diff --git a/flang/lib/Semantics/check-declarations.cpp b/flang/lib/Semantics/check-declarations.cpp
--- a/flang/lib/Semantics/check-declarations.cpp
+++ b/flang/lib/Semantics/check-declarations.cpp
@@ -1054,6 +1054,11 @@
             *host);
       }
     }
+    if (GetProgramUnitOrBlockConstructContaining(symbol).kind() ==
+        Scope::Kind::BlockConstruct) { // C1107
+      messages_.Say(symbol.name(),
+          "A statement function definition may not appear in a BLOCK construct"_err_en_US);
+    }
   }
   if (IsElementalProcedure(symbol)) {
     // See comment on the similar check in CheckProcEntity()
diff --git a/flang/lib/Semantics/resolve-names.cpp b/flang/lib/Semantics/resolve-names.cpp
--- a/flang/lib/Semantics/resolve-names.cpp
+++ b/flang/lib/Semantics/resolve-names.cpp
@@ -7692,7 +7692,6 @@
   ConstructVisitor::Post(x);
 }
 bool ResolveNamesVisitor::Pre(const parser::StmtFunctionStmt &x) {
-  CheckNotInBlock("STATEMENT FUNCTION"); // C1107
   if (HandleStmtFunction(x)) {
     return false;
   } else {
diff --git a/flang/test/Semantics/blockconstruct01.f90 b/flang/test/Semantics/blockconstruct01.f90
--- a/flang/test/Semantics/blockconstruct01.f90
+++ b/flang/test/Semantics/blockconstruct01.f90
@@ -56,11 +56,11 @@
 end
 
 subroutine s7_c1107
- integer x
+ integer x, arr(1)
  inc(x) = x + 1
   block
-    !ERROR: STATEMENT FUNCTION statement is not allowed in a BLOCK construct
+    !ERROR: A statement function definition may not appear in a BLOCK construct
     dec(x) = x - 1
+    arr(x) = x - 1 ! ok
   end block
 end
-