diff --git a/clang/lib/Sema/SemaCUDA.cpp b/clang/lib/Sema/SemaCUDA.cpp
--- a/clang/lib/Sema/SemaCUDA.cpp
+++ b/clang/lib/Sema/SemaCUDA.cpp
@@ -530,9 +530,12 @@
     if (!AllowedInit &&
         (VD->hasAttr<CUDADeviceAttr>() || VD->hasAttr<CUDAConstantAttr>())) {
       auto *Init = VD->getInit();
+      // isConstantInitializer cannot be called with dependent value, therefore
+      // we skip checking dependent value here. This is OK since
+      // checkAllowedCUDAInitializer is called again when the template is
+      // instantiated.
       AllowedInit =
-          ((VD->getType()->isDependentType() || Init->isValueDependent()) &&
-           VD->isConstexpr()) ||
+          VD->getType()->isDependentType() || Init->isValueDependent() ||
           Init->isConstantInitializer(Context,
                                       VD->getType()->isReferenceType());
     }
diff --git a/clang/test/SemaCUDA/dependent-device-var.cu b/clang/test/SemaCUDA/dependent-device-var.cu
new file mode 100644
--- /dev/null
+++ b/clang/test/SemaCUDA/dependent-device-var.cu
@@ -0,0 +1,18 @@
+// RUN: %clang_cc1 -fsyntax-only -verify=host,com -x hip %s
+// RUN: %clang_cc1 -fsyntax-only -fcuda-is-device -verify=dev,com -x hip %s
+
+#include "Inputs/cuda.h"
+
+template<typename T>
+__device__ int fun1(T x) {
+  // Check type-dependent constant is allowed in initializer.
+  static __device__ int a = sizeof(x);
+  static __device__ int b = x;
+  // com-error@-1 {{dynamic initialization is not supported for __device__, __constant__, __shared__, and __managed__ variables}}
+  return  a + b;
+}
+
+__device__ int fun1_caller() {
+  return fun1(1);
+  // com-note@-1 {{in instantiation of function template specialization 'fun1<int>' requested here}}
+}