diff --git a/compile.go b/compile.go
index e7f65d320..b8110eff5 100644
--- a/compile.go
+++ b/compile.go
@@ -210,6 +210,12 @@ type codeStore struct { // {{{
 	codes *[]uint32
 	lines *[]int
 	pc    int
+	// lastTarget is the highest pc recorded as a jump-label position.
+	// Instruction-merging peepholes must not fold across it: an instruction
+	// at or before a label boundary can be skipped or jumped past, so
+	// extending it changes behavior on the jumping path. Mirrors PUC Lua's
+	// fs->lasttarget.
+	lastTarget int
 }
 
 func newCodeStore() *codeStore {
@@ -218,9 +224,10 @@ func newCodeStore() *codeStore {
 	*codes = (*codes)[:0]
 	*lines = (*lines)[:0]
 	return &codeStore{
-		codes: codes,
-		lines: lines,
-		pc:    0,
+		codes:      codes,
+		lines:      lines,
+		pc:         0,
+		lastTarget: -1,
 	}
 }
 
@@ -297,9 +304,15 @@ func (cd *codeStore) PropagateMV(top int, save *int, reg *int, inc int) {
 	*reg = *reg + inc
 }
 
+func (cd *codeStore) MarkLabelPc(pc int) {
+	if pc > cd.lastTarget {
+		cd.lastTarget = pc
+	}
+}
+
 func (cd *codeStore) AddLoadNil(a, b, line int) {
 	last := cd.Last()
-	if opGetOpCode(last) == OP_LOADNIL && (opGetArgB(last)+1) == a {
+	if opGetOpCode(last) == OP_LOADNIL && (opGetArgB(last)+1) == a && cd.LastPC() > cd.lastTarget {
 		cd.SetB(cd.LastPC(), b)
 	} else {
 		cd.AddABC(OP_LOADNIL, a, b, 0, line)
@@ -592,6 +605,7 @@ func (fc *funcContext) NewLabel() int {
 
 func (fc *funcContext) SetLabelPc(label int, pc int) {
 	fc.labelPc[label] = pc
+	fc.Code.MarkLabelPc(pc)
 }
 
 func (fc *funcContext) GetLabelPc(label int) int {
diff --git a/compile_loadnil_fence_test.go b/compile_loadnil_fence_test.go
new file mode 100644
index 000000000..878613d68
--- /dev/null
+++ b/compile_loadnil_fence_test.go
@@ -0,0 +1,112 @@
+// SPDX-License-Identifier: MPL-2.0
+
+package lua
+
+import (
+	"testing"
+)
+
+// The LOADNIL merge peephole (codeStore.AddLoadNil) must not extend a LOADNIL
+// that sits before a jump target: an `or nil` arm ends in a skippable LOADNIL,
+// and folding the next statement's nil-register init into it leaves that
+// register uninitialized on the short-circuit path. The VM then dereferences
+// an empty stack slot. Mirrors PUC Lua's `fs->lasttarget` fence in luaK_nil.
+func TestLoadNilMergeStopsAtJumpTarget(t *testing.T) {
+	tests := []struct {
+		name     string
+		code     string
+		expected string
+	}{
+		{
+			// The or takes the truthy lhs: the skipped nil arm must not own
+			// the comparison's nil register.
+			name: "or nil over a table hit inside ipairs",
+			code: `
+				local t = { k = { skip = true } }
+				local out = 0
+				for _, key in ipairs({ "k" }) do
+					local v = t[key] or nil
+					if v ~= nil then out = out + 1 end
+				end
+				return out
+			`,
+			expected: "1",
+		},
+		{
+			name: "or nil over a table miss inside ipairs",
+			code: `
+				local t = { k = { skip = true } }
+				local out = 0
+				for _, key in ipairs({ "absent" }) do
+					local v = t[key] or nil
+					if v == nil then out = out + 1 end
+				end
+				return out
+			`,
+			expected: "1",
+		},
+		{
+			name: "scalar or nil inside ipairs",
+			code: `
+				local out = 0
+				for _, key in ipairs({ "k" }) do
+					local x = key or nil
+					if x ~= nil then out = out + 1 end
+				end
+				return out
+			`,
+			expected: "1",
+		},
+		{
+			name: "or nil inside pairs",
+			code: `
+				local t = { k = { skip = true } }
+				local out = 0
+				for key in pairs({ k = 1 }) do
+					local v = t[key] or nil
+					if v ~= nil then out = out + 1 end
+				end
+				return out
+			`,
+			expected: "1",
+		},
+		{
+			name: "guarded chain with mixed hit and miss keys",
+			code: `
+				local t = { k = { skip = true } }
+				local out = 0
+				for _, key in ipairs({ "a", "k" }) do
+					local v = key ~= nil and t[key] or nil
+					if v ~= nil and v.skip == true then out = out + 1 end
+				end
+				return out
+			`,
+			expected: "1",
+		},
+		{
+			// Adjacent nil locals with no label in between keep merging.
+			name: "plain adjacent nil locals still fold",
+			code: `
+				local a, b
+				local c = nil
+				if a == nil and b == nil and c == nil then return 1 end
+				return 0
+			`,
+			expected: "1",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			L := NewState()
+			defer L.Close()
+			if err := L.DoString(tt.code); err != nil {
+				t.Fatalf("runtime error: %v", err)
+			}
+			got := L.Get(-1)
+			if got.String() != tt.expected {
+				t.Fatalf("expected %s, got %s", tt.expected, got.String())
+			}
+		})
+	}
+}