diff --git a/src/librustc_typeck/check/mod.rs b/src/librustc_typeck/check/mod.rs
index 90b974fb972c0..d0a76c207c716 100644
--- a/src/librustc_typeck/check/mod.rs
+++ b/src/librustc_typeck/check/mod.rs
@@ -3517,7 +3517,7 @@ impl<'a, 'gcx, 'tcx> FnCtxt<'a, 'gcx, 'tcx> {
         self.diverges.set(Diverges::Maybe);
         self.has_errors.set(false);
 
-        let ty = self.check_expr_kind(expr, expected, needs);
+        let ty = self.check_expr_kind(expr, expected, needs, old_diverges);
 
         // Warn for non-block expressions with diverging children.
         match expr.node {
@@ -3551,7 +3551,9 @@ impl<'a, 'gcx, 'tcx> FnCtxt<'a, 'gcx, 'tcx> {
     fn check_expr_kind(&self,
                        expr: &'gcx hir::Expr,
                        expected: Expectation<'tcx>,
-                       needs: Needs) -> Ty<'tcx> {
+                       needs: Needs,
+                       prev_diverges: Diverges)
+                       -> Ty<'tcx> {
         let tcx = self.tcx;
         let id = expr.id;
         match expr.node {
@@ -3749,7 +3751,14 @@ impl<'a, 'gcx, 'tcx> FnCtxt<'a, 'gcx, 'tcx> {
                           coerce.coerce(self, &cause, e, e_ty);
                       } else {
                           assert!(e_ty.is_nil());
-                          coerce.coerce_forced_unit(self, &cause, &mut |_| (), true);
+                          // If we're breaking without a value, then the break
+                          // implicitly carries a `()` value. Unless, that is,
+                          // the function is already diverging. In this case, we
+                          // don't need to supply any value (in which case, the
+                          // value will be considered to have type `!`).
+                          if !prev_diverges.always() {
+                              coerce.coerce_forced_unit(self, &cause, &mut |_| (), true);
+                          }
                       }
                   } else {
                       // If `ctxt.coerce` is `None`, we can just ignore
diff --git a/src/test/ui/loop-return-break.rs b/src/test/ui/loop-return-break.rs
new file mode 100644
index 0000000000000..490d4ed70593e
--- /dev/null
+++ b/src/test/ui/loop-return-break.rs
@@ -0,0 +1,45 @@
+// Copyright 2018 The Rust Project Developers. See the COPYRIGHT
+// file at the top-level directory of this distribution and at
+// http://rust-lang.org/COPYRIGHT.
+//
+// Licensed under the Apache License, Version 2.0 <LICENSE-APACHE or
+// http://www.apache.org/licenses/LICENSE-2.0> or the MIT license
+// <LICENSE-MIT or http://opensource.org/licenses/MIT>, at your
+// option. This file may not be copied, modified, or distributed
+// except according to those terms.
+
+#![feature(never_type)]
+#![allow(unreachable_code)]
+
+fn main() {
+    // The `if false` expressions are simply to
+    // make sure we don't avoid checking everything
+    // simply because a few expressions are unreachable.
+
+    if false {
+        let _: ! = {
+            loop { return } // ok
+        };
+    }
+
+    if false {
+        let _: ! = {
+            loop { return; break } // ok
+        };
+    }
+
+    if false {
+        let _: ! = {
+            // Here, the break (implicitly carrying the value `()`)
+            // occurs before the return, so it doesn't have the type
+            // `!` and should thus fail to type check.
+            loop { return break } //~ ERROR mismatched types
+        };
+    }
+
+    if false {
+        let _: ! = {
+            loop { break } //~ ERROR mismatched types
+        };
+    }
+}
diff --git a/src/test/ui/loop-return-break.stderr b/src/test/ui/loop-return-break.stderr
new file mode 100644
index 0000000000000..01375815e15c7
--- /dev/null
+++ b/src/test/ui/loop-return-break.stderr
@@ -0,0 +1,21 @@
+error[E0308]: mismatched types
+  --> $DIR/loop-return-break.rs:36:27
+   |
+LL |             loop { return break } //~ ERROR mismatched types
+   |                           ^^^^^ expected (), found !
+   |
+   = note: expected type `()`
+              found type `!`
+
+error[E0308]: mismatched types
+  --> $DIR/loop-return-break.rs:42:20
+   |
+LL |             loop { break } //~ ERROR mismatched types
+   |                    ^^^^^ expected (), found !
+   |
+   = note: expected type `()`
+              found type `!`
+
+error: aborting due to 2 previous errors
+
+For more information about this error, try `rustc --explain E0308`.