diff --git a/lld/MachO/Driver.cpp b/lld/MachO/Driver.cpp
--- a/lld/MachO/Driver.cpp
+++ b/lld/MachO/Driver.cpp
@@ -1274,8 +1274,8 @@
 #endif
 
   if (const Arg *arg = args.getLastArg(OPT_install_name)) {
-    if (config->outputType != MH_DYLIB)
-      warn(arg->getAsString(args) + ": ignored, only has effect with -dylib");
+    if (config->outputType != MH_DYLIB && config->outputType != MH_BUNDLE)
+      warn(arg->getAsString(args) + ": ignored, only has effect with -dylib and -bundle");
     else
       config->installName = arg->getValue();
   } else if (config->outputType == MH_DYLIB) {
diff --git a/lld/test/MachO/install-name.s b/lld/test/MachO/install-name.s
--- a/lld/test/MachO/install-name.s
+++ b/lld/test/MachO/install-name.s
@@ -7,8 +7,7 @@
 # RUN: llvm-objdump --macho --all-headers %t.exec \
 # RUN:     | FileCheck --check-prefix=NO-ID %s
 
-# RUN: %no_fatal_warnings_lld -bundle -o %t.bundle %t.o -install_name foo 2>&1 \
-# RUN:     | FileCheck --check-prefix=WARN %s
+# RUN: %lld -bundle -o %t.bundle %t.o -install_name foo 2>&1
 # RUN: llvm-objdump --macho --all-headers %t.bundle \
 # RUN:     | FileCheck --check-prefix=NO-ID %s