diff --git a/mlir/lib/Dialect/MemRef/IR/MemRefOps.cpp b/mlir/lib/Dialect/MemRef/IR/MemRefOps.cpp
--- a/mlir/lib/Dialect/MemRef/IR/MemRefOps.cpp
+++ b/mlir/lib/Dialect/MemRef/IR/MemRefOps.cpp
@@ -279,6 +279,10 @@
 /// Given an operation, return whether this op could to
 /// allocate an AutomaticAllocationScopeResource
 static bool isPotentialAutomaticAllocationScope(Operation *op) {
+  // This op itself doesn't create a stack allocation,
+  // the inner allocation should be handled separately.
+  if (op->hasTrait<OpTrait::HasRecursiveSideEffects>())
+    return false;
   MemoryEffectOpInterface interface = dyn_cast<MemoryEffectOpInterface>(op);
   if (!interface)
     return true;
@@ -312,9 +316,11 @@
     if (!op->getParentOp()->hasTrait<OpTrait::AutomaticAllocationScope>()) {
       bool hasPotentialAlloca =
           op->walk([&](Operation *alloc) {
+              if (alloc == op)
+                return WalkResult::advance();
               if (isPotentialAutomaticAllocationScope(alloc))
                 return WalkResult::interrupt();
-              return WalkResult::skip();
+              return WalkResult::advance();
             }).wasInterrupted();
       if (hasPotentialAlloca)
         return failure();
diff --git a/mlir/test/Dialect/MemRef/canonicalize.mlir b/mlir/test/Dialect/MemRef/canonicalize.mlir
--- a/mlir/test/Dialect/MemRef/canonicalize.mlir
+++ b/mlir/test/Dialect/MemRef/canonicalize.mlir
@@ -643,3 +643,17 @@
 // CHECK:     }) : () -> ()
 // CHECK:     return
 // CHECK:   }
+
+func @scopeInline(%arg : memref<index>) {
+  %cnt = "test.count"() : () -> index
+  "test.region"() ({
+    memref.alloca_scope {
+      memref.store %cnt, %arg[] : memref<index>
+    }
+    "test.terminator"() : () -> ()
+  }) : () -> ()
+  return
+}
+
+// CHECK:   func @scopeInline
+// CHECK-NOT:  memref.alloca_scope