diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1fabce7e28..3348d8c97f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -57,6 +57,12 @@ These are only breaking changes for unformatted code.
 - Process `@set` annotation for field update as generating an uncurried function https://github.com/rescript-lang/rescript-compiler/pull/5846
 - Treat uncurried application of primitives like curried application, which produces better output https://github.com/rescript-lang/rescript-compiler/pull/5851
 
+# 10.1.1
+
+#### :bug: Bug Fix
+
+- Prevent inlining of async functions in additional cases https://github.com/rescript-lang/rescript-compiler/issues/5860
+
 # 10.1.0
 
 #### :bug: Bug Fix
diff --git a/jscomp/core/js_pass_tailcall_inline.ml b/jscomp/core/js_pass_tailcall_inline.ml
index 3ae42a5081..d3e003c109 100644
--- a/jscomp/core/js_pass_tailcall_inline.ml
+++ b/jscomp/core/js_pass_tailcall_inline.ml
@@ -200,7 +200,7 @@ let subst (export_set : Set_ident.t) stats =
                    Call
                      ( {
                          expression_desc =
-                           Fun {is_method=false; params; body; env};
+                           Fun {is_method=false; params; body; env; async=false};
                        },
                        args,
                        _info );
diff --git a/jscomp/core/lam_pass_remove_alias.ml b/jscomp/core/lam_pass_remove_alias.ml
index fe459f6bfc..33bceda1ff 100644
--- a/jscomp/core/lam_pass_remove_alias.ml
+++ b/jscomp/core/lam_pass_remove_alias.ml
@@ -171,7 +171,10 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
           ap_info;
         } -> (
         match Lam_compile_env.query_external_id_info ident fld_name with
-        | { persistent_closed_lambda = Some (Lfunction { params; body; _ }) }
+        | {
+         persistent_closed_lambda =
+           Some (Lfunction ({ params; body } as lfunction));
+        }
         (* be more cautious when do cross module inlining *)
           when Ext_list.same_length params args
                && Ext_list.for_all args (fun arg ->
@@ -180,7 +183,8 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
                           match Hash_ident.find_opt meta.ident_tbl p with
                           | Some v -> v <> Parameter
                           | None -> true)
-                      | _ -> true) ->
+                      | _ -> true)
+               && Lam_analysis.lfunction_can_be_beta_reduced lfunction ->
             simpl (Lam_beta_reduce.propagate_beta_reduce meta params body args)
         | _ -> Lam.apply (simpl l1) (Ext_list.map args simpl) ap_info)
     (* Function inlining interact with other optimizations...
diff --git a/jscomp/test/async_inline.js b/jscomp/test/async_inline.js
index 150cc10a3f..5854f25103 100644
--- a/jscomp/test/async_inline.js
+++ b/jscomp/test/async_inline.js
@@ -15,6 +15,13 @@ function wrapSomethingAsync(param) {
         })(777));
 }
 
+function wrapSomethingAsync2(param) {
+  ((async function (param) {
+          var test = await Promise.resolve("Test");
+          console.log(test);
+        })(undefined));
+}
+
 async function doSomethingAsync(someAsyncFunction) {
   return await Curry._1(someAsyncFunction, undefined);
 }
@@ -58,6 +65,7 @@ var tci = 3;
 exports.willBeInlined = willBeInlined;
 exports.inlined = inlined;
 exports.wrapSomethingAsync = wrapSomethingAsync;
+exports.wrapSomethingAsync2 = wrapSomethingAsync2;
 exports.M = M;
 exports.broken = broken$2;
 exports.curriedId = curriedId;
diff --git a/jscomp/test/async_inline.res b/jscomp/test/async_inline.res
index 98c6ba14d3..9535d50eed 100644
--- a/jscomp/test/async_inline.res
+++ b/jscomp/test/async_inline.res
@@ -11,6 +11,16 @@ let wrapSomethingAsync: unit => unit = () => {
   )(777)
 }
 
