diff --git a/mysql-test/r/rpl_insert_id.result b/mysql-test/r/rpl_insert_id.result
index d0360c8b9a3..d133a2ae8ed 100644
--- a/mysql-test/r/rpl_insert_id.result
+++ b/mysql-test/r/rpl_insert_id.result
@@ -272,6 +272,7 @@ DROP TABLE t1, t2;
 DROP PROCEDURE IF EXISTS p1;
 DROP FUNCTION IF EXISTS f1;
 DROP FUNCTION IF EXISTS f2;
+DROP FUNCTION IF EXISTS f3;
 DROP TABLE IF EXISTS t1, t2;
 CREATE TABLE t1 (
 i INT NOT NULL AUTO_INCREMENT PRIMARY KEY,
@@ -295,6 +296,11 @@ RETURN 0;
 END |
 CREATE FUNCTION f2() RETURNS INT NOT DETERMINISTIC
 RETURN LAST_INSERT_ID() |
+CREATE FUNCTION f3() RETURNS INT MODIFIES SQL DATA
+BEGIN
+INSERT INTO t2 (i) VALUES (LAST_INSERT_ID());
+RETURN 0;
+END |
 INSERT INTO t1 VALUES (NULL, -1);
 CALL p1();
 SELECT f1();
@@ -307,6 +313,11 @@ INSERT INTO t1 VALUES (NULL, LAST_INSERT_ID()), (NULL, LAST_INSERT_ID(5)),
 (NULL, @@LAST_INSERT_ID);
 INSERT INTO t1 VALUES (NULL, 0), (NULL, LAST_INSERT_ID());
 UPDATE t1 SET j= -1 WHERE i IS NULL;
+INSERT INTO t1 (i) VALUES (NULL);
+INSERT INTO t1 (i) VALUES (NULL);
+SELECT f3();
+f3()
+0
 SELECT * FROM t1;
 i	j
 1	-1
@@ -327,12 +338,15 @@ i	j
 16	13
 17	-1
 18	14
+19	0
+20	0
 SELECT * FROM t2;
 i
 2
 3
 5
 6
+19
 SELECT * FROM t1;
 i	j
 1	-1
@@ -353,15 +367,19 @@ i	j
 16	13
 17	-1
 18	14
+19	0
+20	0
 SELECT * FROM t2;
 i
 2
 3
 5
 6
+19
 DROP PROCEDURE p1;
 DROP FUNCTION f1;
 DROP FUNCTION f2;
+DROP FUNCTION f3;
 DROP TABLE t1, t2;
 
 # End of 5.0 tests
diff --git a/mysql-test/t/rpl_insert_id.test b/mysql-test/t/rpl_insert_id.test
index 126aad68df4..331a913256c 100644
--- a/mysql-test/t/rpl_insert_id.test
+++ b/mysql-test/t/rpl_insert_id.test
@@ -299,6 +299,7 @@ DROP TABLE t1, t2;
 DROP PROCEDURE IF EXISTS p1;
 DROP FUNCTION IF EXISTS f1;
 DROP FUNCTION IF EXISTS f2;
+DROP FUNCTION IF EXISTS f3;
 DROP TABLE IF EXISTS t1, t2;
 --enable_warnings
 
@@ -328,6 +329,12 @@ END |
 
 CREATE FUNCTION f2() RETURNS INT NOT DETERMINISTIC
   RETURN LAST_INSERT_ID() |
+
+CREATE FUNCTION f3() RETURNS INT MODIFIES SQL DATA
+BEGIN
+  INSERT INTO t2 (i) VALUES (LAST_INSERT_ID());
+  RETURN 0;
+END |
 delimiter ;|
 
 INSERT INTO t1 VALUES (NULL, -1);
@@ -342,6 +349,15 @@ INSERT INTO t1 VALUES (NULL, LAST_INSERT_ID()), (NULL, LAST_INSERT_ID(5)),
 INSERT INTO t1 VALUES (NULL, 0), (NULL, LAST_INSERT_ID());
 UPDATE t1 SET j= -1 WHERE i IS NULL;
 
+# Test statement-based replication of function calls.
+INSERT INTO t1 (i) VALUES (NULL);
+
+connection master1;
+INSERT INTO t1 (i) VALUES (NULL);
+
+connection master;
+SELECT f3();
+
 SELECT * FROM t1;
 SELECT * FROM t2;
 
@@ -353,6 +369,7 @@ connection master;
 DROP PROCEDURE p1;
 DROP FUNCTION f1;
 DROP FUNCTION f2;
+DROP FUNCTION f3;
 DROP TABLE t1, t2;
 
 
diff --git a/sql/item_func.cc b/sql/item_func.cc
index e395a7a3af5..a294bbd7a71 100644
--- a/sql/item_func.cc
+++ b/sql/item_func.cc
@@ -3362,6 +3362,7 @@ bool Item_func_last_insert_id::fix_fields(THD *thd, Item **ref)
         id of the previous statement in THD::current_insert_id.
       */
       thd->last_insert_id_used= TRUE;
+      thd->last_insert_id_used_bin_log= TRUE;
       thd->current_insert_id= thd->last_insert_id;
     }
     null_value= FALSE;
diff --git a/sql/log.cc b/sql/log.cc
index 1cd01865f9f..98829220f3d 100644
--- a/sql/log.cc
+++ b/sql/log.cc
@@ -1702,7 +1702,7 @@ bool MYSQL_LOG::write(Log_event *event_info)
 
