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diff --git a/Doc/reference/compound_stmts.rst b/Doc/reference/compound_stmts.rst
index 4e03711..869eef4 100644
--- a/Doc/reference/compound_stmts.rst
+++ b/Doc/reference/compound_stmts.rst
@@ -337,6 +337,20 @@ statement, the :keyword:`finally` clause is also executed 'on the way out.' A
reason is a problem with the current implementation --- this restriction may be
lifted in the future).
+The return value of a function is determined by the last :keyword:`return`
+statement executed. Since the :keyword:`finally` clause always executes, a
+:keyword:`return` statement executed in the :keyword:`finally` clause will
+always be the last one executed::
+
+ >>> def foo():
+ ... try:
+ ... return 'try'
+ ... finally:
+ ... return 'finally'
+ ...
+ >>> foo()
+ 'finally'
+
Additional information on exceptions can be found in section :ref:`exceptions`,
and information on using the :keyword:`raise` statement to generate exceptions
may be found in section :ref:`raise`.