diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.expect.md
new file mode 100644
index 0000000000..670125a747
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.expect.md
@@ -0,0 +1,32 @@
+
+## Input
+
+```javascript
+// @flow @gating
+import { memo } from "react";
+
+// TODO: this appears as a hoisted reference to Component, but it's a type not runtime reference!
+type Props = React.ElementConfig<typeof Component>;
+
+component Component(value: string) {
+  return <div>{value}</div>;
+}
+
+export default memo<Props>(Component);
+
+```
+
+
+## Error
+
+```
+   5 | type Props = React.ElementConfig<typeof Component>;
+   6 |
+>  7 | component Component(value: string) {
+     |           ^^^^^^^^^ Invariant: Encountered a function used before its declaration, which breaks Forget's gating codegen due to hoisting. Rewrite the reference to Component to not rely on hoisting to fix this issue (7:7)
+   8 |   return <div>{value}</div>;
+   9 | }
+  10 |
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.js
new file mode 100644
index 0000000000..6130717ec1
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/error.todo-gating-with-react-memo.flow.js
@@ -0,0 +1,11 @@
+// @flow @gating
+import { memo } from "react";
+
+// TODO: this appears as a hoisted reference to Component, but it's a type not runtime reference!
+type Props = React.ElementConfig<typeof Component>;
+
+component Component(value: string) {
+  return <div>{value}</div>;
+}
+
+export default memo<Props>(Component);