diff --git a/llvm/lib/Target/AMDGPU/AMDGPUTargetTransformInfo.cpp b/llvm/lib/Target/AMDGPU/AMDGPUTargetTransformInfo.cpp
--- a/llvm/lib/Target/AMDGPU/AMDGPUTargetTransformInfo.cpp
+++ b/llvm/lib/Target/AMDGPU/AMDGPUTargetTransformInfo.cpp
@@ -77,6 +77,16 @@
     cl::desc("Maximum number of BBs allowed in a function after inlining"
              " (compile time constraint)"));
 
+// The cost of passing function arguments through the stack (assuming +5 for
+// each instruction):
+//  1 instruction to put a function argument on the stack in the caller.
+//  1 instruction to take a function argument from the stack in callee.
+//  1 instruction is explicitly take care of data dependencies in callee
+//  function.
+static cl::opt<unsigned> ArgStackInlinePenalty(
+    "amdgpu-inline-arg-stack-cost", cl::Hidden, cl::init(15),
+    cl::desc("Cost per argument for function arguments passed through stack"));
+
 static bool dependsOnLocalPhi(const Loop *L, const Value *Cond,
                               unsigned Depth = 0) {
   const Instruction *I = dyn_cast<Instruction>(Cond);
@@ -1176,10 +1186,38 @@
   return true;
 }
 
+static unsigned adjustInliningThresholdUsingCallee(const Function *Callee,
+                                                   const SIRegisterInfo *TRI) {
+  const int NrOfSGPRUntilSpill = 26;
+  const int NrOfVGPRUntilSpill = 32;
+  const int ArgRegSize = 32;
+
+  unsigned adjustThreshold = 0;
+  int SGPRsInUse = 0;
+  int VGPRsInUse = 0;
+  for (const Argument &A : Callee->args()) {
+    uint64_t ArgTypeSize = A.getType()->getPrimitiveSizeInBits().getFixedSize();
+    if (AMDGPU::isArgPassedInSGPR(&A)) {
+      const TargetRegisterClass *RC = TRI->getSGPRClassForBitWidth(ArgTypeSize);
+      SGPRsInUse += TRI->getRegSizeInBits(*RC) / ArgRegSize;
+    } else {
+      const TargetRegisterClass *RC = TRI->getVGPRClassForBitWidth(ArgTypeSize);
+      VGPRsInUse += TRI->getRegSizeInBits(*RC) / ArgRegSize;
+    }
+  }
+
+  adjustThreshold +=
+      std::max(0, SGPRsInUse - NrOfSGPRUntilSpill) * ArgStackInlinePenalty;
+  adjustThreshold +=
+      std::max(0, VGPRsInUse - NrOfVGPRUntilSpill) * ArgStackInlinePenalty;
+  return adjustThreshold;
+}
+
 unsigned GCNTTIImpl::adjustInliningThreshold(const CallBase *CB) const {
   // If we have a pointer to private array passed into a function
   // it will not be optimized out, leaving scratch usage.
   // Increase the inline threshold to allow inlining in this case.
+  unsigned adjustThreshold = 0;
   uint64_t AllocaSize = 0;
   SmallPtrSet<const AllocaInst *, 8> AIVisited;
   for (Value *PtrArg : CB->args()) {
@@ -1201,9 +1239,10 @@
       }
     }
   }
-  if (AllocaSize)
-    return ArgAllocaCost;
-  return 0;
+  adjustThreshold += adjustInliningThresholdUsingCallee(CB->getCalledFunction(),
+                                                        ST->getRegisterInfo());
+  adjustThreshold += AllocaSize ? ArgAllocaCost : AllocaSize;
+  return adjustThreshold;
 }
 
 void GCNTTIImpl::getUnrollingPreferences(Loop *L, ScalarEvolution &SE,
diff --git a/llvm/test/Transforms/Inline/AMDGPU/amdgpu-inline-stack-argument.ll b/llvm/test/Transforms/Inline/AMDGPU/amdgpu-inline-stack-argument.ll
