diff --git a/flang/include/flang/Semantics/scope.h b/flang/include/flang/Semantics/scope.h
--- a/flang/include/flang/Semantics/scope.h
+++ b/flang/include/flang/Semantics/scope.h
@@ -87,6 +87,7 @@
   bool IsModule() const; // only module, not submodule
   bool IsSubmodule() const;
   bool IsDerivedType() const { return kind_ == Kind::DerivedType; }
+  bool IsStmtFunction() const;
   bool IsParameterizedDerivedType() const;
   Symbol *symbol() { return symbol_; }
   const Symbol *symbol() const { return symbol_; }
diff --git a/flang/include/flang/Semantics/symbol.h b/flang/include/flang/Semantics/symbol.h
--- a/flang/include/flang/Semantics/symbol.h
+++ b/flang/include/flang/Semantics/symbol.h
@@ -482,6 +482,7 @@
       Error, // an error has been reported on this symbol
       Function, // symbol is a function
       Subroutine, // symbol is a subroutine
+      StmtFunction, // symbol is a statement function (Function is set too)
       Implicit, // symbol is implicitly typed
       ModFile, // symbol came from .mod file
       ParentComp, // symbol is the "parent component" of an extended type
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
@@ -2015,7 +2015,8 @@
 
 Scope &ScopeHandler::InclusiveScope() {
   for (auto *scope{&currScope()};; scope = &scope->parent()) {
-    if (scope->kind() != Scope::Kind::Block && !scope->IsDerivedType()) {
+    if (scope->kind() != Scope::Kind::Block && !scope->IsDerivedType() &&
+        !scope->IsStmtFunction()) {
       return *scope;
     }
   }
@@ -2692,6 +2693,7 @@
     return true;
   }
   auto &symbol{PushSubprogramScope(name, Symbol::Flag::Function)};
+  symbol.set(Symbol::Flag::StmtFunction);
   EraseSymbol(symbol); // removes symbol added by PushSubprogramScope
   auto &details{symbol.get<SubprogramDetails>()};
   for (const auto &dummyName : std::get<std::list<parser::Name>>(x.t)) {
diff --git a/flang/lib/Semantics/scope.cpp b/flang/lib/Semantics/scope.cpp
--- a/flang/lib/Semantics/scope.cpp
+++ b/flang/lib/Semantics/scope.cpp
@@ -333,6 +333,10 @@
   return os;
 }
 
+bool Scope::IsStmtFunction() const {
+  return symbol_ && symbol_->test(Symbol::Flag::StmtFunction);
+}
+
 bool Scope::IsParameterizedDerivedType() const {
   if (!IsDerivedType()) {
     return false;
diff --git a/flang/test/Semantics/symbol16.f90 b/flang/test/Semantics/symbol16.f90
--- a/flang/test/Semantics/symbol16.f90
+++ b/flang/test/Semantics/symbol16.f90
@@ -3,7 +3,7 @@
 
 !DEF: /p1 MainProgram
 program p1
- !DEF: /p1/f (Function) Subprogram INTEGER(4)
+ !DEF: /p1/f (Function, StmtFunction) Subprogram INTEGER(4)
  !DEF: /p1/i ObjectEntity INTEGER(4)
  !DEF: /p1/j ObjectEntity INTEGER(4)
  integer f, i, j
@@ -15,3 +15,13 @@
  !REF: /p1/f
  j = f(2)
 end program
+
+!DEF: /p2 MainProgram
+program p2
+ !DEF: /p2/f (Function, StmtFunction) Subprogram REAL(4)
+ !DEF: /p2/f/x (Implicit) ObjectEntity REAL(4)
+ !DEF: /p2/y (Implicit) ObjectEntity REAL(4)
+ f(x) = y
+ !REF: /p2/y
+ y = 1.0
+end program