diff --git a/llvm/lib/Transforms/Scalar/JumpThreading.cpp b/llvm/lib/Transforms/Scalar/JumpThreading.cpp
--- a/llvm/lib/Transforms/Scalar/JumpThreading.cpp
+++ b/llvm/lib/Transforms/Scalar/JumpThreading.cpp
@@ -1643,15 +1643,15 @@
         OnlyVal = MultipleVal;
     }
 
-    // We know where this predecessor is going.
-    ++PredWithKnownDest;
-
     // If the predecessor ends with an indirect goto, we can't change its
     // destination. Same for CallBr.
     if (isa<IndirectBrInst>(Pred->getTerminator()) ||
         isa<CallBrInst>(Pred->getTerminator()))
       continue;
 
+    // We know where this predecessor is going.
+    ++PredWithKnownDest;
+
     PredToDestList.push_back(std::make_pair(Pred, DestBB));
   }
 
diff --git a/llvm/test/Transforms/JumpThreading/pr40992-indirectbr-folding.ll b/llvm/test/Transforms/JumpThreading/pr40992-indirectbr-folding.ll
new file mode 100644
--- /dev/null
+++ b/llvm/test/Transforms/JumpThreading/pr40992-indirectbr-folding.ll
@@ -0,0 +1,42 @@
+; RUN: opt -S < %s -jump-threading | FileCheck %s
+
+; PR40992: Do not incorrectly fold %bb5 into an unconditional br to %bb7.
+;          Also verify we correctly thread %bb1 -> %bb7 when %c is false.
+
+define i32 @jtbr(i1 %v1, i1 %v2, i1 %v3) {
+; CHECK: bb0:
+bb0:
+  br label %bb1
+
+; CHECK: bb1:
+bb1:
+  %c = and i1 %v1, %v2
+  br i1 %c, label %bb2, label %bb5
+
+; CHECK: bb2:
+; CHECK: select
+; CHECK-NEXT: indirectbr i8* %ba, [label %bb3, label %bb5]
+bb2:
+  %ba = select i1 %v3, i8* blockaddress(@jtbr, %bb3), i8* blockaddress(@jtbr, %bb4)
+  indirectbr i8* %ba, [label %bb3, label %bb4]
+
+; CHECK: bb3:
+bb3:
+  br label %bb1
+
+; CHECK-NOT: bb4:
+bb4:
+  br label %bb5
+
+; CHECK: bb5:
+bb5:
+  br i1 %c, label %bb6, label %bb7
+
+; CHECK: bb6:
+bb6:
+  ret i32 0
+
+; CHECK: bb7:
+bb7:
+  ret i32 1
+}