Index: Python/graminit.c
===================================================================
--- Python/graminit.c	(revision 41432)
+++ Python/graminit.c	(working copy)
@@ -841,15 +841,26 @@
 static arc arcs_39_7[1] = {
 	{22, 9},
 };
-static arc arcs_39_8[3] = {
+static arc arcs_39_8[4] = {
 	{95, 4},
-	{91, 5},
+	{91, 10},
+	{96, 5},
 	{0, 8},
 };
 static arc arcs_39_9[1] = {
 	{0, 9},
 };
-static state states_39[10] = {
+static arc arcs_39_10[1] = {
+	{21, 11},
+};
+static arc arcs_39_11[1] = {
+	{22, 12},
+};
+static arc arcs_39_12[2] = {
+	{96, 5},
+	{0, 12},
+};
+static state states_39[13] = {
 	{1, arcs_39_0},
 	{1, arcs_39_1},
 	{1, arcs_39_2},
@@ -858,8 +869,11 @@
 	{1, arcs_39_5},
 	{1, arcs_39_6},
 	{1, arcs_39_7},
-	{3, arcs_39_8},
+	{4, arcs_39_8},
 	{1, arcs_39_9},
+	{1, arcs_39_10},
+	{1, arcs_39_11},
+	{2, arcs_39_12},
 };
 static arc arcs_40_0[1] = {
 	{97, 1},
@@ -1754,7 +1768,7 @@
 	 "\000\000\000\000\000\000\000\000\000\000\000\020\000\000\000\000\000\000\000\000\000"},
 	{294, "for_stmt", 0, 10, states_38,
 	 "\000\000\000\000\000\000\000\000\000\000\000\040\000\000\000\000\000\000\000\000\000"},
-	{295, "try_stmt", 0, 10, states_39,
+	{295, "try_stmt", 0, 13, states_39,
 	 "\000\000\000\000\000\000\000\000\000\000\000\100\000\000\000\000\000\000\000\000\000"},
 	{296, "except_clause", 0, 5, states_40,
 	 "\000\000\000\000\000\000\000\000\000\000\000\000\002\000\000\000\000\000\000\000\000"},
Index: Python/ast.c
===================================================================
--- Python/ast.c	(revision 41432)
+++ Python/ast.c	(working copy)
@@ -2708,61 +2708,66 @@
 static stmt_ty
 ast_for_try_stmt(struct compiling *c, const node *n)
 {
+    int i;
+    const int nch = NCH(n);
+    int n_except = (nch - 3)/3;
+    asdl_seq *body, *orelse = NULL, *finally = NULL;
+    
     REQ(n, try_stmt);
+    
+    body = ast_for_suite(c, CHILD(n, 2));
+    if (body == NULL)
+        return NULL;
 
-    if (TYPE(CHILD(n, 3)) == NAME) {/* must be 'finally' */
-	/* try_stmt: 'try' ':' suite 'finally' ':' suite) */
-        asdl_seq *s1, *s2;
-        s1 = ast_for_suite(c, CHILD(n, 2));
-        if (!s1)
-            return NULL;
-        s2 = ast_for_suite(c, CHILD(n, 5));
-        if (!s2)
-            return NULL;
-            
-	return TryFinally(s1, s2, LINENO(n));
-    }
-    else if (TYPE(CHILD(n, 3)) == except_clause) {
-	/* try_stmt: ('try' ':' suite (except_clause ':' suite)+
-           ['else' ':' suite]
-	*/
-        asdl_seq *suite_seq1, *suite_seq2;
-	asdl_seq *handlers;
-	int i, has_else = 0, n_except = NCH(n) - 3;
-	if (TYPE(CHILD(n, NCH(n) - 3)) == NAME) {
-	    has_else = 1;
-	    n_except -= 3;
-	}
-	n_except /= 3;
-	handlers = asdl_seq_new(n_except);
-	if (!handlers)
-		return NULL;
-	for (i = 0; i < n_except; i++) {
-            excepthandler_ty e = ast_for_except_clause(c,
-                                                       CHILD(n, 3 + i * 3),
-                                                       CHILD(n, 5 + i * 3));
-            if (!e)
+    if (TYPE(CHILD(n, nch - 3)) == NAME) {
+        if (strcmp(STR(CHILD(n, nch - 3)), "finally") == 0) {
+            if (nch >= 6 && TYPE(CHILD(n, nch - 6)) == NAME) {
+                /* we can assume it's an "else", otherwise it would have a type of except_clause */
+                orelse = ast_for_suite(c, CHILD(n, nch - 4));
+                if (orelse == NULL)
+                    return NULL;
+                n_except--;
+            }
+
+            finally = ast_for_suite(c, CHILD(n, nch - 1));
+            if (finally == NULL)
                 return NULL;
-	    asdl_seq_SET(handlers, i, e);
+            n_except--;
         }
-
-        suite_seq1 = ast_for_suite(c, CHILD(n, 2));
-        if (!suite_seq1)
-            return NULL;
-        if (has_else) {
-            suite_seq2 = ast_for_suite(c, CHILD(n, NCH(n) - 1));
-            if (!suite_seq2)
+        else {
+            /* we can assume it's an "else", otherwise it would have a type of except_clause */
+            orelse = ast_for_suite(c, CHILD(n, nch - 1));
+            if (orelse == NULL)
                 return NULL;
+            n_except--;
         }
-        else
-            suite_seq2 = NULL;
-
-	return TryExcept(suite_seq1, handlers, suite_seq2, LINENO(n));
     }
-    else {
+    else if (TYPE(CHILD(n, nch - 3)) != except_clause) {
         PyErr_SetString(PyExc_Exception, "malformed 'try' statement");
         return NULL;
     }
+
+    if (n_except > 0) {
+        asdl_seq *inner, *handlers;
+        
+        handlers = asdl_seq_new(n_except);
+        if (handlers == NULL)
+            return NULL;
+        for (i = 0; i < n_except; i++) {
+            excepthandler_ty e = ast_for_except_clause(c, CHILD(n, 3 + i * 3), CHILD(n, 5 + i * 3));
+            if (!e)
+                return NULL;
+            asdl_seq_SET(handlers, i, e);
+        }
+        
+        inner = asdl_seq_new(1);
+        if (inner == NULL)
+            return NULL;
+        asdl_seq_SET(inner, 0, TryExcept(body, handlers, orelse, LINENO(n)));
+        body = inner;
+    }
+    
+    return TryFinally(body, finally, LINENO(n));
 }
 
 static stmt_ty
Index: Grammar/Grammar
===================================================================
--- Grammar/Grammar	(revision 41432)
+++ Grammar/Grammar	(working copy)
@@ -67,8 +67,7 @@
 if_stmt: 'if' test ':' suite ('elif' test ':' suite)* ['else' ':' suite]
 while_stmt: 'while' test ':' suite ['else' ':' suite]
 for_stmt: 'for' exprlist 'in' testlist ':' suite ['else' ':' suite]
-try_stmt: ('try' ':' suite (except_clause ':' suite)+ #diagram:break
-           ['else' ':' suite] | 'try' ':' suite 'finally' ':' suite)
+try_stmt: 'try' ':' suite ((except_clause ':' suite)+ ['else' ':' suite] ['finally' ':' suite] | 'finally' ':' suite)
 # NB compile.c makes sure that the default except clause is last
 except_clause: 'except' [test [',' test]]
 suite: simple_stmt | NEWLINE INDENT stmt+ DEDENT