diff --git a/BUGS b/BUGS
index f59a715..6dea7af 100644
--- a/BUGS
+++ b/BUGS
@@ -36,7 +36,4 @@ Generational/Incremental Garbage Collector
 
    o  The percentage displayed at the end of a GC run is sometimes wrong.
 
-   o  The scope of the name of a named let is wrong, as explained in
-      http://groups.google.com/groups?selm=871zemtmd4.fsf%40app.dial.idiom.com
-
    o Almost no Unix commands work under Win32, and they are badly disabled.
diff --git a/src/special.c b/src/special.c
index b90f192..c40c5ce 100644
--- a/src/special.c
+++ b/src/special.c
@@ -456,6 +456,7 @@ Object Named_Let (Object argl) {
             (void)P_Set_Cdr (vtail, cell);
         vtail = cell;
     }
+    /* Create a new environment to protect our named let variable */
     Push_Frame (Add_Binding (Null, Car (argl), Null));
     tail = Cons (vlist, Cdr (Cdr (argl)));
     if (Nullp (Cdr (tail)))
@@ -466,8 +467,12 @@ Object Named_Let (Object argl) {
     Cdr (b) = tail;
     SYMBOL(Car (argl))->value = tail;
     TC_Enable;
-    tail = Funcall (tail, flist, 1);
+    /* Restore environment before calling the function */
     Pop_Frame ();
+    /* vlist: list of variables
+     * flist: list of initial values
+     * tail: our new lambda function */
+    tail = Funcall (tail, flist, 1);
     GC_Unlink;
     return tail;
 }