diff --git a/src/event.js b/src/event.js
index 0ccf23da3..9a1ac37d2 100644
--- a/src/event.js
+++ b/src/event.js
@@ -343,9 +343,10 @@ jQuery.event = {
 			if ( handle ) {
 				handle.apply( cur, data );
 			}
+			// Note that this is a bare JS function and not a jQuery handler
 			handle = ontype && cur[ ontype ];
-			if ( handle && jQuery.acceptData( cur ) ) {
-				handle.apply( cur, data );
+			if ( handle && jQuery.acceptData( cur ) && handle.apply( cur, data ) === false ) {
+				event.preventDefault();
 			}
 
 			if ( event.isPropagationStopped() ) {
diff --git a/test/unit/event.js b/test/unit/event.js
index 1305dd3ae..93049003a 100644
--- a/test/unit/event.js
+++ b/test/unit/event.js
@@ -2273,6 +2273,18 @@ test("Non DOM element events", function() {
 	jQuery(o).trigger("nonelementobj");
 });
 
+test("inline handler returning false stops default", function() {
+	expect(1);
+	
+	var markup = jQuery('<div><a href="#" onclick="return false">x</a></div>');
+	markup.click(function(e) {
+		ok( e.isDefaultPrevented(), "inline handler prevented default");
+		return false;
+	});
+	markup.find("a").click();
+	markup.off("click");
+});
+
 test("window resize", function() {
 	expect(2);