diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 120b50eae092..6dc807bb4ca9 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+Hariharan Sandanagobalane <hariharan@picochip.com>
+
+	* config/picochip/picochip.c (flag_conserve_stack): set
+	PARAM_LARGE_STACK_FRAME and PARAM_STACK_FRAME_GROWTH to zero under
+	fconserve-stack. Reduce call-overhead used by inliner.
+
 Hariharan Sandanagobalane <hariharan@picochip.com>
 
 	PR/38157
diff --git a/gcc/config/picochip/picochip.c b/gcc/config/picochip/picochip.c
index 36170421d191..a0686bdb262b 100644
--- a/gcc/config/picochip/picochip.c
+++ b/gcc/config/picochip/picochip.c
@@ -50,6 +50,7 @@ along with GCC; see the file COPYING3.  If not, see
 #include "target-def.h"
 #include "langhooks.h"
 #include "reload.h"
+#include "params.h"
 
 #include "picochip-protos.h"
 
@@ -303,6 +304,16 @@ picochip_return_in_memory(const_tree type, const_tree fntype ATTRIBUTE_UNUSED)
 void
 picochip_override_options (void)
 {
+  /* If we are optimizing for stack, dont let inliner to inline functions
+     that could potentially increase stack size.*/
+   if (flag_conserve_stack)
+   {
+     PARAM_VALUE (PARAM_LARGE_STACK_FRAME) = 0;
+     PARAM_VALUE (PARAM_STACK_FRAME_GROWTH) = 0;
+   }
+   /* The function call overhead on picochip is not very high. Let the
+      inliner know so its heuristics become more reasonable. */
+   PARAM_VALUE (PARAM_INLINE_CALL_COST) = 2;
 
   /* Turn off the elimination of unused types. The elaborator
      generates various interesting types to represent constants,