diff --git a/mysql-test/suite/innodb/r/log_inplace_alter_with_exclusiv_lock.result b/mysql-test/suite/innodb/r/log_inplace_alter_with_exclusiv_lock.result
new file mode 100644
index 00000000000..78fe03124e8
--- /dev/null
+++ b/mysql-test/suite/innodb/r/log_inplace_alter_with_exclusiv_lock.result
@@ -0,0 +1,14 @@
+#
+#Bug#106163 Inplace Add index with lock=exclusive doesn't generate MLOG_ADD_INDEX redo
+#
+SET GLOBAL innodb_checkpoint_disabled=1;
+CREATE TABLE t1 (a INT NOT NULL, b INT UNIQUE) ENGINE=InnoDB TABLESPACE=innodb_file_per_table;
+INSERT INTO t1 VALUES (1,2);
+ALTER TABLE t1 ADD INDEX(a), ALGORITHM=INPLACE, LOCK=EXCLUSIVE;
+# Kill and restart:--debug=d,ib_log
+Pattern "scan .*:.*log rec MLOG_INDEX_LOAD" found
+CHECK TABLE t1;
+Table	Op	Msg_type	Msg_text
+test.t1	check	status	OK
+# restart
+DROP TABLE t1;
diff --git a/mysql-test/suite/innodb/t/log_inplace_alter_with_exclusiv_lock.test b/mysql-test/suite/innodb/t/log_inplace_alter_with_exclusiv_lock.test
new file mode 100644
index 00000000000..eba54217257
--- /dev/null
+++ b/mysql-test/suite/innodb/t/log_inplace_alter_with_exclusiv_lock.test
@@ -0,0 +1,28 @@
+--source include/have_debug.inc
+
+--echo #
+--echo #Bug#106163 Inplace Add index with lock=exclusive doesn't generate MLOG_ADD_INDEX redo
+--echo #
+
+SET GLOBAL innodb_checkpoint_disabled=1;
+CREATE TABLE t1 (a INT NOT NULL, b INT UNIQUE) ENGINE=InnoDB TABLESPACE=innodb_file_per_table;
+# MLOG_INDEX_LOAD will not be emitted for empty tables. Insert a row.
+INSERT INTO t1 VALUES (1,2);
+ALTER TABLE t1 ADD INDEX(a), ALGORITHM=INPLACE, LOCK=EXCLUSIVE;
+
+--let $restart_parameters = restart:--debug="d,ib_log"
+--source include/kill_and_restart_mysqld.inc
+
+let SEARCH_FILE = $MYSQLTEST_VARDIR/log/mysqld.1.err;
+# Look for MLOG_INDEX_LOAD in the error log.
+let SEARCH_PATTERN=scan .*:.*log rec MLOG_INDEX_LOAD;
+--source include/search_pattern.inc
+
+CHECK TABLE t1;
+
+# Remove the --debug=d,ib_log setting.
+--let $restart_parameters =
+--source include/restart_mysqld.inc
+
+DROP TABLE t1;
+
diff --git a/storage/innobase/ddl/ddl0builder.cc b/storage/innobase/ddl/ddl0builder.cc
index b844a2492a7..76ab5143a10 100644
--- a/storage/innobase/ddl/ddl0builder.cc
+++ b/storage/innobase/ddl/ddl0builder.cc
@@ -1897,7 +1897,7 @@ dberr_t Builder::fts_sort_and_build() noexcept {
   }
 }
 
-dberr_t Builder::finalize() noexcept {
+dberr_t Builder::finalize(bool apply_log) noexcept {
   ut_a(m_ctx.m_need_observer);
   ut_a(get_state() == State::FINISH);
 
@@ -1919,11 +1919,13 @@ dberr_t Builder::finalize() noexcept {
   if (err == DB_SUCCESS) {
     write_redo(m_index);
 
-    DEBUG_SYNC_C_IF_THD(m_ctx.thd(), "row_log_apply_before");
+    if (apply_log) {
+      DEBUG_SYNC_C_IF_THD(m_ctx.thd(), "row_log_apply_before");
 
-    err = row_log_apply(m_ctx.m_trx, m_index, m_ctx.m_table, m_local_stage);
+      err = row_log_apply(m_ctx.m_trx, m_index, m_ctx.m_table, m_local_stage);
 
-    DEBUG_SYNC_C_IF_THD(m_ctx.thd(), "row_log_apply_after");
+      DEBUG_SYNC_C_IF_THD(m_ctx.thd(), "row_log_apply_after");
+    }
   }
 
   if (err != DB_SUCCESS) {
@@ -2001,17 +2003,17 @@ dberr_t Builder::finish() noexcept {
 
   dberr_t err{DB_SUCCESS};
 
-  if (get_error() != DB_SUCCESS || !m_ctx.m_online) {
+  if (get_error() == DB_SUCCESS && !m_index->table->is_temporary()) {
+    bool apply_log = true;
     /* Do not apply any online log. */
-  } else if (m_ctx.m_old_table != m_ctx.m_new_table) {
-    ut_a(!m_index->online_log);
-    ut_a(m_index->online_status == ONLINE_INDEX_COMPLETE);
-
-    auto observer = m_ctx.m_trx->flush_observer;
-    observer->flush();
-
-  } else {
-    err = finalize();
+    if (!m_ctx.m_online) {
+      apply_log = false;
+    } else if (m_ctx.m_old_table != m_ctx.m_new_table) {
+      ut_a(!m_index->online_log);
+      ut_a(m_index->online_status == ONLINE_INDEX_COMPLETE);
+      apply_log = false;
+    }
+    err = finalize(apply_log);
 
     if (err != DB_SUCCESS) {
       set_error(err);
diff --git a/storage/innobase/include/ddl0impl-builder.h b/storage/innobase/include/ddl0impl-builder.h
index 7a026012c65..816853b08d3 100644
--- a/storage/innobase/include/ddl0impl-builder.h
+++ b/storage/innobase/include/ddl0impl-builder.h
@@ -266,8 +266,9 @@ struct Builder {
   [[nodiscard]] dberr_t create_merge_sort_tasks() noexcept;
 
   /** Flush all dirty pages, apply the row log and write the redo log record.
+  @param[in] apply_log apply the row log
   @return DB_SUCCESS or error code. */
-  dberr_t finalize() noexcept;
+  dberr_t finalize(bool apply_log) noexcept;
 
   /** Convert the field data from compact to redundant format.
   @param[in]	trx		            Current transaction