diff --git a/src/pl/plpgsql/src/Makefile b/src/pl/plpgsql/src/Makefile
index dfb815212f..63cb96fae3 100644
--- a/src/pl/plpgsql/src/Makefile
+++ b/src/pl/plpgsql/src/Makefile
@@ -32,8 +32,9 @@ DATA = plpgsql.control plpgsql--1.0.sql
 
 REGRESS_OPTS = --dbname=$(PL_TESTDB)
 
-REGRESS = plpgsql_array plpgsql_call plpgsql_control plpgsql_copy plpgsql_domain \
-	plpgsql_record plpgsql_cache plpgsql_simple plpgsql_transaction \
+REGRESS = plpgsql_array plpgsql_cache plpgsql_call plpgsql_control \
+	plpgsql_copy plpgsql_domain plpgsql_misc \
+	plpgsql_record plpgsql_simple plpgsql_transaction \
 	plpgsql_trap plpgsql_trigger plpgsql_varprops
 
 # where to find gen_keywordlist.pl and subsidiary files
diff --git a/src/pl/plpgsql/src/expected/plpgsql_misc.out b/src/pl/plpgsql/src/expected/plpgsql_misc.out
new file mode 100644
index 0000000000..faddba2511
--- /dev/null
+++ b/src/pl/plpgsql/src/expected/plpgsql_misc.out
@@ -0,0 +1,31 @@
+--
+-- Miscellaneous topics
+--
+-- Verify that we can parse new-style CREATE FUNCTION/PROCEDURE
+do
+$$
+  declare procedure int;  -- check we still recognize non-keywords as vars
+  begin
+  create function test1() returns int
+    begin atomic
+      select 2 + 2;
+    end;
+  create or replace procedure test2(x int)
+    begin atomic
+      select x + 2;
+    end;
+  end
+$$;
+\sf test1
+CREATE OR REPLACE FUNCTION public.test1()
+ RETURNS integer
+ LANGUAGE sql
+BEGIN ATOMIC
+ SELECT (2 + 2);
+END
+\sf test2
+CREATE OR REPLACE PROCEDURE public.test2(IN x integer)
+ LANGUAGE sql
+BEGIN ATOMIC
+ SELECT (x + 2);
+END
diff --git a/src/pl/plpgsql/src/meson.build b/src/pl/plpgsql/src/meson.build
index be213c51ee..3dd734b776 100644
--- a/src/pl/plpgsql/src/meson.build
+++ b/src/pl/plpgsql/src/meson.build
@@ -76,12 +76,13 @@ tests += {
   'regress': {
     'sql': [
       'plpgsql_array',
+      'plpgsql_cache',
       'plpgsql_call',
       'plpgsql_control',
       'plpgsql_copy',
       'plpgsql_domain',
+      'plpgsql_misc',
       'plpgsql_record',
-      'plpgsql_cache',
       'plpgsql_simple',
       'plpgsql_transaction',
       'plpgsql_trap',
diff --git a/src/pl/plpgsql/src/pl_gram.y b/src/pl/plpgsql/src/pl_gram.y
index 86680d26ce..f4ccb22e35 100644
--- a/src/pl/plpgsql/src/pl_gram.y
+++ b/src/pl/plpgsql/src/pl_gram.y
@@ -76,7 +76,8 @@ static	PLpgSQL_expr	*read_sql_expression2(int until, int until2,
 											  int *endtoken);
 static	PLpgSQL_expr	*read_sql_stmt(void);
 static	PLpgSQL_type	*read_datatype(int tok);
-static	PLpgSQL_stmt	*make_execsql_stmt(int firsttoken, int location);
+static	PLpgSQL_stmt	*make_execsql_stmt(int firsttoken, int location,
+										   PLword *word);
 static	PLpgSQL_stmt_fetch *read_fetch_direction(void);
 static	void			 complete_direction(PLpgSQL_stmt_fetch *fetch,
 											bool *check_FROM);
@@ -1972,15 +1973,15 @@ loop_body		: proc_sect K_END K_LOOP opt_label ';'
  */
 stmt_execsql	: K_IMPORT
 					{
-						$$ = make_execsql_stmt(K_IMPORT, @1);
+						$$ = make_execsql_stmt(K_IMPORT, @1, NULL);
 					}
 				| K_INSERT
 					{
-						$$ = make_execsql_stmt(K_INSERT, @1);
+						$$ = make_execsql_stmt(K_INSERT, @1, NULL);
 					}
 				| K_MERGE
 					{
-						$$ = make_execsql_stmt(K_MERGE, @1);
+						$$ = make_execsql_stmt(K_MERGE, @1, NULL);
 					}
 				| T_WORD
 					{
@@ -1991,7 +1992,7 @@ stmt_execsql	: K_IMPORT
 						if (tok == '=' || tok == COLON_EQUALS ||
 							tok == '[' || tok == '.')
 							word_is_not_variable(&($1), @1);
-						$$ = make_execsql_stmt(T_WORD, @1);
+						$$ = make_execsql_stmt(T_WORD, @1, &($1));
 					}
 				| T_CWORD
 					{
@@ -2002,7 +2003,7 @@ stmt_execsql	: K_IMPORT
 						if (tok == '=' || tok == COLON_EQUALS ||
 							tok == '[' || tok == '.')
 							cword_is_not_variable(&($1), @1);
-						$$ = make_execsql_stmt(T_CWORD, @1);
+						$$ = make_execsql_stmt(T_CWORD, @1, NULL);
 					}
 				;
 
