Index: lld/test/wasm/command-exports.s
===================================================================
--- lld/test/wasm/command-exports.s
+++ lld/test/wasm/command-exports.s
@@ -39,17 +39,17 @@
 	i32.const	0
 	end_function
 
-	.section	.text..Lcall_dtors.1,"",@
-.Lcall_dtors.1:
-	.functype	.Lcall_dtors.1 (i32) -> ()
+	.section	.text.call_dtors.1,"",@
+call_dtors.1:
+	.functype	call_dtors.1 (i32) -> ()
 	call	some_dtor
 	end_function
 
-	.section	.text..Lregister_call_dtors.1,"",@
-.Lregister_call_dtors.1:
-	.functype	.Lregister_call_dtors.1 () -> ()
+	.section	.text.register_call_dtors.1,"",@
+register_call_dtors.1:
+	.functype	register_call_dtors.1 () -> ()
 	block
-	i32.const	.Lcall_dtors.1
+	i32.const	call_dtors.1
 	i32.const	0
 	i32.const	0
 	call	__cxa_atexit
@@ -63,7 +63,7 @@
 	.section	.init_array.1,"",@
 	.p2align	2
 	.int32	some_ctor
-	.int32	.Lregister_call_dtors.1
+	.int32	register_call_dtors.1
 	.export_name	foo_i32, foo_i32
 	.export_name	foo_f64, foo_f64
 
@@ -104,9 +104,9 @@
 # CHECK-NEXT:      - Index:           5
 # CHECK-NEXT:        Name:            __cxa_atexit
 # CHECK-NEXT:      - Index:           6
-# CHECK-NEXT:        Name:            .Lcall_dtors.1
+# CHECK-NEXT:        Name:            call_dtors.1
 # CHECK-NEXT:      - Index:           7
-# CHECK-NEXT:        Name:            .Lregister_call_dtors.1
+# CHECK-NEXT:        Name:            register_call_dtors.1
 # CHECK-NEXT:      - Index:           8
 # CHECK-NEXT:        Name:            foo_i32.command_export
 # CHECK-NEXT:      - Index:           9
Index: llvm/lib/Target/WebAssembly/AsmParser/WebAssemblyAsmParser.cpp
===================================================================
--- llvm/lib/Target/WebAssembly/AsmParser/WebAssemblyAsmParser.cpp
+++ llvm/lib/Target/WebAssembly/AsmParser/WebAssemblyAsmParser.cpp
@@ -216,7 +216,7 @@
 
   // We track this to see if a .functype following a label is the same,
   // as this is how we recognize the start of a function.
-  MCSymbol *LastLabel = nullptr;
+  MCSymbol *LastNonLocalLabel = nullptr;
   MCSymbol *LastFunctionLabel = nullptr;
 
 public:
@@ -679,8 +679,9 @@
   }
 
   void onLabelParsed(MCSymbol *Symbol) override {
-    LastLabel = Symbol;
     CurrentState = Label;
+    if (!Symbol->getName().startswith(".L"))
+      LastNonLocalLabel = Symbol;
   }
 
   bool parseSignature(wasm::WasmSignature *Signature) {
@@ -799,12 +800,12 @@
       if (SymName.empty())
         return true;
       auto WasmSym = cast<MCSymbolWasm>(Ctx.getOrCreateSymbol(SymName));
-      if (CurrentState == Label && WasmSym == LastLabel) {
+      if (CurrentState == Label && WasmSym == LastNonLocalLabel) {
         // This .functype indicates a start of a function.
         if (ensureEmptyNestingStack())
           return true;
         CurrentState = FunctionStart;
-        LastFunctionLabel = LastLabel;
+        LastFunctionLabel = LastNonLocalLabel;
         push(Function);
       }
       auto Signature = std::make_unique<wasm::WasmSignature>();
@@ -872,7 +873,7 @@
 
     if (DirectiveID.getString() == ".local") {
       if (CurrentState != FunctionStart)
-        return error(".local directive should follow the start of a function",
+        return error(".local directive should follow the start of a function: ",
                      Lexer.getTok());
       SmallVector<wasm::ValType, 4> Locals;
       if (parseRegTypeList(Locals))
Index: llvm/test/MC/WebAssembly/basic-assembly.s
===================================================================
--- llvm/test/MC/WebAssembly/basic-assembly.s
+++ llvm/test/MC/WebAssembly/basic-assembly.s
@@ -8,6 +8,8 @@
     end_function
 
 test0:
+# local labels can appear between label and its .functype.
+.Ltest0begin:
     # Test all types:
     .functype   test0 (i32, i64) -> (i32)
     .eventtype  __cpp_exception i32
@@ -116,17 +118,18 @@
     .globaltype __stack_pointer, i32
 
 .tabletype empty_eref_table, externref
-empty_eref_table:       
+empty_eref_table:
 
 .tabletype empty_fref_table, funcref
-empty_fref_table:       
+empty_fref_table:
+
 
-        
 # CHECK:           .text
 # CHECK-LABEL: empty_func:
 # CHECK-NEXT:      .functype	empty_func () -> ()
 # CHECK-NEXT:      end_function
 # CHECK-LABEL: test0:
+# CHECK-NEXT:  .Ltest0begin:
 # CHECK-NEXT:      .functype   test0 (i32, i64) -> (i32)
 # CHECK-NEXT:      .eventtype  __cpp_exception i32
 # CHECK-NEXT:      .local      f32, f64
@@ -226,6 +229,6 @@
 
 # CHECK:           .tabletype empty_eref_table, externref
 # CHECK-NEXT: empty_eref_table:
-        
+
 # CHECK:           .tabletype empty_fref_table, funcref
 # CHECK-NEXT: empty_fref_table: