diff --git a/src/lfortran/parser/fixedform_tokenizer.cpp b/src/lfortran/parser/fixedform_tokenizer.cpp
index a45d549aec..6bbd9defea 100644
--- a/src/lfortran/parser/fixedform_tokenizer.cpp
+++ b/src/lfortran/parser/fixedform_tokenizer.cpp
@@ -994,6 +994,12 @@ struct FixedFormRecursiveDescent {
             return true;
         }
 
+        if (next_is(cur, "exit")) {
+            push_token_advance(cur, "exit");
+            tokenize_line(cur);
+            return true;
+        }
+
         if (next_is(cur, "goto")) {
             push_token_advance(cur, "goto");
             tokenize_line(cur);
diff --git a/tests/fixed_form_with_exit.f b/tests/fixed_form_with_exit.f
new file mode 100644
index 0000000000..276881ce30
--- /dev/null
+++ b/tests/fixed_form_with_exit.f
@@ -0,0 +1,6 @@
+        SUBROUTINE EXAMPLE
+        INTEGER I
+        DO I = 2, 8
+        IF (I == 2) EXIT
+        END DO
+        END
\ No newline at end of file
diff --git a/tests/reference/ast-fixed_form_with_exit-0c669e6.json b/tests/reference/ast-fixed_form_with_exit-0c669e6.json
new file mode 100644
index 0000000000..15dc8c1b39
--- /dev/null
+++ b/tests/reference/ast-fixed_form_with_exit-0c669e6.json
@@ -0,0 +1,13 @@
+{
+    "basename": "ast-fixed_form_with_exit-0c669e6",
+    "cmd": "lfortran --fixed-form --show-ast --no-color {infile} -o {outfile}",
+    "infile": "tests/fixed_form_with_exit.f",
+    "infile_hash": "96d9aae99e4783183d44514eb3229ae1d1879847d4722d605ae687f6",
+    "outfile": null,
+    "outfile_hash": null,
+    "stdout": "ast-fixed_form_with_exit-0c669e6.stdout",
+    "stdout_hash": "438fb8012f29766becc2f526e72e71043772617a0ae5c81a28566eb8",
+    "stderr": null,
+    "stderr_hash": null,
+    "returncode": 0
+}
\ No newline at end of file
diff --git a/tests/reference/ast-fixed_form_with_exit-0c669e6.stdout b/tests/reference/ast-fixed_form_with_exit-0c669e6.stdout
new file mode 100644
index 0000000000..d81042b46a
--- /dev/null
+++ b/tests/reference/ast-fixed_form_with_exit-0c669e6.stdout
@@ -0,0 +1,57 @@
+(TranslationUnit
+    [(Subroutine
+        example
+        []
+        []
+        ()
+        ()
+        []
+        []
+        []
+        [(Declaration
+            (AttrType
+                TypeInteger
+                []
+                ()
+                ()
+                None
+            )
+            []
+            [(i
+            []
+            []
+            ()
+            ()
+            None
+            ())]
+            ()
+        )]
+        [(DoLoop
+            0
+            ()
+            0
+            i
+            2
+            8
+            ()
+            [(If
+                0
+                ()
+                (== i 2)
+                [(Exit
+                    0
+                    ()
+                    ()
+                )]
+                []
+                ()
+                ()
+                ()
+            )]
+            ()
+            ()
+        )]
+        []
+        []
+    )]
+)
diff --git a/tests/tests.toml b/tests/tests.toml
index 9a00785e45..7797d57ecd 100644
--- a/tests/tests.toml
+++ b/tests/tests.toml
@@ -2628,6 +2628,10 @@ ast = true
 filename = "fixed_form_without_newline.f"
 ast = true
 
+[[test]]
+filename = "fixed_form_with_exit.f"
+ast = true
+
 [[test]]
 filename = "fixedform_doloop.f"
 ast = true