diff --git a/bfd/elfnn-aarch64.c b/bfd/elfnn-aarch64.c
index 3e0562b72bc69a9c43f01c80c604b85c582f4f7b..da3c629fcdbfbceed633d9af7c5751dd358492fc 100644
--- a/bfd/elfnn-aarch64.c
+++ b/bfd/elfnn-aarch64.c
@@ -6965,17 +6965,6 @@ c64_fixup_frag (bfd *input_bfd, struct bfd_link_info *info,
   bfd_vma base = value, limit = value + size;
   unsigned align = 0;
 
-  if (!bounds_ok && !c64_valid_cap_range (&base, &limit, &align))
-    {
-      /* Just warn about this.  It's not a requirement that bounds on
-	 objects should be precise, so there's no reason to error out on
-	 such an object.  */
-      /* xgettext:c-format */
-      _bfd_error_handler
-	(_("%pB: capability range for '%s' may exceed object bounds"),
-	 input_bfd, sym_name);
-    }
-
   if (perm_sec && perm_sec->flags & SEC_CODE)
     {
       /* Any symbol pointing into an executable section gets bounds according
@@ -6994,6 +6983,16 @@ c64_fixup_frag (bfd *input_bfd, struct bfd_link_info *info,
 	 data or jump to other functions.  */
       size = pcc_high - pcc_low;
     }
+  else if (!bounds_ok && !c64_valid_cap_range (&base, &limit, &align))
+    {
+      /* Just warn about this.  It's not a requirement that bounds on
+	 objects should be precise, so there's no reason to error out on
+	 such an object.  */
+      /* xgettext:c-format */
+      _bfd_error_handler
+	(_("%pB: capability range for '%s' may exceed object bounds"),
+	 input_bfd, sym_name);
+    }
 
   if (perm_sec != NULL)
     {
diff --git a/ld/testsuite/ld-aarch64/aarch64-elf.exp b/ld/testsuite/ld-aarch64/aarch64-elf.exp
index 4200c1d17e97ac9b54f2a0a051f15f0d51d47c06..a07a6c50bb8b601761cf38607afbc0a4dcc9ef0c 100644
--- a/ld/testsuite/ld-aarch64/aarch64-elf.exp
+++ b/ld/testsuite/ld-aarch64/aarch64-elf.exp
@@ -390,6 +390,8 @@ run_dump_test_lp64 "morello-illegal-tls"
 run_dump_test_lp64 "morello-illegal-tls-pie"
 run_dump_test_lp64 "morello-illegal-tls-shared"
 
+run_dump_test_lp64 "morello-large-function"
+
 run_dump_test "no-morello-syms-static"
 
 run_dump_test "reloc-overflow-bad"
diff --git a/ld/testsuite/ld-aarch64/morello-large-function.d b/ld/testsuite/ld-aarch64/morello-large-function.d
new file mode 100644
index 0000000000000000000000000000000000000000..dc0af92e12f9ab7203a400997ded14c8bdf4172c
--- /dev/null
+++ b/ld/testsuite/ld-aarch64/morello-large-function.d
@@ -0,0 +1,23 @@
+# Mainly here to check that this actually links.
+# This testcase used to complain that the function capability may have
+# imprecise bounds, but since such capabilities are given PCC bounds that error
+# was invalid.
+#
+# Even though the only point is to check that the testcase links, we still
+# ensure that the dump of the .data section contains a relocation with the
+# correct permissions.
+#as: -march=morello+c64
+#ld: -pie -static
+#objdump: -DR -j .data
+
+.*:     file format .*
+
+
+Disassembly of section \.data:
+
+[0-9a-f]+ <__data_start>:
+ *[0-9a-f]+:	.*
+			.*: R_MORELLO_RELATIVE	\*ABS\*\+.*
+ *[0-9a-f]+:	.* 	udf	#0
+ *[0-9a-f]+:	.*
+ *[0-9a-f]+:	04000000 	.*
diff --git a/ld/testsuite/ld-aarch64/morello-large-function.s b/ld/testsuite/ld-aarch64/morello-large-function.s
new file mode 100644
index 0000000000000000000000000000000000000000..46cb51e0c68cba982e8bf2b83b696399a6225f21
--- /dev/null
+++ b/ld/testsuite/ld-aarch64/morello-large-function.s
@@ -0,0 +1,9 @@
+.data
+   .chericap _start
+.text
+  .globl _start
+  .type _start,@function
+_start:
+  ret
+  .zero 0x8000
+  .size _start, .-_start