diff --git a/lisp/org-element-ast.el b/lisp/org-element-ast.el
index 4c1391ec4..fba6b37e6 100644
--- a/lisp/org-element-ast.el
+++ b/lisp/org-element-ast.el
@@ -1131,8 +1131,11 @@ The function takes care of setting `:parent' property for NEW."
 	    (eq new-type 'plain-text))
         ;; We cannot replace OLD with NEW since strings are not mutable.
         ;; We take the long path.
-        (progn (org-element-insert-before new old)
-	       (org-element-extract old))
+        (progn
+          (org-element-insert-before new old)
+	  (org-element-extract old)
+          ;; We will return OLD.
+          (setq old new))
       ;; Since OLD is going to be changed into NEW by side-effect, first
       ;; make sure that every element or object within NEW has OLD as
       ;; parent.
diff --git a/testing/lisp/test-org-element.el b/testing/lisp/test-org-element.el
index 93754bae5..23d3d695c 100644
--- a/testing/lisp/test-org-element.el
+++ b/testing/lisp/test-org-element.el
@@ -755,6 +755,15 @@ Some other text
 		   (text (org-element-map tree 'plain-text 'identity nil t)))
 	      (org-element-set text "b")
 	      (org-element-map tree 'plain-text 'identity nil t)))))
+  ;; Replace string inside anonymous element with another string.
+  (let* ((parent (org-element-create 'anonymous nil "test"))
+	 (str (car (org-element-contents parent))))
+    (let ((return (org-element-set str "repl"))
+          (new (car (org-element-contents parent))))
+      ;; Return the modified value.
+      (should (eq return new))
+      (should (equal new "repl"))
+      (should (eq (org-element-parent new) parent))))
   ;; KEEP-PROPS
   (should
    (org-element-property