diff --git a/src/coreclr/jit/compiler.cpp b/src/coreclr/jit/compiler.cpp
index 998a7d7717d12d..b02c5938a0e122 100644
--- a/src/coreclr/jit/compiler.cpp
+++ b/src/coreclr/jit/compiler.cpp
@@ -4950,14 +4950,6 @@ void Compiler::compCompile(void** methodCodePtr, uint32_t* methodCodeSize, JitFl
     // call and register argument info, flowgraph and loop info, etc.
     compJitStats();
 
-#ifdef TARGET_ARM
-    if (compLocallocUsed)
-    {
-        // We reserve REG_SAVED_LOCALLOC_SP to store SP on entry for stack unwinding
-        codeGen->regSet.rsMaskResvd |= RBM_SAVED_LOCALLOC_SP;
-    }
-#endif // TARGET_ARM
-
     if (compIsAsync())
     {
         DoPhase(this, PHASE_ASYNC, &Compiler::TransformAsync);
diff --git a/src/coreclr/jit/lsra.cpp b/src/coreclr/jit/lsra.cpp
index 68bd77e9c70971..0a712d4c82df3e 100644
--- a/src/coreclr/jit/lsra.cpp
+++ b/src/coreclr/jit/lsra.cpp
@@ -2717,6 +2717,16 @@ void LinearScan::setFrameType()
     }
 #endif // TARGET_ARMARCH || TARGET_RISCV64
 
+#ifdef TARGET_ARM
+    if (compiler->compLocallocUsed)
+    {
+        // We reserve REG_SAVED_LOCALLOC_SP to store SP on entry for stack unwinding
+        compiler->codeGen->regSet.rsMaskResvd |= RBM_SAVED_LOCALLOC_SP;
+        JITDUMP("  Reserved REG_SAVED_LOCALLOC_SP (%s) due to localloc\n", getRegName(REG_SAVED_LOCALLOC_SP));
+        removeMask |= RBM_SAVED_LOCALLOC_SP.GetIntRegSet();
+    }
+#endif // TARGET_ARM
+
     if ((removeMask != RBM_NONE) && ((availableIntRegs & removeMask) != 0))
     {
         // We know that we're already in "read mode" for availableIntRegs. However,