diff --git a/compiler/gengo/gengo.go b/compiler/gengo/gengo.go
index 1957ff1..4cac17a 100644
--- a/compiler/gengo/gengo.go
+++ b/compiler/gengo/gengo.go
@@ -345,6 +345,44 @@ func (g *Generator) emitTopLevelStatic(vd *ast.VarDecl) {
 
 func (g *Generator) emitFuncDecl(fn *ast.FuncDecl) {
 	goName := "HB_" + strings.ToUpper(fn.Name)
+
+	// Emit function-level STATIC variables as package-level Go vars.
+	// Harbour: STATIC inside FUNCTION persists across calls but is
+	// scoped to the function. We prefix with funcname to avoid clashes.
+	for _, d := range fn.Decls {
+		if vd, ok := d.(*ast.VarDecl); ok && vd.Scope == ast.ScopeStatic {
+			for _, v := range vd.Vars {
+				varName := "static_" + strings.ToUpper(fn.Name) + "_" + strings.ToUpper(v.Name)
+				initVal := "hbrt.MakeNil()"
+				if v.Init != nil {
+					initVal = g.exprToGoLiteral(v.Init)
+				}
+				g.writeln(fmt.Sprintf("var %s = %s", varName, initVal))
+				if g.staticVars == nil {
+					g.staticVars = make(map[string]string)
+				}
+				g.staticVars[strings.ToUpper(v.Name)] = varName
+			}
+		}
+	}
+	// Also scan body for mid-function STATIC declarations
+	for _, s := range fn.Body {
+		if vd, ok := s.(*ast.VarDecl); ok && vd.Scope == ast.ScopeStatic {
+			for _, v := range vd.Vars {
+				varName := "static_" + strings.ToUpper(fn.Name) + "_" + strings.ToUpper(v.Name)
+				initVal := "hbrt.MakeNil()"
+				if v.Init != nil {
+					initVal = g.exprToGoLiteral(v.Init)
+				}
+				g.writeln(fmt.Sprintf("var %s = %s", varName, initVal))
+				if g.staticVars == nil {
+					g.staticVars = make(map[string]string)
+				}
+				g.staticVars[strings.ToUpper(v.Name)] = varName
+			}
+		}
+	}
+
 	g.writeln(fmt.Sprintf("func %s(t *hbrt.Thread) {", goName))
 	g.indent++
 
@@ -393,6 +431,23 @@ func (g *Generator) emitFuncDecl(fn *ast.FuncDecl) {
 	g.indent--
 	g.writeln("}")
 	g.writeln("")
+
+	// Remove function-scoped STATIC vars from the map so they don't
+	// leak into other functions that happen to share a variable name.
+	for _, d := range fn.Decls {
+		if vd, ok := d.(*ast.VarDecl); ok && vd.Scope == ast.ScopeStatic {
+			for _, v := range vd.Vars {
+				delete(g.staticVars, strings.ToUpper(v.Name))
+			}
+		}
+	}
+	for _, s := range fn.Body {
+		if vd, ok := s.(*ast.VarDecl); ok && vd.Scope == ast.ScopeStatic {
+			for _, v := range vd.Vars {
+				delete(g.staticVars, strings.ToUpper(v.Name))
+			}
+		}
+	}
 }
 
 type localMap map[string]int
@@ -893,11 +948,39 @@ func (g *Generator) emitAssign(a *ast.AssignExpr, locals localMap) {
 			}
 			return
 		}
-		// Check module-level STATIC variable
+		// Check module-level or function-level STATIC variable
 		upper := strings.ToUpper(ident.Name)
 		if goVar, found := g.staticVars[upper]; found {
-			g.emitExpr(a.Right)
-			g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			switch a.Op {
+			case token.ASSIGN:
+				g.emitExpr(a.Right)
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			case token.PLUSEQ:
+				g.writeln(fmt.Sprintf("t.PushValue(%s)", goVar))
+				g.emitExpr(a.Right)
+				g.writeln("t.Plus()")
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			case token.MINUSEQ:
+				g.writeln(fmt.Sprintf("t.PushValue(%s)", goVar))
+				g.emitExpr(a.Right)
+				g.writeln("t.Minus()")
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			case token.STAREQ:
+				g.writeln(fmt.Sprintf("t.PushValue(%s)", goVar))
+				g.emitExpr(a.Right)
+				g.writeln("t.Mult()")
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			case token.SLASHEQ:
+				g.writeln(fmt.Sprintf("t.PushValue(%s)", goVar))
+				g.emitExpr(a.Right)
+				g.writeln("t.Divide()")
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			default:
+				g.writeln(fmt.Sprintf("t.PushValue(%s)", goVar))
+				g.emitExpr(a.Right)
+				g.emitBinaryOp(a.Op)
+				g.writeln(fmt.Sprintf("%s = t.Pop2()", goVar))
+			}
 			return
 		}
 	}