diff --git a/src/regexp_nfa.c b/src/regexp_nfa.c
index 0837523..471cdd0 100644
--- a/src/regexp_nfa.c
+++ b/src/regexp_nfa.c
@@ -159,7 +159,7 @@
 static int syntax_error = FALSE;
 
 /* NFA regexp \ze operator encountered. */
-static int nfa_has_zend = FALSE;
+static int nfa_has_zend;
 
 /* Number of sub expressions actually being used during execution. 1 if only
  * the whole match (subexpr 0) is used. */
@@ -791,9 +791,7 @@
 		case 'e':
 		    EMIT(NFA_ZEND);
 		    nfa_has_zend = TRUE;
-		    /* TODO: Currently \ze does not work properly. */
-		    return FAIL;
-		    /* break; */
+		    break;
 		case '1':
 		case '2':
 		case '3':
@@ -2711,6 +2709,8 @@
 	case NFA_MCLOSE + 0:
 	    if (nfa_has_zend)
 	    {
+		/* Do not overwrite the position set by \ze. If no \ze
+		 * encountered end will be set in nfa_regtry(). */
 		addstate(l, state->out, m, off, lid);
 		break;
 	    }
@@ -3635,6 +3635,7 @@
 
 	    case NFA_SKIP_CHAR:
 	    case NFA_ZSTART:
+	    case NFA_ZEND:
 		/* TODO: should not happen? */
 		break;
 
@@ -3795,6 +3796,7 @@
 	}
 	if (reg_endpos[0].lnum < 0)
 	{
+	    /* pattern has a \ze but it didn't match, use current end */
 	    reg_endpos[0].lnum = reglnum;
 	    reg_endpos[0].col = (int)(reginput - regline);
 	}
diff --git a/src/testdir/test64.in b/src/testdir/test64.in
index d30d76d..80df6e8 100644
--- a/src/testdir/test64.in
+++ b/src/testdir/test64.in
@@ -151,8 +151,10 @@
 :" Search multi-modifiers
 :call add(tl, [2, 'x*', 'xcd', 'x'])
 :call add(tl, [2, 'x*', 'xxxxxxxxxxxxxxxxsofijiojgf', 'xxxxxxxxxxxxxxxx'])
-:call add(tl, [2, 'x*', 'abcdoij', ''])                    " empty match is good
-:call add(tl, [2, 'x\+', 'abcdoin'])                       " no match here
+:" empty match is good
+:call add(tl, [2, 'x*', 'abcdoij', ''])
+:" no match here
+:call add(tl, [2, 'x\+', 'abcdoin'])
 :call add(tl, [2, 'x\+', 'abcdeoijdfxxiuhfij', 'xx'])
 :call add(tl, [2, 'x\+', 'xxxxx', 'xxxxx'])
 :call add(tl, [2, 'x\+', 'abc x siufhiush xxxxxxxxx', 'x'])
@@ -160,12 +162,15 @@
 :call add(tl, [2, 'x\=', 'abc sfoij', '']) " empty match is good
 :call add(tl, [2, 'x\=', 'xxxxxxxxx c', 'x'])
 :call add(tl, [2, 'x\?', 'x sdfoij', 'x'])
-:call add(tl, [2, 'x\?', 'abc sfoij', ''])                 " empty match is good
+:" empty match is good
+:call add(tl, [2, 'x\?', 'abc sfoij', ''])
 :call add(tl, [2, 'x\?', 'xxxxxxxxxx c', 'x'])
 :"
 :call add(tl, [2, 'a\{0,0}', 'abcdfdoij', ''])
-:call add(tl, [2, 'a\{0,1}', 'asiubid axxxaaa', 'a'])      " same thing as 'a?'
-:call add(tl, [2, 'a\{1,0}', 'asiubid axxxaaa', 'a'])      " same thing as 'a\{0,1}'
+:" same thing as 'a?'
