diff --git a/CWRU/CWRU.chlog b/CWRU/CWRU.chlog
index 602a1454..fc729338 100644
--- a/CWRU/CWRU.chlog
+++ b/CWRU/CWRU.chlog
@@ -10406,3 +10406,10 @@ doc/{bash.1,bashref.texi}
 	- read: modify description to make it more clear that the line is split
 	  using the same rules as word splitting, and use `delimiters' instead
 	  of `separators', which people read the wrong way
+
+				    2/2
+				    ---
+variables.c
+	- initialize_shell_variables: allow FUNCNEST to set funcnest_max when
+	  imported from the environment.  Inspired by
+	  https://bugzilla.redhat.com/show_bug.cgi?id=1274553
diff --git a/variables.c b/variables.c
index 996ae705..a799f508 100644
--- a/variables.c
+++ b/variables.c
@@ -647,6 +647,9 @@ initialize_shell_variables (env, privmode)
 
   sv_shcompat ("BASH_COMPAT");
 
+  /* Allow FUNCNEST to be inherited from the environment. */
+  sv_funcnest ("FUNCNEST");
+
   /* Initialize the dynamic variables, and seed their values. */
   initialize_dynamic_variables ();
 }