diff --git a/include/swift/AST/DiagnosticsSema.def b/include/swift/AST/DiagnosticsSema.def
index 93fcf15b3327b..46b92335f7f46 100644
--- a/include/swift/AST/DiagnosticsSema.def
+++ b/include/swift/AST/DiagnosticsSema.def
@@ -8647,11 +8647,6 @@ ERROR(execution_behavior_incompatible_isolated_parameter,none,
       "an isolated parameter: %2",
       (DeclAttribute, ValueDecl *, ValueDecl *))
 
-ERROR(execution_behavior_incompatible_dynamically_isolated_parameter,none,
-      "cannot use %0 on %kind1 because it has "
-      "a dynamically isolated parameter: %2",
-      (DeclAttribute, ValueDecl *, ValueDecl *))
-
 ERROR(execution_behavior_attr_incompatible_with_global_isolation,none,
       "cannot use %0 because function type is isolated to a global actor %1",
       (DeclAttribute, Type))
diff --git a/lib/Sema/TypeCheckAttr.cpp b/lib/Sema/TypeCheckAttr.cpp
index e03c2ebb52de0..d0cef2d54be9e 100644
--- a/lib/Sema/TypeCheckAttr.cpp
+++ b/lib/Sema/TypeCheckAttr.cpp
@@ -230,17 +230,6 @@ class AttributeChecker : public AttributeVisitor<AttributeChecker> {
             attr, decl, P);
         return;
       }
-
-      if (auto *attrType = dyn_cast<AttributedTypeRepr>(repr)) {
-        if (attrType->has(TypeAttrKind::Isolated)) {
-          diagnoseAndRemoveAttr(
-              attr,
-              diag::
-                  execution_behavior_incompatible_dynamically_isolated_parameter,
-              attr, decl, P);
-          return;
-        }
-      }
     }
   }
 
diff --git a/test/SILGen/execution_attr.swift b/test/SILGen/execution_attr.swift
index 1d4de2b753585..63dc3f0aac675 100644
--- a/test/SILGen/execution_attr.swift
+++ b/test/SILGen/execution_attr.swift
@@ -5,7 +5,7 @@
 // REQUIRES: swift_feature_NonisolatedNonsendingByDefault
 
 // Validate that both with and without the experimental flag we properly codegen
-// execution(caller) and execution(concurrent).
+// `@concurrent` and `nonisolated(nonsending)`
 
