diff --git a/src/cmdexpand.c b/src/cmdexpand.c
index 9bcea7e..8795337 100644
--- a/src/cmdexpand.c
+++ b/src/cmdexpand.c
@@ -378,6 +378,7 @@
 void cmdline_pum_remove(void)
 {
     int save_p_lz = p_lz;
+    int	save_KeyTyped = KeyTyped;
 
     pum_undisplay();
     VIM_CLEAR(compl_match_array);
@@ -385,6 +386,10 @@
     update_screen(0);
     p_lz = save_p_lz;
     redrawcmd();
+
+    // When a function is called (e.g. for 'foldtext') KeyTyped might be reset
+    // as a side effect.
+    KeyTyped = save_KeyTyped;
 }
 
 void cmdline_pum_cleanup(cmdline_info_T *cclp)
diff --git a/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_1.dump b/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_1.dump
new file mode 100644
index 0000000..ad57067
--- /dev/null
+++ b/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_1.dump
@@ -0,0 +1,10 @@
+|f+0#0000e05#a8a8a8255|o@1|-@71
+|s+0#0000000#ffffff0|o|m|e| |m|o|r|e| |t|e|x|t| @60
+|~+0#4040ff13&| @73
+|~| @73
+|~| @73
+| +0#0000001#e0e0e08|s|e|t| @11| +0#4040ff13#ffffff0@58
+| +0#0000001#ffd7ff255|s|e|t|f|i|l|e|t|y|p|e| @3| +0#4040ff13#ffffff0@58
+| +0#0000001#ffd7ff255|s|e|t|g|l|o|b|a|l| @5| +0#4040ff13#ffffff0@58
+| +0#0000001#ffd7ff255|s|e|t|l|o|c|a|l| @6| +0#4040ff13#ffffff0@58
+|:+0#0000000&|s|e|t> @70
diff --git a/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_2.dump b/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_2.dump
new file mode 100644
index 0000000..93270a5
--- /dev/null
+++ b/src/testdir/dumps/Test_wildmenu_with_pum_foldexpr_2.dump
@@ -0,0 +1,10 @@
+>f+0#0000e05#a8a8a8255|o@1|-@71
+|s+0#0000000#ffffff0|o|m|e| |m|o|r|e| |t|e|x|t| @60
+|~+0#4040ff13&| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+| +0#0000000&@56|1|,|1| @10|A|l@1| 
diff --git a/src/testdir/test_cmdline.vim b/src/testdir/test_cmdline.vim
index 8034bdb..8baa1ac 100644
--- a/src/testdir/test_cmdline.vim
+++ b/src/testdir/test_cmdline.vim
@@ -2510,6 +2510,29 @@
   cunmap <F2>
 endfunc
 
+func Test_wildmenu_with_pum_foldexpr()
+  CheckRunVimInTerminal
+
+  let lines =<< trim END
+      call setline(1, ['folded one', 'folded two', 'some more text'])
+      func MyFoldText()
+        return 'foo'
+      endfunc
+      set foldtext=MyFoldText() wildoptions=pum
+      normal ggzfj
+  END
+  call writefile(lines, 'Xpumfold')
+  let buf = RunVimInTerminal('-S Xpumfold', #{rows: 10})
+  call term_sendkeys(buf, ":set\<Tab>")
+  call VerifyScreenDump(buf, 'Test_wildmenu_with_pum_foldexpr_1', {})
+
+  call term_sendkeys(buf, "\<Esc>")
+  call VerifyScreenDump(buf, 'Test_wildmenu_with_pum_foldexpr_2', {})
+
+  call StopVimInTerminal(buf)
+  call delete('Xpumfold')
+endfunc
+
 " Test for opening the cmdline completion popup menu from the terminal window.
 " The popup menu should be positioned correctly over the status line of the
 " bottom-most window.
diff --git a/src/version.c b/src/version.c
index f119983..27de4e5 100644
--- a/src/version.c
+++ b/src/version.c
@@ -747,6 +747,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    4738,
+/**/
     4737,
 /**/
     4736,