diff --git a/interp/compiler.go b/interp/compiler.go
index e9bf36c3e..20723c646 100644
--- a/interp/compiler.go
+++ b/interp/compiler.go
@@ -25,6 +25,7 @@ type function struct {
 // basicBlock represents a LLVM basic block and contains a slice of
 // instructions. The last instruction must be a terminator instruction.
 type basicBlock struct {
+	phiNodes     []instruction
 	instructions []instruction
 }
 
@@ -346,7 +347,13 @@ func (r *runner) compileFunction(llvmFn llvm.Value) *function {
 				// This error is handled when actually trying to interpret this
 				// instruction (to not trigger on code that won't be executed).
 			}
-			bb.instructions = append(bb.instructions, inst)
+			if inst.opcode == llvm.PHI {
+				// PHI nodes need to be treated specially, see the comment in
+				// interpreter.go for an explanation.
+				bb.phiNodes = append(bb.phiNodes, inst)
+			} else {
+				bb.instructions = append(bb.instructions, inst)
+			}
 		}
 	}
 	return fn
diff --git a/interp/interp_test.go b/interp/interp_test.go
index 29a405dc5..6fabdd519 100644
--- a/interp/interp_test.go
+++ b/interp/interp_test.go
@@ -13,6 +13,7 @@ import (
 func TestInterp(t *testing.T) {
 	for _, name := range []string{
 		"basic",
+		"phi",
 		"slice-copy",
 		"consteval",
 		"map",
diff --git a/interp/interpreter.go b/interp/interpreter.go
index bdaee4e97..73707811c 100644
--- a/interp/interpreter.go
+++ b/interp/interpreter.go
@@ -33,6 +33,50 @@ func (r *runner) run(fn *function, params []value, parentMem *memoryView, indent
 	lastBB := -1 // last basic block is undefined, only defined after a branch
 	var operands []value
 	for instIndex := 0; instIndex < len(bb.instructions); instIndex++ {
+		if instIndex == 0 {
+			// This is the start of a new basic block.
+			// There may be PHI nodes that need to be resolved. Resolve all PHI
+			// nodes before continuing with regular instructions.
+			// PHI nodes need to be treated specially because they can have a
+			// mutual dependency:
+			//   for.loop:
+			//     %a = phi i8 [ 1, %entry ], [ %b, %for.loop ]
+			//     %b = phi i8 [ 3, %entry ], [ %a, %for.loop ]
+			// If these PHI nodes are processed like a regular instruction, %a
+			// and %b are both 3 on the second iteration of the loop because %b
+			// loads the value of %a from the second iteration, while it should
+			// load the value from the previous iteration. The correct behavior
+			// is that these two values swap each others place on each
+			// iteration.
+			var phiValues []value
+			var phiIndices []int
+			for _, inst := range bb.phiNodes {
+				var result value
+				for i := 0; i < len(inst.operands); i += 2 {
+					if int(inst.operands[i].(literalValue).value.(uint32)) == lastBB {
+						incoming := inst.operands[i+1]
+						if local, ok := incoming.(localValue); ok {
+							result = locals[fn.locals[local.value]]
+						} else {
+							result = incoming
+						}
+						break
+					}
+				}
+				if r.debug {
+					fmt.Fprintln(os.Stderr, indent+"phi", inst.operands, "->", result)
+				}
+				if result == nil {
+					panic("could not find PHI input")
+				}
+				phiValues = append(phiValues, result)
+				phiIndices = append(phiIndices, inst.localIndex)
+			}
+			for i, value := range phiValues {
+				locals[phiIndices[i]] = value
+			}
+		}
+
 		inst := bb.instructions[instIndex]
 		operands = operands[:0]
 		isRuntimeInst := false
@@ -121,26 +165,6 @@ func (r *runner) run(fn *function, params []value, parentMem *memoryView, indent
 			if r.debug {
 				fmt.Fprintln(os.Stderr, indent+"switch", operands, "->", currentBB)
 			}
-		case llvm.PHI:
-			var result value
-			for i := 0; i < len(inst.operands); i += 2 {
-				if int(inst.operands[i].(literalValue).value.(uint32)) == lastBB {
-					incoming := inst.operands[i+1]
-					if local, ok := incoming.(localValue); ok {
-						result = locals[fn.locals[local.value]]
-					} else {
-						result = incoming
-					}
-					break
-				}
-			}
-			if r.debug {
-				fmt.Fprintln(os.Stderr, indent+"phi", inst.operands, "->", result)
-			}
-			if result == nil {
-				panic("could not find PHI input")
-			}
-			locals[inst.localIndex] = result
 		case llvm.Select:
 			// Select is much like a ternary operator: it picks a result from
 			// the second and third operand based on the boolean first operand.
diff --git a/interp/testdata/phi.ll b/interp/testdata/phi.ll
new file mode 100644
index 000000000..0a0dad729
--- /dev/null
+++ b/interp/testdata/phi.ll
@@ -0,0 +1,31 @@
+target datalayout = "e-m:e-i64:64-f80:128-n8:16:32:64-S128"
+target triple = "x86_64--linux"
+
+@main.phiNodesResultA = global i8 0
+@main.phiNodesResultB = global i8 0
+
+define void @runtime.initAll() {
+  call void @main.init()
+  ret void
+}
+
+; PHI nodes always use the value from the previous block, even in a loop. This
+; means that the loop below should swap the values %a and %b on each iteration.
+; Previously there was a bug which resulted in %b getting the value 3 on the
+; second iteration while it should have gotten 1 (from the first iteration of
+; %for.loop).
+define internal void @main.init() {
+entry:
+  br label %for.loop
+
+for.loop:
+  %a = phi i8 [ 1, %entry ], [ %b, %for.loop ]
+  %b = phi i8 [ 3, %entry ], [ %a, %for.loop ]
+  %icmp = icmp eq i8 %a, 3
+  br i1 %icmp, label %for.done, label %for.loop
+
+for.done:
+  store i8 %a, i8* @main.phiNodesResultA
+  store i8 %b, i8* @main.phiNodesResultB
+  ret void
+}
diff --git a/interp/testdata/phi.out.ll b/interp/testdata/phi.out.ll
new file mode 100644
index 000000000..ea587bd16
--- /dev/null
+++ b/interp/testdata/phi.out.ll
@@ -0,0 +1,9 @@
+target datalayout = "e-m:e-i64:64-f80:128-n8:16:32:64-S128"
+target triple = "x86_64--linux"
+
+@main.phiNodesResultA = local_unnamed_addr global i8 3
+@main.phiNodesResultB = local_unnamed_addr global i8 1
+
+define void @runtime.initAll() local_unnamed_addr {
+  ret void
+}