diff --git a/svsim/src/main/resources/simulation-driver.cpp b/svsim/src/main/resources/simulation-driver.cpp
index 98e76f4454..dcbe1e1098 100644
--- a/svsim/src/main/resources/simulation-driver.cpp
+++ b/svsim/src/main/resources/simulation-driver.cpp
@@ -71,7 +71,7 @@ void initTestBenchScope() { testbenchScope = svGetScope(); }
 #ifdef __cplusplus
 extern "C" {
 #endif
-extern void run_simulation(int timesteps);
+extern int run_simulation(int timesteps);
 extern void simulation_main(int argc, const char **argv);
 #ifdef __cplusplus
 }
@@ -672,7 +672,8 @@ static void processCommand() {
     if (*lineCursor != '\n') {
       failWithError("Unexpected data at end of RUN command.");
     }
-    run_simulation(time);
+    if (run_simulation(time))
+      receivedDone = true;
 
     sendAck();
     break;
@@ -757,9 +758,15 @@ static void processCommand() {
       }
 
       (*tickingPort.setter)(inPhaseValue);
-      run_simulation(timestepsPerPhase);
+      if (run_simulation(timestepsPerPhase)) {
+        receivedDone = true;
+        break;
+      }
       (*tickingPort.setter)(outOfPhaseValue);
-      run_simulation(timestepsPerPhase);
+      if (run_simulation(timestepsPerPhase)) {
+        receivedDone = true;
+        break;
+      }
     }
 
     cycles--; // Consume the unbalanced increment from the while condition
@@ -926,16 +933,18 @@ void simulation_main(int argc, char const **argv) {
   delete context;
 }
 
-void run_simulation(int delay) {
+int run_simulation(int delay) {
   if(!delay) {
     testbench->eval_step();
-    return;
+    return context->gotFinish();
   }
   testbench->eval();
+  if (context->gotFinish())
+    return context->gotFinish();
   context->timeInc(delay);
+  return 0;
 }
 
 } // extern "C"
 
 #endif // SVSIM_ENABLE_VERILATOR_SUPPORT
-
diff --git a/svsim/src/main/scala/Workspace.scala b/svsim/src/main/scala/Workspace.scala
index 09e09d9b4c..091bfb5780 100644
--- a/svsim/src/main/scala/Workspace.scala
+++ b/svsim/src/main/scala/Workspace.scala
@@ -150,10 +150,12 @@ final class Workspace(
       l("  export \"DPI-C\" task run_simulation;")
       l("  task run_simulation;")
       l("    input int timesteps;")
+      l("    output int done;")
       l("    #timesteps;")
+      l("    done = 0;")
       l("  endtask")
       l("  `else")
-      l("  import \"DPI-C\" function void run_simulation(int timesteps);")
+      l("  import \"DPI-C\" function int run_simulation(int timesteps);")
       l("  `endif")
       l()
 
diff --git a/svsim/src/test/resources/Finish.sv b/svsim/src/test/resources/Finish.sv
new file mode 100644
index 0000000000..1af580af6b
--- /dev/null
+++ b/svsim/src/test/resources/Finish.sv
@@ -0,0 +1,6 @@
+module Finish(input clock);
+
+  always @ (posedge clock)
+    $finish;
+
+endmodule
diff --git a/svsim/src/test/scala/BackendSpec.scala b/svsim/src/test/scala/BackendSpec.scala
index 3dce2d9407..7b23bb573c 100644
--- a/svsim/src/test/scala/BackendSpec.scala
+++ b/svsim/src/test/scala/BackendSpec.scala
@@ -298,6 +298,39 @@ trait BackendSpec extends AnyFunSpec with Matchers {
           }
         }
       }
+
+      it("ends the simulation on '$finish' (#4700)") {
+        workspace.reset()
+        workspace.elaborateFinishTest()
+        workspace.generateAdditionalSources()
+        simulation = workspace.compile(
+          backend
+        )(
+          workingDirectoryTag = name,
+          commonSettings = CommonCompilationSettings(),
+          backendSpecificSettings = compilationSettings,
+          customSimulationWorkingDirectory = None,
+          verbose = false
+        )
+        simulation.run(
+          verbose = false,
+          executionScriptLimit = None
+        ) { controller =>
+          val clock = controller.port("clock")
+          clock.tick(
+            inPhaseValue = 0,
+            outOfPhaseValue = 1,
+            timestepsPerPhase = 1,
+            maxCycles = 8,
+            sentinel = None
+          )
+        }
+        val re = ".*Verilog \\$finish.*".r
+        new BufferedReader(new FileReader(s"${simulation.workingDirectoryPath}/simulation-log.txt")).lines
+          .filter(re.matches(_))
+          .toArray
+          .size must be(1)
+      }
     }
   }
 }
diff --git a/svsim/src/test/scala/Resources.scala b/svsim/src/test/scala/Resources.scala
index c4ad8e9719..d9febdb12a 100644
--- a/svsim/src/test/scala/Resources.scala
+++ b/svsim/src/test/scala/Resources.scala
@@ -131,5 +131,20 @@ object Resources {
         )
       )
     }
+    def elaborateFinishTest(): Unit = {
+      workspace.addPrimarySourceFromResource(getClass, "/Finish.sv")
+      workspace.elaborate(
+        ModuleInfo(
+          name = "Finish",
+          ports = Seq(
+            new ModuleInfo.Port(
+              name = "clock",
+              isSettable = true,
+              isGettable = false
+            )
+          )
+        )
+      )
+    }
   }
 }