diff --git a/Lib/bdb.py b/Lib/bdb.py
--- a/Lib/bdb.py
+++ b/Lib/bdb.py
@@ -73,12 +73,12 @@
             # First call of dispatch since reset()
             self.botframe = frame.f_back # (CT) Note that this may also be None!
             return self.trace_dispatch
+        # Ignore call events in generator except when stepping.
+        if self.stopframe and frame.f_code.co_flags & CO_GENERATOR:
+            return self.trace_dispatch
         if not (self.stop_here(frame) or self.break_anywhere(frame)):
             # No need to trace this function
             return # None
-        # Ignore call events in generator except when stepping.
-        if self.stopframe and frame.f_code.co_flags & CO_GENERATOR:
-            return self.trace_dispatch
         self.user_call(frame, arg)
         if self.quitting: raise BdbQuit
         return self.trace_dispatch
diff --git a/Lib/test/test_pdb.py b/Lib/test/test_pdb.py
--- a/Lib/test/test_pdb.py
+++ b/Lib/test/test_pdb.py
@@ -905,6 +905,45 @@
     (Pdb) continue
     """
 
+def test_pdb_suspended_generator():
+    """The frame of a suspended generator should not have a local trace function.
+
+    >>> def test_gen():
+    ...     for i in range(2):
+    ...         yield sys._getframe()
+
+    >>> def test_function():
+    ...     import pdb; pdb.Pdb(nosigint=True).set_trace()
+    ...     for f in test_gen():
+    ...         assert f.f_trace is None
+
+    >>> with PdbTestInput(['step',
+    ...                    'next',
+    ...                    'next',
+    ...                    'next',
+    ...                    'next',
+    ...                    'continue']):
+    ...     test_function()
+    > <doctest test.test_pdb.test_pdb_suspended_generator[1]>(3)test_function()
+    -> for f in test_gen():
+    (Pdb) step
+    --Call--
+    > <doctest test.test_pdb.test_pdb_suspended_generator[0]>(1)test_gen()
+    -> def test_gen():
+    (Pdb) next
+    > <doctest test.test_pdb.test_pdb_suspended_generator[0]>(2)test_gen()
+    -> for i in range(2):
+    (Pdb) next
+    > <doctest test.test_pdb.test_pdb_suspended_generator[0]>(3)test_gen()
+    -> yield sys._getframe()
+    (Pdb) next
+    > <doctest test.test_pdb.test_pdb_suspended_generator[0]>(2)test_gen()
+    -> for i in range(2):
+    (Pdb) next
+    > <doctest test.test_pdb.test_pdb_suspended_generator[0]>(3)test_gen()
+    -> yield sys._getframe()
+    (Pdb) continue
+    """
 
 class PdbTestCase(unittest.TestCase):
 
diff --git a/Python/sysmodule.c b/Python/sysmodule.c
--- a/Python/sysmodule.c
+++ b/Python/sysmodule.c
@@ -420,6 +420,7 @@
 {
     PyObject *callback;
     PyObject *result;
+    PyThreadState *tstate = PyThreadState_GET();
 
     if (what == PyTrace_CALL)
         callback = self;
@@ -433,7 +434,15 @@
         Py_CLEAR(frame->f_trace);
         return -1;
     }
-    if (result != Py_None) {
+    /* Do not hold a reference to the local trace function in a suspended
+     * generator's frame and clear the local trace function on a 'return'
+     * event as we are quitting the local scope, or when the system's trace
+     * function has been removed. */
+    if (what == PyTrace_RETURN || tstate->c_traceobj == NULL) {
+        Py_CLEAR(frame->f_trace);
+        Py_DECREF(result);
+    }
+    else if (result != Py_None) {
         PyObject *temp = frame->f_trace;
         frame->f_trace = NULL;
         Py_XDECREF(temp);