diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 216f6eec668..b60efcf4821 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2018-12-06  Jakub Jelinek  <jakub@redhat.com>
+
+	PR fortran/88304
+	* tree-nested.c (convert_nonlocal_reference_stmt): Remove clobbers
+	for non-local automatic decls.
+
 2018-12-05  David Edelsohn  <dje.gcc@gmail.com>
 
 	* config/rs6000/aix72.h (ASM_DEFAULT_SPEC): Match Power7 processor
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 76c44a6ffba..bc5bf6720ec 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2018-12-06  Jakub Jelinek  <jakub@redhat.com>
+
+	PR fortran/88304
+	* gfortran.fortran-torture/compile/pr88304.f90: New test.
+
 2018-12-06  Richard Biener  <rguenther@suse.de>
 
 	PR middle-end/63184
diff --git a/gcc/testsuite/gfortran.fortran-torture/compile/pr88304.f90 b/gcc/testsuite/gfortran.fortran-torture/compile/pr88304.f90
new file mode 100644
index 00000000000..fb69b8c9918
--- /dev/null
+++ b/gcc/testsuite/gfortran.fortran-torture/compile/pr88304.f90
@@ -0,0 +1,24 @@
+! PR fortran/88304
+
+module pr88304
+  implicit none
+  type t
+     integer :: b = -1
+  end type t
+contains
+  subroutine f1 (x, y)
+    integer, intent(out) :: x, y
+    x = 5
+    y = 6
+  end subroutine f1
+  subroutine f2 ()
+    type(t) :: x
+    integer :: y
+    call f3
+    if (x%b .ne. 5 .or. y .ne. 6) stop 1
+  contains
+    subroutine f3
+      call f1 (x%b, y)
+    end subroutine f3
+  end subroutine f2
+end module pr88304
diff --git a/gcc/tree-nested.c b/gcc/tree-nested.c
index 3ab60a78015..ea542466574 100644
--- a/gcc/tree-nested.c
+++ b/gcc/tree-nested.c
@@ -1648,6 +1648,21 @@ convert_nonlocal_reference_stmt (gimple_stmt_iterator *gsi, bool *handled_ops_p,
       *handled_ops_p = false;
       return NULL_TREE;
 
+    case GIMPLE_ASSIGN:
+      if (gimple_clobber_p (stmt))
+	{
+	  tree lhs = gimple_assign_lhs (stmt);
+	  if (DECL_P (lhs)
+	      && !(TREE_STATIC (lhs) || DECL_EXTERNAL (lhs))
+	      && decl_function_context (lhs) != info->context)
+	    {
+	      gsi_replace (gsi, gimple_build_nop (), true);
+	      break;
+	    }
+	}
+      *handled_ops_p = false;
+      return NULL_TREE;
+
     default:
       /* For every other statement that we are not interested in
 	 handling here, let the walker traverse the operands.  */