diff --git a/gcc/cp/pt.cc b/gcc/cp/pt.cc
index a77b3166818..3cf1d7af8d2 100644
--- a/gcc/cp/pt.cc
+++ b/gcc/cp/pt.cc
@@ -12682,7 +12682,13 @@ gen_elem_of_pack_expansion_instantiation (tree pattern,
     t = tsubst_expr (pattern, args, complain, in_decl,
 		     /*integral_constant_expression_p=*/false);
   else
-    t = tsubst (pattern, args, complain, in_decl);
+    {
+      t = tsubst (pattern, args, complain, in_decl);
+      if (is_auto (t) && !ith_elem_is_expansion)
+	/* When expanding the fake auto... pack expansion from add_capture, we
+	   need to mark that the expansion is no longer a pack.  */
+	TEMPLATE_TYPE_PARAMETER_PACK (t) = false;
+    }
 
   /*  If the Ith argument pack element is a pack expansion, then
       the Ith element resulting from the substituting is going to
diff --git a/gcc/testsuite/g++.dg/cpp2a/lambda-pack-init7.C b/gcc/testsuite/g++.dg/cpp2a/lambda-pack-init7.C
new file mode 100644
index 00000000000..f3c3899e97a
--- /dev/null
+++ b/gcc/testsuite/g++.dg/cpp2a/lambda-pack-init7.C
@@ -0,0 +1,18 @@
+// PR c++/102629
+// { dg-do compile { target c++20 } }
+
+template <class T> T&& forward(T&);
+template <class T> T&& forward(T&&);
+
+struct S {};
+
+template <typename... Args>
+void foo(Args&&... args) {
+  [...args = forward<Args> /*(args)*/] { // { dg-error "" }
+    [](auto...) { } (forward<Args>(args)...);
+  };
+}
+
+void bar( ) {
+  foo(S{});
+}