diff --git a/flang/lib/Lower/ConvertVariable.cpp b/flang/lib/Lower/ConvertVariable.cpp
index 46a59b38ae6ab..895ae2451125d 100644
--- a/flang/lib/Lower/ConvertVariable.cpp
+++ b/flang/lib/Lower/ConvertVariable.cpp
@@ -714,7 +714,10 @@ needDummyIntentoutFinalization(const Fortran::lower::pft::Variable &var) {
     return true;
   // Intent(out) dummies must be finalized at runtime if their type has a
   // finalization.
-  return hasFinalization(sym);
+  // Allocatable components of INTENT(OUT) dummies must be deallocated (9.7.3.2
+  // p6). Calling finalization runtime for this works even if the components
+  // have no final procedures.
+  return hasFinalization(sym) || hasAllocatableDirectComponent(sym);
 }
 
 /// Call default initialization runtime routine to initialize \p var.
@@ -747,6 +750,9 @@ static void finalizeAtRuntime(Fortran::lower::AbstractConverter &converter,
 // is deallocated; any allocated allocatable object that is a subobject of an
 // actual argument corresponding to an INTENT(OUT) dummy argument is
 // deallocated.
+// Note that allocatable components of non-ALLOCATABLE INTENT(OUT) dummy
+// arguments are dealt with needDummyIntentoutFinalization (finalization runtime
+// is called to reach the intended component deallocation effect).
 static void deallocateIntentOut(Fortran::lower::AbstractConverter &converter,
                                 const Fortran::lower::pft::Variable &var,
                                 Fortran::lower::SymMap &symMap) {
diff --git a/flang/test/Lower/HLFIR/intentout-allocatable-components.f90 b/flang/test/Lower/HLFIR/intentout-allocatable-components.f90
new file mode 100644
index 0000000000000..932fafd322a3e
--- /dev/null
+++ b/flang/test/Lower/HLFIR/intentout-allocatable-components.f90
@@ -0,0 +1,32 @@
+! Test that allocatable components of non pointer/non allocatable INTENT(OUT)
+! dummy arguments are deallocated.
+! RUN: bbc -emit-hlfir -polymorphic-type %s -o - -I nowhere | FileCheck %s
+
+subroutine test_intentout_component_deallocate(a)
+  type :: t
+    integer, allocatable :: x
+  end type
+  type(t), intent(out) :: a
+end subroutine
+! CHECK-LABEL:   func.func @_QPtest_intentout_component_deallocate(
+! CHECK-SAME:      %[[VAL_0:.*]]: !fir.ref<!fir.type<_QFtest_intentout_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>
+! CHECK:  %[[VAL_1:.*]]:2 = hlfir.declare %[[VAL_0]] {fortran_attrs = #fir.var_attrs<intent_out>, uniq_name = "_QFtest_intentout_component_deallocateEa"}
+! CHECK:  %[[VAL_2:.*]] = fir.embox %[[VAL_1]]#1 : (!fir.ref<!fir.type<_QFtest_intentout_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>) -> !fir.box<!fir.type<_QFtest_intentout_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>
+! CHECK:  %[[VAL_3:.*]] = fir.convert %[[VAL_2]] : (!fir.box<!fir.type<_QFtest_intentout_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>) -> !fir.box<none>
+! CHECK:  %[[VAL_4:.*]] = fir.call @_FortranADestroy(%[[VAL_3]]) fastmath<contract> : (!fir.box<none>) -> none
+
+subroutine test_intentout_optional_component_deallocate(a)
+  type :: t
+    integer, allocatable :: x
+  end type
+  type(t), optional, intent(out) :: a
+end subroutine
+! CHECK-LABEL:   func.func @_QPtest_intentout_optional_component_deallocate(
+! CHECK-SAME:      %[[VAL_0:.*]]: !fir.ref<!fir.type<_QFtest_intentout_optional_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>
+! CHECK:  %[[VAL_1:.*]]:2 = hlfir.declare %[[VAL_0]] {fortran_attrs = #fir.var_attrs<intent_out, optional>, uniq_name = "_QFtest_intentout_optional_component_deallocateEa"}
+! CHECK:  %[[VAL_2:.*]] = fir.is_present %[[VAL_1]]#1 : (!fir.ref<!fir.type<_QFtest_intentout_optional_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>) -> i1
+! CHECK:  fir.if %[[VAL_2]] {
+! CHECK:    %[[VAL_3:.*]] = fir.embox %[[VAL_1]]#1 : (!fir.ref<!fir.type<_QFtest_intentout_optional_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>) -> !fir.box<!fir.type<_QFtest_intentout_optional_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>
+! CHECK:    %[[VAL_4:.*]] = fir.convert %[[VAL_3]] : (!fir.box<!fir.type<_QFtest_intentout_optional_component_deallocateTt{x:!fir.box<!fir.heap<i32>>}>>) -> !fir.box<none>
+! CHECK:    %[[VAL_5:.*]] = fir.call @_FortranADestroy(%[[VAL_4]]) fastmath<contract> : (!fir.box<none>) -> none
+! CHECK:  }