diff --git a/Misc/ACKS b/Misc/ACKS
index b671d61ddf5..d0850636aab 100644
--- a/Misc/ACKS
+++ b/Misc/ACKS
@@ -601,6 +601,7 @@ Amos Latteier
 Piers Lauder
 Ben Laurie
 Simon Law
+Julia Lawall
 Chris Lawrence
 Brian Leair
 Mathieu Leduc-Hamel
diff --git a/Misc/NEWS b/Misc/NEWS
index 35c4a44b405..7baa57fa99e 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -10,6 +10,9 @@ What's New in Python 3.3.0 Beta 2?
 Core and Builtins
 -----------------
 
+- Issue #15394: An issue in PyModule_Create that caused references to
+  be leaked on some error paths has been fixed.  Patch by Julia Lawall.
+
 - Issue #15368: An issue that caused bytecode generation to be
   non-deterministic has been fixed.
 
diff --git a/Objects/moduleobject.c b/Objects/moduleobject.c
index d50b2b23363..2f2bd36b55d 100644
--- a/Objects/moduleobject.c
+++ b/Objects/moduleobject.c
@@ -126,8 +126,10 @@ PyModule_Create2(struct PyModuleDef* module, int module_api_version)
     d = PyModule_GetDict((PyObject*)m);
     if (module->m_methods != NULL) {
         n = PyUnicode_FromString(name);
-        if (n == NULL)
+        if (n == NULL) {
+            Py_DECREF(m);
             return NULL;
+        }
         for (ml = module->m_methods; ml->ml_name != NULL; ml++) {
             if ((ml->ml_flags & METH_CLASS) ||
                 (ml->ml_flags & METH_STATIC)) {
@@ -135,16 +137,19 @@ PyModule_Create2(struct PyModuleDef* module, int module_api_version)
                                 "module functions cannot set"
                                 " METH_CLASS or METH_STATIC");
                 Py_DECREF(n);
+                Py_DECREF(m);
                 return NULL;
             }
             v = PyCFunction_NewEx(ml, (PyObject*)m, n);
             if (v == NULL) {
                 Py_DECREF(n);
+                Py_DECREF(m);
                 return NULL;
             }
             if (PyDict_SetItemString(d, ml->ml_name, v) != 0) {
                 Py_DECREF(v);
                 Py_DECREF(n);
+                Py_DECREF(m);
                 return NULL;
             }
             Py_DECREF(v);
@@ -155,6 +160,7 @@ PyModule_Create2(struct PyModuleDef* module, int module_api_version)
         v = PyUnicode_FromString(module->m_doc);
         if (v == NULL || PyDict_SetItemString(d, "__doc__", v) != 0) {
             Py_XDECREF(v);
+            Py_DECREF(m);
             return NULL;
         }
         Py_DECREF(v);