@@ -2947,8 +2948,13 @@ read_datatype(int tok)
 	return result;
 }
 
+/*
+ * Read a generic SQL statement.  We have already read its first token;
+ * firsttoken is that token's code and location its starting location.
+ * If firsttoken == T_WORD, pass its yylval value as "word", else pass NULL.
+ */
 static PLpgSQL_stmt *
-make_execsql_stmt(int firsttoken, int location)
+make_execsql_stmt(int firsttoken, int location, PLword *word)
 {
 	StringInfoData ds;
 	IdentifierLookup save_IdentifierLookup;
@@ -2961,9 +2967,16 @@ make_execsql_stmt(int firsttoken, int location)
 	bool		have_strict = false;
 	int			into_start_loc = -1;
 	int			into_end_loc = -1;
+	int			paren_depth = 0;
+	int			begin_depth = 0;
+	bool		in_routine_definition = false;
+	int			token_count = 0;
+	char		tokens[4];		/* records the first few tokens */
 
 	initStringInfo(&ds);
 
+	memset(tokens, 0, sizeof(tokens));
+
 	/* special lookup mode for identifiers within the SQL text */
 	save_IdentifierLookup = plpgsql_IdentifierLookup;
 	plpgsql_IdentifierLookup = IDENTIFIER_LOOKUP_EXPR;
@@ -2972,6 +2985,12 @@ make_execsql_stmt(int firsttoken, int location)
 	 * Scan to the end of the SQL command.  Identify any INTO-variables
 	 * clause lurking within it, and parse that via read_into_target().
 	 *
+	 * The end of the statement is defined by a semicolon ... except that
+	 * semicolons within parentheses or BEGIN/END blocks don't terminate a
+	 * statement.  We follow psql's lead in not recognizing BEGIN/END except
+	 * after CREATE [OR REPLACE] {FUNCTION|PROCEDURE}.  END can also appear
+	 * within a CASE construct, so we treat CASE/END like BEGIN/END.
+	 *
 	 * Because INTO is sometimes used in the main SQL grammar, we have to be
 	 * careful not to take any such usage of INTO as a PL/pgSQL INTO clause.
 	 * There are currently three such cases:
@@ -2997,13 +3016,50 @@ make_execsql_stmt(int firsttoken, int location)
 	 * break this logic again ... beware!
 	 */
 	tok = firsttoken;
+	if (tok == T_WORD && strcmp(word->ident, "create") == 0)
+		tokens[token_count] = 'c';
+	token_count++;
+
 	for (;;)
 	{
 		prev_tok = tok;
 		tok = yylex();
 		if (have_into && into_end_loc < 0)
 			into_end_loc = yylloc;		/* token after the INTO part */
-		if (tok == ';')
+		/* Detect CREATE [OR REPLACE] {FUNCTION|PROCEDURE} */
+		if (tokens[0] == 'c' && token_count < sizeof(tokens))
+		{
+			if (tok == K_OR)
+				tokens[token_count] = 'o';
+			else if (tok == T_WORD &&
+					 strcmp(yylval.word.ident, "replace") == 0)
+				tokens[token_count] = 'r';
+			else if (tok == T_WORD &&
+					 strcmp(yylval.word.ident, "function") == 0)
+				tokens[token_count] = 'f';
+			else if (tok == T_WORD &&
+					 strcmp(yylval.word.ident, "procedure") == 0)
+				tokens[token_count] = 'f';	/* treat same as "function" */
+			if (tokens[1] == 'f' ||
+				(tokens[1] == 'o' && tokens[2] == 'r' && tokens[3] == 'f'))
+				in_routine_definition = true;
+			token_count++;
+		}
+		/* Track paren nesting (needed for CREATE RULE syntax) */
+		if (tok == '(')
+			paren_depth++;
+		else if (tok == ')' && paren_depth > 0)
+			paren_depth--;
+		/* We need track BEGIN/END nesting only in a routine definition */
+		if (in_routine_definition)
+		{
+			if (tok == K_BEGIN || tok == K_CASE)
+				begin_depth++;
+			else if (tok == K_END && begin_depth > 0)
+				begin_depth--;
+		}
+		/* Command-ending semicolon? */
+		if (tok == ';' && paren_depth == 0 && begin_depth == 0)
 			break;
 		if (tok == 0)
 			yyerror("unexpected end of function definition");
diff --git a/src/pl/plpgsql/src/sql/plpgsql_misc.sql b/src/pl/plpgsql/src/sql/plpgsql_misc.sql
new file mode 100644
index 0000000000..71a8fc232e
--- /dev/null
+++ b/src/pl/plpgsql/src/sql/plpgsql_misc.sql
@@ -0,0 +1,22 @@
+--
+-- Miscellaneous topics
+--
+
+-- Verify that we can parse new-style CREATE FUNCTION/PROCEDURE
+do
+$$
+  declare procedure int;  -- check we still recognize non-keywords as vars
+  begin
+  create function test1() returns int
+    begin atomic
+      select 2 + 2;
+    end;
+  create or replace procedure test2(x int)
+    begin atomic
+      select x + 2;
+    end;
+  end
+$$;
+
+\sf test1
+\sf test2