;
+END;
+/
+SET @p1='p1';
+SELECT f1(@p1);
+f1(@p1)
+p1new
+DROP FUNCTION f1;
+# Testing BEGIN NOT ATOMIC with no declarations
+BEGIN NOT ATOMIC
+SELECT 1 AS a;
+END
+/
+a
+1
+# Testing BEGIN NOT ATOMIC with declarations
+# DECLARE starts a new block and thus must be followed by BEGIN .. END
+BEGIN NOT ATOMIC
+DECLARE
+i INT DEFAULT 5;
+x INT DEFAULT 10;
+BEGIN
+<<label>>
+WHILE i > 3 DO
+i:= i - 1;
+SELECT i;
+END WHILE label;
+END;
+END
+/
+i
+4
+i
+3
diff --git a/mysql-test/suite/compat/oracle/t/sp.test b/mysql-test/suite/compat/oracle/t/sp.test
index a6ea85d1f3e..3ea9c2a9276 100644
--- a/mysql-test/suite/compat/oracle/t/sp.test
+++ b/mysql-test/suite/compat/oracle/t/sp.test
@@ -272,3 +272,108 @@ CREATE TABLE begin (begin INT);
 DROP TABLE begin;
 CREATE TABLE end (end INT);
 DROP TABLE end;
+
+
+--echo # Testing top-level declarations
+DELIMITER /;
+CREATE PROCEDURE p1 (p1 OUT VARCHAR2(10))
+AS
+  p2 VARCHAR(10);
+BEGIN
+  p2:='p1new';
+  p1:=p2;
+END;
+/
+DELIMITER ;/
+SET @p1='p1';
+CALL p1(@p1);
+SELECT @p1;
+DROP PROCEDURE p1;
+
+DELIMITER /;
+CREATE FUNCTION f1 (p1 VARCHAR2(10)) RETURNS VARCHAR(20)
+AS
+  p2 VARCHAR(10);
+BEGIN
+  p2:='new';
+  RETURN CONCAT(p1, p2);
+END;
+/
+DELIMITER ;/
+SET @p1='p1';
+SELECT f1(@p1);
+DROP FUNCTION f1;
+
+--echo # Testing non-top declarations
+
+DELIMITER /;
+CREATE PROCEDURE p1 (p1 OUT VARCHAR2(10))
+AS
+BEGIN
+  DECLARE
+    p2 VARCHAR(10);
+  BEGIN
+    p2:='p1new';
+    p1:=p2;
+  END;
+  DECLARE
+    t1 VARCHAR(10);
+    t2 VARCHAR(10);
+  BEGIN
+  END;
+END;
+/
+DELIMITER ;/
+SET @p1='p1';
+CALL p1(@p1);
+SELECT @p1;
+DROP PROCEDURE p1;
+
+DELIMITER /;
+CREATE FUNCTION f1 (p1 VARCHAR2(10)) RETURNS VARCHAR(20)
+AS
+BEGIN
+  DECLARE
+    p2 VARCHAR(10);
+  BEGIN
+    p2:='new';
+    RETURN CONCAT(p1, p2);
+  END;
+  DECLARE
+    t1 VARCHAR(10);
+    t2 VARCHAR(10);
+  BEGIN
+  END;
+END;
+/
+DELIMITER ;/
+SET @p1='p1';
+SELECT f1(@p1);
+DROP FUNCTION f1;
+
+
+--echo # Testing BEGIN NOT ATOMIC with no declarations
+DELIMITER /;
+BEGIN NOT ATOMIC
+ SELECT 1 AS a;
+END
+/
+DELIMITER ;/
+
+--echo # Testing BEGIN NOT ATOMIC with declarations
+--echo # DECLARE starts a new block and thus must be followed by BEGIN .. END
+DELIMITER /;
+BEGIN NOT ATOMIC
+  DECLARE
+    i INT DEFAULT 5;
+    x INT DEFAULT 10;
+  BEGIN
+  <<label>>
+  WHILE i > 3 DO
+    i:= i - 1;
+    SELECT i;
+  END WHILE label;
+  END;
+END
+/
+DELIMITER ;/
diff --git a/sql/sql_lex.h b/sql/sql_lex.h
index 43d594d46ba..a3faec6edb7 100644
--- a/sql/sql_lex.h
+++ b/sql/sql_lex.h
@@ -3097,8 +3097,16 @@ public:
     class sp_label *tmp;
     return sp_block_finalize(thd, spblock, &tmp);
   }
+  bool sp_block_finalize(THD *thd)
+  {
+    return sp_block_finalize(thd, Lex_spblock());
+  }
   bool sp_block_finalize(THD *thd, const Lex_spblock_st spblock,
                                    const LEX_STRING end_label);
+  bool sp_block_finalize(THD *thd, const LEX_STRING end_label)
+  {
+    return sp_block_finalize(thd, Lex_spblock(), end_label);
+  }
   bool sp_declarations_join(Lex_spblock_st *res,
                             const Lex_spblock_st b1,
                             const Lex_spblock_st b2) const
diff --git a/sql/sql_yacc_ora.yy b/sql/sql_yacc_ora.yy
index 686df8707fb..50341022b23 100644
--- a/sql/sql_yacc_ora.yy
+++ b/sql/sql_yacc_ora.yy
@@ -1329,7 +1329,7 @@ END_OF_INPUT
 