new file mode 100644
--- /dev/null
+++ b/llvm/test/Transforms/Inline/AMDGPU/amdgpu-inline-stack-argument.ll
@@ -0,0 +1,160 @@
+; RUN: opt -mtriple=amdgcn-amd-amdhsa -S -passes=inline -inline-cost-full=true -inline-threshold=0 -inline-instr-cost=0 -inline-call-penalty=0 -debug-only=inline < %s 2>&1 | FileCheck %s
+; REQUIRES: asserts
+
+; CHECK: NOT Inlining (cost={{[0-9]+}}, threshold={{[0-9]+}}), Call:   %noinlinecall1 = call noundef i32 @non_inlining_call
+; CHECK: NOT Inlining (cost={{[0-9]+}}, threshold={{[0-9]+}}), Call:   %noinlinecall2 = call noundef i32 @non_inlining_call
+; CHECK: Inlining (cost={{[0-9]+}}, threshold={{[0-9]+}}), Call:   %inlinecall1 = call noundef i32 @inlining_call
+; CHECK: Inlining (cost={{[0-9]+}}, threshold={{[0-9]+}}), Call:   %inlinecall2 = call noundef i32 @inlining_call
+
+define noundef i32 @non_inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1) {
+entry:
+  %xor = xor i32 %a0, %b0
+  %xor1 = xor i32 %xor, %c0
+  %xor2 = xor i32 %xor1, %d0
+  %xor3 = xor i32 %xor2, %e0
+  %xor4 = xor i32 %xor3, %f0
+  %xor5 = xor i32 %xor4, %g0
+  %xor6 = xor i32 %xor5, %h0
+  %xor7 = xor i32 %xor6, %i0
+  %xor8 = xor i32 %xor7, %j0
+  %xor9 = xor i32 %xor8, %k0
+  %xor10 = xor i32 %xor9, %l0
+  %xor11 = xor i32 %xor10, %m0
+  %xor12 = xor i32 %xor11, %n0
+  %xor13 = xor i32 %xor12, %o0
+  %xor14 = xor i32 %xor13, %p0
+  %xor15 = xor i32 %xor14, %q0
+  %xor16 = xor i32 %xor15, %r0
+  %xor17 = xor i32 %xor16, %s0
+  %xor18 = xor i32 %xor17, %t0
+  %xor19 = xor i32 %xor18, %u0
+  %xor20 = xor i32 %xor19, %v0
+  %xor21 = xor i32 %xor20, %w0
+  %xor22 = xor i32 %xor21, %x0
+  %xor23 = xor i32 %xor22, %y0
+  %xor24 = xor i32 %xor23, %z0
+  %xor25 = xor i32 %xor24, %a1
+  %xor26 = xor i32 %xor25, %b1
+  %xor27 = xor i32 %xor26, %c1
+  %xor28 = xor i32 %xor27, %d1
+  %xor29 = xor i32 %xor28, %e1
+  %xor30 = xor i32 %xor29, %f1
+  ret i32 %xor30
+}
+
+define noundef i32 @inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1, i32 noundef %g1) {
+entry:
+  %xor = xor i32 %a0, %b0
+  %xor1 = xor i32 %xor, %c0
+  %xor2 = xor i32 %xor1, %d0
+  %xor3 = xor i32 %xor2, %e0
+  %xor4 = xor i32 %xor3, %f0
+  %xor5 = xor i32 %xor4, %g0
+  %xor6 = xor i32 %xor5, %h0
+  %xor7 = xor i32 %xor6, %i0
+  %xor8 = xor i32 %xor7, %j0
+  %xor9 = xor i32 %xor8, %k0
+  %xor10 = xor i32 %xor9, %l0
+  %xor11 = xor i32 %xor10, %m0
+  %xor12 = xor i32 %xor11, %n0
+  %xor13 = xor i32 %xor12, %o0
+  %xor14 = xor i32 %xor13, %p0
+  %xor15 = xor i32 %xor14, %q0
+  %xor16 = xor i32 %xor15, %r0
+  %xor17 = xor i32 %xor16, %s0
+  %xor18 = xor i32 %xor17, %t0
+  %xor19 = xor i32 %xor18, %u0
+  %xor20 = xor i32 %xor19, %v0
+  %xor21 = xor i32 %xor20, %w0
+  %xor22 = xor i32 %xor21, %x0
+  %xor23 = xor i32 %xor22, %y0
+  %xor24 = xor i32 %xor23, %z0
+  %xor25 = xor i32 %xor24, %a1
+  %xor26 = xor i32 %xor25, %b1
+  %xor27 = xor i32 %xor26, %c1
+  %xor28 = xor i32 %xor27, %d1
+  %xor29 = xor i32 %xor28, %e1
+  %xor30 = xor i32 %xor29, %f1
+  %xor31 = xor i32 %xor30, %g1
+  ret i32 %xor31
+}
+
+; Calling each (non-)inlining function twice to make sure they won't get the sole call inlining cost bonus. 
