diff --git a/flang/lib/Semantics/data-to-inits.cpp b/flang/lib/Semantics/data-to-inits.cpp
index 1c454385e6989..1e46dabe30c89 100644
--- a/flang/lib/Semantics/data-to-inits.cpp
+++ b/flang/lib/Semantics/data-to-inits.cpp
@@ -943,10 +943,19 @@ void ConstructInitializer(const Symbol &symbol,
 
 void ConvertToInitializers(
     DataInitializations &inits, evaluate::ExpressionAnalyzer &exprAnalyzer) {
+  // Process DATA-style component /initializers/ now, so that they appear as
+  // default values in time for EQUIVALENCE processing in ProcessScopes.
+  for (auto &[symbolPtr, initialization] : inits) {
+    if (symbolPtr->owner().IsDerivedType()) {
+      ConstructInitializer(*symbolPtr, initialization, exprAnalyzer);
+    }
+  }
   if (ProcessScopes(
           exprAnalyzer.context().globalScope(), exprAnalyzer, inits)) {
     for (auto &[symbolPtr, initialization] : inits) {
-      ConstructInitializer(*symbolPtr, initialization, exprAnalyzer);
+      if (!symbolPtr->owner().IsDerivedType()) {
+        ConstructInitializer(*symbolPtr, initialization, exprAnalyzer);
+      }
     }
   }
 }
diff --git a/flang/test/Semantics/data24.f90 b/flang/test/Semantics/data24.f90
new file mode 100644
index 0000000000000..b645bd1ff5bc6
--- /dev/null
+++ b/flang/test/Semantics/data24.f90
@@ -0,0 +1,16 @@
+! RUN: %flang_fc1 -fdebug-dump-symbols %s 2>&1 | FileCheck %s
+! Ensure that DATA-style default component /initializers/ are processed
+! before they are needed to handle EQUIVALENCE'd storage.
+type t
+  sequence
+  integer :: j(10) /1,2,3,4,5,6,7,8,9,10/
+end type
+type(t) :: A
+integer arr(10)
+equivalence (A, arr)
+end
+
+!CHECK: .F18.0, SAVE (CompilerCreated) size=40 offset=0: ObjectEntity type: INTEGER(4) shape: 1_8:10_8 init:[INTEGER(4)::1_4,2_4,3_4,4_4,5_4,6_4,7_4,8_4,9_4,10_4]
+!CHECK: a size=40 offset=0: ObjectEntity type: TYPE(t)
+!CHECK: arr size=40 offset=0: ObjectEntity type: INTEGER(4) shape: 1_8:10_8
+!CHECK: Equivalence Sets: (a,arr(1)) (.F18.0,a)