diff --git a/clang/include/clang/AST/Expr.h b/clang/include/clang/AST/Expr.h
--- a/clang/include/clang/AST/Expr.h
+++ b/clang/include/clang/AST/Expr.h
@@ -1992,7 +1992,7 @@
 
 private:
   PredefinedExpr(SourceLocation L, QualType FNTy, IdentKind IK,
-                 StringLiteral *SL);
+                 bool IsTransparent, StringLiteral *SL);
 
   explicit PredefinedExpr(EmptyShell Empty, bool HasFunctionName);
 
@@ -2007,8 +2007,12 @@
 
 public:
   /// Create a PredefinedExpr.
+  ///
+  /// If IsTransparent, the PredefinedExpr is transparently handled as a
+  /// StringLiteral.
   static PredefinedExpr *Create(const ASTContext &Ctx, SourceLocation L,
-                                QualType FNTy, IdentKind IK, StringLiteral *SL);
+                                QualType FNTy, IdentKind IK, bool IsTransparent,
+                                StringLiteral *SL);
 
   /// Create an empty PredefinedExpr.
   static PredefinedExpr *CreateEmpty(const ASTContext &Ctx,
@@ -2018,6 +2022,8 @@
     return static_cast<IdentKind>(PredefinedExprBits.Kind);
   }
 
+  bool isTransparent() const { return PredefinedExprBits.IsTransparent; }
+
   SourceLocation getLocation() const { return PredefinedExprBits.Loc; }
   void setLocation(SourceLocation L) { PredefinedExprBits.Loc = L; }
 
diff --git a/clang/include/clang/AST/IgnoreExpr.h b/clang/include/clang/AST/IgnoreExpr.h
--- a/clang/include/clang/AST/IgnoreExpr.h
+++ b/clang/include/clang/AST/IgnoreExpr.h
@@ -166,6 +166,11 @@
       return CE->getChosenSubExpr();
   }
 
+  else if (auto *PE = dyn_cast<PredefinedExpr>(E)) {
+    if (PE->isTransparent())
+      return PE->getFunctionName();
+  }
+
   return E;
 }
 
diff --git a/clang/include/clang/AST/Stmt.h b/clang/include/clang/AST/Stmt.h
--- a/clang/include/clang/AST/Stmt.h
+++ b/clang/include/clang/AST/Stmt.h
@@ -364,6 +364,10 @@
     /// for the predefined identifier.
     unsigned HasFunctionName : 1;
 
+    /// True if this PredefinedExpr should be treated as a StringLiteral (for
+    /// MSVC compatibility).
+    unsigned IsTransparent : 1;
+
     /// The location of this PredefinedExpr.
     SourceLocation Loc;
   };
diff --git a/clang/lib/AST/ASTImporter.cpp b/clang/lib/AST/ASTImporter.cpp
--- a/clang/lib/AST/ASTImporter.cpp
+++ b/clang/lib/AST/ASTImporter.cpp
@@ -7068,7 +7068,8 @@
     return std::move(Err);
 
   return PredefinedExpr::Create(Importer.getToContext(), ToBeginLoc, ToType,
-                                E->getIdentKind(), ToFunctionName);
+                                E->getIdentKind(), E->isTransparent(),
+                                ToFunctionName);
 }
 
 ExpectedStmt ASTNodeImporter::VisitDeclRefExpr(DeclRefExpr *E) {
diff --git a/clang/lib/AST/Expr.cpp b/clang/lib/AST/Expr.cpp
--- a/clang/lib/AST/Expr.cpp
+++ b/clang/lib/AST/Expr.cpp
@@ -663,13 +663,14 @@
 }
 
 PredefinedExpr::PredefinedExpr(SourceLocation L, QualType FNTy, IdentKind IK,
-                               StringLiteral *SL)
+                               bool IsTransparent, StringLiteral *SL)
     : Expr(PredefinedExprClass, FNTy, VK_LValue, OK_Ordinary) {
   PredefinedExprBits.Kind = IK;
   assert((getIdentKind() == IK) &&
          "IdentKind do not fit in PredefinedExprBitfields!");
   bool HasFunctionName = SL != nullptr;
   PredefinedExprBits.HasFunctionName = HasFunctionName;
+  PredefinedExprBits.IsTransparent = IsTransparent;
   PredefinedExprBits.Loc = L;
   if (HasFunctionName)
     setFunctionName(SL);
@@ -683,11 +684,11 @@
 
