diff --git a/core/procedures.js b/core/procedures.js
index 02574c812..60b29f36b 100644
--- a/core/procedures.js
+++ b/core/procedures.js
@@ -92,6 +92,8 @@ Blockly.Procedures.procTupleComparator_ = function(ta, tb) {
 
 /**
  * Ensure two identically-named procedures don't exist.
+ * Take the proposed procedure name, and return a legal name i.e. one that
+ * is not empty and doesn't collide with other procedures.
  * @param {string} name Proposed procedure name.
  * @param {!Blockly.Block} block Block to disambiguate.
  * @return {string} Non-colliding name.
@@ -101,6 +103,7 @@ Blockly.Procedures.findLegalName = function(name, block) {
     // Flyouts can have multiple procedures called 'do something'.
     return name;
   }
+  name = name || Blockly.Msg['UNNAMED_KEY'];
   while (!Blockly.Procedures.isLegalName_(name, block.workspace, block)) {
     // Collision with another procedure.
     var r = name.match(/^(.*?)(\d+)$/);
@@ -162,7 +165,6 @@ Blockly.Procedures.rename = function(name) {
   // Strip leading and trailing whitespace.  Beyond this, all names are legal.
   name = name.trim();
 
-  // Ensure two identically-named procedures don't exist.
   var legalName = Blockly.Procedures.findLegalName(name, this.getSourceBlock());
   var oldName = this.getValue();
   if (oldName != name && oldName != legalName) {
diff --git a/msg/messages.js b/msg/messages.js
index 1669f6abd..2369fd9d5 100644
--- a/msg/messages.js
+++ b/msg/messages.js
@@ -71,6 +71,9 @@ Blockly.Msg.PROCEDURES_HUE = '290';
 /// For more context, see
 /// [[Translating:Blockly#infrequent_message_types]].\n{{Identical|Item}}
 Blockly.Msg.VARIABLES_DEFAULT_NAME = 'item';
+/// default name - A simple, default name for an unnamed function or
+// variable. Preferably indicates that the key is unnamed.
+Blockly.Msg.UNNAMED_KEY = 'unnamed';
 /// button text - Button that sets a calendar to today's date.\n{{Identical|Today}}
 Blockly.Msg.TODAY = 'Today';
 
diff --git a/tests/mocha/procedures_test.js b/tests/mocha/procedures_test.js
index 4ab7db058..3dd048ae6 100644
--- a/tests/mocha/procedures_test.js
+++ b/tests/mocha/procedures_test.js
@@ -165,16 +165,15 @@ suite('Procedures', function() {
 
         defInput.htmlInput_.value = '';
         defInput.onHtmlInputChange_(null);
-        chai.assert.equal(this.defBlock.getFieldValue('NAME'), '');
-        chai.assert.equal(this.callBlock.getFieldValue('NAME'), '');
+        chai.assert.equal(
+            this.defBlock.getFieldValue('NAME'),
+            Blockly.Msg['UNNAMED_KEY']);
+        chai.assert.equal(
+            this.callBlock.getFieldValue('NAME'),
+            Blockly.Msg['UNNAMED_KEY']);
       }, 'start name');
     });
-    // TODO: Procedures do not handle having no name correctly. It is a
-    //  problem with newly created procedure blocks having '' as the
-    //  oldName, just like empty procedures. The renameProcedure function
-    //  gets confused when a procedure's name is initially set. This is
-    //  basically #503 again.
-    test.skip('Set Empty, and Create New', function() {
+    test('Set Empty, and Create New', function() {
       this.callForAllTypes(function() {
         var defInput = this.defBlock.getField('NAME');
         defInput.htmlInput_ = Object.create(null);
@@ -185,8 +184,12 @@ suite('Procedures', function() {
         defInput.onHtmlInputChange_(null);
         var newDefBlock = new Blockly.Block(this.workspace, this.defType);
         newDefBlock.setFieldValue('new name', 'NAME');
-        chai.assert.equal(this.defBlock.getFieldValue('NAME'), '');
-        chai.assert.equal(this.callBlock.getFieldValue('NAME'), '');
+        chai.assert.equal(
+            this.defBlock.getFieldValue('NAME'),
+            Blockly.Msg['UNNAMED_KEY']);
+        chai.assert.equal(
+            this.callBlock.getFieldValue('NAME'),
+            Blockly.Msg['UNNAMED_KEY']);
 
         newDefBlock.dispose();
       }, 'start name');