diff --git a/src/lisp/s_expm1.c b/src/lisp/s_expm1.c
index 4e9bae8174ffa2e63f816a63e96e751055741da9..64ee69accfce55d503ac414e37c873ea78ab6f61 100644
--- a/src/lisp/s_expm1.c
+++ b/src/lisp/s_expm1.c
@@ -160,8 +160,8 @@ Q5  =  -2.01099218183624371326e-07; /* BE8AFDB7 6E09C32D */
                 
 	    }
 	    if(xsb!=0) { /* x < -56*ln2, return -1.0 with inexact */
-		if(x+tiny<0.0)		/* raise inexact */
-		return tiny-one;	/* return -1 */
+                fdlibm_setexception(x, FDLIBM_INEXACT);
+		return tiny - one;
 	    }
 	}
 
diff --git a/tests/fdlibm.lisp b/tests/fdlibm.lisp
index 16c3be43da5a545e479b90cbc08541632252dff1..5bde0cfdcd30edc1501644ba9f4bed7d64912816 100644
--- a/tests/fdlibm.lisp
+++ b/tests/fdlibm.lisp
@@ -163,7 +163,12 @@
 		 (kernel:%expm1 709.8d0))
     )
   (kernel::with-float-traps-masked (:invalid)
-    (assert-true (ext::float-nan-p (kernel:%expm1 *snan*)))))
+    (assert-true (ext::float-nan-p (kernel:%expm1 *snan*))))
+  ;; expm1(x) = -1 for x < -56*log(2), signaling inexact
+  (let ((x (* -57 (log 2d0))))
+    (with-inexact-exception-enabled
+	(assert-error 'floating-point-inexact
+		      (kernel:%expm1 x)))))
 
 (define-test %log1p.exceptions
   (:tag :fdlibm)