Index: src/main/org/codehaus/groovy/antlr/AntlrParserPlugin.java
===================================================================
--- src/main/org/codehaus/groovy/antlr/AntlrParserPlugin.java	(revision 15129)
+++ src/main/org/codehaus/groovy/antlr/AntlrParserPlugin.java	Tue Jan 20 23:20:59 CET 2009
@@ -1176,7 +1176,8 @@
         AST node = labelNode.getFirstChild();
         String label = identifier(node);
         Statement statement = statement(node.getNextSibling());
+        if (statement.getStatementLabel() == null) // if statement has multiple labels, retain the last one
-        statement.setStatementLabel(label);
+            statement.setStatementLabel(label);
         return statement;
     }
 
Index: src/test/groovy/BreakContinueLabelTest.groovy
===================================================================
--- src/test/groovy/BreakContinueLabelTest.groovy	(revision 15129)
+++ src/test/groovy/BreakContinueLabelTest.groovy	Tue Jan 20 23:48:26 CET 2009
@@ -1,5 +1,7 @@
 package groovy
 
+import org.codehaus.groovy.control.MultipleCompilationErrorsException
+
 /**
  * todo: add BreakContinueLabelWithClosureTest (when break is used to return from a Closure)
 
@@ -103,4 +105,46 @@
         }
         assertEquals '1323',log
     }
+
+    void testBreakToLastLabelSucceeds() {
+        one:
+        two:
+        three:
+        for (i in 1..2) {
+            break three
+            fail()
-}
\ No newline at end of file
+        }
+    }
+
+    void testBreakToOtherThanLastLabelCausesSyntaxError() {
+        try {
+            new GroovyShell().parse("one: two: three: while (true)\nbreak one")
+            fail()
+        } catch (MultipleCompilationErrorsException e) {
+            def syntaxError = e.errorCollector.getSyntaxError(0)
+            assert syntaxError
+            assert syntaxError.line == 2
+        }
+    }
+
+    void testContinueToLastLabelSucceeds() {
+        one:
+        two:
+        three:
+        for (i in 1..2) {
+            continue three
+            fail()
+        }
+    }
+
+    void testContinueToOtherThanLastLabelCausesSyntaxError() {
+        try {
+            new GroovyShell().parse("one: two: three: while (true)\ncontinue two")
+            fail()
+        } catch (MultipleCompilationErrorsException e) {
+            def syntaxError = e.errorCollector.getSyntaxError(0)
+            assert syntaxError
+            assert syntaxError.line == 2
+        }
+    }
+}
\ No newline at end of file