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
@@ -4005,6 +4005,7 @@
     // Convert the module procedure's interface into a subprogram.
     SetScope(DEREF(symbol->scope()));
     symbol->get<SubprogramDetails>().set_isInterface(false);
+    name.symbol = symbol;
   } else {
     // Copy the interface into a new subprogram scope.
     EraseSymbol(name);
@@ -4025,7 +4026,8 @@
     Symbol::Flag subpFlag, bool hasModulePrefix,
     const parser::LanguageBindingSpec *bindingSpec,
     const ProgramTree::EntryStmtList *entryStmts) {
-  if (hasModulePrefix && currScope().IsGlobal()) { // C1547
+  if (hasModulePrefix && !currScope().IsModule() &&
+      !currScope().IsSubmodule()) { // C1547
     Say(name,
         "'%s' is a MODULE procedure which must be declared within a "
         "MODULE or SUBMODULE"_err_en_US);
diff --git a/flang/test/Semantics/symbol28.f90 b/flang/test/Semantics/symbol28.f90
--- a/flang/test/Semantics/symbol28.f90
+++ b/flang/test/Semantics/symbol28.f90
@@ -43,7 +43,7 @@
   end subroutine
  end interface
 contains
- !DEF: /m2/s MODULE SubprogramName
+ !REF:/m2/s
  module procedure s
  end procedure
  !DEF: /m2/s2 MODULE, PUBLIC (Subroutine) Subprogram