+define i32 @Caller(ptr noundef %in) {
+entry:
+  %arrayidx = getelementptr inbounds i32, ptr %in, i64 0
+  %a0 = load i32, ptr %arrayidx, align 4
+  %arrayidx1 = getelementptr inbounds i32, ptr %in, i64 1
+  %b0 = load i32, ptr %arrayidx1, align 4
+  %arrayidx2 = getelementptr inbounds i32, ptr %in, i64 2
+  %c0 = load i32, ptr %arrayidx2, align 4
+  %arrayidx3 = getelementptr inbounds i32, ptr %in, i64 3
+  %d0 = load i32, ptr %arrayidx3, align 4
+  %arrayidx4 = getelementptr inbounds i32, ptr %in, i64 4
+  %e0 = load i32, ptr %arrayidx4, align 4
+  %arrayidx5 = getelementptr inbounds i32, ptr %in, i64 5
+  %f0 = load i32, ptr %arrayidx5, align 4
+  %arrayidx6 = getelementptr inbounds i32, ptr %in, i64 6
+  %g0 = load i32, ptr %arrayidx6, align 4
+  %arrayidx7 = getelementptr inbounds i32, ptr %in, i64 7
+  %h0 = load i32, ptr %arrayidx7, align 4
+  %arrayidx8 = getelementptr inbounds i32, ptr %in, i64 8
+  %i0 = load i32, ptr %arrayidx8, align 4
+  %arrayidx9 = getelementptr inbounds i32, ptr %in, i64 9
+  %j0 = load i32, ptr %arrayidx9, align 4
+  %arrayidx10 = getelementptr inbounds i32, ptr %in, i64 10
+  %k0 = load i32, ptr %arrayidx10, align 4
+  %arrayidx11 = getelementptr inbounds i32, ptr %in, i64 11
+  %l0 = load i32, ptr %arrayidx11, align 4
+  %arrayidx12 = getelementptr inbounds i32, ptr %in, i64 12
+  %m0 = load i32, ptr %arrayidx12, align 4
+  %arrayidx13 = getelementptr inbounds i32, ptr %in, i64 13
+  %n0 = load i32, ptr %arrayidx13, align 4
+  %arrayidx14 = getelementptr inbounds i32, ptr %in, i64 14
+  %o0 = load i32, ptr %arrayidx14, align 4
+  %arrayidx15 = getelementptr inbounds i32, ptr %in, i64 15
+  %p0 = load i32, ptr %arrayidx15, align 4
+  %arrayidx16 = getelementptr inbounds i32, ptr %in, i64 16
+  %q0 = load i32, ptr %arrayidx16, align 4
+  %arrayidx17 = getelementptr inbounds i32, ptr %in, i64 17
+  %r0 = load i32, ptr %arrayidx17, align 4
+  %arrayidx18 = getelementptr inbounds i32, ptr %in, i64 18
+  %s0 = load i32, ptr %arrayidx18, align 4
+  %arrayidx19 = getelementptr inbounds i32, ptr %in, i64 19
+  %t0 = load i32, ptr %arrayidx19, align 4
+  %arrayidx20 = getelementptr inbounds i32, ptr %in, i64 20
+  %u0 = load i32, ptr %arrayidx20, align 4
+  %arrayidx21 = getelementptr inbounds i32, ptr %in, i64 21
+  %v0 = load i32, ptr %arrayidx21, align 4
+  %arrayidx22 = getelementptr inbounds i32, ptr %in, i64 22
+  %w0 = load i32, ptr %arrayidx22, align 4
+  %arrayidx23 = getelementptr inbounds i32, ptr %in, i64 23
+  %x0 = load i32, ptr %arrayidx23, align 4
+  %arrayidx24 = getelementptr inbounds i32, ptr %in, i64 24
+  %y0 = load i32, ptr %arrayidx24, align 4
+  %arrayidx25 = getelementptr inbounds i32, ptr %in, i64 25
+  %z0 = load i32, ptr %arrayidx25, align 4
+  %arrayidx26 = getelementptr inbounds i32, ptr %in, i64 26
+  %a1 = load i32, ptr %arrayidx26, align 4
+  %arrayidx27 = getelementptr inbounds i32, ptr %in, i64 27
+  %b1 = load i32, ptr %arrayidx27, align 4
+  %arrayidx28 = getelementptr inbounds i32, ptr %in, i64 28
+  %c1 = load i32, ptr %arrayidx28, align 4
+  %arrayidx29 = getelementptr inbounds i32, ptr %in, i64 29
+  %d1 = load i32, ptr %arrayidx29, align 4
+  %arrayidx30 = getelementptr inbounds i32, ptr %in, i64 30
+  %e1 = load i32, ptr %arrayidx30, align 4
+  %arrayidx31 = getelementptr inbounds i32, ptr %in, i64 31
+  %f1 = load i32, ptr %arrayidx31, align 4
+  %arrayidx32 = getelementptr inbounds i32, ptr %in, i64 32
+  %g1 = load i32, ptr %arrayidx32, align 4
+  %noinlinecall1 = call noundef i32 @non_inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1)
+  %add = add i32 0, %noinlinecall1
+  %noinlinecall2 = call noundef i32 @non_inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1)
+  %add2 = add i32 %add, %noinlinecall2
+  %inlinecall1 = call noundef i32 @inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1, i32 noundef %g1)
+  %add3 = add i32 %add2, %inlinecall1
+  %inlinecall2 = call noundef i32 @inlining_call(i32 noundef %a0, i32 noundef %b0, i32 noundef %c0, i32 noundef %d0, i32 noundef %e0, i32 noundef %f0, i32 noundef %g0, i32 noundef %h0, i32 noundef %i0, i32 noundef %j0, i32 noundef %k0, i32 noundef %l0, i32 noundef %m0, i32 noundef %n0, i32 noundef %o0, i32 noundef %p0, i32 noundef %q0, i32 noundef %r0, i32 noundef %s0, i32 noundef %t0, i32 noundef %u0, i32 noundef %v0, i32 noundef %w0, i32 noundef %x0, i32 noundef %y0, i32 noundef %z0, i32 noundef %a1, i32 noundef %b1, i32 noundef %c1, i32 noundef %d1, i32 noundef %e1, i32 noundef %f1, i32 noundef %g1)
+  %add4 = add i32 %add3, %inlinecall2
+  ret i32 %add4
+}