diff --git a/src/Lean/Compiler/LCNF/Simp.lean b/src/Lean/Compiler/LCNF/Simp.lean
index 72080ef727..2a48399e0b 100644
--- a/src/Lean/Compiler/LCNF/Simp.lean
+++ b/src/Lean/Compiler/LCNF/Simp.lean
@@ -155,6 +155,12 @@ structure Config where
   deriving Inhabited
 
 structure Context where
+  /--
+  Name of the declaration being simplified.
+  We currently use this information because we are generating phase1 declarations  on demand,
+  and it may trigger non-termination when trying to access the phase1 declaration.
+  -/
+  declName : Name
   config : Config := {}
   discrCtorMap : FVarIdMap Expr := {}
 
@@ -196,6 +202,16 @@ abbrev SimpM := ReaderT Context $ StateRefT State CompilerM
 instance : MonadFVarSubst SimpM where
   getSubst := return (← get).subst
 
+/--
+Use `findExpr`, and if the result is a free variable, check whether it is in the map `discrCtorMap`.
+We use this method when simplifying projections and cases-constructor.
+-/
+def findCtor (e : Expr) : SimpM Expr := do
+  let e ← findExpr e
+  let .fvar fvarId := e | return e
+  let some ctor := (← read).discrCtorMap.find? fvarId | return e
+  return ctor
+
 /--
 Execute `x` with the information that `discr = ctorName ctorFields`.
 We use this information to simplify nested cases on the same discriminant.
@@ -318,6 +334,28 @@ structure InlineCandidateInfo where
 def InlineCandidateInfo.arity : InlineCandidateInfo → Nat
   | { params, .. } => params.size
 
+/--
+Return `some i` if `decl` is of the form
+```
+def f (a_0 ... a_i ...) :=
+  ...
+  cases a_i
+  | ...
+  | ...
+```
+That is, `f` is a sequence of declarations followed by a `cases` on the parameter `i`.
+We use this function to decide whether we should inline a declaration tagged with
+`[inlineIfReduce]` or not.
+-/
+def isCasesOnParam? (decl : Decl) : Option Nat :=
+  go decl.value
+where
+  go (code : Code) : Option Nat :=
+    match code with
+    | .let _ k | .jp _ k | .fun _ k => go k
+    | .cases c => decl.params.findIdx? fun param => param.fvarId == c.discr
+    | _ => none
+
 /--
 Return `some info` if `e` should be inlined.
 -/
@@ -330,13 +368,20 @@ def inlineCandidate? (e : Expr) : SimpM (Option InlineCandidateInfo) := do
   let numArgs := e.getAppNumArgs
   let f := e.getAppFn
   if let .const declName us ← findExpr f then
-    unless mustInline || hasInlineAttribute (← getEnv) declName do return none
+    if declName == (← read).declName then return none -- TODO: remove after we start storing phase1 code in .olean files
+    let inlineIfReduce := hasInlineIfReduceAttribute (← getEnv) declName
+    unless mustInline || hasInlineAttribute (← getEnv) declName || inlineIfReduce do return none
     -- TODO: check whether function is recursive or not.
     -- We can skip the test and store function inline so far.
     let some decl ← getStage1Decl? declName | return none
     let arity := decl.getArity
     let inlinePartial := (← read).config.inlinePartial
     if !mustInline && !inlinePartial && numArgs < arity then return none
+    if inlineIfReduce then
+      let some paramIdx := isCasesOnParam? decl | return none
+      unless paramIdx < numArgs do return none
+      let arg ← findCtor (e.getArg! paramIdx)
+      unless arg.isConstructorApp (← getEnv) do return none
     let params := decl.instantiateParamsLevelParams us
     let value := decl.instantiateValueLevelParams us
     incInline
@@ -746,16 +791,6 @@ private def addDefault (alts : Array Alt) : SimpM (Array Alt) := do
           altsNew := altsNew.push alt
       return altsNew.push (.default max.getCode)
 
-/--
-Use `findExpr`, and if the result is a free variable, check whether it is in the map `discrCtorMap`.
-We use this method when simplifying projections and cases-constructor.
--/
-def findCtor (e : Expr) : SimpM Expr := do
-  let e ← findExpr e
-  let .fvar fvarId := e | return e
-  let some ctor := (← read).discrCtorMap.find? fvarId | return e
-  return ctor
-
 /--
 Try to simplify projections `.proj _ i s` where `s` is constructor.
 -/
@@ -1002,7 +1037,7 @@ partial def Decl.simp (decl : Decl) (config : Config) : CompilerM Decl := do
   go decl config
 where
   go (decl : Decl) (config : Config) : CompilerM Decl := do
-    if let some decl ← decl.simp? |>.run { config } |>.run' {} then
+    if let some decl ← decl.simp? |>.run { config, declName := decl.name } |>.run' {} then
       -- TODO: bound number of steps?
       go decl config
     else
diff --git a/tests/lean/run/inlineIfReduceLCNF.lean b/tests/lean/run/inlineIfReduceLCNF.lean
new file mode 100644
index 0000000000..78b4343567
--- /dev/null
+++ b/tests/lean/run/inlineIfReduceLCNF.lean
@@ -0,0 +1,7 @@
+import Lean
+
+def f (x y z : Nat) : Array Nat :=
+  #[x, y, z, y, x]
+
+set_option trace.Compiler.result true
+#eval Lean.Compiler.compile #[``f]