diff --git a/llvm/lib/CodeGen/AsmPrinter/DwarfDebug.cpp b/llvm/lib/CodeGen/AsmPrinter/DwarfDebug.cpp
index 0edfca78b0886..44fa223a35635 100644
--- a/llvm/lib/CodeGen/AsmPrinter/DwarfDebug.cpp
+++ b/llvm/lib/CodeGen/AsmPrinter/DwarfDebug.cpp
@@ -169,8 +169,10 @@ static cl::opt<DwarfDebug::MinimizeAddrInV5> MinimizeAddrInV5Option(
                           "Stuff")),
     cl::init(DwarfDebug::MinimizeAddrInV5::Default));
 
-static cl::opt<bool> KeyInstructionsAreStmts("dwarf-use-key-instructions",
-                                             cl::Hidden, cl::init(false));
+/// Set to false to ignore Key Instructions metadata.
+static cl::opt<bool> KeyInstructionsAreStmts(
+    "dwarf-use-key-instructions", cl::Hidden, cl::init(true),
+    cl::desc("Set to false to ignore Key Instructions metadata"));
 
 static constexpr unsigned ULEB128PadSize = 4;
 
@@ -2077,8 +2079,16 @@ void DwarfDebug::beginInstruction(const MachineInstr *MI) {
   unsigned LastAsmLine =
       Asm->OutStreamer->getContext().getCurrentDwarfLoc().getLine();
 
+  // Not-Key-Instructions functions inlined into Key Instructions functions
+  // should use default is_stmt handling. Key instructions functions
+  // inlined into not-key-instructions functions should use Key Instructions
+  // is_stmt handling.
+  bool ScopeUsesKeyInstructions =
+      KeyInstructionsAreStmts && DL &&
+      DL->getScope()->getSubprogram()->getKeyInstructionsEnabled();
+
   bool IsKey = false;
-  if (KeyInstructionsAreStmts && DL && DL.getLine())
+  if (ScopeUsesKeyInstructions && DL && DL.getLine())
     IsKey = KeyInstructions.contains(MI);
 
   if (!DL && MI == PrologEndLoc) {
@@ -2158,7 +2168,7 @@ void DwarfDebug::beginInstruction(const MachineInstr *MI) {
     PrologEndLoc = nullptr;
   }
 
-  if (KeyInstructionsAreStmts) {
+  if (ScopeUsesKeyInstructions) {
     if (IsKey)
       Flags |= DWARF2_FLAG_IS_STMT;
   } else {
@@ -2651,10 +2661,12 @@ void DwarfDebug::beginFunctionImpl(const MachineFunction *MF) {
   PrologEndLoc = emitInitialLocDirective(
       *MF, Asm->OutStreamer->getContext().getDwarfCompileUnitID());
 
+  // Run both `findForceIsStmtInstrs` and `computeKeyInstructions` because
+  // not-key-instructions functions may be inlined into key-instructions
+  // functions and vice versa.
   if (KeyInstructionsAreStmts)
     computeKeyInstructions(MF);
-  else
-    findForceIsStmtInstrs(MF);
+  findForceIsStmtInstrs(MF);
 }
 
