diff --git a/effekt/shared/src/main/scala/effekt/RecursiveDescent.scala b/effekt/shared/src/main/scala/effekt/RecursiveDescent.scala
index 539983a0d..8dcffbeb7 100644
--- a/effekt/shared/src/main/scala/effekt/RecursiveDescent.scala
+++ b/effekt/shared/src/main/scala/effekt/RecursiveDescent.scala
@@ -221,6 +221,8 @@ class RecursiveDescent(positions: Positions, tokens: Seq[Token], source: Source)
      case Var(id) =>
        val tgt = IdTarget(id)
        Return(Call(tgt, Nil, Nil, (BlockLiteral(Nil, vparams, bparams, body)) :: Nil))
+     case Do(effect, id, targs, vargs, bargs) =>
+      Return(Do(effect, id, targs, vargs, bargs :+ BlockLiteral(Nil, vparams, bparams, body)))
      case term =>
        Return(Call(ExprTarget(term), Nil, Nil, (BlockLiteral(Nil, vparams, bparams, body)) :: Nil))
   }
diff --git a/examples/pos/issue684.check b/examples/pos/issue684.check
new file mode 100644
index 000000000..24e226ed1
--- /dev/null
+++ b/examples/pos/issue684.check
@@ -0,0 +1,3 @@
+before
+hi
+after
diff --git a/examples/pos/issue684.effekt b/examples/pos/issue684.effekt
new file mode 100644
index 000000000..51a3aaede
--- /dev/null
+++ b/examples/pos/issue684.effekt
@@ -0,0 +1,12 @@
+effect wrap() { program: () => Unit }: Unit
+
+def main() = try {
+  with do wrap();
+  println("hi")
+} with wrap {
+  resume { {p} =>
+    println("before")
+    p()
+    println("after")
+  }
+}
\ No newline at end of file