diff --git a/flang/lib/Evaluate/check-expression.cpp b/flang/lib/Evaluate/check-expression.cpp
--- a/flang/lib/Evaluate/check-expression.cpp
+++ b/flang/lib/Evaluate/check-expression.cpp
@@ -661,10 +661,15 @@
       return true;
     } else if (semantics::IsPointer(ultimate)) {
       return false;
+    } else if (semantics::IsAllocatable(ultimate)) {
+      // TODO: this could be merged with the case below if
+      // details->IsAssumedShape() did not return true for allocatables. Current
+      // ArraySpec building in semantics does not allow making a difference
+      // between some_assumed_shape(:) and some_allocatable(:). Both
+      // isDeferredShape() and isAssumedShape() are true in each case.
+      return true;
     } else if (const auto *details{
                    ultimate.detailsIf<semantics::ObjectEntityDetails>()}) {
-      // N.B. ALLOCATABLEs are deferred shape, not assumed, and
-      // are obviously contiguous.
       return !details->IsAssumedShape() && !details->IsAssumedRank();
     } else if (auto assoc{Base::operator()(ultimate)}) {
       return assoc;
diff --git a/flang/test/Evaluate/folding09.f90 b/flang/test/Evaluate/folding09.f90
--- a/flang/test/Evaluate/folding09.f90
+++ b/flang/test/Evaluate/folding09.f90
@@ -9,9 +9,10 @@
     real, pointer, contiguous :: f(:)
     f => hosted
   end function
-  subroutine test(arr1, arr2, arr3, mat)
+  subroutine test(arr1, arr2, arr3, mat, alloc)
     real, intent(in) :: arr1(:), arr2(10), mat(10, 10)
     real, intent(in), contiguous :: arr3(:)
+    real, allocatable :: alloc(:)
     real :: scalar
     logical, parameter :: test_isc01 = is_contiguous(0)
     logical, parameter :: test_isc02 = is_contiguous(scalar)
@@ -24,5 +25,6 @@
     logical, parameter :: test_isc09 = is_contiguous(arr2(1:10:1))
     logical, parameter :: test_isc10 = is_contiguous(arr3)
     logical, parameter :: test_isc11 = is_contiguous(f())
+    logical, parameter :: test_isc12 = is_contiguous(alloc)
   end subroutine
 end module