diff --git a/mysql-test/r/init_file.result b/mysql-test/r/init_file.result
index 1569f2c3d68..6394014f3e5 100644
--- a/mysql-test/r/init_file.result
+++ b/mysql-test/r/init_file.result
@@ -1,3 +1,10 @@
+INSERT INTO init_file.startup VALUES ( NOW() );
+SELECT * INTO @X FROM init_file.startup limit 0,1;
+SELECT * INTO @Y FROM init_file.startup limit 1,1;
+SELECT YEAR(@X)-YEAR(@Y);
+YEAR(@X)-YEAR(@Y)
+0
+DROP DATABASE init_file;
 ok
 end of 4.1 tests
 select * from t1;
diff --git a/mysql-test/std_data/init_file.dat b/mysql-test/std_data/init_file.dat
index 814e968eb31..cb8e0778438 100644
--- a/mysql-test/std_data/init_file.dat
+++ b/mysql-test/std_data/init_file.dat
@@ -27,3 +27,12 @@ insert into t2 values (11), (13);
 drop procedure p1;
 drop function f1;
 drop view v1;
+
+#
+# Bug#23240 --init-file statements with NOW() reports '1970-01-01 11:00:00'as the date time
+#
+CREATE DATABASE IF NOT EXISTS init_file;
+CREATE TABLE IF NOT EXISTS init_file.startup ( startdate DATETIME );
+INSERT INTO init_file.startup VALUES ( NOW() );
+
+
diff --git a/mysql-test/t/init_file.test b/mysql-test/t/init_file.test
index 31a6ef5a541..7c580afadda 100644
--- a/mysql-test/t/init_file.test
+++ b/mysql-test/t/init_file.test
@@ -6,6 +6,15 @@
 # mysql-test/t/init_file-master.opt for the actual test
 #
 
+#
+# Bug#23240 --init-file statements with NOW() reports '1970-01-01 11:00:00'as the date time
+#
+INSERT INTO init_file.startup VALUES ( NOW() );
+SELECT * INTO @X FROM init_file.startup limit 0,1;
+SELECT * INTO @Y FROM init_file.startup limit 1,1;
+SELECT YEAR(@X)-YEAR(@Y);
+DROP DATABASE init_file;
+
 --echo ok
 --echo end of 4.1 tests
 #
diff --git a/sql/sql_class.cc b/sql/sql_class.cc
index cbe033f99b8..f3a135e999c 100644
--- a/sql/sql_class.cc
+++ b/sql/sql_class.cc
@@ -355,6 +355,7 @@ void THD::init(void)
 
 void THD::init_for_queries()
 {
+  set_time(); 
   ha_enable_transaction(this,TRUE);
 
   reset_root_defaults(mem_root, variables.query_alloc_block_size,
diff --git a/sql/sql_parse.cc b/sql/sql_parse.cc
index 580be4d5c1f..3973bbcbe69 100644
--- a/sql/sql_parse.cc
+++ b/sql/sql_parse.cc
@@ -1205,7 +1205,6 @@ pthread_handler_t handle_one_connection(void *arg)
     thd->version= refresh_version;
     thd->proc_info= 0;
     thd->command= COM_SLEEP;
-    thd->set_time();
     thd->init_for_queries();
 
     if (sys_init_connect.value_length && !(sctx->master_access & SUPER_ACL))
@@ -1221,7 +1220,6 @@ pthread_handler_t handle_one_connection(void *arg)
         sql_print_warning("%s", net->last_error);
       }
       thd->proc_info=0;
-      thd->set_time();
       thd->init_for_queries();
     }
 
@@ -1355,6 +1353,7 @@ pthread_handler_t handle_bootstrap(void *arg)
       mode we have only one thread.
     */
     thd->query_id=next_query_id();
+    thd->set_time();
     mysql_parse(thd,thd->query,length);
     close_thread_tables(thd);			// Free tables
     if (thd->is_fatal_error)