diff --git a/compiler/forget/src/HIR/HIR.ts b/compiler/forget/src/HIR/HIR.ts
index 6a08bf6d4f..5f5e5b9db4 100644
--- a/compiler/forget/src/HIR/HIR.ts
+++ b/compiler/forget/src/HIR/HIR.ts
@@ -827,10 +827,15 @@ export type ReactiveScope = {
   id: ScopeId;
   range: MutableRange;
   dependencies: Set<ReactiveScopeDependency>;
-  declarations: Map<IdentifierId, Identifier>;
+  declarations: Map<IdentifierId, ReactiveScopeDeclaration>;
   reassignments: Set<Identifier>;
 };
 
+export type ReactiveScopeDeclaration = {
+  identifier: Identifier;
+  scope: ReactiveScope; // the scope in which the variable was originally declared
+};
+
 export type ReactiveScopeDependency = {
   identifier: Identifier;
   path: Array<string>;
diff --git a/compiler/forget/src/ReactiveScopes/CodegenReactiveFunction.ts b/compiler/forget/src/ReactiveScopes/CodegenReactiveFunction.ts
index d78ec70946..4d6f152c91 100644
--- a/compiler/forget/src/ReactiveScopes/CodegenReactiveFunction.ts
+++ b/compiler/forget/src/ReactiveScopes/CodegenReactiveFunction.ts
@@ -191,20 +191,20 @@ function codegenReactiveScope(
     );
   }
   let firstOutputIndex: number | null = null;
-  for (const [, declaration] of scope.declarations) {
+  for (const [, { identifier }] of scope.declarations) {
     const index = cx.nextCacheIndex;
     if (firstOutputIndex === null) {
       firstOutputIndex = index;
     }
 
     invariant(
-      declaration.name != null,
+      identifier.name != null,
       "Expected identifier '@%s' to be named",
-      declaration.id
+      identifier.id
     );
 
