diff --git a/mlir/lib/Dialect/SCF/Transforms/TileUsingInterface.cpp b/mlir/lib/Dialect/SCF/Transforms/TileUsingInterface.cpp
--- a/mlir/lib/Dialect/SCF/Transforms/TileUsingInterface.cpp
+++ b/mlir/lib/Dialect/SCF/Transforms/TileUsingInterface.cpp
@@ -17,6 +17,7 @@
 #include "mlir/Dialect/Func/IR/FuncOps.h"
 #include "mlir/Dialect/SCF/Utils/Utils.h"
 #include "mlir/Dialect/Tensor/IR/Tensor.h"
+#include "mlir/IR/BlockAndValueMapping.h"
 #include "mlir/IR/Matchers.h"
 #include "mlir/IR/PatternMatch.h"
 #include "mlir/Interfaces/TilingInterface.h"
@@ -286,6 +287,24 @@
   return v.cast<OpResult>();
 }
 
+// replace iter args of the outer most loop with region args of the inner most
+// one.
+static void replaceIterArgs(scf::ForOp outerFor, scf::ForOp innerFor,
+                            PatternRewriter &rewriter) {
+  assert(outerFor.getNumIterOperands() == innerFor.getNumIterOperands() &&
+         "expect same number of iter args");
+  Region &body = innerFor.getRegion();
+  BlockAndValueMapping mapping;
+  mapping.map(outerFor.getIterOperands(), innerFor.getRegionIterArgs());
+  body.walk([&](tensor::ExtractSliceOp sliceOp) {
+    Value source = sliceOp.getSource();
+    if (mapping.contains(source))
+      rewriter.updateRootInPlace(sliceOp, [&]() {
+        sliceOp.getSourceMutable().assign(mapping.lookup(source));
+      });
+  });
+}
+
 FailureOr<scf::SCFTileAndFuseResult>
 scf::TileConsumerAndFuseProducersUsingSCFForOp::returningMatchAndRewrite(
     TilingInterface op, PatternRewriter &rewriter) const {
@@ -401,5 +420,7 @@
       }
     }
   }
+  replaceIterArgs(tileAndFuseResult.loops.front(),
+                  tileAndFuseResult.loops.back(), rewriter);
   return tileAndFuseResult;
 }
diff --git a/mlir/test/Interfaces/TilingInterface/tile-and-fuse-using-interface.mlir b/mlir/test/Interfaces/TilingInterface/tile-and-fuse-using-interface.mlir
--- a/mlir/test/Interfaces/TilingInterface/tile-and-fuse-using-interface.mlir
+++ b/mlir/test/Interfaces/TilingInterface/tile-and-fuse-using-interface.mlir
@@ -23,7 +23,7 @@
 // CHECK-SAME:         iter_args(%[[ITERARG1:.+]] = %[[ITERARG0]])
 //  CHECK-DAG:       %[[LHS_TILE:.+]] = tensor.extract_slice %[[ARG0]][%[[IV0]], 0]
 //  CHECK-DAG:       %[[RHS_TILE:.+]] = tensor.extract_slice %[[ARG1]][0, %[[IV1]]]
-//  CHECK-DAG:       %[[INIT_TILE:.+]] = tensor.extract_slice %[[INIT]][%[[IV0]], %[[IV1]]]
+//  CHECK-DAG:       %[[INIT_TILE:.+]] = tensor.extract_slice %[[ITERARG1]][%[[IV0]], %[[IV1]]]
 //      CHECK:       %[[FILL_TILE:.+]] = linalg.fill
 // CHECK-SAME:           outs(%[[INIT_TILE]] :
 //      CHECK:       %[[GEMM_TILE:.+]] = linalg.matmul
@@ -68,7 +68,7 @@
 // CHECK-SAME:         iter_args(%[[ITERARG1:.+]] = %[[ITERARG0]])
 //  CHECK-DAG:       %[[LHS_TILE:.+]] = tensor.extract_slice %[[ARG0]][%[[IV0]], 0]
 //  CHECK-DAG:       %[[RHS_TILE:.+]] = tensor.extract_slice %[[ARG1]][0, %[[IV1]]]
-//  CHECK-DAG:       %[[INIT_TILE:.+]] = tensor.extract_slice %[[INIT]][%[[IV0]], %[[IV1]]]
+//  CHECK-DAG:       %[[INIT_TILE:.+]] = tensor.extract_slice %[[ITERARG1]][%[[IV0]], %[[IV1]]]
 //      CHECK:       %[[FILL_TILE:.+]] = linalg.fill
 // CHECK-SAME:           outs(%[[INIT_TILE]] :
 //      CHECK:       %[[GEMM_TILE:.+]] = linalg.matmul
@@ -123,7 +123,7 @@
 // CHECK-SAME:         ins(%[[LHS0_TILE]], %[[RHS0_TILE]] :
 // CHECK-SAME:         outs(%[[FILL0_TILE]] :
 //  CHECK-DAG:     %[[RHS1_TILE:.+]] = tensor.extract_slice %[[RHS1]][0, 0]
-//  CHECK-DAG:     %[[INIT1_TILE:.+]] = tensor.extract_slice %[[INIT1]][%[[IV]], 0]
+//  CHECK-DAG:     %[[INIT1_TILE:.+]] = tensor.extract_slice %[[ITERARG]][%[[IV]], 0]
 //      CHECK:     %[[FILL1_TILE:.+]] = linalg.fill
 // CHECK-SAME:         outs(%[[INIT1_TILE]] :
 //      CHECK:     %[[GEMM1_TILE:.+]] = linalg.matmul