diff --git a/py/objfun.c b/py/objfun.c
index 187bb5a59e..70b897b57d 100644
--- a/py/objfun.c
+++ b/py/objfun.c
@@ -161,7 +161,10 @@ mp_code_state *mp_obj_fun_bc_prepare_codestate(mp_obj_t self_in, mp_uint_t n_arg
     // allocate state for locals and stack
     mp_uint_t state_size = n_state * sizeof(mp_obj_t) + n_exc_stack * sizeof(mp_exc_stack_t);
     mp_code_state *code_state;
-    code_state = m_new_obj_var(mp_code_state, byte, state_size);
+    code_state = m_new_obj_var_maybe(mp_code_state, byte, state_size);
+    if (!code_state) {
+        return NULL;
+    }
 
     code_state->n_state = n_state;
     code_state->ip = ip;
diff --git a/py/vm.c b/py/vm.c
index 3a7a816977..2359f1f019 100644
--- a/py/vm.c
+++ b/py/vm.c
@@ -874,10 +874,12 @@ unwind_jump:;
                         code_state->sp = sp;
                         code_state->exc_sp = MP_TAGPTR_MAKE(exc_sp, currently_in_except_block);
                         mp_code_state *new_state = mp_obj_fun_bc_prepare_codestate(*sp, unum & 0xff, (unum >> 8) & 0xff, sp + 1);
-                        new_state->prev = code_state;
-                        code_state = new_state;
-                        nlr_pop();
-                        goto run_code_state;
+                        if (new_state) {
+                            new_state->prev = code_state;
+                            code_state = new_state;
+                            nlr_pop();
+                            goto run_code_state;
+                        }
                     }
                     #endif
                     SET_TOP(mp_call_function_n_kw(*sp, unum & 0xff, (unum >> 8) & 0xff, sp + 1));