 // CHECK-LABEL: // executionCaller()
 // CHECK-NEXT: // Isolation: caller_isolation_inheriting
@@ -62,3 +62,36 @@ extension S {
   // CHECK: sil hidden [ossa] @$s14execution_attr1SV0A17CallerFieldMethodyyyyYaYCXEF : $@convention(method) (@guaranteed @noescape @async @callee_guaranteed (@sil_isolated @sil_implicit_leading_param @guaranteed Optional<any Actor>) -> (), @guaranteed S) -> () {
   func executionCallerFieldMethod(_ x: nonisolated(nonsending) () async -> ()) {}
 }
+
+// CHECK-LABEL: sil hidden [ossa] @$s14execution_attr24testWithDynamicIsolation2fnyyyYAXE_tYaF : $@convention(thin) @async (@guaranteed @isolated(any) @noescape @callee_guaranteed () -> ()) -> () {
+// CHECK: bb0([[PARAM_FN:%.*]] : @guaranteed $@isolated(any) @noescape @callee_guaranteed () -> ()):
+// CHECK:   [[GENERIC_EXEC:%.*]] = enum $Optional<Builtin.Executor>, #Optional.none!enumelt
+// CHECK-NEXT:   hop_to_executor [[GENERIC_EXEC]]
+// CHECK-NEXT:   [[FN:%.*]] = copy_value [[PARAM_FN]]
+// CHECK-NEXT:   [[BORROWED_FN:%.*]] = begin_borrow [[FN]]
+// CHECK-NEXT:   [[FN_ISOLATION:%.*]] = function_extract_isolation [[BORROWED_FN]]
+// CHECK-NEXT:   hop_to_executor [[FN_ISOLATION]]
+// CHECK-NEXT:   [[BORROWED_FN:%.*]] = begin_borrow [[FN]]
+// CHECK-NEXT:   apply [[BORROWED_FN]]()
+// CHECK: hop_to_executor [[GENERIC_EXEC]]
+// CHECK: } // end sil function '$s14execution_attr24testWithDynamicIsolation2fnyyyYAXE_tYaF'
+@concurrent
+func testWithDynamicIsolation(fn: @isolated(any) () -> Void) async {
+  await fn()
+}
+
+// CHECK-LABEL: sil hidden [ossa] @$s14execution_attr38testCallerIsolatedWithDynamicIsolation2fnyyyYAXE_tYaF : $@convention(thin) @async (@sil_isolated @sil_implicit_leading_param @guaranteed Optional<any Actor>, @guaranteed @isolated(any) @noescape @callee_guaranteed () -> ()) -> () {
+// CHECK: bb0([[ISOLATION:%.*]] : @guaranteed $Optional<any Actor>, [[PARAM_FN:%.*]] : @guaranteed $@isolated(any) @noescape @callee_guaranteed () -> ()):
+// CHECK:   hop_to_executor [[ISOLATION]]
+// CHECK-NEXT:   [[FN:%.*]] = copy_value [[PARAM_FN]]
+// CHECK-NEXT:   [[BORROWED_FN:%.*]] = begin_borrow [[FN]]
+// CHECK-NEXT:   [[FN_ISOLATION:%.*]] = function_extract_isolation [[BORROWED_FN]]
+// CHECK-NEXT:   hop_to_executor [[FN_ISOLATION]]
+// CHECK-NEXT:   [[BORROWED_FN:%.*]] = begin_borrow [[FN]]
+// CHECK-NEXT:   apply [[BORROWED_FN]]()
+// CHECK: hop_to_executor [[ISOLATION]]
+// CHECK: } // end sil function '$s14execution_attr38testCallerIsolatedWithDynamicIsolation2fnyyyYAXE_tYaF'
+nonisolated(nonsending)
+func testCallerIsolatedWithDynamicIsolation(fn: @isolated(any) () -> Void) async {
+  await fn()
+}
diff --git a/test/attr/execution_behavior_attrs.swift b/test/attr/execution_behavior_attrs.swift
index c763e84ca0463..ee5ba48c3d908 100644
--- a/test/attr/execution_behavior_attrs.swift
+++ b/test/attr/execution_behavior_attrs.swift
@@ -94,9 +94,7 @@ struct TestAttributeCollisions {
   }
 
   @concurrent func testIsolationAny(arg: @isolated(any) () -> Void) async {}
-  // expected-error@-1 {{cannot use @concurrent on instance method 'testIsolationAny(arg:)' because it has a dynamically isolated parameter: 'arg'}}
   @concurrent subscript(testIsolationAny arg: @isolated(any) () -> Void) -> Int {
-  // expected-error@-1 {{cannot use @concurrent on subscript 'subscript(testIsolationAny:)' because it has a dynamically isolated parameter: 'arg'}}
     get async {}
   }
 
@@ -158,3 +156,13 @@ do {
     })
   }
 }
+
+do {
+  nonisolated(nonsending)
+  func testOnDecl(_: @isolated(any) () -> Void) async {} // Ok
+
+  func testOnType1(_: nonisolated(nonsending) @isolated(any) () async -> Void) {}
+  // expected-error@-1 {{cannot use 'nonisolated(nonsending)' together with '@isolated(any)'}}
+  func testOnType2(_: @concurrent @isolated(any) () async -> Void) {}
+  // expected-error@-1 {{cannot use '@concurrent' together with '@isolated(any)'}}
+}