Index: src/build.c
==================================================================
--- src/build.c
+++ src/build.c
@@ -248,30 +248,30 @@
 ** care if you decide to try to use this routine for some other purposes.
 */
 void sqlite3NestedParse(Parse *pParse, const char *zFormat, ...){
   va_list ap;
   char *zSql;
-  char *zErrMsg = 0;
   sqlite3 *db = pParse->db;
-  char saveBuf[PARSE_TAIL_SZ];
 
   if( pParse->nErr ) return;
   assert( pParse->nested<10 );  /* Nesting should only be of limited depth */
   va_start(ap, zFormat);
   zSql = sqlite3VMPrintf(db, zFormat, ap);
   va_end(ap);
-  if( zSql==0 ){
-    return;   /* A malloc must have failed */
-  }
-  pParse->nested++;
-  memcpy(saveBuf, PARSE_TAIL(pParse), PARSE_TAIL_SZ);
-  memset(PARSE_TAIL(pParse), 0, PARSE_TAIL_SZ);
-  sqlite3RunParser(pParse, zSql, &zErrMsg);
-  sqlite3DbFree(db, zErrMsg);
-  sqlite3DbFree(db, zSql);
-  memcpy(PARSE_TAIL(pParse), saveBuf, PARSE_TAIL_SZ);
-  pParse->nested--;
+  assert( zSql!=0 || db->mallocFailed );
+  if( db->mallocFailed==0 ){
+    char *zErrMsg = 0;
+    char saveBuf[PARSE_TAIL_SZ];
+    pParse->nested++;
+    memcpy(saveBuf, PARSE_TAIL(pParse), PARSE_TAIL_SZ);
+    memset(PARSE_TAIL(pParse), 0, PARSE_TAIL_SZ);
+    sqlite3RunParser(pParse, zSql, &zErrMsg);
+    sqlite3DbFree(db, zErrMsg);
+    memcpy(PARSE_TAIL(pParse), saveBuf, PARSE_TAIL_SZ);
+    pParse->nested--;
+  }
+  sqlite3DbFree(db, zSql);
 }
 
 #if SQLITE_USER_AUTHENTICATION
 /*
 ** Return TRUE if zTable is the name of the system table that stores the

Index: test/indexfault.test
==================================================================
--- test/indexfault.test
+++ test/indexfault.test
@@ -334,9 +334,19 @@
   sqlite3_soft_heap_limit 0
 } -body {
   execsql { CREATE INDEX i1 ON t1(x) }
   faultsim_test_result {0 {}} 
 }
+
+do_faultsim_test 5 -prep {
+  reset_db
+} -body {
+  execsql { 
+ CREATE TABLE reallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallyreallylongname(a PRIMARY KEY) WITHOUT ROWID;
+  }
+} -test {
+  faultsim_test_result {0 {}} 
+}
 
 uninstall_custom_faultsim
 
 finish_test