diff --git a/src/passes/CMakeLists.txt b/src/passes/CMakeLists.txt
index e9818681a56..d14644cc53c 100644
--- a/src/passes/CMakeLists.txt
+++ b/src/passes/CMakeLists.txt
@@ -28,6 +28,7 @@ set(passes_SOURCES
   ConstHoisting.cpp
   DataFlowOpts.cpp
   DeadArgumentElimination.cpp
+  DeadArgumentElimination2.cpp
   DeadCodeElimination.cpp
   DeAlign.cpp
   DebugLocationPropagation.cpp
diff --git a/src/passes/DeadArgumentElimination2.cpp b/src/passes/DeadArgumentElimination2.cpp
new file mode 100644
index 00000000000..d4f4fc8476e
--- /dev/null
+++ b/src/passes/DeadArgumentElimination2.cpp
@@ -0,0 +1,342 @@
+/*
+ * Copyright 2025 WebAssembly Community Group participants
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+// As a POC, only do the backward analyis to find unused parameters, including
+// those that appear to be used because they are forwarded on to another call
+// but are then unused by that call.
+//
+// To match and exceed the power of DAE, we will need to extend this backward
+// analysis to find unused results as well, and also add a forward analysis that
+// propagates constants and types through parameters and results.
+
+#include <memory>
+#include <unordered_map>
+#include <vector>
+
+#include "analysis/lattices/bool.h"
+#include "ir/local-graph.h"
+#include "pass.h"
+#include "support/index.h"
+#include "support/utilities.h"
+#include "wasm-traversal.h"
+#include "wasm.h"
+
+namespace wasm {
+
+namespace {
+
+// Analysis lattice: top/true = used, bot/false = unused.
+using Used = analysis::Bool;
+
+// Function index and parameter index.
+using ParamLoc = std::pair<Index, Index>;
+
+// A set of (source, destination) index pairs for parameters of a caller
+// function being forwarded as arguments to a called function.
+using ForwardedParamSet = std::unordered_set<std::pair<Index, Index>>;
+
+struct FunctionInfo {
+  // Analysis results.
+  // TODO: Fix Bool to wrap its element in a struct so we can store it directly
+  // in a vector without getting the bool overload.
+  std::vector<std::tuple<Used::Element>> paramUsages;
+
+  // Map callee function names to their forwarded params for direct calls.
+  std::unordered_map<Name, ForwardedParamSet> directForwardedParams;
+
+  // Map callee types to their forwarded params for indirect calls.
+  std::unordered_map<HeapType, ForwardedParamSet> indirectForwardedParams;
+
+  // For each parameter of this function, the list of parameters in direct
+  // callers that will become used if the parameter in this function turns out
+  // to be used. Computed by reversing the directForwardedParams graph.
+  std::vector<std::vector<ParamLoc>> callerParams;
+
+  // Whether we need to additionally propagate param usage to indirect callers
+  // of this function's type. Atomic because it can be set when visiting other
+  // functions in parallel.
+  std::atomic<bool> referenced = false;
+};
+
+struct GraphBuilder : public WalkerPass<ExpressionStackWalker<GraphBuilder>> {
+  // Analysis lattice.
+  const Used& used;
+
+  // The function info graph is stored as vectors accessed by function index.
+  // Map function names to their indices.
+  const std::unordered_map<Name, Index>& funcIndices;
+
+  // Vector of analysis info representing the analysis graph we are building.
+  // This is populated safely in parallel because the visitor for each function
+  // only modifies the entry for that function.
+  std::vector<FunctionInfo>& funcInfos;
+
+  // The index of the function we are currently walking.
+  Index index = -1;
+
+  // A use of a parameter local does not necessarily imply the use of the
+  // parameter value. We use a local graph to check where parameter values may
+  // be used.
+  std::optional<LazyLocalGraph> localGraph;
+
+  GraphBuilder(const Used& used,
+               const std::unordered_map<Name, Index>& funcIndices,
+               std::vector<FunctionInfo>& funcInfos)
+    : used(used), funcIndices(funcIndices), funcInfos(funcInfos) {}
+
+  bool isFunctionParallel() override { return true; }
+  bool modifiesBinaryenIR() override { return false; }
+
+  std::unique_ptr<Pass> create() override {
+    return std::make_unique<GraphBuilder>(used, funcIndices, funcInfos);
+  }
+
+  void runOnFunction(Module* wasm, Function* func) override {
+    assert(index == Index(-1));
+    index = funcIndices.at(func->name);
+    assert(index < funcInfos.size());
+    if (func->imported()) {
+      // We must assume imported functions use all their parameters.
