diff --git a/Project.toml b/Project.toml
index 28b58d351..70a473743 100644
--- a/Project.toml
+++ b/Project.toml
@@ -1,7 +1,7 @@
 name = "GeometryOps"
 uuid = "3251bfac-6a57-4b6d-aa61-ac1fef2975ab"
 authors = ["Anshul Singhvi <anshulsinghvi@gmail.com>", "Rafael Schouten <rafaelschouten@gmail.com>", "Skylar Gering <skygering@gmail.com>", "and contributors"]
-version = "0.1.38"
+version = "0.1.39"
 
 [deps]
 AbstractTrees = "1520ce14-60c1-5f80-bbc7-55ef81b5835c"
diff --git a/src/methods/geom_relations/geom_geom_processors.jl b/src/methods/geom_relations/geom_geom_processors.jl
index 0049f993d..602c2588f 100644
--- a/src/methods/geom_relations/geom_geom_processors.jl
+++ b/src/methods/geom_relations/geom_geom_processors.jl
@@ -627,6 +627,7 @@ function _line_filled_curve_interactions(
                             elseif mid_val == point_out
                                 out_curve = true
                             end
+                            p_start = p_end
                         end
                         # already checked segment against whole filled curve
                         l_start = l_end
diff --git a/test/methods/geom_relations.jl b/test/methods/geom_relations.jl
index 4e3cb4622..42528eb50 100644
--- a/test/methods/geom_relations.jl
+++ b/test/methods/geom_relations.jl
@@ -57,6 +57,9 @@ p10 = LG.Polygon([
     [[0.15, 0.55], [0.15, 0.95], [0.55, 0.95], [0.55, 0.55], [0.15, 0.55]]
 ])
 p11 = LG.Polygon(r3)
+# Polygon with interior notch sharing collinear edges with a rectangle (issue #396)
+p12 = LG.Polygon([[[0.0, 0.0], [0.0, 4.0], [8.0, 4.0], [8.0, 0.0], [0.0, 0.0]]])
+p13 = LG.Polygon([[[0.0, 0.0], [0.0, 2.0], [7.0, 1.0], [7.0, 3.0], [0.0, 3.0], [0.0, 4.0], [8.0, 4.0], [8.0, 0.0], [0.0, 0.0]]])
 
 mpt1 = LG.MultiPoint([pt1, pt2])
 mpt2 = LG.MultiPoint([pt2, pt3])
@@ -157,6 +160,8 @@ test_pairs = [
     (p6, p1, "p6", "p1", "Polygon inside of other polygon's hole"),
     (p7, p1, "p7", "p1", "Polygons overlap"),
     (p10, p1, "p10", "p1", "Polygon's with nested holes"),
+    (p12, p13, "p12", "p13", "Rectangle with polygon with collinear notch (#396)"),
+    (p13, p12, "p13", "p12", "Polygon with collinear notch inside rectangle (#396)"),
     # Multigeometries
     (mpt1, mpt1, "mpt1", "mpt1", "Same set of points for multipoints"),
     (mpt1, mpt2, "mpt1", "mpt2", "Some point matches, others are different"),