diff --git a/src/match.c b/src/match.c
index 40f426e..3b5c18e 100644
--- a/src/match.c
+++ b/src/match.c
@@ -427,7 +427,7 @@
     int		called_emsg_before = called_emsg;
 
     // for :{range}s/pat only highlight inside the range
-    if (lnum < search_first_line || lnum > search_last_line)
+    if ((lnum < search_first_line || lnum > search_last_line) && cur == NULL)
     {
 	shl->lnum = 0;
 	return;
diff --git a/src/testdir/dumps/Test_match_with_incsearch_1.dump b/src/testdir/dumps/Test_match_with_incsearch_1.dump
new file mode 100644
index 0000000..8a9d30c
--- /dev/null
+++ b/src/testdir/dumps/Test_match_with_incsearch_1.dump
@@ -0,0 +1,6 @@
+>0+0&#ffffff0| @73
+|1| @73
+|2+0#ffffff16#e000002| +0#0000000#ffffff0@73
+|3| @73
+|4| @73
+@57|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_match_with_incsearch_2.dump b/src/testdir/dumps/Test_match_with_incsearch_2.dump
new file mode 100644
index 0000000..9e9868b
--- /dev/null
+++ b/src/testdir/dumps/Test_match_with_incsearch_2.dump
@@ -0,0 +1,6 @@
+|0+1&#ffffff0| +0&&@73
+|1| @73
+|2+0#ffffff16#e000002| +0#0000000#ffffff0@73
+|3| @73
+|4| @73
+|:|s|/|0> @70
diff --git a/src/testdir/test_match.vim b/src/testdir/test_match.vim
index 6ca163b..0af45a4 100644
--- a/src/testdir/test_match.vim
+++ b/src/testdir/test_match.vim
@@ -366,6 +366,27 @@
   call delete('XscriptMatchLinebreak')
 endfunc
 
+func Test_match_with_incsearch()
+  CheckRunVimInTerminal
+
+  let lines =<< trim END
+    set incsearch
+    call setline(1, range(20))
+    call matchaddpos('ErrorMsg', [3])
+  END
+  call writefile(lines, 'XmatchWithIncsearch')
+  let buf = RunVimInTerminal('-S XmatchWithIncsearch', #{rows: 6})
+  call TermWait(buf)
+  call VerifyScreenDump(buf, 'Test_match_with_incsearch_1', {})
+
+  call term_sendkeys(buf, ":s/0")
+  call VerifyScreenDump(buf, 'Test_match_with_incsearch_2', {})
+
+  call term_sendkeys(buf, "\<CR>")
+  call StopVimInTerminal(buf)
+  call delete('XmatchWithIncsearch')
+endfunc
+
 " Test for deleting matches outside of the screen redraw top/bottom lines
 " This should cause a redraw of those lines.
 func Test_matchdelete_redraw()
diff --git a/src/version.c b/src/version.c
index 0f0414e..ee3a29f 100644
--- a/src/version.c
+++ b/src/version.c
@@ -750,6 +750,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    3940,
+/**/
     3939,
 /**/
     3938,