diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 281539573bb..dc4cab9aa5f 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2006-11-18  Francois-Xavier Coudert  <coudert@clipper.ens.fr>
+
+	PR fortran/24285
+	* io.c (check_format): Allow dollars everywhere in format, and
+	issue a warning.
+
 2006-11-17  Francois-Xavier Coudert  <coudert@clipper.ens.fr>
 
 	* gfortran.h (gfc_add_intrinsic_modules_path,
diff --git a/gcc/fortran/io.c b/gcc/fortran/io.c
index 24a92090f9e..adf274ee118 100644
--- a/gcc/fortran/io.c
+++ b/gcc/fortran/io.c
@@ -510,8 +510,8 @@ format_item_1:
         return FAILURE;
       if (t != FMT_RPAREN || level > 0)
 	{
-	  error = _("$ must be the last specifier");
-	  goto syntax;
+	  gfc_warning ("$ should be the last specifier in format at %C");
+	  goto optional_comma_1;
 	}
 
       goto finished;
@@ -755,8 +755,9 @@ between_desc:
 
 optional_comma:
   /* Optional comma is a weird between state where we've just finished
-     reading a colon, slash or P descriptor.  */
+     reading a colon, slash, dollar or P descriptor.  */
   t = format_lex ();
+optional_comma_1:
   switch (t)
     {
     case FMT_COMMA:
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 02089e5e012..2eff1c87b7e 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,5 +1,9 @@
-2006-11-17  Francois-Xavier Coudert  <coudert@clipper.ens.fr>
+2006-11-18  Francois-Xavier Coudert  <coudert@clipper.ens.fr>
 
+	PR fortran/24285
+	* gfortran.dg/dollar_edit_descriptor-3.f: New test.
+
+2006-11-17  Francois-Xavier Coudert  <coudert@clipper.ens.fr>
 	* gfortran.dg/use_1.f90: New test.
 	* gfortran.dg/use_1.f90: New test.
 	* gfortran.dg/use_1.f90: New test.
diff --git a/gcc/testsuite/gfortran.dg/dollar_edit_descriptor-3.f b/gcc/testsuite/gfortran.dg/dollar_edit_descriptor-3.f
new file mode 100644
index 00000000000..6e5bf6890f2
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/dollar_edit_descriptor-3.f
@@ -0,0 +1,8 @@
+! { dg-do run }
+! { dg-options "-std=gnu" }
+! Test for dollar descriptor in the middle of a format
+300   format(1000(a,$)) ! { dg-warning "should be the last specifier" }
+      write(*,300) "gee", "gee"
+      write(*,"(1000(a,$))") "foo", "bar" ! { dg-warning "should be the last specifier" }
+      end
+! { dg-output "^geegeefoobar$" }