diff --git a/components/fpspreadsheet/source/common/fpsfunc.pas b/components/fpspreadsheet/source/common/fpsfunc.pas
index 6277d9c58..f0a362483 100644
--- a/components/fpspreadsheet/source/common/fpsfunc.pas
+++ b/components/fpspreadsheet/source/common/fpsfunc.pas
@@ -2070,29 +2070,25 @@ end;
 
 // IF( condition, value_if_true, [value_if_false] )
 procedure fpsIF(var Result: TsExpressionResult; const Args: TsExprParameterArray);
+var
+  res: Boolean;
 begin
   if IsError(Args[0], Result) then
     exit;
-  if IsError(Args[1], Result) then
-    exit;
+
   if (Args[0].ResultType = rtString) then
   begin
     Result := ErrorResult(errWrongType);
     exit;
   end;
 
-  if Length(Args) > 2 then
+  res := ArgToBoolean(Args[0], false);
+  if res then
+    Result := Args[1]
+  else
   begin
-    if IsError(Args[2], Result) then
-      exit;
-    if ArgToBoolean(Args[0], false) then
-      Result := Args[1]
-    else
-      Result := Args[2];
-  end else
-  begin
-    if ArgToBoolean(Args[0], false) then
-      Result := Args[1]
+    if Length(Args) > 2 then
+      Result := Args[2]
     else
       Result.ResBoolean := false;
   end;
diff --git a/components/fpspreadsheet/unit-tests/common/calcformulatests.pas b/components/fpspreadsheet/unit-tests/common/calcformulatests.pas
index ea99cf546..cf0a961e0 100644
--- a/components/fpspreadsheet/unit-tests/common/calcformulatests.pas
+++ b/components/fpspreadsheet/unit-tests/common/calcformulatests.pas
@@ -1158,21 +1158,31 @@ begin
   FWorksheet.CalcFormulas;
   CheckEquals('FALSE', FWorksheet.ReadAsText(0, 1), 'Formula #7 IF(A1<100,"ok") result mismatch');
 
-  // Error propagation: error in 3rd argument
+  // Error propagation: error in 3rd argument - result is non-error argument
   FWorksheet.WriteFormula(0, 1, '=IF(A1>=100, "ok", 1/0)');
   FWorksheet.CalcFormulas;
-  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #8 IF(A1>=100,"ok",1/0) result mismatch');
+  CheckEquals('ok', FWorksheet.ReadAsText(0, 1), 'Formula #8 IF(A1>=100,"ok",1/0) result mismatch');
 
-  // Error propagation: error in 2nd argument
-  FWorksheet.WriteFormula(0, 1, '=IF(A1>=100, 1/0,"not ok")');
+  // Error propagation: error in 3rd argument - result is error argument
+  FWorksheet.WriteFormula(0, 1, '=IF(A1<100, "ok", 1/0)');
   FWorksheet.CalcFormulas;
-  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #9 IF(A1>=100,1/0,"not ok") result mismatch');
+  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #9 IF(A1<100,"ok",1/0) result mismatch');
+
+  // Error propagation: error in 2nd argument - result is error argument
+  FWorksheet.WriteFormula(0, 1, '=IF(A1>=100, 1/0,"abc")');
+  FWorksheet.CalcFormulas;
+  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #10 IF(A1>=100,1/0,"abc") result mismatch');
+
+  // Error propagation: error in 2nd argument - result is 3rd argument
+  FWorksheet.WriteFormula(0, 1, '=IF(A1<100, 1/0,"abc")');
+  FWorksheet.CalcFormulas;
+  CheckEquals('abc', FWorksheet.ReadAsText(0, 1), 'Formula #11 IF(A1<100,1/0,"abc") result mismatch');
 
   // Error propagaton: error in 1st argument
   FWorksheet.WriteFormula(0, 0, '=1/0');
   FWorksheet.WriteFormula(0, 1, '=IF(A1>=100,"ok","not ok")');
   FWorksheet.CalcFormulas;
-  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #10 IF(A1>=100,"ok","not ok") with A1=1/0 result mismatch');
+  CheckEquals(STR_ERR_DIVIDE_BY_ZERO, FWorksheet.ReadAsText(0, 1), 'Formula #12 IF(A1>=100,"ok","not ok") with A1=1/0 result mismatch');
 end;
 
 procedure TCalcFormulaTests.Test_IFERROR;