diff --git a/cpu/msp430/Makefile.msp430 b/cpu/msp430/Makefile.msp430
index b907ea328..2aea9ad78 100644
--- a/cpu/msp430/Makefile.msp430
+++ b/cpu/msp430/Makefile.msp430
@@ -101,9 +101,11 @@ CFLAGS  += $(CFLAGSNO)
 
 ### These flags can reduce the code size and RAM usage with up to 10%
 ifdef SMALL
+ifndef IAR
 CFLAGS += -ffunction-sections
 # CFLAGS += -fdata-sections
 LDFLAGS += -Wl,--gc-sections,--undefined=_reset_vector__,--undefined=InterruptVectors,--undefined=_copy_data_init__,--undefined=_clear_bss_init__,--undefined=_end_of_init__
+endif # !IAR
 endif # SMALL