diff --git a/flang/lib/Lower/OpenACC.cpp b/flang/lib/Lower/OpenACC.cpp
--- a/flang/lib/Lower/OpenACC.cpp
+++ b/flang/lib/Lower/OpenACC.cpp
@@ -427,8 +427,20 @@
   builder.createBlock(&recipe.getInitRegion(), recipe.getInitRegion().end(),
                       {ty}, {loc});
   builder.setInsertionPointToEnd(&recipe.getInitRegion().back());
-  builder.create<mlir::acc::YieldOp>(
-      loc, recipe.getInitRegion().front().getArgument(0));
+
+  mlir::Value retVal = recipe.getInitRegion().front().getArgument(0);
+  if (auto refTy = mlir::dyn_cast_or_null<fir::ReferenceType>(ty)) {
+    if (fir::isa_trivial(refTy.getEleTy()))
+      retVal = builder.create<fir::AllocaOp>(loc, refTy.getEleTy());
+    else if (auto seqTy =
+                 mlir::dyn_cast_or_null<fir::SequenceType>(refTy.getEleTy())) {
+      if (seqTy.hasDynamicExtents())
+        TODO(loc, "private recipe of array with dynamic extents");
+      if (fir::isa_trivial(seqTy.getEleTy()))
+        retVal = builder.create<fir::AllocaOp>(loc, seqTy);
+    }
+  }
+  builder.create<mlir::acc::YieldOp>(loc, retVal);
   builder.restoreInsertionPoint(crtPos);
   return recipe;
 }
diff --git a/flang/test/Lower/OpenACC/acc-private.f90 b/flang/test/Lower/OpenACC/acc-private.f90
new file mode 100644
--- /dev/null
+++ b/flang/test/Lower/OpenACC/acc-private.f90
@@ -0,0 +1,48 @@
+! This test checks lowering of OpenACC loop directive.
+
+! RUN: bbc -fopenacc -emit-fir %s -o - | FileCheck %s
+
+! CHECK-LABEL: acc.private.recipe @privatization_ref_100xf32 : !fir.ref<!fir.array<100xf32>> init {
+! CHECK: ^bb0(%{{.*}}: !fir.ref<!fir.array<100xf32>>):
+! CHECK:   %[[ALLOCA:.*]] = fir.alloca !fir.array<100xf32>
+! CHECK:   acc.yield %[[ALLOCA]] : !fir.ref<!fir.array<100xf32>>
+! CHECK: }
+
+! CHECK-LABEL: acc.private.recipe @privatization_ref_i32 : !fir.ref<i32> init {
+! CHECK: ^bb0(%{{.*}}: !fir.ref<i32>):
+! CHECK:   %[[ALLOCA:.*]] = fir.alloca i32
+! CHECK:   acc.yield %[[ALLOCA]] : !fir.ref<i32>
+! CHECK: }
+
+program acc_private
+  integer :: i, c
+  integer, parameter :: n = 100
+  real, dimension(n) :: a, b
+
+! CHECK: %[[B:.*]] = fir.address_of(@_QFEb) : !fir.ref<!fir.array<100xf32>>
+! CHECK: %[[C:.*]] = fir.alloca i32 {bindc_name = "c", uniq_name = "_QFEc"}
+
+  !$acc loop private(c)
+  DO i = 1, n
+    c = i
+    a(i) = b(i) + c
+  END DO
+
+! CHECK: %[[C_PRIVATE:.*]] = acc.private varPtr(%[[C]] : !fir.ref<i32>) -> !fir.ref<i32> {name = "c"}
+! CHECK: acc.loop private(@privatization_ref_i32 -> %[[C_PRIVATE]] : !fir.ref<i32>)
+! CHECK: acc.yield
+
+  !$acc loop private(b)
+  DO i = 1, n
+    c = i
+    a(i) = b(i) + c
+  END DO
+
+! CHECK: %[[C1:.*]] = arith.constant 1 : index
+! CHECK: %[[LB:.*]] = arith.constant 0 : index
+! CHECK: %[[UB:.*]] = arith.subi %{{.*}}, %[[C1]] : index
+! CHECK: %[[BOUND:.*]] = acc.bounds lowerbound(%[[LB]] : index) upperbound(%[[UB]] : index) stride(%[[C1]] : index) startIdx(%[[C1]] : index)
+! CHECK: %[[B_PRIVATE:.*]] = acc.private varPtr(%[[B]] : !fir.ref<!fir.array<100xf32>>) bounds(%[[BOUND]]) -> !fir.ref<!fir.array<100xf32>> {name = "b"}
+! CHECK: acc.loop private(@privatization_ref_100xf32 -> %[[B_PRIVATE]] : !fir.ref<!fir.array<100xf32>>) {
+
+end program