 unsigned
diff --git a/llvm/test/DebugInfo/KeyInstructions/X86/dwarf-inline-modes.mir b/llvm/test/DebugInfo/KeyInstructions/X86/dwarf-inline-modes.mir
new file mode 100644
index 0000000000000..39fb4126332e5
--- /dev/null
+++ b/llvm/test/DebugInfo/KeyInstructions/X86/dwarf-inline-modes.mir
@@ -0,0 +1,92 @@
+# RUN: llc %s --start-after=livedebugvalues --dwarf-use-key-instructions --filetype=obj -o - \
+# RUN: | llvm-objdump -d - --no-show-raw-insn \
+# RUN: | FileCheck %s --check-prefix=OBJ
+
+# RUN: llc %s --start-after=livedebugvalues --dwarf-use-key-instructions --filetype=obj -o - \
+# RUN: | llvm-dwarfdump - --debug-line \
+# RUN: | FileCheck %s --check-prefix=DBG
+
+
+
+--- |
+  target triple = "x86_64-unknown-linux-gnu"
+
+  define hidden noundef i32 @key() local_unnamed_addr !dbg !5 {
+  entry:
+    ret i32 0
+  }
+
+  define hidden noundef i32 @not_key() local_unnamed_addr !dbg !9 {
+  entry:
+    ret i32 0
+  }
+
+  !llvm.dbg.cu = !{!0}
+  !llvm.module.flags = !{!2, !3}
+  !llvm.ident = !{!4}
+
+  !0 = distinct !DICompileUnit(language: DW_LANG_C_plus_plus_17, file: !1, producer: "clang version 21.0.0", isOptimized: true, runtimeVersion: 0, emissionKind: LineTablesOnly, splitDebugInlining: false, nameTableKind: None)
+  !1 = !DIFile(filename: "test.cpp", directory: "/")
+  !2 = !{i32 7, !"Dwarf Version", i32 5}
+  !3 = !{i32 2, !"Debug Info Version", i32 3}
+  !4 = !{!"clang version 21.0.0"}
+  !5 = distinct !DISubprogram(name: "key", scope: !1, file: !1, line: 1, type: !6, scopeLine: 1, flags: DIFlagPrototyped | DIFlagAllCallsDescribed, spFlags: DISPFlagDefinition | DISPFlagOptimized, unit: !0, keyInstructions: true)
+  !6 = !DISubroutineType(types: !7)
+  !7 = !{}
+  !9 = distinct !DISubprogram(name: "not_key", scope: !1, file: !1, line: 1, type: !6, scopeLine: 1, flags: DIFlagPrototyped | DIFlagAllCallsDescribed, spFlags: DISPFlagDefinition | DISPFlagOptimized, unit: !0, keyInstructions: false)
+  !10 = distinct !DILocation(line: 5, scope: !5)
+  !11 = distinct !DILocation(line: 9, scope: !9)
+...
+---
+name:            key
+alignment:       16
+body:             |
+  bb.0.entry:
+
+    ; OBJ: 0000000000000000 <key>:
+    ; OBJ-NEXT:  0: movl $0x1, %eax
+    ; OBJ-NEXT:  5: movl $0x2, %eax
+    ; OBJ-NEXT:  a: movl $0x3, %eax
+    ; OBJ-NEXT:  f: movl $0x4, %eax
+    ; OBJ-NEXT: 14: movl $0x5, %eax
+    ; OBJ-NEXT: 19: retq
+    ;
+    ; DBG:      Address            Line   Column File   ISA Discriminator OpIndex Flags
+    ; DBG-NEXT: ------------------ ------ ------ ------ --- ------------- ------- -------------
+    ; DBG-NEXT: 0x0000000000000000      1      0      0   0             0       0  is_stmt prologue_end
+    ; DBG-NEXT: 0x0000000000000005      2      0      0   0             0       0  is_stmt
+    ; DBG-NEXT: 0x000000000000000a      2      0      0   0             0       0
+    ; DBG-NEXT: 0x000000000000000f      3      0      0   0             0       0  is_stmt
+    ; DBG-NEXT: 0x0000000000000014      3      0      0   0             0       0
+    ;
+    $eax = MOV32ri 1,  debug-location !DILocation(line: 1, scope: !5)                            ; is_stmt (prologue_end)
+    $eax = MOV32ri 2,  debug-location !DILocation(line: 2, scope: !5, atomGroup: 1, atomRank: 1) ; is_stmt (key)
+    $eax = MOV32ri 3,  debug-location !DILocation(line: 2, scope: !9, inlinedAt: !10)
+    $eax = MOV32ri 4,  debug-location !DILocation(line: 3, scope: !9, inlinedAt: !10)            ; is_stmt (not_key)
+    $eax = MOV32ri 5,  debug-location !DILocation(line: 3, scope: !5, atomGroup: 1, atomRank: 2) ; is_stmt (key)
+    RET64 $eax,        debug-location !DILocation(line: 3, scope: !5, atomGroup: 1, atomRank: 1)
+...
+---
+name:            not_key
+alignment:       16
+body:             |
+  bb.0.entry:
+
+    ; OBJ: 0000000000000020 <not_key>:
+    ; OBJ-NEXT: 20: movl $0x1, %eax
+    ; OBJ-NEXT: 25: movl $0x2, %eax
+    ; OBJ-NEXT: 2a: movl $0x3, %eax
+    ; OBJ-NEXT: 2f: retq
+    ;
+    ;           Address            Line   Column File   ISA Discriminator OpIndex Flags
+    ;           ------------------ ------ ------ ------ --- ------------- ------- -------------
+    ; DBG-NEXT: 0x0000000000000020      1      0      0   0             0       0  is_stmt prologue_end
+    ; DBG-NEXT: 0x0000000000000025      2      0      0   0             0       0
+    ; DBG-NEXT: 0x000000000000002a      3      0      0   0             0       0  is_stmt
+    ; DBG-NEXT: 0x000000000000002f      3      0      0   0             0       0
+    ;
+    $eax = MOV32ri 1,  debug-location !DILocation(line: 1, scope: !9)                                            ; is_stmt (prologue_end)
+    $eax = MOV32ri 2,  debug-location !DILocation(line: 2, scope: !5, inlinedAt: !11, atomGroup: 1, atomRank: 2)
+    $eax = MOV32ri 3,  debug-location !DILocation(line: 3, scope: !5, inlinedAt: !11, atomGroup: 1, atomRank: 1) ; is_stmt (key)
+    RET64 $eax,        debug-location !DILocation(line: 3, scope: !9)
+...