+:call add(tl, [2, 'a\{0,1}', 'asiubid axxxaaa', 'a'])
+:" same thing as 'a\{0,1}'
+:call add(tl, [2, 'a\{1,0}', 'asiubid axxxaaa', 'a'])
 :call add(tl, [2, 'a\{3,6}', 'aa siofuh'])
 :call add(tl, [2, 'a\{3,6}', 'aaaaa asfoij afaa', 'aaaaa'])
 :call add(tl, [2, 'a\{3,6}', 'aaaaaaaa', 'aaaaaa'])
@@ -173,18 +178,21 @@
 :call add(tl, [2, 'a\{2}', 'aaaa', 'aa'])
 :call add(tl, [2, 'a\{2}', 'iuash fiusahfliusah fiushfilushfi uhsaifuh askfj nasfvius afg aaaa sfiuhuhiushf', 'aa'])
 :call add(tl, [2, 'a\{2}', 'abcdefghijklmnopqrestuvwxyz1234567890'])
-:call add(tl, [2, 'a\{0,}', 'oij sdigfusnf', ''])          " same thing as 'a*'
+:" same thing as 'a*'
+:call add(tl, [2, 'a\{0,}', 'oij sdigfusnf', ''])
 :call add(tl, [2, 'a\{0,}', 'aaaaa aa', 'aaaaa'])
 :call add(tl, [2, 'a\{2,}', 'sdfiougjdsafg'])
 :call add(tl, [0, 'a\{2,}', 'aaaaasfoij ', 'aaaaa'])
 :call add(tl, [2, 'a\{,0}', 'oidfguih iuhi hiu aaaa', ''])
 :call add(tl, [2, 'a\{,5}', 'abcd', 'a'])
 :call add(tl, [2, 'a\{,5}', 'aaaaaaaaaa', 'aaaaa'])
-:call add(tl, [2, 'a\{}', 'bbbcddiuhfcd', ''])                 " same thing as 'a*'
+:" same thing as 'a*'
+:call add(tl, [2, 'a\{}', 'bbbcddiuhfcd', ''])
 :call add(tl, [2, 'a\{}', 'aaaaioudfh coisf jda', 'aaaa'])
 :"
 :call add(tl, [2, 'a\{-0,0}', 'abcdfdoij', ''])
-:call add(tl, [2, 'a\{-0,1}', 'asiubid axxxaaa', ''])      " anti-greedy version of 'a?'
+:" anti-greedy version of 'a?'
+:call add(tl, [2, 'a\{-0,1}', 'asiubid axxxaaa', ''])
 :call add(tl, [2, 'a\{-3,6}', 'aa siofuh'])
 :call add(tl, [2, 'a\{-3,6}', 'aaaaa asfoij afaa', 'aaa'])
 :call add(tl, [2, 'a\{-3,6}', 'aaaaaaaa', 'aaa'])
@@ -198,7 +206,8 @@
 :call add(tl, [2, 'a\{-,0}', 'oidfguih iuhi hiu aaaa', ''])
 :call add(tl, [2, 'a\{-,5}', 'abcd', ''])
 :call add(tl, [2, 'a\{-,5}', 'aaaaaaaaaa', ''])
-:call add(tl, [0, 'a\{-}', 'bbbcddiuhfcd', ''])            " anti-greedy version of 'a*'
+:" anti-greedy version of 'a*'
+:call add(tl, [0, 'a\{-}', 'bbbcddiuhfcd', ''])
 :call add(tl, [0, 'a\{-}', 'aaaaioudfh coisf jda', ''])
 :"
 :" Test groups of characters and submatches
@@ -243,10 +252,14 @@
 :call add(tl, [2, '[^[:alpha:]]\+','abcccadfoij7787ysf287yrnccdu','7787'])
 :call add(tl, [2, '[-a]', '-', '-'])
 :call add(tl, [2, '[a-]', '-', '-'])
-:call add(tl, [2, '[-./[:alnum:]_~]\+', 'log13.file', 'log13.file'])		" filename regexp
-:call add(tl, [2, '[\]\^\-\\]\+', '\^\\\-\---^', '\^\\\-\---^'])			" special chars
-:call add(tl, [2, '[[.a.]]\+', 'aa', 'aa'])								" collation elem
-:call add(tl, [2, 'abc[0-9]*ddd', 'siuhabc ii'])							" middle of regexp
+:" filename regexp
+:call add(tl, [2, '[-./[:alnum:]_~]\+', 'log13.file', 'log13.file'])
+:" special chars
+:call add(tl, [2, '[\]\^\-\\]\+', '\^\\\-\---^', '\^\\\-\---^'])
+:" collation elem
+:call add(tl, [2, '[[.a.]]\+', 'aa', 'aa'])
+:" middle of regexp
+:call add(tl, [2, 'abc[0-9]*ddd', 'siuhabc ii'])
 :call add(tl, [2, 'abc[0-9]*ddd', 'adf abc44482ddd oijs', 'abc44482ddd'])
 :call add(tl, [2, '\_[0-9]\+', 'asfi9888u', '9888'])
 :call add(tl, [2, '[0-9\n]\+', 'asfi9888u', '9888'])
@@ -267,11 +280,17 @@
 :call add(tl, [2, '\C[^A-Z]\+', 'ABCOIJDEOIFNSD jsfoij sa', ' jsfoij sa'])
 :"
 :"""" Tests for \z features
-:call add(tl, [2, 'xx \ze test', 'xx '])					" must match after \ze
-:call add(tl, [0, 'abc\zeend', 'oij abcend', 'abc'])
+:" match ends at \ze
+:call add(tl, [2, 'xx \ze test', 'xx '])
+:call add(tl, [2, 'abc\zeend', 'oij abcend', 'abc'])
+:call add(tl, [2, 'aa\zebb\|aaxx', ' aabb ', 'aa'])
+:call add(tl, [2, 'aa\zebb\|aaxx', ' aaxx ', 'aaxx'])
+:call add(tl, [2, 'aabb\|aa\zebb', ' aabb ', 'aabb'])
+:call add(tl, [2, 'aa\zebb\|aaebb', ' aabb ', 'aa'])
+:" match starts at \zs
 :call add(tl, [2, 'abc\zsdd', 'ddabcddxyzt', 'dd'])
-:call add(tl, [2, 'aa \zsax', ' ax'])						" must match before \zs
-:call add(tl, [0, 'abc \zsmatch\ze abc', 'abc abc abc match abc abc', 'match'])
+:call add(tl, [2, 'aa \zsax', ' ax'])
+:call add(tl, [2, 'abc \zsmatch\ze abc', 'abc abc abc match abc abc', 'match'])
 :call add(tl, [2, '\v(a \zsif .*){2}', 'a if then a if last', 'if last', 'a if last'])
 :call add(tl, [2, '\>\zs.', 'aword. ', '.'])
