diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index e42d80e9ecc5..3882383678e5 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2008-12-05  Jakub Jelinek  <jakub@redhat.com>
+
+	PR middle-end/38338
+	* builtins.c (expand_builtin_apply_args): Put before parm_birth_insn
+	only if internal_arg_pointer is a non-virtual pseudo.
+
 2008-12-05  Joseph Myers  <joseph@codesourcery.com>
 
 	* config/rs6000/rs6000.md (move_from_CR_gt_bit): Enable for
diff --git a/gcc/builtins.c b/gcc/builtins.c
index 444baa606d1d..4d507cf867c5 100644
--- a/gcc/builtins.c
+++ b/gcc/builtins.c
@@ -1434,9 +1434,15 @@ expand_builtin_apply_args (void)
     /* Put the insns after the NOTE that starts the function.
        If this is inside a start_sequence, make the outer-level insn
        chain current, so the code is placed at the start of the
-       function.  */
+       function.  If internal_arg_pointer is a non-virtual pseudo,
+       it needs to be placed after the function that initializes
+       that pseudo.  */
     push_topmost_sequence ();
-    emit_insn_before (seq, parm_birth_insn);
+    if (REG_P (crtl->args.internal_arg_pointer)
+	&& REGNO (crtl->args.internal_arg_pointer) > LAST_VIRTUAL_REGISTER)
+      emit_insn_before (seq, parm_birth_insn);
+    else
+      emit_insn_before (seq, NEXT_INSN (entry_of_function ()));
     pop_topmost_sequence ();
     return temp;
   }
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index d342035cc992..3853f9759448 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2008-12-05  Jakub Jelinek  <jakub@redhat.com>
+
+	PR middle-end/38338
+	* gcc.dg/pr38338.c: New test.
+
 2008-12-05  Joseph Myers  <joseph@codesourcery.com>
 
 	* gcc.target/powerpc/20081204-1.c: New test.
diff --git a/gcc/testsuite/gcc.dg/pr38338.c b/gcc/testsuite/gcc.dg/pr38338.c
new file mode 100644
index 000000000000..e8fcc3c45049
--- /dev/null
+++ b/gcc/testsuite/gcc.dg/pr38338.c
@@ -0,0 +1,18 @@
+/* PR middle-end/38338 */
+/* { dg-options "-O0" } */
+/* { dg-options "-O0 -fPIC" { target fpic } } */
+
+typedef void (*fnp) (void);
+
+static char
+foo (char x)
+{
+  return x;
+}
+
+static void *
+bar (char x)
+{
+  void *args = __builtin_apply_args ();
+  return __builtin_apply ((fnp) foo, args, sizeof (void *));
+}