diff --git a/jerry-core/ecma/builtin-objects/ecma-builtin-string-prototype.c b/jerry-core/ecma/builtin-objects/ecma-builtin-string-prototype.c
index f37eab89e..77e80738f 100644
--- a/jerry-core/ecma/builtin-objects/ecma-builtin-string-prototype.c
+++ b/jerry-core/ecma/builtin-objects/ecma-builtin-string-prototype.c
@@ -623,7 +623,7 @@ ecma_builtin_string_prototype_object_replace (ecma_value_t this_value, /**< this
           if (ECMA_IS_VALUE_ERROR (result))
           {
             ecma_stringbuilder_destroy (&replace_ctx.builder);
-            goto cleanup_search;
+            goto cleanup_replace;
           }
 
           ecma_string_t *const result_str_p = ecma_op_to_string (result);
diff --git a/tests/jerry/fail/regression-test-issue-3297.js b/tests/jerry/fail/regression-test-issue-3297.js
new file mode 100644
index 000000000..cf3a84f79
--- /dev/null
+++ b/tests/jerry/fail/regression-test-issue-3297.js
@@ -0,0 +1,15 @@
+// Copyright JS Foundation and other contributors, http://js.foundation
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+"98765".replace(76, function ( ) { return $ })