diff --git a/test/val/bug897.c b/test/val/bug897.c
new file mode 100644
index 000000000..eaf751441
--- /dev/null
+++ b/test/val/bug897.c
@@ -0,0 +1,52 @@
+
+/* issue #897 - __asm__()-referenced code-labels are generated for only branches and jumps */
+
+#include <stdlib.h>
+#include <stdio.h>
+
+static unsigned char *srcptr, *dstptr;
+
+#define COPY_LEN    16
+
+void test(void)
+{
+    asm("lda %v", srcptr);
+    asm("sta %g+1", s2b_copy_from);
+    asm("lda %v+1", srcptr);
+    asm("sta %g+2", s2b_copy_from);
+
+    asm("lda %v", dstptr);
+    asm("sta %g+1", s2b_copy_to);
+    asm("lda %v+1", dstptr);
+    asm("sta %g+2", s2b_copy_to);
+
+    asm("ldy #%b", COPY_LEN-1);
+s2b_copy_from:
+    asm("lda $FFFF,y");
+s2b_copy_to:
+    asm("sta $FFFF,y");
+    asm("dey");
+    asm("bpl %g", s2b_copy_from);
+}
+
+unsigned char src[16] = "0123456789abcdef";
+unsigned char dest[16];
+
+int failures = 0;
+
+unsigned char i;
+
+int main(void)
+{
+    srcptr = src;
+    dstptr = dest;
+    test();
+    for (i = 0; i < COPY_LEN; i++) {
+        printf("%d %02x %02x\n", i, src[i], dest[i]);
+        if (src[i] != dest[i]) {
+            failures++;
+        }
+    }
+    printf("failures: %d\n", failures);
+    return failures;
+}