diff --git a/programming_examples/ml/gelu/Makefile b/programming_examples/ml/gelu/Makefile
index 216c907f41b..ff3f3167b69 100644
--- a/programming_examples/ml/gelu/Makefile
+++ b/programming_examples/ml/gelu/Makefile
@@ -64,7 +64,7 @@ build/final.xclbin: build/${targetname}.mlir build/kernels.a
 	cd ${@D} && aiecc --aie-generate-xclbin --aie-generate-npu-insts --no-compile-host \
 	            --xclbin-name=${@F} \
 				--no-xchesscc --no-xbridge \
-				--aie-generate-npu --npu-insts-name=insts.bin $(<:%=../%)
+				--npu-insts-name=insts.bin $(<:%=../%)
 
 ${targetname}.exe: ${srcdir}/test.cpp
 	rm -rf _build
diff --git a/programming_examples/ml/silu/Makefile b/programming_examples/ml/silu/Makefile
index 90e8ded9e94..fea7676cbd6 100644
--- a/programming_examples/ml/silu/Makefile
+++ b/programming_examples/ml/silu/Makefile
@@ -65,7 +65,7 @@ build/final.xclbin: build/${targetname}.mlir build/kernels.a
 	cd ${@D} && aiecc --aie-generate-xclbin --aie-generate-npu-insts --no-compile-host \
 	            --xclbin-name=${@F} \
 				--no-xchesscc --no-xbridge \
-				--aie-generate-npu --npu-insts-name=insts.bin $(<:%=../%)
+				--npu-insts-name=insts.bin $(<:%=../%)
 
 ${targetname}.exe: ${srcdir}/test.cpp
 	rm -rf _build
diff --git a/programming_examples/ml/swiglu/Makefile b/programming_examples/ml/swiglu/Makefile
index 6cb0c496b9c..919487b189a 100644
--- a/programming_examples/ml/swiglu/Makefile
+++ b/programming_examples/ml/swiglu/Makefile
@@ -64,7 +64,7 @@ build/final.xclbin: build/${targetname}.mlir build/kernels.a
 	cd ${@D} && aiecc --aie-generate-xclbin --aie-generate-npu-insts --no-compile-host \
 	            --xclbin-name=${@F} \
 				--no-xchesscc --no-xbridge --dynamic-objFifos=false \
-				--aie-generate-npu --npu-insts-name=insts.bin $(<:%=../%)
+				--npu-insts-name=insts.bin $(<:%=../%)
 
 ${targetname}.exe: ${srcdir}/test.cpp
 	rm -rf _build
diff --git a/test/aiecc/cpp_host_compile.mlir b/test/aiecc/cpp_host_compile.mlir
index 60575be0d17..7e30c727f3f 100644
--- a/test/aiecc/cpp_host_compile.mlir
+++ b/test/aiecc/cpp_host_compile.mlir
@@ -17,9 +17,10 @@
 // RUN: aiecc --no-xchesscc --no-xbridge --compile-host -n --verbose %s 2>&1 | FileCheck %s
 // RUN: aiecc --no-xchesscc --no-xbridge --compile-host --host-target=aarch64-linux-gnu -n --verbose %s 2>&1 | FileCheck %s --check-prefix=AARCH64
 
-// Test: full host compilation with -I/-L/-l/-o and host source file
-// RUN: aiecc --no-xchesscc --no-xbridge --compile-host -n --verbose \
-// RUN:   -I/some/include -L/some/lib -lsomelib %s /tmp/host_test.cpp -o host_out 2>&1 \
+// Test: full host compilation with -I/-L/-l/-o and host source file. Host
+// flags and host source files are passed after the `--` separator.
+// RUN: aiecc --no-xchesscc --no-xbridge --compile-host -n --verbose %s -- \
+// RUN:   -I/some/include -L/some/lib -lsomelib /tmp/host_test.cpp -o host_out 2>&1 \
 // RUN:   | FileCheck %s --check-prefix=HOSTFULL
 
