diff --git a/crates/nu-cli/src/repl.rs b/crates/nu-cli/src/repl.rs
index 817950a445..80e8833897 100644
--- a/crates/nu-cli/src/repl.rs
+++ b/crates/nu-cli/src/repl.rs
@@ -97,7 +97,7 @@ pub fn evaluate_repl(
         Value::string("0823", Span::unknown()),
     );
 
-    unique_stack.add_env_var("LAST_EXIT_CODE".into(), Value::int(0, Span::unknown()));
+    unique_stack.set_last_exit_code(0, Span::unknown());
 
     let mut line_editor = get_line_editor(engine_state, nushell_path, use_color)?;
     let temp_file = temp_dir().join(format!("{}.nu", uuid::Uuid::new_v4()));
@@ -837,7 +837,7 @@ fn do_auto_cd(
         "NUSHELL_LAST_SHELL".into(),
         Value::int(last_shell as i64, span),
     );
-    stack.add_env_var("LAST_EXIT_CODE".into(), Value::int(0, Span::unknown()));
+    stack.set_last_exit_code(0, Span::unknown());
 }
 
 ///
diff --git a/crates/nu-cli/src/util.rs b/crates/nu-cli/src/util.rs
index 5ee0bdd3c0..8ab1b7bad9 100644
--- a/crates/nu-cli/src/util.rs
+++ b/crates/nu-cli/src/util.rs
@@ -211,17 +211,14 @@ pub fn eval_source(
 
     let exit_code = match evaluate_source(engine_state, stack, source, fname, input, allow_return) {
         Ok(failed) => {
-            let code = i32::from(failed);
-            stack.add_env_var(
-                "LAST_EXIT_CODE".into(),
-                Value::int(code.into(), Span::unknown()),
-            );
+            let code = failed.into();
+            stack.set_last_exit_code(code, Span::unknown());
             code
         }
         Err(err) => {
             report_error_new(engine_state, &err);
             let code = err.exit_code();
-            stack.set_last_exit_code(&err);
+            stack.set_last_error(&err);
             code
         }
     };
diff --git a/crates/nu-engine/src/eval.rs b/crates/nu-engine/src/eval.rs
index 9384931cf7..ccb494e68e 100644
--- a/crates/nu-engine/src/eval.rs
+++ b/crates/nu-engine/src/eval.rs
@@ -490,7 +490,7 @@ pub fn eval_block_with_early_return<D: DebugContext>(
     }
 }
 
-pub fn eval_block<D: DebugContext>(
+fn eval_block_inner<D: DebugContext>(
     engine_state: &EngineState,
     stack: &mut Stack,
     block: &Block,
@@ -501,8 +501,6 @@ pub fn eval_block<D: DebugContext>(
         return eval_ir_block::<D>(engine_state, stack, block, input);
     }
 
-    D::enter_block(engine_state, block);
-
     let num_pipelines = block.len();
 
     for (pipeline_idx, pipeline) in block.pipelines.iter().enumerate() {
@@ -547,10 +545,10 @@ pub fn eval_block<D: DebugContext>(
                 PipelineData::ByteStream(stream, ..) => {
                     let span = stream.span();
                     if let Err(err) = stream.drain() {
-                        stack.set_last_exit_code(&err);
+                        stack.set_last_error(&err);
                         return Err(err);
                     } else {
-                        stack.add_env_var("LAST_EXIT_CODE".into(), Value::int(0, span));
+                        stack.set_last_exit_code(0, span);
                     }
                 }
                 PipelineData::ListStream(stream, ..) => stream.drain()?,
@@ -560,11 +558,24 @@ pub fn eval_block<D: DebugContext>(
         }
     }
 
-    D::leave_block(engine_state, block);
-
     Ok(input)
 }
 
+pub fn eval_block<D: DebugContext>(
+    engine_state: &EngineState,
+    stack: &mut Stack,
+    block: &Block,
+    input: PipelineData,
+) -> Result<PipelineData, ShellError> {
+    D::enter_block(engine_state, block);
+    let result = eval_block_inner::<D>(engine_state, stack, block, input);
+    D::leave_block(engine_state, block);
+    if let Err(err) = &result {
+        stack.set_last_error(err);
+    }
+    result
+}
+
 pub fn eval_collect<D: DebugContext>(
     engine_state: &EngineState,
     stack: &mut Stack,
diff --git a/crates/nu-engine/src/eval_ir.rs b/crates/nu-engine/src/eval_ir.rs
index d731b71ee9..2d142e4f3d 100644
--- a/crates/nu-engine/src/eval_ir.rs
+++ b/crates/nu-engine/src/eval_ir.rs
@@ -1356,11 +1356,10 @@ fn drain(ctx: &mut EvalContext<'_>, data: PipelineData) -> Result<InstructionRes
         PipelineData::ByteStream(stream, ..) => {
             let span = stream.span();
             if let Err(err) = stream.drain() {
-                ctx.stack.set_last_exit_code(&err);
+                ctx.stack.set_last_error(&err);
                 return Err(err);
             } else {
-                ctx.stack
-                    .add_env_var("LAST_EXIT_CODE".into(), Value::int(0, span));
+                ctx.stack.set_last_exit_code(0, span);
             }
         }
         PipelineData::ListStream(stream, ..) => stream.drain()?,
diff --git a/crates/nu-protocol/src/engine/stack.rs b/crates/nu-protocol/src/engine/stack.rs
index fd3bd70c1e..26e77f4444 100644
--- a/crates/nu-protocol/src/engine/stack.rs
+++ b/crates/nu-protocol/src/engine/stack.rs
@@ -279,12 +279,14 @@ impl Stack {
         }
     }
 
-    pub fn set_last_exit_code(&mut self, error: &ShellError) {
-        let code = error.exit_code_spanned();
-        self.add_env_var(
-            "LAST_EXIT_CODE".into(),
-            Value::int(code.item.into(), code.span),
-        );
+    pub fn set_last_exit_code(&mut self, code: i32, span: Span) {
+        self.add_env_var("LAST_EXIT_CODE".into(), Value::int(code.into(), span));
+    }
+
+    pub fn set_last_error(&mut self, error: &ShellError) {
+        if let Some(code) = error.external_exit_code() {
+            self.set_last_exit_code(code.item, code.span);
+        }
     }
 
     pub fn last_overlay_name(&self) -> Result<String, ShellError> {
diff --git a/crates/nu-protocol/src/errors/shell_error.rs b/crates/nu-protocol/src/errors/shell_error.rs
index 01be884044..da9aed6904 100644
--- a/crates/nu-protocol/src/errors/shell_error.rs
+++ b/crates/nu-protocol/src/errors/shell_error.rs
@@ -1437,18 +1437,18 @@ On Windows, this would be %USERPROFILE%\AppData\Roaming"#
 }
 
 impl ShellError {
-    pub fn exit_code_spanned(&self) -> Spanned<i32> {
+    pub fn external_exit_code(&self) -> Option<Spanned<i32>> {
         let (item, span) = match *self {
             Self::NonZeroExitCode { exit_code, span } => (exit_code, span),
             Self::ProcessSignaled { signal, span, .. }
             | Self::ProcessCoreDumped { signal, span, .. } => (-signal, span),
-            _ => (1, Span::unknown()), // TODO: better span here
+            _ => return None,
         };
-        Spanned { item, span }
+        Some(Spanned { item, span })
     }
 
     pub fn exit_code(&self) -> i32 {
-        self.exit_code_spanned().item
+        self.external_exit_code().map(|e| e.item).unwrap_or(1)
     }
 
     // TODO: Implement as From trait