diff --git a/crates/engine/src/lib.rs b/crates/engine/src/lib.rs
index bf1100082..aaa8db4f6 100644
--- a/crates/engine/src/lib.rs
+++ b/crates/engine/src/lib.rs
@@ -533,8 +533,9 @@ impl Session {
         // Whether a group was open on the document before the command, and how long its history was.
         let start = before.as_ref().and_then(|(uid, ..)| self.docs.iter().find(|d| d.uid == *uid).map(|d| (self.in_group(*uid), d.undo.len())));
         // A command that panics leaves the history as it found it: the steps commands nested in it
-        // made go with the workbook, and the redo history they cleared comes back.
-        let redo_before = before.as_ref().and_then(|(uid, ..)| self.docs.iter().find(|d| d.uid == *uid).map(|d| d.redo.clone()));
+        // made or undid, and the redo history they cleared, come back. A length is not enough,
+        // because a nested `edit.undo` removes entries.
+        let history_before = before.as_ref().and_then(|(uid, ..)| self.docs.iter().find(|d| d.uid == *uid).map(|d| (d.undo.clone(), d.redo.clone())));
         // The recorder keeps top-level calls with the place they ran in.
         let place = (self.depth == 0 && self.recorder.is_some()).then(|| match self.active() {
             Some(d) => (d.uid, d.wb.active_sheet, d.wb.active().map(|sh| sh.name.clone()).unwrap_or_default(), d.selection.clone()),
@@ -562,10 +563,8 @@ impl Session {
                 {
                     d.wb = wb.clone();
                     d.selection = sel.clone();
-                    if let Some((_, len)) = start {
-                        d.undo.truncate(len);
-                    }
-                    if let Some(redo) = redo_before {
+                    if let Some((undo, redo)) = history_before {
+                        d.undo = undo;
                         d.redo = redo;
                     }
                     d.calc.rebuild(&d.wb);
diff --git a/crates/engine/src/tests/seams.rs b/crates/engine/src/tests/seams.rs
index cb0902cdf..9c9aeb6ad 100644
--- a/crates/engine/src/tests/seams.rs
+++ b/crates/engine/src/tests/seams.rs
@@ -563,6 +563,20 @@ fn a_command_that_panics_leaves_the_history_as_it_found_it() {
     assert_eq!(s.doc().unwrap().redo.len(), 1, "the redo history is back");
     s.execute("edit.redo", json!({})).unwrap();
     assert_eq!(v(&s, "A1").display(), "2");
+
+    // A command that undoes through a nested command and then panics: the entry Undo removed
+    // comes back, and the redo entry it made goes.
+    crate::cmd::register_undoable_test_command("test.undoThenPanic", |s, _| {
+        s.execute("edit.undo", json!({}))?;
+        panic!("after an undo");
+    });
+    assert_eq!((undo_labels(&s).len(), s.doc().unwrap().redo.len()), (2, 0));
+    assert!(s.execute("test.undoThenPanic", json!({})).is_err());
+    assert_eq!(v(&s, "A1").display(), "2", "the workbook is restored");
+    assert_eq!(undo_labels(&s), ["Enter Cell", "Enter Cell"], "the undone step is back");
+    assert_eq!(s.doc().unwrap().redo.len(), 0);
+    s.execute("edit.undo", json!({})).unwrap();
+    assert_eq!(v(&s, "A1").display(), "1");
 }
 
 // ---------------------------------------------------------------- recording buffer