diff --git a/pkgs/racket-pkgs/racket-test/tests/racket/cross-phase.rkt b/pkgs/racket-pkgs/racket-test/tests/racket/cross-phase.rkt
index e3ce2a0f99..8858ceabbe 100644
--- a/pkgs/racket-pkgs/racket-test/tests/racket/cross-phase.rkt
+++ b/pkgs/racket-pkgs/racket-test/tests/racket/cross-phase.rkt
@@ -108,5 +108,13 @@
                'ok))
       (error 'cross-phase "redeclaration should have been disallowed"))))
 
+;; Check that `expand` allows cross-phase modules:
+(parameterize ([current-namespace (make-base-namespace)])
+  (void
+   (expand (datum->syntax
+            #f
+            '(module m '#%kernel
+               (#%declare #:cross-phase-persistent))))))
+
 (displayln "All tests passed.")
 
diff --git a/racket/src/racket/src/module.c b/racket/src/racket/src/module.c
index deaa4d6a5d..d76bd0108b 100644
--- a/racket/src/racket/src/module.c
+++ b/racket/src/racket/src/module.c
@@ -7390,7 +7390,7 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
   m->tt_requires = scheme_null;
   m->dt_requires = scheme_null;
 
-  if (iim && iim->phaseless && rec[drec].comp)
+  if (iim && iim->phaseless)
     m->phaseless = scheme_true;
 
   if (iidx) {