+      auto& usages = funcInfos[index].paramUsages;
+      assert(usages.empty());
+      usages.insert(usages.end(), func->getNumParams(), used.getTop());
+    } else {
+      localGraph.emplace(func);
+      using Super = WalkerPass<ExpressionStackWalker<GraphBuilder>>;
+      Super::runOnFunction(wasm, func);
+    }
+  }
+
+  void visitRefFunc(RefFunc* curr) {
+    funcInfos[funcIndices.at(curr->func)].referenced = true;
+  }
+
+  Index getArgIndex(const ExpressionList& operands, Expression* arg) {
+    for (Index i = 0; i < operands.size(); ++i) {
+      if (operands[i] == arg) {
+        return i;
+      }
+    }
+    WASM_UNREACHABLE("expected arg");
+  }
+
+  void handleDirectForwardedParam(LocalGet* curr, Call* call) {
+    auto argIndex = getArgIndex(call->operands, curr);
+    auto& forwarded = funcInfos[index].directForwardedParams[call->target];
+    forwarded.insert({curr->index, argIndex});
+  }
+
+  void handleIndirectForwardedParam(LocalGet* curr,
+                                    const ExpressionList& operands,
+                                    HeapType type) {
+    auto argIndex = getArgIndex(operands, curr);
+    auto& forwarded = funcInfos[index].indirectForwardedParams[type];
+    forwarded.insert({curr->index, argIndex});
+  }
+
+  void visitLocalGet(LocalGet* curr) {
+    if (curr->index >= getFunction()->getNumParams()) {
+      // Not a parameter.
+      return;
+    }
+
+    const auto& sets = localGraph->getSets(curr);
+    bool usesParam = std::any_of(
+      sets.begin(), sets.end(), [](LocalSet* set) { return set == nullptr; });
+
+    if (!usesParam) {
+      // The original parameter value does not reach here.
+      return;
+    }
+
+    auto* parent = getParent();
+    if (auto* call = parent->dynCast<Call>()) {
+      handleDirectForwardedParam(curr, call);
+    } else if (auto* call = parent->dynCast<CallIndirect>()) {
+      handleIndirectForwardedParam(curr, call->operands, call->heapType);
+    } else if (auto* call = parent->dynCast<CallRef>()) {
+      if (!call->target->type.isSignature()) {
+        // The call will never happen, so we don't need to consider it.
+        return;
+      }
+      auto heapType = call->target->type.getHeapType();
+      handleIndirectForwardedParam(curr, call->operands, heapType);
+    } else {
+      // The parameter value is used by something other than a call. We could
+      // check whether the user is a drop, but for simplicity we assume that
+      // Vacuum would have already removed such patterns.
+      funcInfos[index].paramUsages[curr->index] = used.getTop();
+    }
+  }
+};
+
+struct DAE2 : public Pass {
+  // Analysis lattice.
+  Used used;
+
+  // Map function name to index.
+  std::unordered_map<Name, Index> funcIndices;
+
+  // The intermediate and final analysis results by function index.
+  std::vector<FunctionInfo> funcInfos;
+
+  // For each parameter in each indirectly called type, the set of forwarded
+  // params in the callers that need to be marked used if a param of a callee of
+  // that type is used.
+  std::unordered_map<HeapType, std::vector<std::vector<ParamLoc>>>
+    indirectCallerParams;
+
+  Module* wasm = nullptr;
+
+  void run(Module* wasm) override {
+    this->wasm = wasm;
+    for (auto& func : wasm->functions) {
+      funcIndices.insert({func->name, funcIndices.size()});
+    }
+    analyzeModule(wasm);
+    prepareAnalysis();
+    computeFixedPoint();
+    optimize();
+  }
+
+  void analyzeModule(Module* wasm) {
+    funcInfos.resize(wasm->functions.size());
+
+    // Analyze functions to find forwarded and used parameters as well as
+    // function references.
+    GraphBuilder builder(used, funcIndices, funcInfos);
+    builder.run(getPassRunner(), wasm);
+
+    // Find additional function references at the module level.
+    builder.walkModuleCode(wasm);
+
+    // Mark parameters of exported functions as used.
+    for (auto& export_ : wasm->exports) {
+      if (export_->kind == ExternalKind::Function) {
+        auto name = *export_->getInternalName();
+        auto& usages = funcInfos[funcIndices.at(name)].paramUsages;
+        std::fill(usages.begin(), usages.end(), used.getTop());
+      }
+    }
+
+    // TODO: Find function types that escape the module beyond exported
+    // functions (or just use all public function types as a conservative
+    // approximation) and mark parameters of referenced funtions of those types
+    // as used.
+  }
+
+  void prepareAnalysis() {
+    // Compute the reverse graph used by the fixed point analysis from the
+    // forward graph we have built.
