diff --git a/bfd/ChangeLog b/bfd/ChangeLog
index 0fb40788f6..b4e0a1d4a3 100644
--- a/bfd/ChangeLog
+++ b/bfd/ChangeLog
@@ -1,3 +1,8 @@
+2007-08-28  David Heine  <dlheine@tensilica.com>
+
+	* elf32-xtensa.c (compute_ebb_actions): Update removed_bytes when
+	narrowing instructions.
+
 2007-08-28  Mark Shinwell  <shinwell@codesourcery.com>
             Joseph Myers  <joseph@codesourcery.com>
 
diff --git a/bfd/elf32-xtensa.c b/bfd/elf32-xtensa.c
index 2531df5810..2ade49f0dd 100644
--- a/bfd/elf32-xtensa.c
+++ b/bfd/elf32-xtensa.c
@@ -6926,6 +6926,8 @@ compute_ebb_actions (ebb_constraint *ebb_table)
 		      bad_alignment = FALSE;
 		      break;
 		    }
+		  if (new_action->do_action)
+		    removed_bytes += new_action->removed_bytes;
 		}
 	      if (!bad_alignment)
 		{