diff --git a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
index 7982942333..f57e96e4e6 100644
--- a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
@@ -210,6 +210,13 @@ function* runWithEnvironment(
     value: reactiveFunction,
   });
 
+  pruneUnusedLabels(reactiveFunction);
+  yield log({
+    kind: "reactive",
+    name: "PruneUnusedLabels",
+    value: reactiveFunction,
+  });
+
   memoizeFbtOperandsInSameScope(reactiveFunction);
   yield log({
     kind: "reactive",
@@ -320,13 +327,6 @@ function* runWithEnvironment(
     value: reactiveFunction,
   });
 
-  pruneUnusedLabels(reactiveFunction);
-  yield log({
-    kind: "reactive",
-    name: "PruneUnusedLabels",
-    value: reactiveFunction,
-  });
-
   pruneUnusedLValues(reactiveFunction);
   yield log({
     kind: "reactive",
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.expect.md
new file mode 100644
index 0000000000..dfa5077e00
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.expect.md
@@ -0,0 +1,49 @@
+
+## Input
+
+```javascript
+function Component(props) {
+  const items = (() => {
+    return foo() ?? [];
+  })();
+  items.push(props.a);
+  return items;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ a: {} }],
+};
+
+```
+
+## Code
+
+```javascript
+import { unstable_useMemoCache as useMemoCache } from "react";
+function Component(props) {
+  const $ = useMemoCache(3);
+  let t10;
+  let items;
+  if ($[0] !== props.a) {
+    t10 = foo() ?? [];
+    items = t10;
+
+    items.push(props.a);
+    $[0] = props.a;
+    $[1] = items;
+    $[2] = t10;
+  } else {
+    items = $[1];
+    t10 = $[2];
+  }
+  return items;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ a: {} }],
+};
+
+```
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.js
new file mode 100644
index 0000000000..adf84e69e4
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/iife-return-modified-later-logical.js
@@ -0,0 +1,12 @@
+function Component(props) {
+  const items = (() => {
+    return foo() ?? [];
+  })();
+  items.push(props.a);
+  return items;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ a: {} }],
+};