diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 0a55a09d350..9fd8ec897af 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,10 @@
+2016-01-27  Paul Thomas  <pault@gcc.gnu.org>
+
+	PR fortran/69385
+	* trans-expr.c (is_scalar_reallocatable_lhs): Remove the check
+	for allocatable components, whilst checking if the symbol is a
+	derived or class entity..
+
 2016-01-26  Paul Thomas  <pault@gcc.gnu.org>
 
 	PR fortran/69385
diff --git a/gcc/fortran/trans-expr.c b/gcc/fortran/trans-expr.c
index 5031a37a25a..c5ae4c53910 100644
--- a/gcc/fortran/trans-expr.c
+++ b/gcc/fortran/trans-expr.c
@@ -8901,10 +8901,11 @@ is_scalar_reallocatable_lhs (gfc_expr *expr)
 	&& !expr->ref)
     return true;
 
-  /* All that can be left are allocatable components.  */
-  if ((expr->symtree->n.sym->ts.type != BT_DERIVED
+  /* All that can be left are allocatable components.  However, we do
+     not check for allocatable components here because the expression
+     could be an allocatable component of a pointer component.  */
+  if (expr->symtree->n.sym->ts.type != BT_DERIVED
 	&& expr->symtree->n.sym->ts.type != BT_CLASS)
-	|| !expr->symtree->n.sym->ts.u.derived->attr.alloc_comp)
     return false;
 
   /* Find an allocatable component ref last.  */
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 1ee941396ce..e1e3868d18d 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2015-01-27  Paul Thomas  <pault@gcc.gnu.org>
+
+	PR fortran/69385
+	* gfortran.dg/alloc_comp_assign_15.f03: New test.
+
 2016-01-27  Jakub Jelinek  <jakub@redhat.com>
 
 	PR debug/66869
diff --git a/gcc/testsuite/gfortran.dg/alloc_comp_assign_15.f03 b/gcc/testsuite/gfortran.dg/alloc_comp_assign_15.f03
new file mode 100644
index 00000000000..94e04003151
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/alloc_comp_assign_15.f03
@@ -0,0 +1,32 @@
+! { dg-do run }
+!
+! Check the test for PR69422, in which the allocatable component 'Source'
+! of the pointer component 'P' was not automatically (re)allocated on
+! assignment.
+!
+! Contributed by Anthony Lewis  <antony@cosmologist.info>
+!
+module funcs
+  implicit none
+
+  Type T
+    character(LEN=:), allocatable :: source
+  end type T
+
+  type TPointer
+    Type(T), pointer :: P
+  end type TPointer
+
+end module
+
+program Test1
+  use funcs
+  Type(TPointer) :: X
+
+  allocate(X%P)
+
+  X%P%Source = 'test string'
+  if (.not.allocated (X%P%Source)) call abort
+  if (X%P%Source .ne. 'test string') call abort
+
+end program Test1