diff --git a/stdlib/LinearAlgebra/src/diagonal.jl b/stdlib/LinearAlgebra/src/diagonal.jl
index aabfb3e8ba114..17ff232f5b262 100644
--- a/stdlib/LinearAlgebra/src/diagonal.jl
+++ b/stdlib/LinearAlgebra/src/diagonal.jl
@@ -686,16 +686,33 @@ for Tri in (:UpperTriangular, :LowerTriangular)
 end
 
 @inline function kron!(C::AbstractMatrix, A::Diagonal, B::Diagonal)
-    valA = A.diag; nA = length(valA)
-    valB = B.diag; nB = length(valB)
+    valA = A.diag; mA, nA = size(A)
+    valB = B.diag; mB, nB = size(B)
     nC = checksquare(C)
     @boundscheck nC == nA*nB ||
         throw(DimensionMismatch(lazy"expect C to be a $(nA*nB)x$(nA*nB) matrix, got size $(nC)x$(nC)"))
-    isempty(A) || isempty(B) || fill!(C, zero(A[1,1] * B[1,1]))
+    zerofilled = false
+    if !(isempty(A) || isempty(B))
+        z = A[1,1] * B[1,1]
+        if haszero(typeof(z))
+            # in this case, the zero is unique
+            fill!(C, zero(z))
+            zerofilled = true
+        end
+    end
     @inbounds for i = 1:nA, j = 1:nB
         idx = (i-1)*nB+j
         C[idx, idx] = valA[i] * valB[j]
     end
+    if !zerofilled
+        for j in 1:nA, i in 1:mA
+            Δrow, Δcol = (i-1)*mB, (j-1)*nB
+            for k in 1:nB, l in 1:mB
+                i == j && k == l && continue
+                C[Δrow + l, Δcol + k] = A[i,j] * B[l,k]
+            end
+        end
+    end
     return C
 end
 
@@ -722,7 +739,15 @@ end
     (mC, nC) = size(C)
     @boundscheck (mC, nC) == (mA * mB, nA * nB) ||
         throw(DimensionMismatch(lazy"expect C to be a $(mA * mB)x$(nA * nB) matrix, got size $(mC)x$(nC)"))
-    isempty(A) || isempty(B) || fill!(C, zero(A[1,1] * B[1,1]))
+    zerofilled = false
+    if !(isempty(A) || isempty(B))
+        z = A[1,1] * B[1,1]
+        if haszero(typeof(z))
+            # in this case, the zero is unique
+            fill!(C, zero(z))
+            zerofilled = true
+        end
+    end
     m = 1
     @inbounds for j = 1:nA
         A_jj = A[j,j]
@@ -733,6 +758,18 @@ end
             end
             m += (nA - 1) * mB
         end
+        if !zerofilled
+            # populate the zero elements
+            for i in 1:mA
+                i == j && continue
+                A_ij = A[i, j]
+                Δrow, Δcol = (i-1)*mB, (j-1)*nB
+                for k in 1:nB, l in 1:nA
+                    B_lk = B[l, k]
+                    C[Δrow + l, Δcol + k] = A_ij * B_lk
+                end
+            end
+        end
         m += mB
     end
     return C
@@ -745,17 +782,36 @@ end
     (mC, nC) = size(C)
     @boundscheck (mC, nC) == (mA * mB, nA * nB) ||
         throw(DimensionMismatch(lazy"expect C to be a $(mA * mB)x$(nA * nB) matrix, got size $(mC)x$(nC)"))
-    isempty(A) || isempty(B) || fill!(C, zero(A[1,1] * B[1,1]))
+    zerofilled = false
+    if !(isempty(A) || isempty(B))
+        z = A[1,1] * B[1,1]
+        if haszero(typeof(z))
+            # in this case, the zero is unique
+            fill!(C, zero(z))
+            zerofilled = true
+        end
+    end
     m = 1
     @inbounds for j = 1:nA
         for l = 1:mB
             Bll = B[l,l]
-            for k = 1:mA
-                C[m] = A[k,j] * Bll
+            for i = 1:mA
+                C[m] = A[i,j] * Bll
                 m += nB
             end
             m += 1
         end
+        if !zerofilled
+            for i in 1:mA
+                A_ij = A[i, j]
+                Δrow, Δcol = (i-1)*mB, (j-1)*nB
+                for k in 1:nB, l in 1:mB
+                    l == k && continue
+                    B_lk = B[l, k]
+                    C[Δrow + l, Δcol + k] = A_ij * B_lk
+                end
+            end
+        end
         m -= nB
     end
     return C
diff --git a/stdlib/LinearAlgebra/test/diagonal.jl b/stdlib/LinearAlgebra/test/diagonal.jl
index f7a9ccb705de9..8b56ee15e56e3 100644
--- a/stdlib/LinearAlgebra/test/diagonal.jl
+++ b/stdlib/LinearAlgebra/test/diagonal.jl
@@ -1391,4 +1391,14 @@ end
     @test checkbounds(Bool, D, diagind(D, IndexCartesian()))
 end
 
+@testset "zeros in kron with block matrices" begin
+    D = Diagonal(1:2)
+    B = reshape([ones(2,2), ones(3,2), ones(2,3), ones(3,3)], 2, 2)
+    @test kron(D, B) == kron(Array(D), B)
+    @test kron(B, D) == kron(B, Array(D))
+    D2 = Diagonal([ones(2,2), ones(3,3)])
+    @test kron(D, D2) == kron(D, Array{eltype(D2)}(D2))
+    @test kron(D2, D) == kron(Array{eltype(D2)}(D2), D)
+end
+
 end # module TestDiagonal