diff --git a/jerry-core/parser/js/js-parser.c b/jerry-core/parser/js/js-parser.c
index 43c9a7128..7d0445196 100644
--- a/jerry-core/parser/js/js-parser.c
+++ b/jerry-core/parser/js/js-parser.c
@@ -1822,6 +1822,7 @@ parser_parse_function_arguments (parser_context_t *context_p, /**< context */
 #if ENABLED (JERRY_ESNEXT)
   bool has_complex_argument = (context_p->next_scanner_info_p->u8_arg & SCANNER_FUNCTION_HAS_COMPLEX_ARGUMENT) != 0;
 #endif /* ENABLED (JERRY_ESNEXT) */
+  bool is_strict = (context_p->next_scanner_info_p->u8_arg & SCANNER_FUNCTION_IS_STRICT) != 0;
 
   scanner_create_variables (context_p, SCANNER_CREATE_VARS_IS_FUNCTION_ARGS);
   scanner_set_active (context_p);
@@ -2099,6 +2100,11 @@ parser_parse_function_arguments (parser_context_t *context_p, /**< context */
 #endif /* ENABLED (JERRY_ESNEXT) */
 
   scanner_create_variables (context_p, SCANNER_CREATE_VARS_IS_FUNCTION_BODY);
+
+  if (is_strict)
+  {
+    context_p->status_flags |= PARSER_IS_STRICT;
+  }
 } /* parser_parse_function_arguments */
 
 #ifndef JERRY_NDEBUG
@@ -2264,6 +2270,14 @@ parser_parse_source (const uint8_t *arg_list_p, /**< function argument list */
   context.module_current_node_p = NULL;
 #endif /* ENABLED (JERRY_MODULE_SYSTEM) */
 
+  JERRY_ASSERT (context.next_scanner_info_p->source_p == context.source_p);
+  JERRY_ASSERT (context.next_scanner_info_p->type == SCANNER_TYPE_FUNCTION);
+
+  if (context.next_scanner_info_p->u8_arg & SCANNER_FUNCTION_IS_STRICT)
+  {
+    context.status_flags |= PARSER_IS_STRICT;
+  }
+
   PARSER_TRY (context.try_buffer)
   {
     /* Pushing a dummy value ensures the stack is never empty.
diff --git a/jerry-core/parser/js/js-scanner-util.c b/jerry-core/parser/js/js-scanner-util.c
index 75eec3d52..e28e1dfc7 100644
--- a/jerry-core/parser/js/js-scanner-util.c
+++ b/jerry-core/parser/js/js-scanner-util.c
@@ -775,6 +775,11 @@ scanner_pop_literal_pool (parser_context_t *context_p, /**< context */
       {
         u8_arg |= SCANNER_FUNCTION_LEXICAL_ENV_NEEDED;
       }
+
+      if (status_flags & SCANNER_LITERAL_POOL_IS_STRICT)
+      {
+        u8_arg |= SCANNER_FUNCTION_IS_STRICT;
+      }
 #endif /* ENABLED (JERRY_ESNEXT) */
 
       info_p->u8_arg = u8_arg;
diff --git a/jerry-core/parser/js/js-scanner.h b/jerry-core/parser/js/js-scanner.h
index 0ed07975b..9608ba78f 100644
--- a/jerry-core/parser/js/js-scanner.h
+++ b/jerry-core/parser/js/js-scanner.h
@@ -236,6 +236,7 @@ typedef enum
                                           *   this flag must be combined with the type of function (e.g. async) */
   SCANNER_FUNCTION_ASYNC = (1 << 4), /**< function is async function */
 #endif /* ENABLED (JERRY_ESNEXT) */
+  SCANNER_FUNCTION_IS_STRICT = (1 << 5), /**< function is strict */
 } scanner_function_flags_t;
 
 /**
diff --git a/tests/test262-es6-excludelist.xml b/tests/test262-es6-excludelist.xml
index 466ff92e0..0c124489f 100644
--- a/tests/test262-es6-excludelist.xml
+++ b/tests/test262-es6-excludelist.xml
@@ -302,7 +302,6 @@
   <test id="language/expressions/tagged-template/cache-identical-source-new-function.js"><reason></reason></test>
   <test id="language/line-terminators/S7.3_A2.3.js"><reason>No longer a SyntaxError in ES11</reason></test>
   <test id="language/line-terminators/S7.3_A2.4.js"><reason>No longer a SyntaxError in ES11</reason></test>
-  <test id="language/literals/string/7.8.4-1-s.js"><reason></reason></test>
   <test id="language/module-code/export-unresolvable.js"><reason></reason></test>
   <test id="language/statements/class/definition/this-check-ordering.js"><reason></reason></test>
   <test id="language/statements/class/syntax/early-errors/class-body-static-method-get-propname-prototype.js"><reason></reason></test>