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
@@ -261,7 +261,7 @@
 
 /// Given an operation, return whether this op is guaranteed to
 /// allocate an AutomaticAllocationScopeResource
-static bool isGuaranteedAutomaticAllocationScope(Operation *op) {
+static bool isGuaranteedAutomaticAllocation(Operation *op) {
   MemoryEffectOpInterface interface = dyn_cast<MemoryEffectOpInterface>(op);
   if (!interface)
     return false;
@@ -276,9 +276,15 @@
   return false;
 }
 
-/// Given an operation, return whether this op could to
-/// allocate an AutomaticAllocationScopeResource
-static bool isPotentialAutomaticAllocationScope(Operation *op) {
+/// Given an operation, return whether this op itself could
+/// allocate an AutomaticAllocationScopeResource. Note that
+/// this will not check whether an operation contained within
+/// the op can allocate.
+static bool isOpItselfPotentialAutomaticAllocation(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 +318,11 @@
     if (!op->getParentOp()->hasTrait<OpTrait::AutomaticAllocationScope>()) {
       bool hasPotentialAlloca =
           op->walk([&](Operation *alloc) {
-              if (isPotentialAutomaticAllocationScope(alloc))
+              if (alloc == op)
+                return WalkResult::advance();
+              if (isOpItselfPotentialAutomaticAllocation(alloc))
                 return WalkResult::interrupt();
-              return WalkResult::skip();
+              return WalkResult::advance();
             }).wasInterrupted();
       if (hasPotentialAlloca)
         return failure();
@@ -383,7 +391,7 @@
 
     SmallVector<Operation *> toHoist;
     op->walk([&](Operation *alloc) {
-      if (!isGuaranteedAutomaticAllocationScope(alloc))
+      if (!isGuaranteedAutomaticAllocation(alloc))
         return WalkResult::skip();
 
       // If any operand is not defined before the location of
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