diff --git a/gcc/fortran/resolve.cc b/gcc/fortran/resolve.cc
index 0773d05bfc6..eda31ba8adc 100644
--- a/gcc/fortran/resolve.cc
+++ b/gcc/fortran/resolve.cc
@@ -2429,7 +2429,9 @@ resolve_elemental_actual (gfc_expr *expr, gfc_code *c)
 	  for (a = arg0; a; a = a->next)
 	    if (a != arg
 		&& a->expr->rank == arg->expr->rank
-		&& !a->expr->symtree->n.sym->attr.optional)
+		&& (a->expr->expr_type != EXPR_VARIABLE
+		    || (a->expr->expr_type == EXPR_VARIABLE
+			&& !a->expr->symtree->n.sym->attr.optional)))
 	      {
 		t = true;
 		break;
diff --git a/gcc/testsuite/gfortran.dg/pr95446.f90 b/gcc/testsuite/gfortran.dg/pr95446.f90
index 86e1019d7af..0787658813a 100644
--- a/gcc/testsuite/gfortran.dg/pr95446.f90
+++ b/gcc/testsuite/gfortran.dg/pr95446.f90
@@ -22,6 +22,20 @@ program elemental_optional
 
   end function outer
 
+  function outer_literal(o) result(l)
+    integer, intent(in), optional :: o(5)
+    integer :: l(5)
+
+    l = inner(o, [1,2,3,4,5])
+  end function outer_literal
+
+  function outer_func(o) result(l)
+    integer, intent(in), optional :: o(5)
+    integer :: l(5)
+
+    l = inner(o, outer())
+  end function outer_func
+
   elemental function inner(a,b) result(x)
     integer, intent(in), optional :: a
     integer, intent(in) :: b