diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 33a60b1b93b..c07d3c43600 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,5 +1,9 @@
 2005-03-28  Jan Hubicka  <jh@suse.cz>
 
+	PR middle-end/20635
+	* varasm.c (mark_decl_referenced): Do not mark extern inline functions
+	as needed.
+
 	* tree-inline.c (estimate_num_insns_1): Use declaration to discover argument
 	types where possible.
 
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 447cf20a20e..9e7efa7f4d8 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,9 @@
+2005-03-28  Jan Hubicka  <jh@suse.cz>
+
+	PR middle-end/20635
+	* compile/gcc.c-torture/compile/20050328-1.c: New testcase made
+	by Jakub Jelinek.
+
 2005-03-27  Dorit Naishlos  <dorit@il.ibm.com>
 
 	PR tree-optimization/20626
diff --git a/gcc/testsuite/gcc.c-torture/compile/20050328-1.c b/gcc/testsuite/gcc.c-torture/compile/20050328-1.c
new file mode 100644
index 00000000000..a68574f1fbd
--- /dev/null
+++ b/gcc/testsuite/gcc.c-torture/compile/20050328-1.c
@@ -0,0 +1,24 @@
+void fn1 (void *);
+void fn2 (void *);
+void foo (void);
+void bar (void);
+
+extern inline void *
+baz (void)
+{
+  return 0;
+}
+
+void
+foo (void)
+{
+  fn1 (baz ());
+  fn2 (baz ());
+}
+
+void
+bar (void)
+{
+  fn1 (baz ());
+  fn2 (baz);
+}
diff --git a/gcc/varasm.c b/gcc/varasm.c
index 9a04cd51ab3..c174eb41414 100644
--- a/gcc/varasm.c
+++ b/gcc/varasm.c
@@ -1877,7 +1877,11 @@ void
 mark_decl_referenced (tree decl)
 {
   if (TREE_CODE (decl) == FUNCTION_DECL)
-    cgraph_mark_needed_node (cgraph_node (decl));
+    {
+      /* Extern inline functions don't become needed when referenced.  */
+      if (!DECL_EXTERNAL (decl))
+        cgraph_mark_needed_node (cgraph_node (decl));
+    }
   else if (TREE_CODE (decl) == VAR_DECL)
     cgraph_varpool_mark_needed_node (cgraph_varpool_node (decl));
   /* else do nothing - we can get various sorts of CST nodes here,