diff --git a/gcc/fortran/expr.cc b/gcc/fortran/expr.cc
index 7fb33f817889885c44bac8499dc8a071e749072e..02028f993fd8d5242806581abc34c0efd0fe9ec1 100644
--- a/gcc/fortran/expr.cc
+++ b/gcc/fortran/expr.cc
@@ -3504,8 +3504,6 @@ check_restricted (gfc_expr *e)
 	    || sym->attr.implied_index
 	    || sym->attr.flavor == FL_PARAMETER
 	    || is_parent_of_current_ns (sym->ns)
-	    || (sym->ns->proc_name != NULL
-		  && sym->ns->proc_name->attr.flavor == FL_MODULE)
 	    || (gfc_is_formal_arg () && (sym->ns == gfc_current_ns)))
 	{
 	  t = true;
diff --git a/gcc/testsuite/gfortran.dg/der_charlen_1.f90 b/gcc/testsuite/gfortran.dg/der_charlen_1.f90
index 9f394c73f25a3e263e0107bb6403818e6e09bfbc..1246522d5164ce052a0db5906e5e060b323e3cf2 100644
--- a/gcc/testsuite/gfortran.dg/der_charlen_1.f90
+++ b/gcc/testsuite/gfortran.dg/der_charlen_1.f90
@@ -22,3 +22,5 @@ CONTAINS
     type(T), intent(in)          :: X
   end subroutine
 end module another_core
+
+! { dg-prune-output "cannot appear in the expression" }
diff --git a/gcc/testsuite/gfortran.dg/pr104349.f90 b/gcc/testsuite/gfortran.dg/pr104349.f90
new file mode 100644
index 0000000000000000000000000000000000000000..2bea4a372143023381c9041ad0b8e7d7548f5cff
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/pr104349.f90
@@ -0,0 +1,8 @@
+! { dg-do compile }
+! PR fortran/104349 - reject module variable as character length in PARAMETER
+! Contributed by G.Steinmetz
+
+module m
+  character(n), parameter :: a(1) = 'b' ! { dg-error "cannot appear" }
+  character(n), parameter :: c    = 'b' ! { dg-error "cannot appear" }
+end