-    const name = convertIdentifier(declaration);
-    if (!cx.hasDeclared(declaration)) {
+    const name = convertIdentifier(identifier);
+    if (!cx.hasDeclared(identifier)) {
       statements.push(
         t.variableDeclaration("let", [t.variableDeclarator(name)])
       );
@@ -227,7 +227,7 @@ function codegenReactiveScope(
         )
       )
     );
-    cx.declare(declaration);
+    cx.declare(identifier);
   }
   for (const reassignment of scope.reassignments) {
     const index = cx.nextCacheIndex;
diff --git a/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts b/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
index ec4785f5c8..ee3c490f69 100644
--- a/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
+++ b/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
@@ -47,7 +47,9 @@ export function printReactiveBlock(
     }] dependencies=[${Array.from(block.scope.dependencies)
       .map((dep) => printDependency(dep))
       .join(", ")}] declarations=[${Array.from(block.scope.declarations)
-      .map(([, decl]) => printIdentifier(decl))
+      .map(([, decl]) =>
+        printIdentifier({ ...decl.identifier, scope: decl.scope })
+      )
       .join(", ")}] reassignments=[${Array.from(block.scope.reassignments).map(
       (reassign) => printIdentifier(reassign)
     )}] {`
diff --git a/compiler/forget/src/ReactiveScopes/PromoteUsedTemporaries.ts b/compiler/forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
index e5578622f8..fd32580943 100644
--- a/compiler/forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
+++ b/compiler/forget/src/ReactiveScopes/PromoteUsedTemporaries.ts
@@ -29,9 +29,9 @@ class Visitor extends ReactiveFunctionVisitor<VisitorState> {
     // value.
     // Many of our current test fixtures do not return a value, so
     // it is better for now to promote (and memoize) every output.
-    for (const [, identifier] of block.scope.declarations) {
-      if (identifier.name == null) {
-        identifier.name = `t${state.nextId++}`;
+    for (const [, declaration] of block.scope.declarations) {
+      if (declaration.identifier.name == null) {
+        declaration.identifier.name = `t${state.nextId++}`;
       }
     }
   }
diff --git a/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts b/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
index 21448a06b6..60d15876f3 100644
--- a/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
+++ b/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
@@ -317,13 +317,16 @@ class Context {
     const originalDeclaration = this.#declarations.get(
       maybeDependency.identifier.id
     );
-    if (originalDeclaration !== undefined) {
+    if (
+      originalDeclaration !== undefined &&
+      originalDeclaration.scope.value !== null
+    ) {
       originalDeclaration.scope.each((scope) => {
         if (!this.#isScopeActive(scope)) {
-          scope.declarations.set(
-            maybeDependency.identifier.id,
-            maybeDependency.identifier
-          );
+          scope.declarations.set(maybeDependency.identifier.id, {
+            identifier: maybeDependency.identifier,
+            scope: originalDeclaration.scope.value!, // checked above
+          });
         }
       });
     }
diff --git a/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts b/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
index df482b3cc8..91b7db4cf6 100644
--- a/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
+++ b/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
@@ -34,12 +34,12 @@ class Visitor extends ReactiveFunctionVisitor<State> {
     if (scope.scope.dependencies.size === 0) {
       // If a scope has no dependencies, then its declarations are all non-reactive
       for (const [, declaration] of scope.scope.declarations) {
-        state.delete(declaration.id);
+        state.delete(declaration.identifier.id);
       }
     } else {
       // otherwise, all the scope's declarations are reactive
       for (const [, declaration] of scope.scope.declarations) {
-        state.add(declaration.id);
+        state.add(declaration.identifier.id);
       }
     }
   }
diff --git a/compiler/forget/src/ReactiveScopes/PruneUnusedScopes.ts b/compiler/forget/src/ReactiveScopes/PruneUnusedScopes.ts
index 6e2787c11f..a4fa2e7fd1 100644
--- a/compiler/forget/src/ReactiveScopes/PruneUnusedScopes.ts
+++ b/compiler/forget/src/ReactiveScopes/PruneUnusedScopes.ts
@@ -30,8 +30,11 @@ class Transform extends ReactiveFunctionTransform<void> {
   ): Transformed<ReactiveStatement> {
     this.visitScope(scopeBlock, state);
     if (
-      scopeBlock.scope.declarations.size === 0 &&
-      scopeBlock.scope.reassignments.size === 0
+      scopeBlock.scope.reassignments.size === 0 &&
+      (scopeBlock.scope.declarations.size === 0 ||
+        // Can prune scopes where all declarations bubbled up from inner
+        // scopes
+        !hasOwnDeclaration(scopeBlock))
     ) {
       return { kind: "replace-many", value: scopeBlock.instructions };
     } else {
@@ -39,3 +42,16 @@ class Transform extends ReactiveFunctionTransform<void> {
     }
   }
 }
+
+/**
+ * Does the scope block declare any values of its own? This can return
+ * false if all the block's declarations are propagated from nested scopes.
+ */
+function hasOwnDeclaration(block: ReactiveScopeBlock): boolean {
+  for (const declaration of block.scope.declarations.values()) {
+    if (declaration.scope.id === block.scope.id) {
+      return true;
+    }
+  }
+  return false;
+}
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/dependencies.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/dependencies.expect.md
index f9e0a011c2..6ad952df97 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/dependencies.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/dependencies.expect.md
@@ -25,36 +25,25 @@ function foo(x, y, z) {
 ```javascript
 import * as React from "react";
 function foo(x, y, z) {
-  const $ = React.unstable_useMemoCache(7);
-  const c_0 = $[0] !== z;
-  const c_1 = $[1] !== x;
-  const c_2 = $[2] !== y;
+  const $ = React.unstable_useMemoCache(3);
+  const items = [z];
+  items.push(x);
+  const c_0 = $[0] !== x;
+  const c_1 = $[1] !== y;
   let items2;
-  if (c_0 || c_1 || c_2) {
-    const items = [z];
-    items.push(x);
-    const c_4 = $[4] !== x;
-    const c_5 = $[5] !== y;
-    if (c_4 || c_5) {
-      items2 = [];
-      if (x) {
-        items2.push(y);
-      }
-      $[4] = x;
-      $[5] = y;
-      $[6] = items2;
-    } else {
-      items2 = $[6];
+  if (c_0 || c_1) {
+    items2 = [];
+    if (x) {
+      items2.push(y);
     }
-    if (y) {
-      items.push(x);
-    }
-    $[0] = z;
-    $[1] = x;
-    $[2] = y;
-    $[3] = items2;
+    $[0] = x;
+    $[1] = y;
+    $[2] = items2;
   } else {
-    items2 = $[3];
+    items2 = $[2];
+  }
+  if (y) {
+    items.push(x);
   }
   return items2;
 }