diff --git a/llvm/lib/SYCLLowerIR/LowerWGScope.cpp b/llvm/lib/SYCLLowerIR/LowerWGScope.cpp
index aa55c6cbe4650..01d276ddaf662 100644
--- a/llvm/lib/SYCLLowerIR/LowerWGScope.cpp
+++ b/llvm/lib/SYCLLowerIR/LowerWGScope.cpp
@@ -214,6 +214,22 @@ static bool hasCallToAFuncWithWGMetadata(Function &F) {
   return false;
 }
 
+// Recursively searches for a call to a function with parallel_for_work_item
+// metadata inside F.
+static bool hasCallToAFuncWithPFWIMetadata(Function &F) {
+  for (auto &BB : F)
+    for (auto &I : BB) {
+      if (isCallToAFuncMarkedWithMD(&I, PFWI_MD))
+        return true;
+      const CallInst *Call = dyn_cast<CallInst>(&I);
+      Function *F = dyn_cast_or_null<Function>(Call ? Call->getCalledFunction()
+                                                    : nullptr);
+      if (F && hasCallToAFuncWithPFWIMetadata(*F))
+        return true;
+    }
+  return false;
+}
+
 // Checks if this is a call to parallel_for_work_item.
 static bool isPFWICall(const Instruction *I) {
   return isCallToAFuncMarkedWithMD(I, PFWI_MD);
@@ -835,7 +851,14 @@ PreservedAnalyses SYCLLowerWGScopePass::run(Function &F,
         }
         continue;
       }
-      if (!mayHaveSideEffects(I))
+      // In addition to an instruction not having side effects, we end the range
+      // if the instruction is a call that contains, possibly several layers
+      // down the stack, a call to a parallel_for_work_item. Such calls should
+      // not be subject to lowering since they must be executed by every work
+      // item.
+      const CallInst *Call = dyn_cast<CallInst>(I);
+      if (!mayHaveSideEffects(I) ||
+          (Call && hasCallToAFuncWithPFWIMetadata(*Call->getCalledFunction())))
         continue;
       LLVM_DEBUG(llvm::dbgs() << "+++ Side effects: " << *I << "\n");
       if (!First)
diff --git a/llvm/test/SYCLLowerIR/pfwg_and_pfwi.ll b/llvm/test/SYCLLowerIR/pfwg_and_pfwi.ll
index c9b8388078b2b..94f9c4b0f3d50 100644
--- a/llvm/test/SYCLLowerIR/pfwg_and_pfwi.ll
+++ b/llvm/test/SYCLLowerIR/pfwg_and_pfwi.ll
@@ -5,6 +5,8 @@
 ; are properly handled by LowerWGScope pass. Check that WG-shared local "shadow" variables are created
 ; and before each PFWI invocation leader WI stores its private copy of the variable into the shadow,
 ; then all WIs load the shadow value into their private copies ("materialize" the private copy).
+; Also check that an indirect call to a function marked with parallel_for_work_item is treated
+; the same as a direct call.
 
