diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
index 802e190d1d..90fbecc0e8 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
@@ -6,12 +6,7 @@
  */
 
 import * as t from "@babel/types";
-import {
-  pruneHoistedContexts,
-  pruneUnusedLValues,
-  pruneUnusedLabels,
-  renameVariables,
-} from ".";
+import { pruneHoistedContexts, pruneUnusedLValues, pruneUnusedLabels } from ".";
 import { CompilerError, ErrorSeverity } from "../CompilerError";
 import { Environment, EnvironmentConfig, ExternalFunction } from "../HIR";
 import {
@@ -1342,7 +1337,6 @@ function codegenInstructionValue(
               const reactiveFunction = buildReactiveFunction(loweredFunc.func);
               pruneUnusedLabels(reactiveFunction);
               pruneUnusedLValues(reactiveFunction);
-              renameVariables(reactiveFunction);
               const fn = codegenReactiveFunction(
                 new Context(
                   cx.env,
@@ -1547,7 +1541,6 @@ function codegenInstructionValue(
       const reactiveFunction = buildReactiveFunction(loweredFunc);
       pruneUnusedLabels(reactiveFunction);
       pruneUnusedLValues(reactiveFunction);
-      renameVariables(reactiveFunction);
       pruneHoistedContexts(reactiveFunction);
       const fn = codegenReactiveFunction(
         new Context(cx.env, reactiveFunction.id ?? "[[ anonymous ]]", cx.temp),
diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/PromoteUsedTemporaries.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
index 81b6be49d6..e0ce00eec4 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
@@ -46,6 +46,12 @@ class Visitor extends ReactiveFunctionVisitor<VisitorState> {
     }
   }
 
+  override visitParam(place: Place, state: VisitorState): void {
+    if (place.identifier.name === null) {
+      promoteTemporary(place.identifier, state);
+    }
+  }
+
   override visitValue(
     id: InstructionId,
     value: ReactiveValue,
@@ -53,12 +59,7 @@ class Visitor extends ReactiveFunctionVisitor<VisitorState> {
   ): void {
     this.traverseValue(id, value, state);
     if (value.kind === "FunctionExpression" || value.kind === "ObjectMethod") {
-      for (const operand of value.loweredFunc.func.params) {
-        const place = operand.kind === "Identifier" ? operand : operand.place;
-        if (place.identifier.name === null) {
-          promoteTemporary(place.identifier, state);
-        }
-      }
+      this.visitHirFunction(value.loweredFunc.func, state);
     }
   }
 
diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/RenameVariables.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/RenameVariables.ts
index bbf3b74ef7..4c216db573 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/RenameVariables.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/RenameVariables.ts
@@ -15,6 +15,7 @@ import {
   ReactiveBlock,
   ReactiveFunction,
   ReactiveScopeBlock,
+  ReactiveValue,
   isPromotedJsxTemporary,
   isPromotedTemporary,
   makeIdentifierName,
@@ -62,6 +63,9 @@ function renameVariablesImpl(
 }
 
 class Visitor extends ReactiveFunctionVisitor<Scopes> {
+  override visitParam(place: Place, state: Scopes): void {
+    state.visit(place.identifier);
+  }
   override visitLValue(_id: InstructionId, lvalue: Place, state: Scopes): void {
     state.visit(lvalue.identifier);
   }
@@ -81,6 +85,17 @@ class Visitor extends ReactiveFunctionVisitor<Scopes> {
     this.traverseScope(scope, state);
   }
 
+  override visitValue(
+    id: InstructionId,
+    value: ReactiveValue,
+    state: Scopes
+  ): void {
+    this.traverseValue(id, value, state);
+    if (value.kind === "FunctionExpression" || value.kind === "ObjectMethod") {
+      this.visitHirFunction(value.loweredFunc.func, state);
+    }
+  }
+
   override visitReactiveFunctionValue(
     _id: InstructionId,
     _dependencies: Place[],
diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/visitors.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/visitors.ts
index a7f26056e9..a27fc17846 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/visitors.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/visitors.ts
@@ -6,6 +6,7 @@
  */
 
 import {
+  HIRFunction,
   InstructionId,
   Place,
   ReactiveBlock,
@@ -20,6 +21,7 @@ import {
 import {
   eachInstructionLValue,
   eachInstructionValueOperand,
+  eachTerminalOperand,
 } from "../HIR/visitors";
 import { assertExhaustive } from "../Utils/utils";
 