+    for (Index i = 0; i < funcInfos.size(); ++i) {
+      funcInfos[i].callerParams.resize(funcInfos[i].paramUsages.size());
+    }
+    for (Index callerIndex = 0; callerIndex < funcInfos.size(); ++callerIndex) {
+      for (auto& [callee, forwarded] :
+           funcInfos[callerIndex].directForwardedParams) {
+        auto& callerParams = funcInfos[funcIndices.at(callee)].callerParams;
+        for (auto& [srcParam, destParam] : forwarded) {
+          callerParams[destParam].push_back({callerIndex, srcParam});
+        }
+      }
+      for (auto& [calleeType, forwarded] :
+           funcInfos[callerIndex].indirectForwardedParams) {
+        auto& callerParams = indirectCallerParams[calleeType];
+        callerParams.resize(funcInfos[callerIndex].paramUsages.size());
+        for (auto& [srcParam, destParam] : forwarded) {
+          callerParams[destParam].push_back({callerIndex, srcParam});
+        }
+      }
+    }
+  }
+
+  bool join(ParamLoc loc, const Used::Element& other) {
+    auto& elem = std::get<0>(funcInfos[loc.first].paramUsages[loc.second]);
+    return used.join(elem, other);
+  }
+
+  void computeFixedPoint() {
+    // List of params from which we may need to propagate usage information.
+    // Initialized with all params we have observed to be used in the IR.
+    std::vector<ParamLoc> work;
+    for (Index i = 0; i < funcInfos.size(); ++i) {
+      for (Index j = 0; j < funcInfos[i].paramUsages.size(); ++j) {
+        work.push_back({i, j});
+      }
+    }
+    while (!work.empty()) {
+      auto [calleeIndex, calleeParamIndex] = work.back();
+      work.pop_back();
+
+      const auto& elem =
+        std::get<0>(funcInfos[calleeIndex].paramUsages[calleeParamIndex]);
+      assert(elem && "unexpected unused param");
+
+      // Propagate back to forwarded params of direct callers.
+      auto& callerParams =
+        funcInfos[calleeIndex].callerParams[calleeParamIndex];
+      for (auto param : callerParams) {
+        if (join(param, elem)) {
+          work.push_back(param);
+        }
+      }
+
+      if (!funcInfos[calleeIndex].referenced) {
+        // Non-referenced functions can only be called directly.
+        continue;
+      }
+
+      // Propagate usage back to forwarded params of the indirect callers of all
+      // supertypes of this function's type.
+      for (std::optional<HeapType> type =
+             wasm->functions[calleeIndex]->type.getHeapType();
+           type;
+           type = type->getDeclaredSuperType()) {
+        auto it = indirectCallerParams.find(*type);
+        if (it == indirectCallerParams.end()) {
+          continue;
+        }
+        auto& callerParams = it->second[calleeParamIndex];
+        for (auto param : callerParams) {
+          if (join(param, elem)) {
+            work.push_back(param);
+          }
+        }
+      }
+
+      // TODO: Propagate usage to all functions of any type in the type tree of
+      // this function's type to keep subtyping valid.
+    }
+  }
+
+  void optimize() {
+    struct Optimizer : public WalkerPass<PostWalker<Optimizer>> {
+      // TODO: Visit functions in parallel, replacing unused parameters with
+      // locals. Direct calls should look at their target to determine which
+      // operands to remove (being sure to preserve side effects using
+      // ChildLocalizer). Indirect calls need to look at the analysis results
+      // for the target type (TODO: materialize this, possibly just for the root
+      // type for each type tree) to determine what operands to remove.
+    };
+    Optimizer{}.run(getPassRunner(), wasm);
+  }
+};
+
+} // anonymous namespace
+
+Pass* createDAE2Pass() { return new DAE2(); }
+
+} // namespace wasm
diff --git a/src/passes/pass.cpp b/src/passes/pass.cpp
index 56a07ca2d44..16cb93b9c72 100644
--- a/src/passes/pass.cpp
+++ b/src/passes/pass.cpp
@@ -105,6 +105,7 @@ void PassRegistry::registerPasses() {
                "removes arguments to calls in an lto-like manner, and "
                "optimizes where we removed",
                createDAEOptimizingPass);
+  registerPass("dae2", "Experimental reimplementation of DAE", createDAE2Pass);
   registerPass("abstract-type-refining",
                "refine and merge abstract (never-created) types",
                createAbstractTypeRefiningPass);
diff --git a/src/passes/passes.h b/src/passes/passes.h
index e8223e0bac8..d27189ec8d4 100644
--- a/src/passes/passes.h
+++ b/src/passes/passes.h
@@ -35,6 +35,7 @@ Pass* createConstantFieldPropagationPass();
 Pass* createConstantFieldPropagationRefTestPass();
 Pass* createDAEPass();
 Pass* createDAEOptimizingPass();
+Pass* createDAE2Pass();
 Pass* createDataFlowOptsPass();
 Pass* createDeadCodeEliminationPass();
 Pass* createDeInstrumentBranchHintsPass();