 %struct.bar = type { i8 }
 %struct.zot = type { %struct.widget, %struct.widget, %struct.widget, %struct.foo }
@@ -54,6 +56,7 @@ define internal spir_func void @wibble(ptr addrspace(4) %arg, ptr byval(%struct.
 ; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
 ; CHECK-NEXT:    [[TMP9:%.*]] = addrspacecast ptr [[ARG1]] to ptr addrspace(4)
 ; CHECK-NEXT:    call spir_func void @bar(ptr addrspace(4) [[TMP9]], ptr byval([[STRUCT_FOO_0]]) align 1 [[TMP1]])
+; CHECK-NEXT:    call spir_func void @foo(ptr addrspace(4) [[TMP9]], ptr byval([[STRUCT_FOO_0]]) align 1 [[TMP1]])
 ; CHECK-NEXT:    ret void
 ;
 bb:
@@ -62,6 +65,57 @@ bb:
   store ptr addrspace(4) %arg, ptr %0, align 8
   %2 = addrspacecast ptr %arg1 to ptr addrspace(4)
   call spir_func void @bar(ptr addrspace(4) %2, ptr byval(%struct.foo.0) align 1 %1)
+  call spir_func void @foo(ptr addrspace(4) %2, ptr byval(%struct.foo.0) align 1 %1)
+  ret void
+}
+
+define internal spir_func void @foo(ptr addrspace(4) %arg, ptr byval(%struct.foo.0) align 1 %arg1) align 2 !work_group_scope !0 {
+; CHECK:       bb:
+; CHECK-NEXT:    [[TMP0:%.*]] = alloca ptr addrspace(4), align 8
+; CHECK-NEXT:    [[TMP1:%.*]] = alloca [[STRUCT_FOO_0:%.*]], align 1
+; CHECK-NEXT:    [[TMP2:%.*]] = load i64, ptr addrspace(1) @__spirv_BuiltInLocalInvocationIndex, align 4
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    [[CMPZ3:%.*]] = icmp eq i64 [[TMP2]], 0
+; CHECK-NEXT:    br i1 [[CMPZ3]], label [[LEADER:%.*]], label [[MERGE:%.*]]
+; CHECK:       leader:
+; CHECK-NEXT:    call void @llvm.memcpy.p3.p0.i64(ptr addrspace(3) align 8 @ArgShadow.4, ptr align 1 [[ARG1:%.*]], i64 1, i1 false)
+; CHECK-NEXT:    br label [[MERGE]]
+; CHECK:       merge:
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    call void @llvm.memcpy.p0.p3.i64(ptr align 1 [[ARG1]], ptr addrspace(3) align 8 @ArgShadow.4, i64 1, i1 false)
+; CHECK-NEXT:    [[TMP3:%.*]] = load i64, ptr addrspace(1) @__spirv_BuiltInLocalInvocationIndex, align 4
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    [[CMPZ:%.*]] = icmp eq i64 [[TMP3]], 0
+; CHECK-NEXT:    br i1 [[CMPZ]], label [[WG_LEADER:%.*]], label [[WG_CF:%.*]]
+; CHECK:       wg_leader:
+; CHECK-NEXT:    store ptr addrspace(4) [[ARG:%.*]], ptr [[TMP0]], align 8
+; CHECK-NEXT:    br label [[WG_CF]]
+; CHECK:       wg_cf:
+; CHECK-NEXT:    [[TMP4:%.*]] = load i64, ptr addrspace(1) @__spirv_BuiltInLocalInvocationIndex, align 4
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    [[CMPZ2:%.*]] = icmp eq i64 [[TMP4]], 0
+; CHECK-NEXT:    br i1 [[CMPZ2]], label [[TESTMAT:%.*]], label [[LEADERMAT:%.*]]
+; CHECK:       TestMat:
+; CHECK-NEXT:    call void @llvm.memcpy.p3.p0.i64(ptr addrspace(3) align 8 @WGCopy.3, ptr align 1 [[TMP1]], i64 1, i1 false)
+; CHECK-NEXT:    [[MAT_LD:%.*]] = load ptr addrspace(4), ptr [[TMP0]], align 8
+; CHECK-NEXT:    store ptr addrspace(4) [[MAT_LD]], ptr addrspace(3) @WGCopy.2, align 8
+; CHECK-NEXT:    br label [[LEADERMAT]]
+; CHECK:       LeaderMat:
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    [[MAT_LD1:%.*]] = load ptr addrspace(4), ptr addrspace(3) @WGCopy.2, align 8
+; CHECK-NEXT:    store ptr addrspace(4) [[MAT_LD1]], ptr [[TMP0]], align 8
+; CHECK-NEXT:    call void @llvm.memcpy.p0.p3.i64(ptr align 1 [[TMP1]], ptr addrspace(3) align 8 @WGCopy.3, i64 1, i1 false)
+; CHECK-NEXT:    call void @_Z22__spirv_ControlBarrieriii(i32 2, i32 2, i32 272) #[[ATTR0]]
+; CHECK-NEXT:    [[TMP5:%.*]] = addrspacecast ptr [[ARG1]] to ptr addrspace(4)
+; CHECK-NEXT:    call spir_func void @bar(ptr addrspace(4) [[TMP5]], ptr byval([[STRUCT_FOO_0]]) align 1 [[TMP1]])
+; CHECK-NEXT:    ret void
+;
+bb:
+  %1 = alloca ptr addrspace(4), align 8
+  %2 = alloca %struct.foo.0, align 1
+  store ptr addrspace(4) %arg, ptr %1, align 8
+  %3 = addrspacecast ptr %arg1 to ptr addrspace(4)
+  call spir_func void @bar(ptr addrspace(4) %3, ptr byval(%struct.foo.0) align 1 %2)
   ret void
 }
 
diff --git a/sycl/test-e2e/HierPar/hier_par_indirect.cpp b/sycl/test-e2e/HierPar/hier_par_indirect.cpp
index b0a1787368f97..073013a48b63b 100644
--- a/sycl/test-e2e/HierPar/hier_par_indirect.cpp
+++ b/sycl/test-e2e/HierPar/hier_par_indirect.cpp
@@ -19,12 +19,36 @@ void __attribute__((noinline)) foo(sycl::group<1> work_group) {
   work_group.parallel_for_work_item([&](sycl::h_item<1> index) {});
 }
 
+void __attribute__((noinline)) bar(sycl::group<1> work_group) {
+  foo(work_group);
+}
+
 int main(int argc, char **argv) {
   sycl::queue q;
+
+  // Try a single indirect call, two indirect calls and an indirect call
+  // accompanied by multiple parallel_for_work_item calls in the same work_group
+  // scope.
   q.submit([&](sycl::handler &cgh) {
      cgh.parallel_for_work_group(sycl::range<1>{1}, sycl::range<1>{128},
                                  ([=](sycl::group<1> wGroup) { foo(wGroup); }));
    }).wait();
+  q.submit([&](sycl::handler &cgh) {
+     cgh.parallel_for_work_group(
+         sycl::range<1>{1}, sycl::range<1>{128}, ([=](sycl::group<1> wGroup) {
+           foo(wGroup); // 1-layer indirect call
+           bar(wGroup); // 2-layer indirect call since bar calls foo
+         }));
+   }).wait();
+  q.submit([&](sycl::handler &cgh) {
+     cgh.parallel_for_work_group(
+         sycl::range<1>{1}, sycl::range<1>{128}, ([=](sycl::group<1> wGroup) {
+           wGroup.parallel_for_work_item([&](sycl::h_item<1> index) {});
+           foo(wGroup);
+           wGroup.parallel_for_work_item([&](sycl::h_item<1> index) {});
+         }));
+   }).wait();
+
   std::cout << "test passed" << std::endl;
   return 0;
 }