diff --git a/clang/lib/CodeGen/BackendUtil.cpp b/clang/lib/CodeGen/BackendUtil.cpp
index eededed3da8d3..1e4bbea0ac17a 100644
--- a/clang/lib/CodeGen/BackendUtil.cpp
+++ b/clang/lib/CodeGen/BackendUtil.cpp
@@ -990,8 +990,14 @@ void EmitAssemblyHelper::EmitAssembly(BackendAction Action,
   }
 
   // Allocate static local memory in SYCL kernel scope for each allocation call.
-  if (LangOpts.SYCLIsDevice)
+  if (LangOpts.SYCLIsDevice) {
+    // Group local memory pass depends on inlining. Turn it on even in case if
+    // all llvm passes or SYCL early optimizations are disabled.
+    // FIXME: Remove this workaround when dependency on inlining is eliminated.
+    if (CodeGenOpts.DisableLLVMPasses)
+      PerModulePasses.add(createAlwaysInlinerLegacyPass(false));
     PerModulePasses.add(createSYCLLowerWGLocalMemoryLegacyPass());
+  }
 
   switch (Action) {
   case Backend_EmitNothing:
diff --git a/clang/test/CodeGenSYCL/group-local-memory.cpp b/clang/test/CodeGenSYCL/group-local-memory.cpp
index 600771b674349..e37c9ee468986 100644
--- a/clang/test/CodeGenSYCL/group-local-memory.cpp
+++ b/clang/test/CodeGenSYCL/group-local-memory.cpp
@@ -1,8 +1,26 @@
-// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice \
-// RUN:     -S -emit-llvm -mllvm -debug-pass=Structure -disable-llvm-passes \
-// RUN:     -o - %s 2>&1 | FileCheck %s
-// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice \
-// RUN:     -S -emit-llvm -mllvm -debug-pass=Structure -o - %s 2>&1 \
-// RUN:     | FileCheck %s
+// Check that SYCLLowerWGLocalMemory pass is added to the SYCL device
+// compilation pipeline with the inliner pass.
 
+// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice -emit-llvm \
+// RUN:   -mllvm -debug-pass=Structure %s -o - 2>&1 \
+// RUN:   | FileCheck %s
+// CHECK: Function Integration/Inlining
 // CHECK: Replace __sycl_allocateLocalMemory with allocation of memory in local address space
+
+// Check that AlwaysInliner pass is always run for compilation of SYCL device
+// target code, even if all optimizations are disabled.
+
+// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice -emit-llvm \
+// RUN:   -mllvm -debug-pass=Structure %s -o - -disable-llvm-passes 2>&1 \
+// RUN:   | FileCheck %s --check-prefix=CHECK-NOPASSES
+// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice -emit-llvm \
+// RUN:   -mllvm -debug-pass=Structure %s -o - -fno-sycl-early-optimizations 2>&1 \
+// RUN:   | FileCheck %s --check-prefix=CHECK-NOPASSES
+// CHECK-NOPASSES: Inliner for always_inline functions
+// CHECK-NOPASSES: Replace __sycl_allocateLocalMemory with allocation of memory in local address space
+
+// RUN: %clang_cc1 -fsycl-is-device -triple spir64-unknown-unknown-sycldevice -emit-llvm \
+// RUN:   -mllvm -debug-pass=Structure %s -o - -O0 2>&1 \
+// RUN:   | FileCheck %s --check-prefix=CHECK-O0opt
+// CHECK-O0opt: Inliner for always_inline functions
+// CHECK-O0opt: Replace __sycl_allocateLocalMemory with allocation of memory in local address space