 PredefinedExpr *PredefinedExpr::Create(const ASTContext &Ctx, SourceLocation L,
                                        QualType FNTy, IdentKind IK,
-                                       StringLiteral *SL) {
+                                       bool IsTransparent, StringLiteral *SL) {
   bool HasFunctionName = SL != nullptr;
   void *Mem = Ctx.Allocate(totalSizeToAlloc<Stmt *>(HasFunctionName),
                            alignof(PredefinedExpr));
-  return new (Mem) PredefinedExpr(L, FNTy, IK, SL);
+  return new (Mem) PredefinedExpr(L, FNTy, IK, IsTransparent, SL);
 }
 
 PredefinedExpr *PredefinedExpr::CreateEmpty(const ASTContext &Ctx,
diff --git a/clang/lib/Sema/SemaExpr.cpp b/clang/lib/Sema/SemaExpr.cpp
--- a/clang/lib/Sema/SemaExpr.cpp
+++ b/clang/lib/Sema/SemaExpr.cpp
@@ -3580,7 +3580,8 @@
     }
   }
 
-  return PredefinedExpr::Create(Context, Loc, ResTy, IK, SL);
+  return PredefinedExpr::Create(Context, Loc, ResTy, IK, LangOpts.MicrosoftExt,
+                                SL);
 }
 
 ExprResult Sema::BuildSYCLUniqueStableNameExpr(SourceLocation OpLoc,
diff --git a/clang/lib/Sema/SemaInit.cpp b/clang/lib/Sema/SemaInit.cpp
--- a/clang/lib/Sema/SemaInit.cpp
+++ b/clang/lib/Sema/SemaInit.cpp
@@ -173,6 +173,8 @@
       E = GSE->getResultExpr();
     } else if (ChooseExpr *CE = dyn_cast<ChooseExpr>(E)) {
       E = CE->getChosenSubExpr();
+    } else if (PredefinedExpr *PE = dyn_cast<PredefinedExpr>(E)) {
+      E = PE->getFunctionName();
     } else {
       llvm_unreachable("unexpected expr in string literal init");
     }
diff --git a/clang/lib/Serialization/ASTReaderStmt.cpp b/clang/lib/Serialization/ASTReaderStmt.cpp
--- a/clang/lib/Serialization/ASTReaderStmt.cpp
+++ b/clang/lib/Serialization/ASTReaderStmt.cpp
@@ -582,6 +582,7 @@
   bool HasFunctionName = Record.readInt();
   E->PredefinedExprBits.HasFunctionName = HasFunctionName;
   E->PredefinedExprBits.Kind = Record.readInt();
+  E->PredefinedExprBits.IsTransparent = Record.readInt();
   E->setLocation(readSourceLocation());
   if (HasFunctionName)
     E->setFunctionName(cast<StringLiteral>(Record.readSubExpr()));
diff --git a/clang/lib/Serialization/ASTWriterStmt.cpp b/clang/lib/Serialization/ASTWriterStmt.cpp
--- a/clang/lib/Serialization/ASTWriterStmt.cpp
+++ b/clang/lib/Serialization/ASTWriterStmt.cpp
@@ -593,6 +593,7 @@
   bool HasFunctionName = E->getFunctionName() != nullptr;
   Record.push_back(HasFunctionName);
   Record.push_back(E->getIdentKind()); // FIXME: stable encoding
+  Record.push_back(E->isTransparent());
   Record.AddSourceLocation(E->getLocation());
   if (HasFunctionName)
     Record.AddStmt(E->getFunctionName());
diff --git a/clang/test/Modules/predefined.cpp b/clang/test/Modules/predefined.cpp
new file mode 100644
--- /dev/null
+++ b/clang/test/Modules/predefined.cpp
@@ -0,0 +1,23 @@
+// RUN: rm -rf %t
+// RUN: split-file %s %t
+// RUN: cd %t
+
+// RUN: %clang_cc1 -x c++ -std=c++20 -emit-module-interface a.h -o a.pcm -fms-extensions
+// RUN: %clang_cc1 -std=c++20 a.cpp -fmodule-file=A=a.pcm -fms-extensions -fsyntax-only
+
+//--- a.h
+
+export module A;
+
+export template <typename T>
+void f() {
+    char a[] = __func__;
+}
+
+//--- a.cpp
+
+import A;
+
+void g() {
+    f<int>();
+}
diff --git a/clang/test/Sema/ms_predefined_expr.cpp b/clang/test/Sema/ms_predefined_expr.cpp
new file mode 100644
--- /dev/null
+++ b/clang/test/Sema/ms_predefined_expr.cpp
@@ -0,0 +1,10 @@
+// RUN: %clang_cc1 %s -fsyntax-only -Wmicrosoft -verify -fms-extensions
+// expected-no-diagnostics
+
+void f() {
+ const char a[] = __FUNCTION__;
+ const char b[] = __FUNCDNAME__;
+ const char c[] = __FUNCSIG__;
+ const char d[] = __func__;
+ const char e[] = __PRETTY_FUNCTION__;
+}