diff --git a/flang/lib/Lower/HlfirIntrinsics.cpp b/flang/lib/Lower/HlfirIntrinsics.cpp
--- a/flang/lib/Lower/HlfirIntrinsics.cpp
+++ b/flang/lib/Lower/HlfirIntrinsics.cpp
@@ -278,6 +278,18 @@
   mlir::Type elementType = array.getEleTy();
   resultShape.push_back(arrayShape[0]);
   resultShape.push_back(arrayShape[1]);
+  if (auto resCharType = mlir::dyn_cast<fir::CharacterType>(elementType))
+    if (!resCharType.hasConstantLen()) {
+      // The FunctionRef expression might have imprecise character
+      // type at this point, and we can improve it by propagating
+      // the constant length from the argument.
+      auto argCharType = mlir::dyn_cast<fir::CharacterType>(
+          hlfir::getFortranElementType(operands[0].getType()));
+      if (argCharType && argCharType.hasConstantLen())
+        elementType = fir::CharacterType::get(
+            builder.getContext(), resCharType.getFKind(), argCharType.getLen());
+    }
+
   mlir::Type resultTy =
       hlfir::ExprType::get(builder.getContext(), resultShape, elementType,
                            fir::isPolymorphicType(stmtResultType));
diff --git a/flang/test/Lower/HLFIR/transpose.f90 b/flang/test/Lower/HLFIR/transpose.f90
--- a/flang/test/Lower/HLFIR/transpose.f90
+++ b/flang/test/Lower/HLFIR/transpose.f90
@@ -62,3 +62,40 @@
 ! CHECK:           hlfir.destroy %[[VAL_5]] : !hlfir.expr<?x?xnone?>
 ! CHECK:           return
 ! CHECK:         }
+
+! Test that hlfir.transpose lowering inherits constant
+! character length from the argument, when the length
+! is uknown from the Fortran::evaluate expression type.
+subroutine test_unknown_char_len_result
+  character(len=3), dimension(3,3) :: w
+  character(len=2), dimension(3,3) :: w2
+  w2 = transpose(w(:,:)(1:2))
+end subroutine test_unknown_char_len_result
+! CHECK-LABEL:   func.func @_QPtest_unknown_char_len_result() {
+! CHECK:           %[[VAL_0:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_1:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_2:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_3:.*]] = fir.alloca !fir.array<3x3x!fir.char<1,3>> {bindc_name = "w", uniq_name = "_QFtest_unknown_char_len_resultEw"}
+! CHECK:           %[[VAL_4:.*]] = fir.shape %[[VAL_1]], %[[VAL_2]] : (index, index) -> !fir.shape<2>
+! CHECK:           %[[VAL_5:.*]]:2 = hlfir.declare %[[VAL_3]](%[[VAL_4]]) typeparams %[[VAL_0]] {uniq_name = "_QFtest_unknown_char_len_resultEw"} : (!fir.ref<!fir.array<3x3x!fir.char<1,3>>>, !fir.shape<2>, index) -> (!fir.ref<!fir.array<3x3x!fir.char<1,3>>>, !fir.ref<!fir.array<3x3x!fir.char<1,3>>>)
+! CHECK:           %[[VAL_6:.*]] = arith.constant 2 : index
+! CHECK:           %[[VAL_7:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_8:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_9:.*]] = fir.alloca !fir.array<3x3x!fir.char<1,2>> {bindc_name = "w2", uniq_name = "_QFtest_unknown_char_len_resultEw2"}
+! CHECK:           %[[VAL_10:.*]] = fir.shape %[[VAL_7]], %[[VAL_8]] : (index, index) -> !fir.shape<2>
+! CHECK:           %[[VAL_11:.*]]:2 = hlfir.declare %[[VAL_9]](%[[VAL_10]]) typeparams %[[VAL_6]] {uniq_name = "_QFtest_unknown_char_len_resultEw2"} : (!fir.ref<!fir.array<3x3x!fir.char<1,2>>>, !fir.shape<2>, index) -> (!fir.ref<!fir.array<3x3x!fir.char<1,2>>>, !fir.ref<!fir.array<3x3x!fir.char<1,2>>>)
+! CHECK:           %[[VAL_12:.*]] = arith.constant 1 : index
+! CHECK:           %[[VAL_13:.*]] = arith.constant 1 : index
+! CHECK:           %[[VAL_14:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_15:.*]] = arith.constant 1 : index
+! CHECK:           %[[VAL_16:.*]] = arith.constant 3 : index
+! CHECK:           %[[VAL_17:.*]] = fir.shape %[[VAL_14]], %[[VAL_16]] : (index, index) -> !fir.shape<2>
+! CHECK:           %[[VAL_18:.*]] = arith.constant 1 : index
+! CHECK:           %[[VAL_19:.*]] = arith.constant 2 : index
+! CHECK:           %[[VAL_20:.*]] = arith.constant 2 : index
+! CHECK:           %[[VAL_21:.*]] = hlfir.designate %[[VAL_5]]#0 (%[[VAL_12]]:%[[VAL_1]]:%[[VAL_13]], %[[VAL_12]]:%[[VAL_2]]:%[[VAL_15]]) substr %[[VAL_18]], %[[VAL_19]]  shape %[[VAL_17]] typeparams %[[VAL_20]] : (!fir.ref<!fir.array<3x3x!fir.char<1,3>>>, index, index, index, index, index, index, index, index, !fir.shape<2>, index) -> !fir.box<!fir.array<3x3x!fir.char<1,2>>>
+! CHECK:           %[[VAL_22:.*]] = hlfir.transpose %[[VAL_21]] : (!fir.box<!fir.array<3x3x!fir.char<1,2>>>) -> !hlfir.expr<3x3x!fir.char<1,2>>
+! CHECK:           hlfir.assign %[[VAL_22]] to %[[VAL_11]]#0 : !hlfir.expr<3x3x!fir.char<1,2>>, !fir.ref<!fir.array<3x3x!fir.char<1,2>>>
+! CHECK:           hlfir.destroy %[[VAL_22]] : !hlfir.expr<3x3x!fir.char<1,2>>
+! CHECK:           return
+! CHECK:         }