diff --git a/mysql-test/main/mdev-38877.result b/mysql-test/main/mdev-38877.result
new file mode 100644
index 0000000000000..a0b114f50ac4a
--- /dev/null
+++ b/mysql-test/main/mdev-38877.result
@@ -0,0 +1,32 @@
+#
+# MDEV-38877: Unnecessary filesort on derived table materialization
+# when derived table is inherently sorted by the grouping columns
+#
+CREATE TABLE t1 (
+groups_20 int NOT NULL,
+groups_20_2 int NOT NULL,
+b int,
+PRIMARY KEY (groups_20, groups_20_2)
+);
+CREATE TABLE t2 (a int, b int, index(a));
+INSERT INTO t1 SELECT seq/1000, seq+1, seq from seq_1_to_10000;
+INSERT INTO t2 SELECT seq, seq from seq_1_to_1000;
+ANALYZE TABLE t1, t2;
+EXPLAIN
+SELECT 
+a, 
+SUM(b) 
+FROM ( 
+SELECT 
+groups_20 
+FROM t1 
+GROUP BY groups_20 
+HAVING COUNT(*) != 1000
+) DT 
+JOIN t2 ON a = groups_20 
+GROUP BY a;
+id	select_type	table	type	possible_keys	key	key_len	ref	rows	Extra
+1	PRIMARY	t2	ALL	a	NULL	NULL	NULL	1000	Using where; Using temporary; Using filesort
+1	PRIMARY	<derived2>	ref	key0	key0	4	test.t2.a	1	
+2	DERIVED	t1	index	PRIMARY	PRIMARY	8	NULL	10000	Using index
+DROP TABLE t1, t2;
diff --git a/mysql-test/main/mdev-38877.test b/mysql-test/main/mdev-38877.test
new file mode 100644
index 0000000000000..ae6699261937d
--- /dev/null
+++ b/mysql-test/main/mdev-38877.test
@@ -0,0 +1,39 @@
+--source include/have_sequence.inc
+
+--echo #
+--echo # MDEV-38877: Unnecessary filesort on derived table materialization
+--echo # when derived table is inherently sorted by the grouping columns
+--echo #
+
+CREATE TABLE t1 (
+  groups_20 int NOT NULL,
+  groups_20_2 int NOT NULL,
+  b int,
+  PRIMARY KEY (groups_20, groups_20_2)
+);
+
+CREATE TABLE t2 (a int, b int, index(a));
+
+--disable_result_log
+INSERT INTO t1 SELECT seq/1000, seq+1, seq from seq_1_to_10000;
+
+INSERT INTO t2 SELECT seq, seq from seq_1_to_1000;
+
+ANALYZE TABLE t1, t2;
+--enable_result_log
+
+EXPLAIN
+SELECT 
+    a, 
+    SUM(b) 
+FROM ( 
+    SELECT 
+        groups_20 
+    FROM t1 
+    GROUP BY groups_20 
+    HAVING COUNT(*) != 1000
+) DT 
+JOIN t2 ON a = groups_20 
+GROUP BY a;
+
+DROP TABLE t1, t2;
\ No newline at end of file
diff --git a/sql/sql_select.cc b/sql/sql_select.cc
index b8fbbe2f62f58..652021d0d4ed0 100644
--- a/sql/sql_select.cc
+++ b/sql/sql_select.cc
@@ -7916,7 +7916,21 @@ bool sort_and_filter_keyuse(JOIN *join, DYNAMIC_ARRAY *keyuse,
     {
       if (!(use->used_tables & ~OUTER_REF_TABLE_BIT) && 
           use->optimize != KEY_OPTIMIZE_REF_OR_NULL)
-        use->table->const_key_parts[use->key]|= use->keypart_map;
+      {
+        TABLE_LIST *derived_table= use->table->pos_in_table_list;
+        if (derived_table && derived_table->select_lex)
+        {
+          st_select_lex_unit *master_unit=
+              derived_table->select_lex->master_unit();
+          if (master_unit)
+            derived_table= master_unit->derived;
+        }
+        // derived tables shouldn't treat outer
+        // references as constants
+        if (!(derived_table && derived_table->is_materialized_derived()) ||
+            use->used_tables == 0)
+          use->table->const_key_parts[use->key]|= use->keypart_map;
+      }
       if (use->keypart != FT_KEYPART)
       {
         if (use->key == prev->key && use->table == prev->table)
@@ -27562,7 +27576,6 @@ test_if_skip_sort_order(JOIN_TAB *tab,ORDER *order,ha_rows select_limit,
   *fatal_error= false;
   /* Check that we are always called with first non-const table */
   DBUG_ASSERT(tab == tab->join->join_tab + tab->join->const_tables);
-
   /* Sorting a single row can always be skipped */
   if (tab->type == JT_EQ_REF ||
       tab->type == JT_CONST  ||