diff --git a/lib/compress.js b/lib/compress.js
index 79e7d4d2..e172a83e 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -2314,13 +2314,21 @@ merge(Compressor.prototype, {
                 return make_node(AST_For, self, {
                     body: self.body
                 });
-            } else if (compressor.option("dead_code") && self instanceof AST_While) {
+            }
+            if (compressor.option("dead_code") && self instanceof AST_While) {
                 var a = [];
                 extract_declarations_from_unreachable_code(compressor, self.body, a);
                 return make_node(AST_BlockStatement, self, { body: a });
-            } else {
-                cond = make_node_from_constant(cond, self.condition).transform(compressor);
-                self.condition = best_of_expression(cond, self.condition);
+            }
+            if (self instanceof AST_Do) {
+                var has_loop_control = false;
+                var tw = new TreeWalker(function(node) {
+                    if (node instanceof AST_Scope || has_loop_control) return true;
+                    if (node instanceof AST_LoopControl && tw.loopcontrol_target(node.label) === self)
+                        return has_loop_control = true;
+                });
+                self.walk(tw);
+                if (!has_loop_control) return self.body;
             }
         }
         if (self instanceof AST_While) {
diff --git a/test/compress/loops.js b/test/compress/loops.js
index c8d77840..5ca870d1 100644
--- a/test/compress/loops.js
+++ b/test/compress/loops.js
@@ -215,8 +215,7 @@ evaluate: {
             a();
         for(;;)
             c();
-        // rule disabled due to issue_1532
-        do d(); while (false);
+        d();
     }
 }