diff --git a/llvm/lib/Target/ARM/ARMFrameLowering.cpp b/llvm/lib/Target/ARM/ARMFrameLowering.cpp
index 4496d4928ebe9e..650f4650eef059 100644
--- a/llvm/lib/Target/ARM/ARMFrameLowering.cpp
+++ b/llvm/lib/Target/ARM/ARMFrameLowering.cpp
@@ -1645,9 +1645,6 @@ void ARMFrameLowering::emitPopInst(MachineBasicBlock &MBB,
         // Fold the return instruction into the LDM.
         DeleteRet = true;
         LdmOpc = AFI->isThumbFunction() ? ARM::t2LDMIA_RET : ARM::LDMIA_RET;
-        // We 'restore' LR into PC so it is not live out of the return block:
-        // Clear Restored bit.
-        Info.setRestored(false);
       }
 
       // If NoGap is true, pop consecutive registers and then leave the rest
@@ -2769,6 +2766,33 @@ void ARMFrameLowering::determineCalleeSaves(MachineFunction &MF,
   AFI->setLRIsSpilled(SavedRegs.test(ARM::LR));
 }
 
+void ARMFrameLowering::processFunctionBeforeFrameFinalized(
+    MachineFunction &MF, RegScavenger *RS) const {
+  TargetFrameLowering::processFunctionBeforeFrameFinalized(MF, RS);
+
+  MachineFrameInfo &MFI = MF.getFrameInfo();
+  if (!MFI.isCalleeSavedInfoValid())
+    return;
+
+  // Check if all terminators do not implicitly use LR. Then we can 'restore' LR
+  // into PC so it is not live out of the return block: Clear the Restored bit
+  // in that case.
+  for (CalleeSavedInfo &Info : MFI.getCalleeSavedInfo()) {
+    if (Info.getReg() != ARM::LR)
+      continue;
+    if (all_of(MF, [](const MachineBasicBlock &MBB) {
+          return all_of(MBB.terminators(), [](const MachineInstr &Term) {
+            return !Term.isReturn() || Term.getOpcode() == ARM::LDMIA_RET ||
+                   Term.getOpcode() == ARM::t2LDMIA_RET ||
+                   Term.getOpcode() == ARM::tPOP_RET;
+          });
+        })) {
+      Info.setRestored(false);
+      break;
+    }
+  }
+}
+
 void ARMFrameLowering::getCalleeSaves(const MachineFunction &MF,
                                       BitVector &SavedRegs) const {
   TargetFrameLowering::getCalleeSaves(MF, SavedRegs);
diff --git a/llvm/lib/Target/ARM/ARMFrameLowering.h b/llvm/lib/Target/ARM/ARMFrameLowering.h
index 16f2ce6bea6f1a..8d2b8beb9a58fb 100644
--- a/llvm/lib/Target/ARM/ARMFrameLowering.h
+++ b/llvm/lib/Target/ARM/ARMFrameLowering.h
@@ -59,6 +59,9 @@ class ARMFrameLowering : public TargetFrameLowering {
   void determineCalleeSaves(MachineFunction &MF, BitVector &SavedRegs,
                             RegScavenger *RS) const override;
 
+  void processFunctionBeforeFrameFinalized(
+      MachineFunction &MF, RegScavenger *RS = nullptr) const override;
+
   void adjustForSegmentedStacks(MachineFunction &MF,
                                 MachineBasicBlock &MBB) const override;
 
diff --git a/llvm/test/CodeGen/Thumb2/outlined-fn-may-clobber-lr-in-caller.ll b/llvm/test/CodeGen/Thumb2/outlined-fn-may-clobber-lr-in-caller.ll
index d81d008b44bed8..1dbb21f40a761c 100644
--- a/llvm/test/CodeGen/Thumb2/outlined-fn-may-clobber-lr-in-caller.ll
+++ b/llvm/test/CodeGen/Thumb2/outlined-fn-may-clobber-lr-in-caller.ll
@@ -11,8 +11,6 @@ target datalayout = "e-m:o-p:32:32-Fi8-i64:64-v128:64:128-a:0:32-n32-S64"
 
 ; Test case to make sure calling an outlined function does not clobber LR used
 ; by a tail call in caller.
-; FIXME: Currently bl OUTLINED_FUNCTION_0 clobbers LR, which in turn is used
-;        by the later call to memcpy to return to the caller.
 define void @test(ptr nocapture noundef writeonly %arg, i32 noundef %arg1, i8 noundef zeroext %arg2) unnamed_addr #0 {
 ; CHECK-LABEL: test:
 ; CHECK:       @ %bb.0: @ %bb
@@ -22,11 +20,19 @@ define void @test(ptr nocapture noundef writeonly %arg, i32 noundef %arg1, i8 no
 ; CHECK-NEXT:    cmp r1, #1
 ; CHECK-NEXT:    bne .LBB0_5
 ; CHECK-NEXT:  @ %bb.2: @ %bb4
-; CHECK-NEXT:    bl OUTLINED_FUNCTION_0
+; CHECK-NEXT:    movs r1, #1
+; CHECK-NEXT:    strb.w r1, [r0, #36]
+; CHECK-NEXT:    movs r1, #30
+; CHECK-NEXT:    strb.w r1, [r0, #34]
+; CHECK-NEXT:    add.w r1, r2, r2, lsl #3
 ; CHECK-NEXT:    ldr r2, .LCPI0_1
 ; CHECK-NEXT:    b .LBB0_4
 ; CHECK-NEXT:  .LBB0_3: @ %bb14
-; CHECK-NEXT:    bl OUTLINED_FUNCTION_0
+; CHECK-NEXT:    movs r1, #1
+; CHECK-NEXT:    strb.w r1, [r0, #36]
+; CHECK-NEXT:    movs r1, #30
+; CHECK-NEXT:    strb.w r1, [r0, #34]
+; CHECK-NEXT:    add.w r1, r2, r2, lsl #3
 ; CHECK-NEXT:    ldr r2, .LCPI0_0
 ; CHECK-NEXT:  .LBB0_4: @ %bb4
 ; CHECK-NEXT:    add.w r1, r2, r1, lsl #2