diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 630ffe04872..0d29f46d3c7 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2006-10-24  Erik Edelmann  <eedelman@gcc.gnu.org>
+
+	PR fortran/29393
+	* expr.c (simplify_parameter_variable): Keep rank of original
+	expression.
+
 2006-10-23 Rafael Avila de Espindola  <rafael.espindola@gmail.com>
 
 	* Make-lang.in (f951$(exeext)): Depend on and link with attribs.o.
diff --git a/gcc/fortran/expr.c b/gcc/fortran/expr.c
index 2bf980cfa25..1f51fd09fca 100644
--- a/gcc/fortran/expr.c
+++ b/gcc/fortran/expr.c
@@ -1363,6 +1363,8 @@ simplify_parameter_variable (gfc_expr * p, int type)
   if (e == NULL)
     return FAILURE;
 
+  e->rank = p->rank;
+
   /* Do not copy subobject refs for constant.  */
   if (e->expr_type != EXPR_CONSTANT && p->ref != NULL)
     e->ref = copy_ref (p->ref);
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 5ed77bf1391..87c2154f9e1 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2006-10-24  Erik Edelmann  <eedelman@gcc.gnu.org>
+
+	PR fortran/29393
+	* gfortran.dg/initialize_2.f90: New.
+
 2006-10-24  Kaveh R. Ghazi  <ghazi@caip.rutgers.edu>
 
 	* gcc.dg/torture/builtin-math-2.c: New test.
diff --git a/gcc/testsuite/gfortran.dg/initialization_2.f90 b/gcc/testsuite/gfortran.dg/initialization_2.f90
new file mode 100644
index 00000000000..d5de85941d1
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/initialization_2.f90
@@ -0,0 +1,7 @@
+! { dg-do compile }
+! PR 29393: Ranks of PARAMETER-lhs in initializations
+    integer, parameter ::   A(-3:7,2)=0 
+    integer, parameter, dimension(3) :: V = (/ 2, 4, 6 /)
+    integer, parameter, dimension(3) :: B = A(V,1) 
+    integer, parameter, dimension(3) :: C = A(0:2,1) 
+end