diff --git a/flang/lib/Semantics/resolve-names.cpp b/flang/lib/Semantics/resolve-names.cpp
index 695c8265293a8..e5aa928f8d3bf 100644
--- a/flang/lib/Semantics/resolve-names.cpp
+++ b/flang/lib/Semantics/resolve-names.cpp
@@ -3354,6 +3354,15 @@ void ModuleVisitor::DoAddUse(SourceName location, SourceName localName,
     // use-associating the same symbol again -- ok
     return;
   }
+  if (useUltimate.owner().IsModule() && localUltimate.owner().IsSubmodule() &&
+      DoesScopeContain(&useUltimate.owner(), localUltimate)) {
+    // Within a submodule, USE'ing a symbol that comes indirectly
+    // from the ancestor module, e.g. foo in:
+    //  MODULE m1; INTERFACE; MODULE SUBROUTINE foo; END INTERFACE; END
+    //  MODULE m2; USE m1; END
+    //  SUBMODULE m1(sm); USE m2; CONTAINS; MODULE PROCEDURE foo; END; END
+    return; // ok, ignore it
+  }
 
   if (localUltimate.name() == useUltimate.name() &&
       localUltimate.owner().IsModule() && useUltimate.owner().IsModule() &&
diff --git a/flang/test/Semantics/bug124731.f90 b/flang/test/Semantics/bug124731.f90
new file mode 100644
index 0000000000000..924b41dd1db48
--- /dev/null
+++ b/flang/test/Semantics/bug124731.f90
@@ -0,0 +1,24 @@
+!RUN: %flang_fc1 -fsyntax-only %s  2>&1 | FileCheck %s --allow-empty
+!CHECK-NOT: error:
+module m1
+  interface
+    module subroutine foo
+    end
+  end interface
+  real x
+end
+module m2
+  use m1
+end
+submodule(m1) sm1
+  use m2 ! ok
+ contains
+  module procedure foo
+  end
+end
+submodule(m1) sm2
+ contains
+  subroutine bar
+    use m2 ! ok
+  end
+end
diff --git a/flang/test/Semantics/self-use.f90 b/flang/test/Semantics/self-use.f90
index 4bc66a24343c6..12433732fc330 100644
--- a/flang/test/Semantics/self-use.f90
+++ b/flang/test/Semantics/self-use.f90
@@ -15,7 +15,6 @@ subroutine modsub
  contains
   module subroutine separate
     !ERROR: Module 'm' cannot USE itself from its own submodule 'submod1'
-    !ERROR: Cannot use-associate 'separate'; it is already declared in this scope
     use m
   end
 end