diff --git a/lib/cfg-grammar.y b/lib/cfg-grammar.y
index 5bc4e6f41e..7478271092 100644
--- a/lib/cfg-grammar.y
+++ b/lib/cfg-grammar.y
@@ -71,6 +71,7 @@
     if (N)                                                              \
       {                                                                 \
         (Current).name         = YYRHSLOC(Rhs, 1).name;                 \
+        (Current).at_line      = YYRHSLOC (Rhs, 1).at_line;             \
         (Current).first_line   = YYRHSLOC (Rhs, 1).first_line;          \
         (Current).first_column = YYRHSLOC (Rhs, 1).first_column;        \
         (Current).last_line    = YYRHSLOC (Rhs, N).last_line;           \
@@ -79,6 +80,7 @@
     else                                                                \
       {                                                                 \
         (Current).name         = YYRHSLOC(Rhs, 0).name;                 \
+        (Current).at_line      = YYRHSLOC (Rhs, 0).at_line;             \
         (Current).first_line   = (Current).last_line   =                \
           YYRHSLOC (Rhs, 0).last_line;                                  \
         (Current).first_column = (Current).last_column =                \
diff --git a/lib/cfg-lexer.c b/lib/cfg-lexer.c
index 23449752ce..83e74c13c3 100644
--- a/lib/cfg-lexer.c
+++ b/lib/cfg-lexer.c
@@ -166,15 +166,71 @@ cfg_lexer_format_location_tag(CfgLexer *self, const CFG_LTYPE *yylloc)
   return evt_tag_str("location", cfg_lexer_format_location(self, yylloc, buf, sizeof(buf)));
 }
 
+void
+cfg_lexer_undo_set_file_location(CfgLexer *self, CFG_LTYPE *yylloc)
+{
+  if (!yylloc->at_line.present)
+    return;
+
+  gboolean lloc_is_oneline = yylloc->first_line == yylloc->last_line;
+
+  /* calculate how much we moved, relative to the @line setting */
+  gint ofs_lines = yylloc->first_line - yylloc->at_line.line;
+  gint ofs_columns = yylloc->first_column - yylloc->at_line.column;
+
+  gint range_lines = yylloc->last_line - yylloc->first_line;
+
+  /* the line number moves the same amount as we've processed with the alternative location */
+  yylloc->first_line = yylloc->at_line.captured_first_line + ofs_lines;
+  yylloc->last_line = yylloc->first_line + range_lines;
+
+  if (ofs_lines == 0)
+    {
+      /* we remained on the same line (e.g.  the one that follows @line),
+       * starting column is moved to where @line told us to */
+
+      g_assert(lloc_is_oneline);
+
+      /* save the length of the token within the same line */
+      gint range_columns = yylloc->last_column - yylloc->first_column;
+
+      /* adjust the first_column */
+      yylloc->first_column = yylloc->at_line.captured_first_column + ofs_columns;
+
+      /* yylloc pointed to a single line and we moved the starting
+       * column, so let's adjust last_column as well */
+
+      yylloc->last_column = yylloc->first_column + range_columns;
+    }
+  yylloc->name = yylloc->at_line.captured_name;
+  yylloc->at_line.present = FALSE;
+}
+
 void
 cfg_lexer_set_file_location(CfgLexer *self, const gchar *filename, gint line, gint column)
 {
   CfgIncludeLevel *level = &self->include_stack[self->include_depth];
+  CFG_LTYPE *yylloc = &level->lloc;
 
-  level->lloc.name = g_intern_string(filename);
-  level->lloc.first_line = level->lloc.last_line = line;
-  level->lloc.first_column = level->lloc.last_column = column;
-  level->lloc_changed_by_at_line = TRUE;
+  /* we already had a previous @line, let's go back as if it didn't exist */
+  cfg_lexer_undo_set_file_location(self, yylloc);
+
+  if (!filename)
+    {
+      /* reset to previous state but don't establish a new location */
+      return;
+    }
+
+  yylloc->at_line.captured_first_line = yylloc->first_line;
+  yylloc->at_line.captured_first_column = yylloc->first_column;
+  yylloc->at_line.captured_name = yylloc->name;
+  yylloc->at_line.line = line;
+  yylloc->at_line.column = column;
+  yylloc->at_line.present = TRUE;
+
+  yylloc->name = g_intern_string(filename);
+  yylloc->first_line = yylloc->last_line = line;
+  yylloc->first_column = yylloc->last_column = column;
 }
 
 static int
@@ -361,6 +417,7 @@ cfg_lexer_include_level_open_buffer(CfgLexer *self, CfgIncludeLevel *level)
 
   level->lloc.first_line = level->lloc.last_line = 1;
   level->lloc.first_column = level->lloc.last_column = 1;
+  level->lloc.at_line.present = FALSE;
   return TRUE;
 }
 
diff --git a/lib/cfg-lexer.h b/lib/cfg-lexer.h
index fe193b87f6..22938982a0 100644
--- a/lib/cfg-lexer.h
+++ b/lib/cfg-lexer.h
@@ -86,10 +86,24 @@ typedef struct _CfgTokenBlock CfgTokenBlock;
 
 typedef struct CFG_LTYPE
 {
-  int first_line;
-  int first_column;
-  int last_line;
-  int last_column;
+  gint first_line;
+  gint first_column;
+  gint last_line;
+  gint last_column;
+
+  /* this value indicates that @line was used which changed lloc relative to
+   * an actual file */
+  struct
+  {
+    gboolean present;
+    /* the first line/column at the point of the @line directive */
+    gint captured_first_line;
+    gint captured_first_column;
+    const gchar *captured_name;
+    /* line/column specified by @line */
+    gint line;
+    gint column;
+  } at_line;
 
   const gchar *name;
 } CFG_LTYPE;
@@ -152,9 +166,8 @@ struct _CfgIncludeLevel
     } buffer;
   };
 
-  /* this value indicates that @line was used which changed lloc relative to
-   * an actual file */
-  gboolean lloc_changed_by_at_line;
+
+
   CFG_LTYPE lloc;
   struct yy_buffer_state *yybuf;
 };
@@ -207,6 +220,7 @@ gboolean cfg_lexer_include_buffer(CfgLexer *self, const gchar *name, const gchar
 gboolean cfg_lexer_include_buffer_without_backtick_substitution(CfgLexer *self,
     const gchar *name, const gchar *buffer, gsize length);
 const gchar *cfg_lexer_format_location(CfgLexer *self, const CFG_LTYPE *yylloc, gchar *buf, gsize buf_len);
+void cfg_lexer_undo_set_file_location(CfgLexer *self, CFG_LTYPE *yylloc);
 void cfg_lexer_set_file_location(CfgLexer *self, const gchar *filename, gint line, gint column);
 EVTTAG *cfg_lexer_format_location_tag(CfgLexer *self, const CFG_LTYPE *yylloc);