diff --git a/mysql-test/suite/innodb/r/innodb_mysql.result b/mysql-test/suite/innodb/r/innodb_mysql.result
index 1adc16456ba..f6ad99ce04d 100644
--- a/mysql-test/suite/innodb/r/innodb_mysql.result
+++ b/mysql-test/suite/innodb/r/innodb_mysql.result
@@ -2653,3 +2653,13 @@ COMMIT;
 COMMIT;
 DROP TABLE t1;
 DROP FUNCTION f1;
+#
+# Bug#54606 innodb fast alter table + pack_keys=0 
+#           prevents adding new indexes
+#
+CREATE TABLE t1 (a INT, b CHAR(9), c INT, key(b)) 
+ENGINE=InnoDB 
+PACK_KEYS=0;
+CREATE INDEX a ON t1 (a);
+CREATE INDEX c on t1 (c);
+DROP TABLE t1;
diff --git a/mysql-test/suite/innodb/t/innodb_mysql.test b/mysql-test/suite/innodb/t/innodb_mysql.test
index 6244670ef57..47c9d742b5b 100644
--- a/mysql-test/suite/innodb/t/innodb_mysql.test
+++ b/mysql-test/suite/innodb/t/innodb_mysql.test
@@ -830,3 +830,16 @@ connection default;
 COMMIT;
 DROP TABLE t1;
 DROP FUNCTION f1;
+
+--echo #
+--echo # Bug#54606 innodb fast alter table + pack_keys=0 
+--echo #           prevents adding new indexes
+--echo #
+
+CREATE TABLE t1 (a INT, b CHAR(9), c INT, key(b)) 
+  ENGINE=InnoDB 
+  PACK_KEYS=0;
+CREATE INDEX a ON t1 (a);
+CREATE INDEX c on t1 (c);
+
+DROP TABLE t1;
diff --git a/sql/sql_table.cc b/sql/sql_table.cc
index 3f0a0326c84..72fb4ea930b 100644
--- a/sql/sql_table.cc
+++ b/sql/sql_table.cc
@@ -3536,6 +3536,7 @@ mysql_prepare_create_table(THD *thd, HA_CREATE_INFO *create_info,
       key_part_info->length=(uint16) length;
       /* Use packed keys for long strings on the first column */
       if (!((*db_options) & HA_OPTION_NO_PACK_KEYS) &&
+          !((create_info->table_options & HA_OPTION_NO_PACK_KEYS)) &&
 	  (length >= KEY_DEFAULT_PACK_LENGTH &&
 	   (sql_field->sql_type == MYSQL_TYPE_STRING ||
 	    sql_field->sql_type == MYSQL_TYPE_VARCHAR ||