     if (thd)
     {
-      if (thd->last_insert_id_used)
+      if (thd->last_insert_id_used_bin_log)
       {
 	Intvar_log_event e(thd,(uchar) LAST_INSERT_ID_EVENT,
 			   thd->current_insert_id);
@@ -1994,7 +1994,7 @@ bool MYSQL_LOG::write(THD *thd,const char *query, uint query_length,
         tmp_errno=errno;
       strmov(db,thd->db);
     }
-    if (thd->last_insert_id_used)
+    if (thd->last_insert_id_used_bin_log)
     {
       end=strmov(end,",last_insert_id=");
       end=longlong10_to_str((longlong) thd->current_insert_id,end,-10);
diff --git a/sql/set_var.cc b/sql/set_var.cc
index d00857a2bc1..783d20bfda1 100644
--- a/sql/set_var.cc
+++ b/sql/set_var.cc
@@ -2579,6 +2579,7 @@ byte *sys_var_last_insert_id::value_ptr(THD *thd, enum_var_type type,
       of the previous statement in THD::current_insert_id.
     */
     thd->last_insert_id_used= TRUE;
+    thd->last_insert_id_used_bin_log= TRUE;
     thd->current_insert_id= thd->last_insert_id;
   }
   return (byte*) &thd->current_insert_id;
diff --git a/sql/sql_class.cc b/sql/sql_class.cc
index 4d47ec338c0..645ac6e28f3 100644
--- a/sql/sql_class.cc
+++ b/sql/sql_class.cc
@@ -179,9 +179,9 @@ THD::THD()
    lock_id(&main_lock_id),
    user_time(0), in_sub_stmt(0), global_read_lock(0), is_fatal_error(0),
    rand_used(0), time_zone_used(0),
-   last_insert_id_used(0), insert_id_used(0), clear_next_insert_id(0),
-   in_lock_tables(0), bootstrap(0), derived_tables_processing(FALSE),
-   spcont(NULL)
+   last_insert_id_used(0), last_insert_id_used_bin_log(0), insert_id_used(0),
+   clear_next_insert_id(0), in_lock_tables(0), bootstrap(0),
+   derived_tables_processing(FALSE), spcont(NULL)
 {
   stmt_arena= this;
   thread_stack= 0;
@@ -560,7 +560,7 @@ bool THD::store_globals()
     THD::cleanup_after_query()
 
   DESCRIPTION
-    This function is used to reset thread data to it's default state.
+    This function is used to reset thread data to its default state.
 
   NOTE
     This function is not suitable for setting thread data to some
@@ -568,6 +568,7 @@ bool THD::store_globals()
     different master threads may overwrite data of each other on
     slave.
 */
+
 void THD::cleanup_after_query()
 {
   last_insert_id_used= FALSE;
@@ -582,6 +583,7 @@ void THD::cleanup_after_query()
   where= THD::DEFAULT_WHERE;
 }
 
+
 /*
   Convert a string to another character set
 
diff --git a/sql/sql_class.h b/sql/sql_class.h
index ccc7a661446..d30797a605f 100644
--- a/sql/sql_class.h
+++ b/sql/sql_class.h
@@ -1340,11 +1340,20 @@ public:
 
   /*
     last_insert_id_used is set when current statement calls
-    LAST_INSERT_ID() or reads @@LAST_INSERT_ID, so that binary log
-    LAST_INSERT_ID_EVENT be generated.
+    LAST_INSERT_ID() or reads @@LAST_INSERT_ID.
   */
   bool	     last_insert_id_used;
 
+  /*
+    last_insert_id_used is set when current statement or any stored
+    function called from this statement calls LAST_INSERT_ID() or
+    reads @@LAST_INSERT_ID, so that binary log LAST_INSERT_ID_EVENT be
+    generated.  Required for statement-based binary log for issuing
+    "SET LAST_INSERT_ID= #" before "SELECT func()", if func() reads
+    LAST_INSERT_ID.
+  */
+  bool	     last_insert_id_used_bin_log;
+
   /*
     insert_id_used is set when current statement updates
     THD::last_insert_id, so that binary log INSERT_ID_EVENT be
diff --git a/sql/sql_parse.cc b/sql/sql_parse.cc
index 1b69e266442..c62c286cfdb 100644
--- a/sql/sql_parse.cc
+++ b/sql/sql_parse.cc
@@ -5651,6 +5651,7 @@ void mysql_reset_thd_for_next_command(THD *thd)
   thd->free_list= 0;
   thd->select_number= 1;
   thd->query_start_used= thd->insert_id_used=0;
+  thd->last_insert_id_used_bin_log= FALSE;
   thd->is_fatal_error= thd->time_zone_used= 0;
   thd->server_status&= ~ (SERVER_MORE_RESULTS_EXISTS | 
                           SERVER_QUERY_NO_INDEX_USED |
diff --git a/sql/sql_select.cc b/sql/sql_select.cc
index 87cbdef0522..e0deeb7d65e 100644
--- a/sql/sql_select.cc
+++ b/sql/sql_select.cc
@@ -8154,11 +8154,11 @@ remove_eq_conds(THD *thd, COND *cond, Item::cond_result *cond_value)
 						     21))))
 	{
           /*
-            Set THD::last_insert_id_used manually, as this statement
-            uses LAST_INSERT_ID() in a sense, and should issue
-            LAST_INSERT_ID_EVENT.
+            Set THD::last_insert_id_used_bin_log manually, as this
+            statement uses LAST_INSERT_ID() in a sense, and should
+            issue LAST_INSERT_ID_EVENT.
           */
-          thd->last_insert_id_used= TRUE;
+          thd->last_insert_id_used_bin_log= TRUE;
 
 	  cond=new_cond;
           /*