diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 6aba36fde21..676400029bd 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,7 @@
+2003-03-26  Richard Henderson  <rth@redhat.com>
+
+	* c-decl.c (finish_function): Always defer if DECL_DECLARED_INLINE_P.
+
 2003-03-26  Roger Sayle  <roger@eyesopen.com>
 
 	PR bootstrap/10051, PR bootstrap/10169.
diff --git a/gcc/c-decl.c b/gcc/c-decl.c
index 52b42a18c06..d52823bde97 100644
--- a/gcc/c-decl.c
+++ b/gcc/c-decl.c
@@ -6460,8 +6460,13 @@ finish_function (nested, can_defer_p)
 	     function completely.  */
 	  timevar_push (TV_INTEGRATION);
 	  uninlinable = ! tree_inlinable_function_p (fndecl, 0);
-	  
-	  if (! uninlinable && can_defer_p
+
+	  if (can_defer_p
+	      /* We defer functions marked inline *even if* the function
+		 itself is not inlinable.  This is because we don't yet
+		 know if the function will actually be used; we may be
+		 able to avoid emitting it entirely.  */
+	      && (! uninlinable || DECL_DECLARED_INLINE_P (fndecl))
 	      /* Save function tree for inlining.  Should return 0 if the
 		 language does not support function deferring or the
 		 function could not be deferred.  */
diff --git a/gcc/testsuite/gcc.dg/inline-4.c b/gcc/testsuite/gcc.dg/inline-4.c
new file mode 100644
index 00000000000..2442f2d392d
--- /dev/null
+++ b/gcc/testsuite/gcc.dg/inline-4.c
@@ -0,0 +1,18 @@
+/* { dg-do compile } */
+/* { dg-options "-O2" } */
+/* { dg-final { scan-assembler-not "big_static_inline" } } */
+
+extern void f(void);
+static inline void big_static_inline(void)
+{
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+  f(); f(); f(); f(); f(); f(); f(); f(); f(); f();
+}