diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 15e1b86f40a..3676c54ae30 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2011-04-05  Tom de Vries  <tom@codesourcery.com>
+
+	PR target/43920
+	* config/arm/arm.h (BRANCH_COST): Set to 1 for Thumb-2 when optimizing
+	for size.
+
 2011-04-05  Tom de Vries  <tom@codesourcery.com>
 
 	PR target/43920
diff --git a/gcc/config/arm/arm.h b/gcc/config/arm/arm.h
index 5c3f2f81fce..f302de2158f 100644
--- a/gcc/config/arm/arm.h
+++ b/gcc/config/arm/arm.h
@@ -2019,7 +2019,8 @@ typedef struct
 /* Try to generate sequences that don't involve branches, we can then use
    conditional instructions */
 #define BRANCH_COST(speed_p, predictable_p) \
-  (TARGET_32BIT ? 4 : (optimize > 0 ? 2 : 0))
+  (TARGET_32BIT ? (TARGET_THUMB2 && !speed_p ? 1 : 4) \
+		: (optimize > 0 ? 2 : 0))
 
 /* Position Independent Code.  */
 /* We decide which register to use based on the compilation options and