diff --git a/programs/cmd/builtins.c b/programs/cmd/builtins.c
index febf6ba94b6..bf089a8b9f5 100644
--- a/programs/cmd/builtins.c
+++ b/programs/cmd/builtins.c
@@ -2298,33 +2298,40 @@ static WCHAR *WCMD_dupenv( const WCHAR *env )
  *  setlocal pushes the environment onto a stack
  *  Save the environment as unicode so we don't screw anything up.
  */
-void WCMD_setlocal (const WCHAR *s) {
+RETURN_CODE WCMD_setlocal(WCHAR *args)
+{
   WCHAR *env;
   struct env_stack *env_copy;
   WCHAR cwd[MAX_PATH];
   BOOL newdelay;
+  int argno = 0;
+  WCHAR *argN = args;
 
   /* setlocal does nothing outside of batch programs */
-  if (!context) return;
-
-  /* DISABLEEXTENSIONS ignored */
-
-  /* ENABLEDELAYEDEXPANSION / DISABLEDELAYEDEXPANSION could be parm1 or parm2
-     (if both ENABLEEXTENSIONS and ENABLEDELAYEDEXPANSION supplied for example) */
-  if (!wcsicmp(param1, L"ENABLEDELAYEDEXPANSION") || !wcsicmp(param2, L"ENABLEDELAYEDEXPANSION")) {
-    newdelay = TRUE;
-  } else if (!wcsicmp(param1, L"DISABLEDELAYEDEXPANSION") || !wcsicmp(param2, L"DISABLEDELAYEDEXPANSION")) {
-    newdelay = FALSE;
-  } else {
-    newdelay = delayedsubst;
+  if (!context)
+      return NO_ERROR;
+  newdelay = delayedsubst;
+  while (argN)
+  {
+      WCHAR *thisArg = WCMD_parameter (args, argno++, &argN, FALSE, FALSE);
+      if (!thisArg || !*thisArg) break;
+      if (!wcsicmp(thisArg, L"ENABLEDELAYEDEXPANSION"))
+          newdelay = TRUE;
+      else if (!wcsicmp(thisArg, L"DISABLEDELAYEDEXPANSION"))
+          newdelay = FALSE;
+      /* ENABLE/DISABLE EXTENSIONS ignored for now */
+      else if (!wcsicmp(thisArg, L"ENABLEEXTENSIONS") || !wcsicmp(thisArg, L"DISABLEEXTENSIONS"))
+      {}
+      else
+          return errorlevel = ERROR_INVALID_FUNCTION;
+      TRACE("Setting delayed expansion to %d\n", newdelay);
   }
-  WINE_TRACE("Setting delayed expansion to %d\n", newdelay);
 
   env_copy = LocalAlloc (LMEM_FIXED, sizeof (struct env_stack));
   if( !env_copy )
   {
-    WINE_ERR ("out of memory\n");
-    return;
+      ERR("out of memory\n");
+      return errorlevel = ERROR_OUTOFMEMORY;
   }
 
   env = GetEnvironmentStringsW ();
@@ -2345,7 +2352,7 @@ void WCMD_setlocal (const WCHAR *s) {
     LocalFree (env_copy);
 
   FreeEnvironmentStringsW (env);
-
+  return errorlevel = NO_ERROR;
 }
 
 /*****************************************************************************
@@ -2355,18 +2362,19 @@ void WCMD_setlocal (const WCHAR *s) {
  *  Note: When searching for '=', search from WCHAR position 1, to handle
  *        special internal environment variables =C:, =D: etc
  */
-void WCMD_endlocal (void) {
+RETURN_CODE WCMD_endlocal(void)
+{
   WCHAR *env, *old, *p;
   struct env_stack *temp;
   int len, n;
 
   /* setlocal does nothing outside of batch programs */
-  if (!context) return;
+  if (!context) return NO_ERROR;
 
   /* setlocal needs a saved environment from within the same context (batch
      program) as it was saved in                                            */
   if (!saved_environment || saved_environment->batchhandle != context->h)
-    return;
+    return ERROR_INVALID_FUNCTION;
 
   /* pop the old environment from the stack */
   temp = saved_environment;
@@ -2419,6 +2427,7 @@ void WCMD_endlocal (void) {
 
   LocalFree (env);
   LocalFree (temp);
+  return NO_ERROR;
 }
 
 /*****************************************************************************
diff --git a/programs/cmd/tests/test_builtins.cmd.exp b/programs/cmd/tests/test_builtins.cmd.exp
index 75152663850..c883758cf32 100644
--- a/programs/cmd/tests/test_builtins.cmd.exp
+++ b/programs/cmd/tests/test_builtins.cmd.exp
@@ -536,11 +536,11 @@ ERRORLEVEL 666
 ERRORLEVEL 666
 ERRORLEVEL 666
 --- success/failure for SETLOCAL/ENDLOCAL commands
-@todo_wine@FAILURE 1
-@todo_wine@SUCCESS 0
+FAILURE 1
+SUCCESS 0
 SUCCESS 666
 @todo_wine@SUCCESS@space@
-@todo_wine@SUCCESS 0
+SUCCESS 0
 --- success/failure for DATE command
 @todo_wine@SUCCESS 0
 @todo_wine@FAILURE 1
@@ -739,7 +739,7 @@ foo
 bar@or_broken@foo
 gotitright
 33
-@todo_wine@0@or_broken@1
+0@or_broken@1
 foo
 !WINE_FOO!
 not empty
diff --git a/programs/cmd/wcmd.h b/programs/cmd/wcmd.h
index 5f51a4e1f3a..3c259ec0eb9 100644
--- a/programs/cmd/wcmd.h
+++ b/programs/cmd/wcmd.h
@@ -171,7 +171,7 @@ RETURN_CODE WCMD_create_dir(WCHAR *);
 RETURN_CODE WCMD_delete(WCHAR *);
 RETURN_CODE WCMD_directory(WCHAR *);
 RETURN_CODE WCMD_echo(const WCHAR *);
-void WCMD_endlocal (void);
+RETURN_CODE WCMD_endlocal(void);
 void WCMD_enter_paged_mode(const WCHAR *);
 RETURN_CODE WCMD_exit(void);
 BOOL WCMD_get_fullpath(const WCHAR *, SIZE_T, WCHAR *, WCHAR **);
@@ -192,7 +192,7 @@ RETURN_CODE WCMD_pushd(const WCHAR *args);
 RETURN_CODE WCMD_remove_dir(WCHAR *command);
 RETURN_CODE WCMD_rename(void);
 void WCMD_run_program (WCHAR *command, BOOL called);
-void WCMD_setlocal (const WCHAR *args);
+RETURN_CODE WCMD_setlocal(WCHAR *args);
 void WCMD_setshow_date (void);
 RETURN_CODE WCMD_setshow_default(const WCHAR *args);
 void WCMD_setshow_env (WCHAR *command);
diff --git a/programs/cmd/wcmdmain.c b/programs/cmd/wcmdmain.c
index ce48b16d7ec..feb5e75281e 100644
--- a/programs/cmd/wcmdmain.c
+++ b/programs/cmd/wcmdmain.c
@@ -1878,10 +1878,10 @@ static RETURN_CODE execute_single_command(const WCHAR *command)
         return_code = WCMD_remove_dir(parms_start);
         break;
       case WCMD_SETLOCAL:
-        WCMD_setlocal(parms_start);
+        return_code = WCMD_setlocal(parms_start);
         break;
       case WCMD_ENDLOCAL:
-        WCMD_endlocal();
+        return_code = WCMD_endlocal();
         break;
       case WCMD_SET:
         WCMD_setshow_env (parms_start);