diff --git a/redo/builder.py b/redo/builder.py
index b226110..0fb24a8 100644
--- a/redo/builder.py
+++ b/redo/builder.py
@@ -419,7 +419,8 @@ class _BuildJob(object):
                 sf.csum = None
                 sf.update_stamp()
                 sf.set_changed()
-        else:
+        # rv might have changed up above
+        if rv:
             helpers.unlink(self.tmpname)
             sf = self.sf
             sf.set_failed()
diff --git a/t/122-defaults-parent/.gitignore b/t/122-defaults-parent/.gitignore
new file mode 100644
index 0000000..50e1322
--- /dev/null
+++ b/t/122-defaults-parent/.gitignore
@@ -0,0 +1 @@
+/*.log
diff --git a/t/122-defaults-parent/all.do b/t/122-defaults-parent/all.do
new file mode 100644
index 0000000..838ea31
--- /dev/null
+++ b/t/122-defaults-parent/all.do
@@ -0,0 +1,22 @@
+rm -f x/shouldfail
+
+log=$PWD/$1.log
+rm -f "$log"
+
+expect_fail() {
+	local rv=$1
+	shift
+	if ("$@") >>$log 2>&1; then
+		cat "$log" >&2
+		echo "unexpected success:" "$@" >&2
+		return $rv
+	else
+		return 0
+	fi
+}
+
+cd inner
+expect_fail 11 redo ../x/shouldfail   # should fail
+expect_fail 12 redo-ifchange ../x/shouldfail  # should fail again
+
+exit 0
diff --git a/t/122-defaults-parent/clean.do b/t/122-defaults-parent/clean.do
new file mode 100644
index 0000000..b877c59
--- /dev/null
+++ b/t/122-defaults-parent/clean.do
@@ -0,0 +1,2 @@
+rm -f *~ .*~ */*~ */.*~ *.tmp */*.tmp x/shouldfail *.log */*.log
+
diff --git a/t/122-defaults-parent/inner/default.do b/t/122-defaults-parent/inner/default.do
new file mode 100644
index 0000000..f8283d1
--- /dev/null
+++ b/t/122-defaults-parent/inner/default.do
@@ -0,0 +1,2 @@
+echo "inner/default.do: PWD=$PWD '$1' '$2' '$3'" >&2
+echo SUSPICIOUS
diff --git a/t/122-defaults-parent/x/file b/t/122-defaults-parent/x/file
new file mode 100644
index 0000000..e69de29