@@ -33,6 +35,7 @@ export function visitReactiveFunction<TState>(
 
 export class ReactiveFunctionVisitor<TState = void> {
   visitID(_id: InstructionId, _state: TState): void {}
+  visitParam(_place: Place, _state: TState): void {}
   visitLValue(_id: InstructionId, _lvalue: Place, _state: TState): void {}
   visitPlace(_id: InstructionId, _place: Place, _state: TState): void {}
   visitReactiveFunctionValue(
@@ -219,6 +222,27 @@ export class ReactiveFunctionVisitor<TState = void> {
       }
     }
   }
+
+  visitHirFunction(fn: HIRFunction, state: TState): void {
+    for (const param of fn.params) {
+      const place = param.kind === "Identifier" ? param : param.place;
+      this.visitParam(place, state);
+    }
+    for (const [, block] of fn.body.blocks) {
+      for (const instr of block.instructions) {
+        this.visitInstruction(instr, state);
+        if (
+          instr.value.kind === "FunctionExpression" ||
+          instr.value.kind === "ObjectMethod"
+        ) {
+          this.visitHirFunction(instr.value.loweredFunc.func, state);
+        }
+      }
+      for (const operand of eachTerminalOperand(block.terminal)) {
+        this.visitPlace(block.terminal.id, operand, state);
+      }
+    }
+  }
 }
 
 export type TransformedValue =
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md
new file mode 100644
index 0000000000..1906b8dc8b
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md
@@ -0,0 +1,54 @@
+
+## Input
+
+```javascript
+function Foo() {
+  return (function t() {
+    let x = {};
+    let y = {};
+    return function a(x = () => {}) {
+      return (function b(y = []) {
+        return [x, y];
+      })();
+    };
+  })();
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Foo,
+  params: [],
+};
+
+```
+
+## Code
+
+```javascript
+import { unstable_useMemoCache as useMemoCache } from "react";
+function Foo() {
+  const $ = useMemoCache(1);
+  let t0;
+  let t1;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = function a(t2) {
+      const x_0 = t2 === undefined ? () => {} : t2;
+      return (function b(t3) {
+        const y_0 = t3 === undefined ? [] : t3;
+        return [x_0, y_0];
+      })();
+    };
+    $[0] = t1;
+  } else {
+    t1 = $[0];
+  }
+  t0 = t1;
+  return t0;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Foo,
+  params: [],
+};
+
+```
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.js
new file mode 100644
index 0000000000..310204ae62
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.js
@@ -0,0 +1,16 @@
+function Foo() {
+  return (function t() {
+    let x = {};
+    let y = {};
+    return function a(x = () => {}) {
+      return (function b(y = []) {
+        return [x, y];
+      })();
+    };
+  })();
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Foo,
+  params: [],
+};
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
index df7b7b6852..8d3c3f936c 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
@@ -28,8 +28,8 @@ function Foo() {
   let t0;
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = function a(t0) {
-      const x_0 = t0 === undefined ? () => {} : t0;
+    t1 = function a(t2) {
+      const x_0 = t2 === undefined ? () => {} : t2;
       return x_0;
     };
     $[0] = t1;
diff --git a/compiler/packages/snap/src/SproutTodoFilter.ts b/compiler/packages/snap/src/SproutTodoFilter.ts
index 8bc5073403..a33b347a76 100644
--- a/compiler/packages/snap/src/SproutTodoFilter.ts
+++ b/compiler/packages/snap/src/SproutTodoFilter.ts
@@ -422,6 +422,7 @@ const skipFilter = new Set([
   "component-declaration-basic.flow",
   "hook-declaration-basic.flow",
   "nested-function-with-param-as-captured-dep",
+  "deeply-nested-function-expressions-with-params",
   "readonly-object-method-calls",
   "readonly-object-method-calls-mutable-lambda",