diff --git a/src/ca65/macro.c b/src/ca65/macro.c
index 0e6bca3a1..976e19306 100644
--- a/src/ca65/macro.c
+++ b/src/ca65/macro.c
@@ -44,6 +44,7 @@
 /* ca65 */
 #include "condasm.h"
 #include "error.h"
+#include "global.h"
 #include "istack.h"
 #include "nexttok.h"
 #include "pseudo.h"
@@ -541,8 +542,14 @@ static int MacExpand (void* Data)
        	    IdDesc* I = Mac->M->Locals;
        	    while (I) {
        	       	if (strcmp (SVal, I->Id) == 0) {
-       	       	    /* This is in fact a local symbol, change the name */
-       	       	    sprintf (SVal, "___%04X__", Mac->LocalStart + Index);
+       	       	    /* This is in fact a local symbol, change the name. Be sure
+                     * to generate a local label name if the original name was
+                     * a local label, and also generate a name that cannot be
+                     * generated by a user.
+                     */
+                    unsigned PrefixLen = (I->Id[0] == LocalStart);
+       	       	    sprintf (SVal, "%.*sLOCAL-MACRO-SYMBOL-%04X", PrefixLen, 
+                             I->Id, Mac->LocalStart + Index);
        	       	    break;
        	       	}
        	       	/* Next symbol */