diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index ea011dca7e4..548a3d9cf98 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2006-10-04  Paul Thomas  <pault@gcc.gnu.org>
+
+	PR fortran/29098
+	* resolve.c (resolve_structure_cons): Do not return FAILURE if
+	component expression is NULL.
+
 2006-10-03  Paul Thomas  <pault@gcc.gnu.org>
 
 	PR fortran/20779
diff --git a/gcc/fortran/resolve.c b/gcc/fortran/resolve.c
index 7639eb737e1..e28a93cbcdf 100644
--- a/gcc/fortran/resolve.c
+++ b/gcc/fortran/resolve.c
@@ -607,10 +607,7 @@ resolve_structure_cons (gfc_expr * expr)
   for (; comp; comp = comp->next, cons = cons->next)
     {
       if (! cons->expr)
-	{
-	  t = FAILURE;
-	  continue;
-	}
+	continue;
 
       if (gfc_resolve_expr (cons->expr) == FAILURE)
 	{
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index ea575ee0d18..7cc0dd29aa7 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2006-10-04  Paul Thomas  <pault@gcc.gnu.org>
+
+	PR fortran/29098
+	* gfortran.dg/default_initialization_2.f90: New test.
+
 2006-10-03  Paul Thomas  <pault@gcc.gnu.org>
 
 	PR fortran/20779
diff --git a/gcc/testsuite/gfortran.dg/default_initialization_2.f90 b/gcc/testsuite/gfortran.dg/default_initialization_2.f90
new file mode 100644
index 00000000000..cc7ecdc4061
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/default_initialization_2.f90
@@ -0,0 +1,36 @@
+! { dg-do compile }
+! This tests the patch for PR29098, in which the presence of the default
+! initializer would cause allocate to fail because the latter uses
+! the interface assignment.  This, in its turn was failing because
+! no expressions were found for the other components; and a FAILURE
+! was returned from resolve_structure_cons.
+!
+! Contributed by Olav Vahtras  <vahtras@pdc.kth.se>
+!
+ MODULE MAT
+   TYPE BAS
+      INTEGER :: R = 0,C = 0
+   END TYPE BAS
+   TYPE BLOCK
+      INTEGER, DIMENSION(:), POINTER ::  R,C
+      TYPE(BAS), POINTER, DIMENSION(:) :: NO => NULL()
+   END TYPE BLOCK
+   INTERFACE ASSIGNMENT(=)
+      MODULE PROCEDURE BLASSIGN
+   END INTERFACE
+   CONTAINS
+      SUBROUTINE BLASSIGN(A,B)
+      TYPE(BLOCK), INTENT(IN) :: B
+      TYPE(BLOCK), INTENT(INOUT) :: A
+      INTEGER I,N
+      ! ...
+      END SUBROUTINE BLASSIGN
+ END MODULE MAT
+PROGRAM TEST
+USE MAT
+TYPE(BLOCK) MATRIX
+POINTER MATRIX
+ALLOCATE(MATRIX)
+END
+
+! { dg-final { cleanup-modules "mat" } }