diff --git a/FEXCore/Source/Interface/Core/Core.cpp b/FEXCore/Source/Interface/Core/Core.cpp
index 7cff39c36..a39c9a130 100644
--- a/FEXCore/Source/Interface/Core/Core.cpp
+++ b/FEXCore/Source/Interface/Core/Core.cpp
@@ -560,11 +560,15 @@ ContextImpl::GenerateIR(FEXCore::Core::InternalThreadState* Thread, uint64_t Gue
     }
 #endif
 
-    bool HadDispatchError {false};
-    bool HadInvalidInst {false};
     for (size_t j = 0; j < CodeBlocks.size(); ++j) {
       const auto& Block = CodeBlocks[j];
 
+      // Dispatch failures and invalid instructions terminate only the decoded
+      // block that contains them. Other block targets in the same multiblock
+      // compilation unit are independent entry paths.
+      bool HadDispatchError {false};
+      bool HadInvalidInst {false};
+
 #ifdef ZYDIS_DISASSEMBLER
       if (FEXCore::Config::Get_X86DISASSEMBLE() && CodeBlocks.size() > 1) {
         LogMan::Msg::IFmt("  Block {} Entry={:#x} NumInsts={}", j, Block.Entry, Block.NumInstructions);
diff --git a/unittests/ASM/Multiblock/InvalidBlockStateIsolation.asm b/unittests/ASM/Multiblock/InvalidBlockStateIsolation.asm
new file mode 100644
index 000000000..942933780
--- /dev/null
+++ b/unittests/ASM/Multiblock/InvalidBlockStateIsolation.asm
@@ -0,0 +1,30 @@
+%ifdef CONFIG
+{
+  "Match": "All",
+  "RegData": {
+    "RAX": "0x20"
+  }
+}
+%endif
+
+; A decoded block containing an unsupported operation must not poison later,
+; independently reachable blocks in the same multiblock unit.
+; The conditional branch is always taken, so the invalid block is compiled
+; but never executed.
+xor eax, eax
+test eax, eax
+jz valid_block
+
+invalid_block:
+mov fs, ax
+
+valid_block:
+jmp success
+
+wrong_fallthrough:
+mov rax, 0x10
+hlt
+
+success:
+mov rax, 0x20
+hlt