diff --git a/libsolidity/analysis/SyntaxChecker.cpp b/libsolidity/analysis/SyntaxChecker.cpp
index 12e148641..066b5004f 100644
--- a/libsolidity/analysis/SyntaxChecker.cpp
+++ b/libsolidity/analysis/SyntaxChecker.cpp
@@ -114,7 +114,7 @@ bool SyntaxChecker::visit(PragmaDirective const& _pragma)
 		vector<string> literals(_pragma.literals().begin() + 1, _pragma.literals().end());
 		SemVerMatchExpressionParser parser(tokens, literals);
 		auto matchExpression = parser.parse();
-		SemVerVersion currentVersion{string(VersionString)};
+		static SemVerVersion const currentVersion{string(VersionString)};
 		if (!matchExpression.matches(currentVersion))
 			m_errorReporter.syntaxError(
 				_pragma.location(),
diff --git a/libsolidity/parsing/Parser.cpp b/libsolidity/parsing/Parser.cpp
index 9de2146e3..bcb28988f 100644
--- a/libsolidity/parsing/Parser.cpp
+++ b/libsolidity/parsing/Parser.cpp
@@ -22,6 +22,8 @@
 
 #include <libsolidity/parsing/Parser.h>
 
+#include <libsolidity/analysis/SemVerHandler.h>
+#include <libsolidity/interface/Version.h>
 #include <libyul/AsmParser.h>
 #include <libyul/backends/evm/EVMDialect.h>
 #include <liblangutil/ErrorReporter.h>
@@ -106,6 +108,20 @@ ASTPointer<SourceUnit> Parser::parse(shared_ptr<Scanner> const& _scanner)
 	}
 }
 
+void Parser::parsePragmaVersion(vector<Token> const& tokens, vector<string> const& literals)
+{
+	SemVerMatchExpressionParser parser(tokens, literals);
+	auto matchExpression = parser.parse();
+	static SemVerVersion const currentVersion{string(VersionString)};
+	// FIXME: only match for major version incompatibility
+	if (!matchExpression.matches(currentVersion))
+		fatalParserError(
+			"Source file requires different compiler version (current compiler is " +
+			string(VersionString) + " - note that nightly builds are considered to be "
+			"strictly less than the released version"
+		);
+}
+
 ASTPointer<PragmaDirective> Parser::parsePragmaDirective()
 {
 	RecursionGuard recursionGuard(*this);
@@ -134,6 +150,15 @@ ASTPointer<PragmaDirective> Parser::parsePragmaDirective()
 	while (m_scanner->currentToken() != Token::Semicolon && m_scanner->currentToken() != Token::EOS);
 	nodeFactory.markEndPosition();
 	expectToken(Token::Semicolon);
+
+	if (literals.size() >= 2 && literals[0] == "solidity")
+	{
+		parsePragmaVersion(
+			vector<Token>(tokens.begin() + 1, tokens.end()),
+			vector<string>(literals.begin() + 1, literals.end())
+		);
+	}
+
 	return nodeFactory.createNode<PragmaDirective>(tokens, literals);
 }
 
diff --git a/libsolidity/parsing/Parser.h b/libsolidity/parsing/Parser.h
index 15852096a..bf02c626c 100644
--- a/libsolidity/parsing/Parser.h
+++ b/libsolidity/parsing/Parser.h
@@ -70,6 +70,7 @@ private:
 
 	///@{
 	///@name Parsing functions for the AST nodes
+	void parsePragmaVersion(std::vector<Token> const& tokens, std::vector<std::string> const& literals);
 	ASTPointer<PragmaDirective> parsePragmaDirective();
 	ASTPointer<ImportDirective> parseImportDirective();
 	ContractDefinition::ContractKind parseContractKind();
diff --git a/test/libsolidity/SolidityParser.cpp b/test/libsolidity/SolidityParser.cpp
index d86d3d397..619d6a48c 100644
--- a/test/libsolidity/SolidityParser.cpp
+++ b/test/libsolidity/SolidityParser.cpp
@@ -113,6 +113,15 @@ while(0)
 
 BOOST_AUTO_TEST_SUITE(SolidityParser)
 
+BOOST_AUTO_TEST_CASE(unsatisfied_version_followed_by_invalid_syntax)
+{
+	char const* text = R"(
+		pragma solidity ^99.99.0;
+		this is surely invalid
+	)";
+	CHECK_PARSE_ERROR(text, "Source file requires different compiler version");
+}
+
 BOOST_AUTO_TEST_CASE(function_natspec_documentation)
 {
 	char const* text = R"(