 // CHECK: Generating aie_inc.cpp for device
diff --git a/test/aiecc/unknown_args_rejected.mlir b/test/aiecc/unknown_args_rejected.mlir
new file mode 100644
index 00000000000..4f249c9fb4c
--- /dev/null
+++ b/test/aiecc/unknown_args_rejected.mlir
@@ -0,0 +1,51 @@
+//===- unknown_args_rejected.mlir -------------------------------*- MLIR -*-===//
+//
+// This file is licensed under the Apache License v2.0 with LLVM Exceptions.
+// See https://llvm.org/LICENSE.txt for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+// Copyright (C) 2026, Advanced Micro Devices, Inc.
+//
+//===----------------------------------------------------------------------===//
+
+// Verify that aiecc rejects unknown command-line options that appear before
+// the `--` host-passthrough separator. See issue #2989.
+
+// REQUIRES: peano
+
+// An unknown long option is rejected.
+// RUN: not aiecc --garbage %s 2>&1 | FileCheck %s --check-prefix=GARBAGE
+// GARBAGE: {{[Uu]nknown command line argument.*--garbage}}
+
+// A typo'd `--aie-*` option is rejected (the original report from #2989).
+// RUN: not aiecc --aie-genrate-npu-insts %s 2>&1 | FileCheck %s --check-prefix=TYPO
+// TYPO: {{[Uu]nknown command line argument.*--aie-genrate-npu-insts}}
+
+// Anything after `--` is forwarded to host compilation and not validated by
+// aiecc. With --no-compile-host the passthrough args are not consumed at all,
+// which is fine.
+// RUN: aiecc --no-xchesscc --no-xbridge --no-compile-host -n %s -- --garbage 2>&1 | FileCheck %s --check-prefix=PASSTHROUGH
+// PASSTHROUGH-NOT: {{[Uu]nknown command line argument}}
+
+module {
+  aie.device(npu1_1col) {
+    %tile_0_0 = aie.tile(0, 0)
+    %tile_0_2 = aie.tile(0, 2)
+
+    aie.objectfifo @of_in(%tile_0_0, {%tile_0_2}, 2 : i32) : !aie.objectfifo<memref<16xi32>>
+    aie.objectfifo @of_out(%tile_0_2, {%tile_0_0}, 2 : i32) : !aie.objectfifo<memref<16xi32>>
+
+    %core_0_2 = aie.core(%tile_0_2) {
+      aie.end
+    }
+
+    aie.runtime_sequence(%in : memref<16xi32>, %out : memref<16xi32>) {
+      %c0 = arith.constant 0 : i64
+      %c1 = arith.constant 1 : i64
+      %c16 = arith.constant 16 : i64
+      aiex.npu.dma_memcpy_nd(%out[%c0,%c0,%c0,%c0][%c1,%c1,%c1,%c16][%c0,%c0,%c0,%c1]) {metadata = @of_out, id = 1 : i64} : memref<16xi32>
+      aiex.npu.dma_memcpy_nd(%in[%c0,%c0,%c0,%c0][%c1,%c1,%c1,%c16][%c0,%c0,%c0,%c1]) {metadata = @of_in, id = 0 : i64, issue_token = true} : memref<16xi32>
+      aiex.npu.dma_wait {symbol = @of_out}
+    }
+  }
+}
diff --git a/tools/aiecc/aiecc.cpp b/tools/aiecc/aiecc.cpp
index 2897b95bab3..4e31f9145e9 100644
--- a/tools/aiecc/aiecc.cpp
+++ b/tools/aiecc/aiecc.cpp
@@ -457,8 +457,11 @@ static cl::opt<std::string>
     outputFilename("o", cl::desc("Output filename for host compilation"),
                    cl::init(""), cl::cat(aieCompilerOptions));
 
-// Sink for unrecognized host compilation flags (e.g. -Wl,... -lstdc++)
-static cl::list<std::string> sinkArgs(cl::Sink, cl::desc("Additional flags"));
+// Host-compiler passthrough captured after the `--` separator on the command
+// line, preserved in user-specified order. Anything before `--` must be a
+// recognized aiecc option (or a positional input file); unknown flags there
+// are rejected by ParseCommandLineOptions.
+static std::vector<std::string> hostExtraArgs;
 
 //===----------------------------------------------------------------------===//
 // Thread-safe output
@@ -516,15 +519,19 @@ static std::string getInputFilename() {
   return "";
 }
 
-// Get host source files from positional arguments.
+// Get host source files: positional args (before `--`) plus any host source
+// files appearing among the post-`--` passthrough args.
 static std::vector<std::string> getHostSourceFiles() {
   std::string mlirFile = getInputFilename();
   std::vector<std::string> hostFiles;
-  hostFiles.reserve(positionalArgs.size());
   for (const auto &arg : positionalArgs) {
     if (arg != mlirFile && isHostSourceFile(arg))
       hostFiles.push_back(arg);
   }
+  for (const auto &arg : hostExtraArgs) {
+    if (isHostSourceFile(arg))
+      hostFiles.push_back(arg);
+  }
   return hostFiles;
 }
 
@@ -5079,14 +5086,17 @@ static LogicalResult compileHostProgram(StringRef tmpDirName,
     cmd.push_back("-l" + lib);
   }
 
-  // Any additional unrecognized flags (e.g. -Wl,... -lstdc++)
-  for (const auto &arg : sinkArgs) {
+  // Post-`--` passthrough, in user-specified order. Host source files mixed
+  // in here are already included.
+  for (const auto &arg : hostExtraArgs) {
     cmd.push_back(arg);
   }
 
-  // Host source files
-  for (const auto &src : hostSourceFiles) {
-    cmd.push_back(src);
+  // Positional host source files (pre-`--` legacy form)
+  std::string mlirFile = getInputFilename();
+  for (const auto &arg : positionalArgs) {
+    if (arg != mlirFile && isHostSourceFile(arg))
+      cmd.push_back(arg);
   }
 
   // Output filename
@@ -5621,8 +5631,28 @@ static int processInputFile(StringRef inputFile, StringRef tmpDirName) {
 int main(int argc, char **argv) {
   InitLLVM y(argc, argv);
 
+  // Split argv on the first standalone `--`. Everything after is forwarded
+  // verbatim to the host compiler (host-source files are routed separately
+  // via getHostSourceFiles()). Everything before must be a recognized aiecc
+  // option or input file; unknown flags there are rejected by LLVM.
+  std::vector<char *> frontArgv;
+  frontArgv.reserve(argc);
+  bool sawSeparator = false;
+  for (int i = 0; i < argc; ++i) {
+    if (i > 0 && !sawSeparator && std::strcmp(argv[i], "--") == 0) {
+      sawSeparator = true;
+      continue;
+    }
+    if (sawSeparator) {
+      hostExtraArgs.emplace_back(argv[i]);
+    } else {
+      frontArgv.push_back(argv[i]);
+    }
+  }
+
   cl::AddExtraVersionPrinter(printVersion);
-  cl::ParseCommandLineOptions(argc, argv, "AIE Compiler Driver\n");
+  cl::ParseCommandLineOptions(static_cast<int>(frontArgv.size()),
+                              frontArgv.data(), "AIE Compiler Driver\n");
 
   if (showVersion) {
     printVersion(llvm::outs());