diff --git a/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.expect.md b/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.expect.md
new file mode 100644
index 0000000000..8ba08649b5
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.expect.md
@@ -0,0 +1,66 @@
+
+## Input
+
+```javascript
+function component(a, b) {
+  let z = { a };
+  (function () {
+    mutate(z);
+  })();
+  let y = z;
+
+  {
+    // z is shadowed & renamed but the lambda is unaffected.
+    let z = { b };
+    y = { y, z };
+  }
+  return y;
+}
+
+```
+
+## Code
+
+```javascript
+function component(a, b) {
+  const $ = React.unstable_useMemoCache(7);
+  const c_0 = $[0] !== a;
+  let z;
+  if (c_0) {
+    z = { a };
+    (function () {
+      mutate(z);
+    })();
+    $[0] = a;
+    $[1] = z;
+  } else {
+    z = $[1];
+  }
+  let y = z;
+  const c_2 = $[2] !== b;
+  let t0;
+  if (c_2) {
+    t0 = { b };
+    $[2] = b;
+    $[3] = t0;
+  } else {
+    t0 = $[3];
+  }
+  const z_0 = t0;
+  const c_4 = $[4] !== y;
+  const c_5 = $[5] !== z_0;
+  let t1;
+  if (c_4 || c_5) {
+    t1 = { y, z: z_0 };
+    $[4] = y;
+    $[5] = z_0;
+    $[6] = t1;
+  } else {
+    t1 = $[6];
+  }
+  y = t1;
+  return y;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.js b/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.js
new file mode 100644
index 0000000000..6abd7c8612
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/hir/capturing-function-capture-ref-before-rename.js
@@ -0,0 +1,14 @@
+function component(a, b) {
+  let z = { a };
+  (function () {
+    mutate(z);
+  })();
+  let y = z;
+
+  {
+    // z is shadowed & renamed but the lambda is unaffected.
+    let z = { b };
+    y = { y, z };
+  }
+  return y;
+}