diff --git a/lib/Dialect/FIRRTL/Transforms/LowerClasses.cpp b/lib/Dialect/FIRRTL/Transforms/LowerClasses.cpp
index 25ca0304299..ad66f37aed4 100644
--- a/lib/Dialect/FIRRTL/Transforms/LowerClasses.cpp
+++ b/lib/Dialect/FIRRTL/Transforms/LowerClasses.cpp
@@ -441,9 +441,23 @@ bool LowerClassesPass::shouldCreateClass(FModuleLike moduleLike) {
   if (moduleLike.isPublic())
     return true;
 
-  return llvm::any_of(moduleLike.getPorts(), [](PortInfo port) {
+  // Create a class for modules with property ports.
+  bool hasClassPorts = llvm::any_of(moduleLike.getPorts(), [](PortInfo port) {
     return isa<PropertyType>(port.type);
   });
+
+  if (hasClassPorts)
+    return true;
+
+  // Create a class for modules that instantiate classes or modules with
+  // property ports.
+  for (auto op :
+       moduleLike.getOperation()->getRegion(0).getOps<FInstanceLike>())
+    for (auto result : op->getResults())
+      if (type_isa<PropertyType>(result.getType()))
+        return true;
+
+  return false;
 }
 
 // Create an OM Class op from a FIRRTL Class op or Module op with properties.
diff --git a/test/Dialect/FIRRTL/lower-classes.mlir b/test/Dialect/FIRRTL/lower-classes.mlir
index e30aff21a45..516106a3a22 100644
--- a/test/Dialect/FIRRTL/lower-classes.mlir
+++ b/test/Dialect/FIRRTL/lower-classes.mlir
@@ -327,3 +327,14 @@ firrtl.circuit "AnyCast" {
     firrtl.propassign %foo, %0 : !firrtl.anyref
   }
 }
+
+// CHECK-LABEL: firrtl.circuit "ModuleWithPropertySubmodule"
+firrtl.circuit "ModuleWithPropertySubmodule" {
+  firrtl.module private @ModuleWithPropertySubmodule() {
+    %c0 = firrtl.integer 0
+    %inst.prop = firrtl.instance inst @SubmoduleWithProperty(in prop: !firrtl.integer)
+    firrtl.propassign %inst.prop, %c0 : !firrtl.integer
+  }
+  firrtl.module private @SubmoduleWithProperty(in %prop: !firrtl.integer) {
+  }
+}