diff --git a/clang/docs/ReleaseNotes.rst b/clang/docs/ReleaseNotes.rst
index a06f409d78d97a..0fe00974008239 100644
--- a/clang/docs/ReleaseNotes.rst
+++ b/clang/docs/ReleaseNotes.rst
@@ -329,6 +329,8 @@ Bug Fixes
 - Fix sanity check when value initializing an empty union so that it takes into
   account anonymous structs which is a GNU extension. This fixes
   `Issue 58800 <https://github.com/llvm/llvm-project/issues/58800>`_
+- Fix an issue that triggers a crash if we instantiate a hidden friend functions.
+  This fixes `Issue 54457 <https://github.com/llvm/llvm-project/issues/54457>`_
 
 Improvements to Clang's diagnostics
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
diff --git a/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp b/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
index a05eceac739885..a645ffe1cf2915 100644
--- a/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
+++ b/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
@@ -6155,9 +6155,8 @@ NamedDecl *Sema::FindInstantiatedDecl(SourceLocation Loc, NamedDecl *D,
 
       // Move to the outer template scope.
       if (FunctionDecl *FD = dyn_cast<FunctionDecl>(DC)) {
-        // FIXME: We should use `getNonTransparentDeclContext()` here instead
-        // of `getDeclContext()` once we find the invalid test case.
-        if (FD->getFriendObjectKind() && FD->getDeclContext()->isFileContext()){
+        if (FD->getFriendObjectKind() &&
+            FD->getNonTransparentDeclContext()->isFileContext()) {
           DC = FD->getLexicalDeclContext();
           continue;
         }
diff --git a/clang/test/Modules/pr54457.cppm b/clang/test/Modules/pr54457.cppm
new file mode 100644
index 00000000000000..ed67ec1065376e
--- /dev/null
+++ b/clang/test/Modules/pr54457.cppm
@@ -0,0 +1,61 @@
+// https://github.com/llvm/llvm-project/issues/54457
+//
+// RUN: rm -rf %t
+// RUN: mkdir %t
+// RUN: split-file %s %t
+//
+// RUN: %clang_cc1 -std=c++20 %t/A.cppm -verify -S -o -
+// RUN: %clang_cc1 -std=c++20 %t/B.cppm -verify -S -o -
+// RUN: %clang_cc1 -std=c++20 %t/C.cppm -emit-module-interface -o %t/C.pcm
+// RUN: %clang_cc1 -std=c++20 %t/UseC.cppm -fprebuilt-module-path=%t -verify -S -o -
+
+//--- A.cppm
+// expected-no-diagnostics
+export module A;
+
+export template<typename T>
+struct s {
+	friend s f(s) {
+		return s();
+	}
+};
+
+void g() {
+	f(s<int>());
+}
+
+//--- B.cppm
+// expected-no-diagnostics
+export module B;
+
+export template<typename T>
+struct s {
+	friend constexpr auto f(s) -> s {
+		return s();
+	}
+};
+
+void g() {
+	constexpr auto first = f(s<int>());
+}
+
+//--- C.cppm
+// expected-no-diagnostics
+export module C;
+
+export template<typename StandardCharT, int N>
+struct basic_symbol_text {
+  template<int N2>
+  constexpr friend basic_symbol_text operator+(
+    const basic_symbol_text&, const basic_symbol_text<char, N2>&) noexcept
+  {
+    return basic_symbol_text{};
+  }
+};
+
+constexpr auto xxx = basic_symbol_text<char, 1>{} + basic_symbol_text<char, 1>{};
+
+//--- UseC.cppm
+// expected-no-diagnostics
+import C;
+void foo() {}