diff --git a/crates/nu-parser/src/parser.rs b/crates/nu-parser/src/parser.rs
index ea736db3b..ac5591a2b 100644
--- a/crates/nu-parser/src/parser.rs
+++ b/crates/nu-parser/src/parser.rs
@@ -645,25 +645,33 @@ pub fn parse_multispan_value(
             (arg, error)
         }
         SyntaxShape::OneOf(shapes) => {
+            let mut err = None;
             for shape in shapes.iter() {
-                if let (s, None) = parse_multispan_value(
+                let (s, option_err) = parse_multispan_value(
                     working_set,
                     spans,
                     spans_idx,
                     shape,
                     expand_aliases_denylist,
-                ) {
-                    return (s, None);
+                );
+                match option_err {
+                    None => return (s, None),
+                    e => err = err.or(e),
                 }
             }
             let span = spans[*spans_idx];
-            (
-                Expression::garbage(span),
-                Some(ParseError::Expected(
-                    format!("one of a list of accepted shapes: {:?}", shapes),
-                    span,
-                )),
-            )
+
+            if err.is_some() {
+                (Expression::garbage(span), err)
+            } else {
+                (
+                    Expression::garbage(span),
+                    Some(ParseError::Expected(
+                        format!("one of a list of accepted shapes: {:?}", shapes),
+                        span,
+                    )),
+                )
+            }
         }
         SyntaxShape::Expression => {
             trace!("parsing: expression");
diff --git a/crates/nu-parser/tests/test_parser.rs b/crates/nu-parser/tests/test_parser.rs
index 02600ccd7..b3ca540cc 100644
--- a/crates/nu-parser/tests/test_parser.rs
+++ b/crates/nu-parser/tests/test_parser.rs
@@ -1402,4 +1402,23 @@ mod input_types {
             assert!(block.len() == 2, "testing: {}", input);
         }
     }
+
+    #[test]
+    fn else_errors_correctly() {
+        let mut engine_state = EngineState::new();
+        add_declations(&mut engine_state);
+
+        let mut working_set = StateWorkingSet::new(&engine_state);
+        let (_, err) = parse(
+            &mut working_set,
+            None,
+            b"if false { 'a' } else { $foo }",
+            true,
+            &[],
+        );
+
+        let err = err.unwrap();
+
+        assert!(matches!(err, ParseError::VariableNotFound(_)));
+    }
 }