diff --git a/gcc/fortran/parse.cc b/gcc/fortran/parse.cc
index 0fb19cc9f0f..039e7e7da53 100644
--- a/gcc/fortran/parse.cc
+++ b/gcc/fortran/parse.cc
@@ -6502,7 +6502,6 @@ parse_module (void)
 {
   gfc_statement st;
   gfc_gsymbol *s;
-  bool error;
 
   s = gfc_get_gsymbol (gfc_new_block->name, false);
   if (s->defined || (s->type != GSYM_UNKNOWN && s->type != GSYM_MODULE))
@@ -6525,7 +6524,6 @@ parse_module (void)
 
   st = parse_spec (ST_NONE);
 
-  error = false;
 loop:
   switch (st)
     {
@@ -6544,16 +6542,11 @@ loop:
     default:
       gfc_error ("Unexpected %s statement in MODULE at %C",
 		 gfc_ascii_statement (st));
-
-      error = true;
       reject_statement ();
       st = next_statement ();
       goto loop;
     }
-
-  /* Make sure not to free the namespace twice on error.  */
-  if (!error)
-    s->ns = gfc_current_ns;
+  s->ns = gfc_current_ns;
 }
 
 
diff --git a/gcc/testsuite/gfortran.dg/pr103506_1.f90 b/gcc/testsuite/gfortran.dg/pr103506_1.f90
new file mode 100644
index 00000000000..3f57809e099
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/pr103506_1.f90
@@ -0,0 +1,9 @@
+! { dg-do compile }
+! PR103506 ICE in gfc_free_namespace. ice-on-invalid
+! Test case from the PR.
+module m ! { dg-error "is already being used as a MODULE" }
+stop ! { dg-error "Unexpected STOP statement in MODULE" }
+end
+program p
+call m ! { dg-error "is already being used as a MODULE" }
+end