diff --git a/ql/ql/src/codeql_ql/ast/Ast.qll b/ql/ql/src/codeql_ql/ast/Ast.qll
index 937c7bc61010..b3bbf41aaefe 100644
--- a/ql/ql/src/codeql_ql/ast/Ast.qll
+++ b/ql/ql/src/codeql_ql/ast/Ast.qll
@@ -2538,6 +2538,18 @@ private class NoOptArg extends AnnotationArg {
   NoOptArg() { this.getValue() = "noopt" }
 }
 
+private class CallerArg extends AnnotationArg {
+  CallerArg() { this.getValue() = "caller" }
+}
+
+private class LocalArg extends AnnotationArg {
+  LocalArg() { this.getValue() = "local" }
+}
+
+private class LocalQArg extends AnnotationArg {
+  LocalQArg() { this.getValue() = "local?" }
+}
+
 private class MonotonicAggregatesArg extends AnnotationArg {
   MonotonicAggregatesArg() { this.getValue() = "monotonicAggregates" }
 }
@@ -2597,6 +2609,27 @@ class NoOpt extends Annotation {
   override string toString() { result = "noopt" }
 }
 
+/** An `overlay[caller]` annotation. */
+class OverlayCaller extends Annotation {
+  OverlayCaller() { this.getName() = "overlay" and this.getArgs(0) instanceof CallerArg }
+
+  override string toString() { result = "caller" }
+}
+
+/** An `overlay[local]` annotation. */
+class OverlayLocal extends Annotation {
+  OverlayLocal() { this.getName() = "overlay" and this.getArgs(0) instanceof LocalArg }
+
+  override string toString() { result = "local" }
+}
+
+/** An `overlay[local?]` annotation. */
+class OverlayLocalQ extends Annotation {
+  OverlayLocalQ() { this.getName() = "overlay" and this.getArgs(0) instanceof LocalQArg }
+
+  override string toString() { result = "local?" }
+}
+
 /** A `language[monotonicAggregates]` annotation. */
 class MonotonicAggregates extends Annotation {
   MonotonicAggregates() { this.getArgs(0) instanceof MonotonicAggregatesArg }
diff --git a/ql/ql/src/queries/overlay/InlineOverlayCaller.ql b/ql/ql/src/queries/overlay/InlineOverlayCaller.ql
new file mode 100644
index 000000000000..d27a0ade9bbf
--- /dev/null
+++ b/ql/ql/src/queries/overlay/InlineOverlayCaller.ql
@@ -0,0 +1,41 @@
+/**
+ * @name Cannot inline predicate across overlay frontier
+ * @description Local inline predicates that are not annotated with `overlay[caller]` are
+ *              not inlined across the overlay frontier. This may negatively affect performance.
+ * @kind problem
+ * @problem.severity warning
+ * @id ql/inline-overlay-caller
+ * @tags performance
+ * @precision high
+ */
+
+import ql
+
+predicate mayBeLocal(AstNode n) {
+  n.getAnAnnotation() instanceof OverlayLocal
+  or
+  n.getAnAnnotation() instanceof OverlayLocalQ
+  or
+  // The tree-sitter-ql grammar doesn't handle annotations on file-level
+  // module declarations correctly. To work around that, we consider any
+  // node in a file that contains an overlay[local] or overlay[local?]
+  // annotation to be potentially local.
+  exists(AstNode m |
+    n.getLocation().getFile() = m.getLocation().getFile() and
+    mayBeLocal(m)
+  )
+}
+
+from Predicate p
+where
+  mayBeLocal(p) and
+  p.getAnAnnotation() instanceof Inline and
+  not p.getAnAnnotation() instanceof OverlayCaller and
+  not p.isPrivate()
+select p,
+  "This possibly local non-private inline predicate will not " +
+    "be inlined across the overlay frontier. This may negatively " +
+    "affect evaluation performance. Consider adding an " +
+    "`overlay[caller]` annotation to allow inlining across the " +
+    "overlay frontier. Note that adding an `overlay[caller]` " +
+    "annotation affects semantics under overlay evaluation."