diff --git a/bin/sh/expand.c b/bin/sh/expand.c
index b3c4962161f7..108a77c4be68 100644
--- a/bin/sh/expand.c
+++ b/bin/sh/expand.c
@@ -761,7 +761,8 @@ evalvar(char *p, int flag)
 			break;
 record:
 		recordregion(startloc, expdest - stackblock(),
-			     varflags & VSQUOTE);
+		    varflags & VSQUOTE || (ifsset() && ifsval()[0] == '\0' &&
+		    (*var == '@' || *var == '*')));
 		break;
 
 	case VSPLUS:
@@ -947,7 +948,9 @@ varvalue(char *name, int quoted, int subtype, int flag)
 			sep = ' ';
 		for (ap = shellparam.p ; (p = *ap++) != NULL ; ) {
 			strtodest(p, flag, subtype, quoted);
-			if (*ap && sep)
+			if (!*ap)
+				break;
+			if (sep || (flag & EXP_FULL && !quoted && **ap != '\0'))
 				STPUTC(sep, expdest);
 		}
 		break;
diff --git a/tools/regression/bin/sh/expansion/ifs4.0 b/tools/regression/bin/sh/expansion/ifs4.0
new file mode 100644
index 000000000000..5b896a25413b
--- /dev/null
+++ b/tools/regression/bin/sh/expansion/ifs4.0
@@ -0,0 +1,39 @@
+# $FreeBSD$
+
+c=: e= s=' '
+failures=''
+ok=''
+
+check_result() {
+	if [ "x$2" = "x$3" ]; then
+		ok=x$ok
+	else
+		failures=x$failures
+		echo "For $1, expected $3 actual $2"
+	fi
+}
+
+IFS=' 	
+'
+set -- a b '' c
+set -- $@
+check_result 'set -- $@' "($#)($1)($2)($3)($4)" "(3)(a)(b)(c)()"
+
+IFS=''
+set -- a b '' c
+set -- $@
+check_result 'set -- $@' "($#)($1)($2)($3)($4)" "(3)(a)(b)(c)()"
+
+set -- a b '' c
+set -- $*
+check_result 'set -- $*' "($#)($1)($2)($3)($4)" "(3)(a)(b)(c)()"
+
+set -- a b '' c
+set -- "$@"
+check_result 'set -- "$@"' "($#)($1)($2)($3)($4)" "(4)(a)(b)()(c)"
+
+set -- a b '' c
+set -- "$*"
+check_result 'set -- "$*"' "($#)($1)($2)($3)($4)" "(1)(abc)()()()"
+
+test "x$failures" = x