diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 6f0fce1a2acf..b8c8d40501c0 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2006-10-10  Richard Guenther  <rguenther@suse.de>
+
+	PR rtl-optimization/29323
+	* except.c (set_nothrow_function_flags): For functions
+	that do not bind local bail out early.
+
 2006-10-10  Ben Elliston  <bje@au.ibm.com>
 
 	* doc/invoke.texi (RS/6000 and PowerPC Options): Add -m to the
diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index 615f53c49e8c..253c578c30d2 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,3 +1,9 @@
+2006-10-10  Richard Guenther  <rguenther@suse.de>
+
+	PR rtl-optimization/29323
+	* decl.c (finish_function): Set TREE_NOTHROW only for
+	functions that bind local.
+
 2006-10-09  Richard Henderson  <rth@redhat.com>
 
 	Revert emutls patch.
diff --git a/gcc/cp/decl.c b/gcc/cp/decl.c
index 84f2aaa49b3e..96ecc8691d7a 100644
--- a/gcc/cp/decl.c
+++ b/gcc/cp/decl.c
@@ -11096,7 +11096,8 @@ finish_function (int flags)
   /* If this function can't throw any exceptions, remember that.  */
   if (!processing_template_decl
       && !cp_function_chain->can_throw
-      && !flag_non_call_exceptions)
+      && !flag_non_call_exceptions
+      && targetm.binds_local_p (fndecl))
     TREE_NOTHROW (fndecl) = 1;
 
   /* This must come after expand_function_end because cleanups might
diff --git a/gcc/except.c b/gcc/except.c
index b344087672b4..30dafbb8073f 100644
--- a/gcc/except.c
+++ b/gcc/except.c
@@ -2787,6 +2787,9 @@ set_nothrow_function_flags (void)
 {
   rtx insn;
 
+  if (!targetm.binds_local_p (current_function_decl))
+    return 0;
+
   TREE_NOTHROW (current_function_decl) = 1;
 
   /* Assume cfun->all_throwers_are_sibcalls until we encounter