diff --git a/lapi.c b/lapi.c
index bbba88a..16eb170 100644
--- a/lapi.c
+++ b/lapi.c
@@ -1195,9 +1195,15 @@
 
 
 LUA_API int lua_error (lua_State *L) {
+  TValue *errobj;
   lua_lock(L);
+  errobj = s2v(L->top - 1);
   api_checknelems(L, 1);
-  luaG_errormsg(L);
+  /* error object is the memory error message? */
+  if (ttisshrstring(errobj) && eqshrstr(tsvalue(errobj), G(L)->memerrmsg))
+    luaM_error(L);  /* raise a memory error */
+  else
+    luaG_errormsg(L);  /* raise a regular error */
   /* code unreachable; will unlock when control actually leaves the kernel */
   return 0;  /* to avoid warnings */
 }
diff --git a/lauxlib.c b/lauxlib.c
index e3d9be3..cbe9ed3 100644
--- a/lauxlib.c
+++ b/lauxlib.c
@@ -475,8 +475,10 @@
   lua_Alloc allocf = lua_getallocf(L, &ud);
   UBox *box = (UBox *)lua_touserdata(L, idx);
   void *temp = allocf(ud, box->box, box->bsize, newsize);
-  if (temp == NULL && newsize > 0)  /* allocation error? */
-    luaL_error(L, "not enough memory");
+  if (temp == NULL && newsize > 0) {  /* allocation error? */
+    lua_pushliteral(L, "not enough memory");
+    lua_error(L);  /* raise a memory error */
+  }
   box->box = temp;
   box->bsize = newsize;
   return temp;
diff --git a/lcorolib.c b/lcorolib.c
index 7d6e585..c165031 100644
--- a/lcorolib.c
+++ b/lcorolib.c
@@ -73,11 +73,12 @@
 static int luaB_auxwrap (lua_State *L) {
   lua_State *co = lua_tothread(L, lua_upvalueindex(1));
   int r = auxresume(L, co, lua_gettop(L));
-  if (r < 0) {
+  if (r < 0) {  /* error? */
     int stat = lua_status(co);
-    if (stat != LUA_OK && stat != LUA_YIELD)
-      lua_resetthread(co);  /* close variables in case of errors */
-    if (lua_type(L, -1) == LUA_TSTRING) {  /* error object is a string? */
+    if (stat != LUA_OK && stat != LUA_YIELD)  /* error in the coroutine? */
+      lua_resetthread(co);  /* close its tbc variables */
+    if (stat != LUA_ERRMEM &&  /* not a memory error and ... */
+        lua_type(L, -1) == LUA_TSTRING) {  /* ... error object is a string? */
       luaL_where(L, 1);  /* add extra info, if available */
       lua_insert(L, -2);
       lua_concat(L, 2);
diff --git a/testes/api.lua b/testes/api.lua
index 9447e42..9555148 100644
--- a/testes/api.lua
+++ b/testes/api.lua
@@ -11,6 +11,9 @@
 local pack = table.pack
 
 
+-- standard error message for memory errors
+local MEMERRMSG = "not enough memory"
+
 function tcheck (t1, t2)
   assert(t1.n == (t2.n or #t2) + 1)
   for i = 2, t1.n do assert(t1[i] == t2[i - 1]) end
@@ -408,7 +411,7 @@
 
   -- memory error
   T.totalmem(T.totalmem()+10000)   -- set low memory limit (+10k)
-  assert(T.checkpanic("newuserdata 20000") == "not enough memory")
+  assert(T.checkpanic("newuserdata 20000") == MEMERRMSG)
   T.totalmem(0)          -- restore high limit
 
   -- stack error
@@ -1153,40 +1156,74 @@
 end
 
 
--------------------------------------------------------------------------
--- testing memory limits
--------------------------------------------------------------------------
+--[[
+** {==================================================================
+** Testing memory limits
+** ===================================================================
+--]]
+
 print("memory-allocation errors")
 
 checkerr("block too big", T.newuserdata, math.maxinteger)
 collectgarbage()
 local f = load"local a={}; for i=1,100000 do a[i]=i end"
 T.alloccount(10)
-checkerr("not enough memory", f)
+checkerr(MEMERRMSG, f)
 T.alloccount()          -- remove limit
 
+
+-- test memory errors; increase limit for maximum memory by steps,
+-- o that we get memory errors in all allocations of a given
+-- task, until there is enough memory to complete the task without
+-- errors.
+function testbytes (s, f)
+  collectgarbage()
+  local M = T.totalmem()
+  local oldM = M
+  local a,b = nil
+  while true do
+    collectgarbage(); collectgarbage()
+    T.totalmem(M)
+    a, b = T.testC("pcall 0 1 0; pushstatus; return 2", f)
+    T.totalmem(0)  -- remove limit
+    if a and b == "OK" then break end       -- stop when no more errors
+    if b ~= "OK" and b ~= MEMERRMSG then    -- not a memory error?
+      error(a, 0)   -- propagate it
+    end
+    M = M + 7   -- increase memory limit
+  end
+  print(string.format("minimum memory for %s: %d bytes", s, M - oldM))
+  return a
+end
+
 -- test memory errors; increase limit for number of allocations one
 -- by one, so that we get memory errors in all allocations of a given
 -- task, until there is enough allocations to complete the task without
 -- errors.
 
-function testamem (s, f)
-  collectgarbage(); collectgarbage()
+function testalloc (s, f)
+  collectgarbage()
   local M = 0
   local a,b = nil
   while true do
+    collectgarbage(); collectgarbage()
     T.alloccount(M)
-    a, b = pcall(f)
+    a, b = T.testC("pcall 0 1 0; pushstatus; return 2", f)
     T.alloccount()  -- remove limit
-    if a and b then break end       -- stop when no more errors
-    if not a and not    -- `real' error?
-      (string.find(b, "memory") or string.find(b, "overflow")) then
-      error(b, 0)   -- propagate it
+    if a and b == "OK" then break end       -- stop when no more errors
+    if b ~= "OK" and b ~= MEMERRMSG then    -- not a memory error?
+      error(a, 0)   -- propagate it
     end
     M = M + 1   -- increase allocation limit
   end
-  print(string.format("limit for %s: %d allocations", s, M))
-  return b
+  print(string.format("minimum allocations for %s: %d allocations", s, M))
+  return a
+end
+
+
+local function testamem (s, f)
+  testalloc(s, f)
+  return testbytes(s, f)
 end
 
 
@@ -1196,8 +1233,11 @@
 
 -- testing memory errors when creating a new state
 
-b = testamem("state creation", T.newstate)
-T.closestate(b);  -- close new state
+testamem("state creation", function ()
+  local st = T.newstate()
+  if st then T.closestate(st) end   -- close new state
+  return st
+end)
 
 testamem("empty-table creation", function ()
   return {}
@@ -1345,6 +1385,9 @@
   return foo(100)
 end)
 
+-- }==================================================================
+
+
 do   -- testing failing in 'lua_checkstack'
   local res = T.testC([[rawcheckstack 500000; return 1]])
   assert(res == false)