diff --git a/py/compile.c b/py/compile.c
index bb7c1117f..4f91ca49b 100644
--- a/py/compile.c
+++ b/py/compile.c
@@ -1768,18 +1768,21 @@ STATIC void compile_await_object_method(compiler_t *comp, qstr method) {
 }
 
 STATIC void compile_async_for_stmt(compiler_t *comp, mp_parse_node_struct_t *pns) {
-    // comp->break_label |= MP_EMIT_BREAK_FROM_FOR;
-
-    qstr context = MP_PARSE_NODE_LEAF_ARG(pns->nodes[1]);
+    // Allocate labels.
     uint while_else_label = comp_next_label(comp);
     uint try_exception_label = comp_next_label(comp);
     uint try_else_label = comp_next_label(comp);
     uint try_finally_label = comp_next_label(comp);
 
+    // Stack: (...)
+
+    // Compile the iterator expression and load and call its __aiter__ method.
     compile_node(comp, pns->nodes[1]); // iterator
+    // Stack: (..., iterator)
     EMIT_ARG(load_method, MP_QSTR___aiter__, false);
+    // Stack: (..., iterator, __aiter__)
     EMIT_ARG(call_method, 0, 0, 0);
-    compile_store_id(comp, context);
+    // Stack: (..., iterable)
 
     START_BREAK_CONTINUE_BLOCK
 
@@ -1787,9 +1790,15 @@ STATIC void compile_async_for_stmt(compiler_t *comp, mp_parse_node_struct_t *pns
 
     compile_increase_except_level(comp, try_exception_label, MP_EMIT_SETUP_BLOCK_EXCEPT);
 
-    compile_load_id(comp, context);
+    EMIT(dup_top);
+    // Stack: (..., iterable, iterable)
+
+    // Compile: yield from iterable.__anext__()
     compile_await_object_method(comp, MP_QSTR___anext__);
+    // Stack: (..., iterable, yielded_value)
+
     c_assign(comp, pns->nodes[0], ASSIGN_STORE); // variable
+    // Stack: (..., iterable)
     EMIT_ARG(pop_except_jump, try_else_label, false);
 
     EMIT_ARG(label_assign, try_exception_label);
@@ -1806,6 +1815,8 @@ STATIC void compile_async_for_stmt(compiler_t *comp, mp_parse_node_struct_t *pns
     compile_decrease_except_level(comp);
     EMIT(end_except_handler);
 
+    // Stack: (..., iterable)
+
     EMIT_ARG(label_assign, try_else_label);
     compile_node(comp, pns->nodes[2]); // body
 
@@ -1817,6 +1828,10 @@ STATIC void compile_async_for_stmt(compiler_t *comp, mp_parse_node_struct_t *pns
     compile_node(comp, pns->nodes[3]); // else
 
     EMIT_ARG(label_assign, break_label);
+    // Stack: (..., iterable)
+
+    EMIT(pop_top);
+    // Stack: (...)
 }
 
 STATIC void compile_async_with_stmt_helper(compiler_t *comp, size_t n, mp_parse_node_t *nodes, mp_parse_node_t body) {
diff --git a/tests/basics/async_for.py b/tests/basics/async_for.py
index 5fd054082..f54f70238 100644
--- a/tests/basics/async_for.py
+++ b/tests/basics/async_for.py
@@ -1,29 +1,75 @@
 # test basic async for execution
 # example taken from PEP0492
 
+
 class AsyncIteratorWrapper:
     def __init__(self, obj):
-        print('init')
-        self._it = iter(obj)
+        print("init")
+        self._obj = obj
+
+    def __repr__(self):
+        return "AsyncIteratorWrapper-" + self._obj
 
     def __aiter__(self):
-        print('aiter')
-        return self
+        print("aiter")
+        return AsyncIteratorWrapperIterator(self._obj)
+
+
+class AsyncIteratorWrapperIterator:
+    def __init__(self, obj):
+        print("init")
+        self._it = iter(obj)
 
     async def __anext__(self):
-        print('anext')
+        print("anext")
         try:
             value = next(self._it)
         except StopIteration:
             raise StopAsyncIteration
         return value
 
-async def coro():
-    async for letter in AsyncIteratorWrapper('abc'):
+
+def run_coro(c):
+    print("== start ==")
+    try:
+        c.send(None)
+    except StopIteration:
+        print("== finish ==")
+
+
+async def coro0():
+    async for letter in AsyncIteratorWrapper("abc"):
         print(letter)
 
-o = coro()
-try:
-    o.send(None)
-except StopIteration:
-    print('finished')
+
+run_coro(coro0())
+
+
+async def coro1():
+    a = AsyncIteratorWrapper("def")
+    async for letter in a:
+        print(letter)
+    print(a)
+
+
+run_coro(coro1())
+
+a_global = AsyncIteratorWrapper("ghi")
+
+
+async def coro2():
+    async for letter in a_global:
+        print(letter)
+    print(a_global)
+
+
+run_coro(coro2())
+
+
+async def coro3(a):
+    async for letter in a:
+        print(letter)
+    print(a)
+
+
+run_coro(coro3(AsyncIteratorWrapper("jkl")))
diff --git a/tests/basics/async_for.py.exp b/tests/basics/async_for.py.exp
index 1f728a66c..6f59979c0 100644
--- a/tests/basics/async_for.py.exp
+++ b/tests/basics/async_for.py.exp
@@ -1,5 +1,7 @@
+== start ==
 init
 aiter
+init
 anext
 a
 anext
@@ -7,4 +9,43 @@ b
 anext
 c
 anext
-finished
+== finish ==
+== start ==
+init
+aiter
+init
+anext
+d
+anext
+e
+anext
+f
+anext
+AsyncIteratorWrapper-def
+== finish ==
+init
+== start ==
+aiter
+init
+anext
+g
+anext
+h
+anext
+i
+anext
+AsyncIteratorWrapper-ghi
+== finish ==
+init
+== start ==
+aiter
+init
+anext
+j
+anext
+k
+anext
+l
+anext
+AsyncIteratorWrapper-jkl
+== finish ==