diff --git a/mlx/backend/common/compiled.cpp b/mlx/backend/common/compiled.cpp
index e5e1d4350..aceeb1f7f 100644
--- a/mlx/backend/common/compiled.cpp
+++ b/mlx/backend/common/compiled.cpp
@@ -130,7 +130,7 @@ void compiled_allocate_outputs(
       // - Donatable
       // - Not a constant
       if (in.itemsize() == outputs[o].itemsize() && !is_scalar(in) &&
-          in.is_donatable() && is_constant(i)) {
+          in.is_donatable() && !is_constant(i)) {
         outputs[o++].copy_shared_buffer(in);
       }
       // Get representative input flags to properly set non-donated outputs
@@ -158,7 +158,7 @@ void compiled_allocate_outputs(
       // - Not a constant
       if (in.flags().row_contiguous && in.size() == outputs[o].size() &&
           in.itemsize() == outputs[o].itemsize() && in.is_donatable() &&
-          is_constant(i)) {
+          !is_constant(i)) {
         outputs[o].copy_shared_buffer(
             in, outputs[o].strides(), in.flags(), in.data_size());
         o++;
diff --git a/python/tests/test_compile.py b/python/tests/test_compile.py
index b9bff614f..d64c057fd 100644
--- a/python/tests/test_compile.py
+++ b/python/tests/test_compile.py
@@ -4,12 +4,12 @@ import gc
 import inspect
 import io
 import math
-import unittest
 from functools import partial, wraps
 from io import StringIO
 
 import mlx.core as mx
 import mlx_tests
+import numpy as np
 
 
 class TestCompile(mlx_tests.MLXTestCase):
@@ -1252,6 +1252,26 @@ class TestCompile(mlx_tests.MLXTestCase):
         loss, grads = step(emb, w, x)
         mx.eval(loss, grads)
 
+    def test_compile_donates_input_buffer(self):
+        mx.set_default_device(mx.cpu)
+
+        def fun(x):
+            return mx.sin(x) + 1
+
+        compiled_fn = mx.compile(fun)
+
+        input = mx.arange(16, dtype=mx.float32)
+        mx.eval(input)
+        in_ptr = np.asarray(input, copy=False).__array_interface__["data"][0]
+
+        out = compiled_fn(input)
+        del input  # Ensure the reference is dropped
+        mx.eval(out)
+
+        self.assertEqual(
+            np.asarray(out, copy=False).__array_interface__["data"][0], in_ptr
+        )
+
 
 if __name__ == "__main__":
     mlx_tests.MLXTestRunner()