diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 8c36c0e1750131f527929ed00050e40db64e97b4..bf63002e460eb261b2ada0d55f8e0c08191d8c21 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,11 @@
+2006-10-15  Jan Hubicka  <jh@suse.cz>
+            Richard Guenther  <rguenther@suse.de>
+
+	PR middle-end/29299
+	* cgraphunit.c (cgraph_finalize_compilation_unit): Call
+	process_function_and_variable_attributes on all variables, including
+	those discovered during cgraph construction phase.
+
 2006-10-15  Bernhard Fischer  <aldot@gcc.gnu.org>
 
 	* final.c: Update Copyright year. Commentary typo fix. Fix whitespace
diff --git a/gcc/cgraphunit.c b/gcc/cgraphunit.c
index 10c52ea42849b5935a5defceab12152f00ceafeb..d7ad793db5b9fbe8537a893eac756d8c3ae557cc 100644
--- a/gcc/cgraphunit.c
+++ b/gcc/cgraphunit.c
@@ -1055,6 +1055,7 @@ cgraph_finalize_compilation_unit (void)
   /* Keep track of already processed nodes when called multiple times for
      intermodule optimization.  */
   static struct cgraph_node *first_analyzed;
+  struct cgraph_node *first_processed = first_analyzed;
   static struct cgraph_varpool_node *first_analyzed_var;
 
   if (errorcount || sorrycount)
@@ -1077,7 +1078,10 @@ cgraph_finalize_compilation_unit (void)
     }
 
   timevar_push (TV_CGRAPH);
-  process_function_and_variable_attributes (first_analyzed, first_analyzed_var);
+  process_function_and_variable_attributes (first_processed,
+					    first_analyzed_var);
+  first_processed = cgraph_nodes;
+  first_analyzed_var = cgraph_varpool_nodes;
   cgraph_varpool_analyze_pending_decls ();
   if (cgraph_dump_file)
     {
@@ -1119,11 +1123,16 @@ cgraph_finalize_compilation_unit (void)
 	if (!edge->callee->reachable)
 	  cgraph_mark_reachable_node (edge->callee);
 
+      /* We finalize local static variables during constructing callgraph
+         edges.  Process their attributes too.  */
+      process_function_and_variable_attributes (first_processed,
+						first_analyzed_var);
+      first_processed = cgraph_nodes;
+      first_analyzed_var = cgraph_varpool_nodes;
       cgraph_varpool_analyze_pending_decls ();
     }
 
-  /* Collect entry points to the unit.  */
-
+/bin/bash: line 1: :Q: command not found
   if (cgraph_dump_file)
     {
       fprintf (cgraph_dump_file, "Unit entry points:");
@@ -1163,7 +1172,6 @@ cgraph_finalize_compilation_unit (void)
       dump_cgraph (cgraph_dump_file);
     }
   first_analyzed = cgraph_nodes;
-  first_analyzed_var = cgraph_varpool_nodes;
   ggc_collect ();
   timevar_pop (TV_CGRAPH);
 }
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 81eec2138872c306c0da94da9fe109984a93e333..c2ff6c22b40f045b2a8bd4bbc878946fadceca51 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,7 @@
+2006-10-15  Richard Guenther  <rguenther@suse.de>
+
+	* gcc.dg/pr29299.c: New testcase.
+
 2006-10-15  Bernhard Fischer  <aldot@gcc.gnu.org>
 
 	PR fortran/24767
diff --git a/gcc/testsuite/gcc.dg/pr29299.c b/gcc/testsuite/gcc.dg/pr29299.c
new file mode 100644
index 0000000000000000000000000000000000000000..9049060fae452d71e624bc46d49a04cd1354767d
--- /dev/null
+++ b/gcc/testsuite/gcc.dg/pr29299.c
@@ -0,0 +1,10 @@
+/* { dg-do compile } */
+/* { dg-options "-O" } */
+
+static int bof __attribute__((used));
+int foo()
+{
+	static int barbarbarbar __attribute__((used));
+};
+
+/* { dg-final { scan-assembler "barbarbarbar" } } */