 %type <num>  sp_decl_idents sp_handler_type sp_hcond_list
 %type <spcondvalue> sp_cond sp_hcond sqlstate signal_value opt_signal_value
-%type <spblock> sp_decls sp_decl sp_decl_body
+%type <spblock> sp_decl_body sp_decl_body_list opt_sp_decl_body_list
 %type <lex> sp_cursor_stmt
 %type <spname> sp_name
 %type <spvar> sp_param_name sp_param_name_and_type
@@ -2359,26 +2359,23 @@ sp_proc_stmts1:
         | sp_proc_stmts1  sp_proc_stmt ';'
         ;
 
-sp_decls:
+opt_sp_decl_body_list:
           /* Empty */
           {
             $$.init();
           }
-        | sp_decls sp_decl ';'
+        | sp_decl_body_list { $$= $1; }
+        ;
+
+sp_decl_body_list:
+          sp_decl_body ';' { $$= $1; }
+        | sp_decl_body_list sp_decl_body ';'
           {
-            /* We check for declarations out of (standard) order this way
-              because letting the grammar rules reflect it caused tricky
-               shift/reduce conflicts with the wrong result. (And we get
-               better error handling this way.) */
             if (Lex->sp_declarations_join(&$$, $1, $2))
               MYSQL_YYABORT;
           }
         ;
 
-sp_decl:
-          DECLARE_SYM sp_decl_body { $$= $2; }
-        ;
-
 sp_decl_body:
           sp_decl_idents
           {
@@ -2392,7 +2389,7 @@ sp_decl_body:
             $$.vars= $1;
             $$.conds= $$.hndlrs= $$.curs= 0;
           }
-        | ident CONDITION_SYM FOR_SYM sp_cond
+        | ident_directly_assignable CONDITION_SYM FOR_SYM sp_cond
           {
             if (Lex->spcont->declare_condition(thd, $1, $4))
               MYSQL_YYABORT;
@@ -2411,7 +2408,7 @@ sp_decl_body:
             $$.vars= $$.conds= $$.curs= 0;
             $$.hndlrs= 1;
           }
-        | ident CURSOR_SYM FOR_SYM sp_cursor_stmt
+        | ident_directly_assignable CURSOR_SYM FOR_SYM sp_cursor_stmt
           {
             if (Lex->sp_declare_cursor(thd, $1, $4))
               MYSQL_YYABORT;
@@ -2823,7 +2820,7 @@ condition_information_item_name:
         ;
 
 sp_decl_idents:
-          ident
+          ident_directly_assignable
           {
             /* NOTE: field definition is filled in sp_decl section. */
 
@@ -3381,12 +3378,25 @@ sp_labeled_block:
           {
             Lex->sp_block_init(thd, $1);
           }
-          sp_decls
           sp_proc_stmts
           END
           sp_opt_label
           {
-            if (Lex->sp_block_finalize(thd, $4, $7))
+            if (Lex->sp_block_finalize(thd, $6))
+              MYSQL_YYABORT;
+          }
+        | sp_block_label
+          DECLARE_SYM
+          {
+            Lex->sp_block_init(thd, $1);
+          }
+          sp_decl_body_list
+          BEGIN_SYM
+          sp_proc_stmts
+          END
+          sp_opt_label
+          {
+            if (Lex->sp_block_finalize(thd, $4, $8))
               MYSQL_YYABORT;
           }
         ;
@@ -3396,7 +3406,18 @@ sp_unlabeled_block:
           {
             Lex->sp_block_init(thd);
           }
-          sp_decls
+          sp_proc_stmts
+          END
+          {
+            if (Lex->sp_block_finalize(thd))
+              MYSQL_YYABORT;
+          }
+        | DECLARE_SYM
+          {
+            Lex->sp_block_init(thd);
+          }
+          sp_decl_body_list
+          BEGIN_SYM
           sp_proc_stmts
           END
           {
@@ -3405,6 +3426,20 @@ sp_unlabeled_block:
           }
         ;
 
+sp_body:
+          {
+            Lex->sp_block_init(thd);
+          }
+          opt_sp_decl_body_list
+          BEGIN_SYM
+          sp_proc_stmts
+          END
+          {
+            if (Lex->sp_block_finalize(thd, $2))
+              MYSQL_YYABORT;
+          }
+        ;
+
 sp_unlabeled_block_not_atomic:
           BEGIN_SYM not ATOMIC_SYM /* TODO: BEGIN ATOMIC (not -> opt_not) */
           {
@@ -3412,11 +3447,10 @@ sp_unlabeled_block_not_atomic:
               MYSQL_YYABORT;
             Lex->sp_block_init(thd);
           }
-          sp_decls
           sp_proc_stmts
           END
           {
-            if (Lex->sp_block_finalize(thd, $5))
+            if (Lex->sp_block_finalize(thd))
               MYSQL_YYABORT;
           }
         ;
@@ -15982,7 +16016,7 @@ sf_tail:
             lex->sphead->set_body_start(thd, lip->get_cpp_tok_start());
           }
           sp_tail_is /* $15 */
-          sp_proc_stmt_in_returns_clause /* $16 */
+          sp_body /* $16 */
           {
             LEX *lex= thd->lex;
             sp_head *sp= lex->sphead;
@@ -16031,7 +16065,7 @@ sp_tail:
             Lex->sphead->set_body_start(thd, YYLIP->get_cpp_tok_start());
           }
           sp_tail_is
-          sp_proc_stmt
+          sp_body
           {
             LEX *lex= Lex;
             sp_head *sp= lex->sphead;
diff --git a/sql/structs.h b/sql/structs.h
index d32cc5de70b..24a96276c4e 100644
--- a/sql/structs.h
+++ b/sql/structs.h
@@ -649,4 +649,10 @@ public:
 };
 
 
+class Lex_spblock: public Lex_spblock_st
+{
+public:
+  Lex_spblock() { init(); }
+};
+
 #endif /* STRUCTS_INCLUDED */