diff --git a/stl/inc/memory b/stl/inc/memory
index 3cc2b661cad..b65377e6390 100644
--- a/stl/inc/memory
+++ b/stl/inc/memory
@@ -4244,10 +4244,10 @@ public:
     ~inout_ptr_t() {
         if constexpr (!is_pointer_v<_SmartPtr>) {
             _Smart_ptr.release();
-        }
 
-        if (!_Get_ptr()) {
-            return;
+            if (!_Get_ptr()) {
+                return;
+            }
         }
 
         _STD apply(
diff --git a/tests/std/tests/P1132R7_out_ptr/test.cpp b/tests/std/tests/P1132R7_out_ptr/test.cpp
index c73a1f0726b..ddb55846ed7 100644
--- a/tests/std/tests/P1132R7_out_ptr/test.cpp
+++ b/tests/std/tests/P1132R7_out_ptr/test.cpp
@@ -33,6 +33,19 @@ void test_raw_ptr() {
 
         assert(*int_ptr == 15);
     }
+    // LWG-3897 inout_ptr will not update raw pointer to null
+    {
+        const auto delete_nullify = [](int** ptr) {
+            delete *ptr;
+            *ptr = nullptr;
+        };
+
+        int* ptr_allocated = new int{};
+
+        delete_nullify(inout_ptr(ptr_allocated));
+
+        assert(ptr_allocated == nullptr);
+    }
 }
 
 void test_shared_ptr() {