diff --git a/lib/compiler/src/compile.erl b/lib/compiler/src/compile.erl
index 04f13f3080d..978553e56b5 100644
--- a/lib/compiler/src/compile.erl
+++ b/lib/compiler/src/compile.erl
@@ -1640,7 +1640,7 @@ abstr_passes(AbstrStatus) ->
 
          {delay,[{iff,debug_info,?pass(save_abstract_code)}]},
 
-         {iff,line_coverage,{pass,sys_coverage}},
+         {delay,[{iff,line_coverage,{pass,sys_coverage}}]},
 
          ?pass(expand_records),
          {iff,'dexp',{listing,"expand"}},
diff --git a/lib/compiler/test/compile_SUITE.erl b/lib/compiler/test/compile_SUITE.erl
index b607e8afd34..a8f57ea5d57 100644
--- a/lib/compiler/test/compile_SUITE.erl
+++ b/lib/compiler/test/compile_SUITE.erl
@@ -2318,22 +2318,42 @@ option_order(Config) ->
     run(Config, Ts),
     ok.
 
-%% Make sure that the `line_coverage` option will not change
-%% line numbers in exceptions.
 sys_coverage(Config) ->
-    Mod = exceptions,
     DataDir = proplists:get_value(data_dir, Config),
+
+    sys_coverage_1(DataDir),
+    sys_coverage_2(DataDir),
+
+    ok.
+
+%% Make sure that the `line_coverage` option will not change line
+%% numbers in exceptions.
+sys_coverage_1(DataDir) ->
+    Mod = exceptions,
     Source = filename:join(DataDir, "exceptions"),
     {ok,Mod,Code} = compile:file(Source, [line_coverage,binary,report]),
     {module,Mod} = code:load_binary(Mod, "", Code),
 
-    Mod:Mod(Config),
+    Mod:Mod(DataDir),
 
     true = code:delete(Mod),
     false = code:purge(Mod),
 
     ok.
 
+%% Make sure that the `line_coverage` option given in the `compile`
+%% attribute in a module works.
+sys_coverage_2(DataDir) ->
+    Mod = embedded_line_coverage,
+    Source = filename:join(DataDir, "embedded_line_coverage"),
+    {ok,Mod,Asm} = compile:file(Source, ['S',binary,report]),
+
+    {Mod,_,_,Fs,_} = Asm,
+    [{function,add,2,_,Is}|_] = Fs,
+    true = lists:keymember(executable_line, 1, Is),
+
+    ok.
+
 %%%
 %%% Utilities.
 %%%
diff --git a/lib/compiler/test/compile_SUITE_data/embedded_line_coverage.erl b/lib/compiler/test/compile_SUITE_data/embedded_line_coverage.erl
new file mode 100644
index 00000000000..c9f34e343c0
--- /dev/null
+++ b/lib/compiler/test/compile_SUITE_data/embedded_line_coverage.erl
@@ -0,0 +1,29 @@
+%%
+%% %CopyrightBegin%
+%%
+%% Copyright Ericsson AB 2024. All Rights Reserved.
+%%
+%% Licensed under the Apache License, Version 2.0 (the "License");
+%% you may not use this file except in compliance with the License.
+%% You may obtain a copy of the License at
+%%
+%%     http://www.apache.org/licenses/LICENSE-2.0
+%%
+%% Unless required by applicable law or agreed to in writing, software
+%% distributed under the License is distributed on an "AS IS" BASIS,
+%% WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+%% See the License for the specific language governing permissions and
+%% limitations under the License.
+%%
+%% %CopyrightEnd%
+%%
+
+-module(embedded_line_coverage).
+-export([add/2]).
+
+%% Test that using the `line_coverage` option works when given in a
+%% module.
+-compile([line_coverage]).
+
+add(A, B) ->
+    A + B.