diff --git a/flang/lib/Semantics/mod-file.cpp b/flang/lib/Semantics/mod-file.cpp
index b45f1c060da2f..bef934beaacfa 100644
--- a/flang/lib/Semantics/mod-file.cpp
+++ b/flang/lib/Semantics/mod-file.cpp
@@ -306,8 +306,10 @@ void ModFileWriter::PrepareRenamings(const Scope &scope) {
   // to their names in this scope, creating those new names when needed.
   auto &renamings{context_.moduleFileOutputRenamings()};
   for (SymbolRef s : symbolsNeeded) {
-    if (s->owner().kind() == Scope::Kind::DerivedType) {
-      continue; // component or binding: ok
+    if (s->owner().kind() != Scope::Kind::Module) {
+      // Not a USE'able name from a module's top scope;
+      // component, binding, dummy argument, &c.
+      continue;
     }
     const Scope *sMod{FindModuleContaining(s->owner())};
     if (!sMod || sMod == &scope) {
diff --git a/flang/test/Semantics/bug124716.f90 b/flang/test/Semantics/bug124716.f90
new file mode 100644
index 0000000000000..c1487a235721c
--- /dev/null
+++ b/flang/test/Semantics/bug124716.f90
@@ -0,0 +1,36 @@
+! RUN: %python %S/test_modfile.py %s %flang_fc1
+MODULE m1
+  INTERFACE
+    MODULE SUBROUTINE sub1(N, ARR)
+      INTEGER, INTENT(IN) :: N
+      INTEGER, DIMENSION(N) :: ARR
+    END SUBROUTINE
+  END INTERFACE
+END MODULE
+SUBMODULE (m1) m1sub
+ CONTAINS
+  MODULE SUBROUTINE sub1(N, ARR)
+    INTEGER, INTENT(IN) :: N
+    INTEGER, DIMENSION(N) :: ARR
+    PRINT *, "sub1", N, ARR
+  END SUBROUTINE
+END SUBMODULE
+
+!Expect: m1.mod
+!module m1
+!interface
+!module subroutine sub1(n,arr)
+!integer(4),intent(in)::n
+!integer(4)::arr(1_8:int(n,kind=8))
+!end
+!end interface
+!end
+
+!Expect: m1-m1sub.mod
+!submodule(m1) m1sub
+!contains
+!module subroutine sub1(n,arr)
+!integer(4),intent(in)::n
+!integer(4)::arr(1_8:int(n,kind=8))
+!end
+!end