+external ignorePromise: promise<'a> => unit = "%identity"
+
+let wrapSomethingAsync2 = () =>
+  (
+    async () => {
+      let test = await Js.Promise.resolve("Test")
+      Js.log(test)
+    }
+  )()->ignorePromise
+
 module M: {
   let broken: (unit => promise<'a>) => promise<'a>
 } = {
diff --git a/lib/4.06.1/unstable/js_compiler.ml b/lib/4.06.1/unstable/js_compiler.ml
index ff07ed091d..f5d3a90a8c 100644
--- a/lib/4.06.1/unstable/js_compiler.ml
+++ b/lib/4.06.1/unstable/js_compiler.ml
@@ -92837,7 +92837,7 @@ let subst (export_set : Set_ident.t) stats =
                    Call
                      ( {
                          expression_desc =
-                           Fun {is_method=false; params; body; env};
+                           Fun {is_method=false; params; body; env; async=false};
                        },
                        args,
                        _info );
@@ -139496,7 +139496,10 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
           ap_info;
         } -> (
         match Lam_compile_env.query_external_id_info ident fld_name with
-        | { persistent_closed_lambda = Some (Lfunction { params; body; _ }) }
+        | {
+         persistent_closed_lambda =
+           Some (Lfunction ({ params; body } as lfunction));
+        }
         (* be more cautious when do cross module inlining *)
           when Ext_list.same_length params args
                && Ext_list.for_all args (fun arg ->
@@ -139505,7 +139508,8 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
                           match Hash_ident.find_opt meta.ident_tbl p with
                           | Some v -> v <> Parameter
                           | None -> true)
-                      | _ -> true) ->
+                      | _ -> true)
+               && Lam_analysis.lfunction_can_be_beta_reduced lfunction ->
             simpl (Lam_beta_reduce.propagate_beta_reduce meta params body args)
         | _ -> Lam.apply (simpl l1) (Ext_list.map args simpl) ap_info)
     (* Function inlining interact with other optimizations...
diff --git a/lib/4.06.1/unstable/js_playground_compiler.ml b/lib/4.06.1/unstable/js_playground_compiler.ml
index a063381456..9a5cc506de 100644
--- a/lib/4.06.1/unstable/js_playground_compiler.ml
+++ b/lib/4.06.1/unstable/js_playground_compiler.ml
@@ -92837,7 +92837,7 @@ let subst (export_set : Set_ident.t) stats =
                    Call
                      ( {
                          expression_desc =
-                           Fun {is_method=false; params; body; env};
+                           Fun {is_method=false; params; body; env; async=false};
                        },
                        args,
                        _info );
@@ -139496,7 +139496,10 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
           ap_info;
         } -> (
         match Lam_compile_env.query_external_id_info ident fld_name with
-        | { persistent_closed_lambda = Some (Lfunction { params; body; _ }) }
+        | {
+         persistent_closed_lambda =
+           Some (Lfunction ({ params; body } as lfunction));
+        }
         (* be more cautious when do cross module inlining *)
           when Ext_list.same_length params args
                && Ext_list.for_all args (fun arg ->
@@ -139505,7 +139508,8 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
                           match Hash_ident.find_opt meta.ident_tbl p with
                           | Some v -> v <> Parameter
                           | None -> true)
-                      | _ -> true) ->
+                      | _ -> true)
+               && Lam_analysis.lfunction_can_be_beta_reduced lfunction ->
             simpl (Lam_beta_reduce.propagate_beta_reduce meta params body args)
         | _ -> Lam.apply (simpl l1) (Ext_list.map args simpl) ap_info)
     (* Function inlining interact with other optimizations...
diff --git a/lib/4.06.1/whole_compiler.ml b/lib/4.06.1/whole_compiler.ml
index 80bcd4b2dd..b1955c230d 100644
--- a/lib/4.06.1/whole_compiler.ml
+++ b/lib/4.06.1/whole_compiler.ml
@@ -141231,7 +141231,7 @@ let subst (export_set : Set_ident.t) stats =
                    Call
                      ( {
                          expression_desc =
-                           Fun {is_method=false; params; body; env};
+                           Fun {is_method=false; params; body; env; async=false};
                        },
                        args,
                        _info );
@@ -154666,7 +154666,10 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
           ap_info;
         } -> (
         match Lam_compile_env.query_external_id_info ident fld_name with
-        | { persistent_closed_lambda = Some (Lfunction { params; body; _ }) }
+        | {
+         persistent_closed_lambda =
+           Some (Lfunction ({ params; body } as lfunction));
+        }
         (* be more cautious when do cross module inlining *)
           when Ext_list.same_length params args
                && Ext_list.for_all args (fun arg ->
@@ -154675,7 +154678,8 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lam.t) : Lam.t =
                           match Hash_ident.find_opt meta.ident_tbl p with
                           | Some v -> v <> Parameter
                           | None -> true)
-                      | _ -> true) ->
+                      | _ -> true)
+               && Lam_analysis.lfunction_can_be_beta_reduced lfunction ->
             simpl (Lam_beta_reduce.propagate_beta_reduce meta params body args)
         | _ -> Lam.apply (simpl l1) (Ext_list.map args simpl) ap_info)
     (* Function inlining interact with other optimizations...