 :"
@@ -279,12 +298,16 @@
 :call add(tl, [0, 'abc\@=', 'abc', 'ab'])
 :call add(tl, [0, 'abc\@=cd', 'abcd', 'abcd'])
 :call add(tl, [0, 'abc\@=', 'ababc', 'ab'])
-:call add(tl, [2, 'abcd\@=e', 'abcd'])                     " will never match, no matter the input text
-:call add(tl, [2, 'abcd\@=e', 'any text in here ... '])    " will never match
+:" will never match, no matter the input text
+:call add(tl, [2, 'abcd\@=e', 'abcd'])
+:" will never match
+:call add(tl, [2, 'abcd\@=e', 'any text in here ... '])
 :call add(tl, [0, '\v(abc)@=..', 'xabcd', 'ab', 'abc'])
-:call add(tl, [2, '\(.*John\)\@=.*Bob', 'here is John, and here is B'])	" no match
+:" no match
+:call add(tl, [2, '\(.*John\)\@=.*Bob', 'here is John, and here is B'])
 :call add(tl, [0, '\(John.*\)\@=.*Bob', 'John is Bobs friend', 'John is Bob', 'John is Bobs friend'])
-:call add(tl, [2, '.*John\&.*Bob', 'here is John, and here is B'])	" no match
+:" no match
+:call add(tl, [2, '.*John\&.*Bob', 'here is John, and here is B'])
 :call add(tl, [0, '.*John\&.*Bob', 'John is Bobs friend', 'John is Bob'])
 :call add(tl, [0, '\v(test1)@=.*yep', 'this is a test1, yep it is', 'test1, yep', 'test1'])
 :"
diff --git a/src/testdir/test64.ok b/src/testdir/test64.ok
index c6733ca..7ff9b29 100644
--- a/src/testdir/test64.ok
+++ b/src/testdir/test64.ok
@@ -617,6 +617,19 @@
 OK 2 - xx \ze test
 OK 0 - abc\zeend
 OK 1 - abc\zeend
+OK 2 - abc\zeend
+OK 0 - aa\zebb\|aaxx
+OK 1 - aa\zebb\|aaxx
+OK 2 - aa\zebb\|aaxx
+OK 0 - aa\zebb\|aaxx
+OK 1 - aa\zebb\|aaxx
+OK 2 - aa\zebb\|aaxx
+OK 0 - aabb\|aa\zebb
+OK 1 - aabb\|aa\zebb
+OK 2 - aabb\|aa\zebb
+OK 0 - aa\zebb\|aaebb
+OK 1 - aa\zebb\|aaebb
+OK 2 - aa\zebb\|aaebb
 OK 0 - abc\zsdd
 OK 1 - abc\zsdd
 OK 2 - abc\zsdd
@@ -625,6 +638,7 @@
 OK 2 - aa \zsax
 OK 0 - abc \zsmatch\ze abc
 OK 1 - abc \zsmatch\ze abc
+OK 2 - abc \zsmatch\ze abc
 OK 0 - \v(a \zsif .*){2}
 OK 1 - \v(a \zsif .*){2}
 OK 2 - \v(a \zsif .*){2}
diff --git a/src/version.c b/src/version.c
index c9325b3..a05b61d 100644
--- a/src/version.c
+++ b/src/version.c
@@ -729,6 +729,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1032,
+/**/
     1031,
 /**/
     1030,