diff --git a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Program.ts b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Program.ts
index 619493f695..ce0d2c0875 100644
--- a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Program.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Program.ts
@@ -489,10 +489,7 @@ function isComponentOrHookLike(
 ): boolean {
   const functionName = getFunctionName(node);
   // Check if the name is component or hook like:
-  if (
-    functionName !== null &&
-    (isComponentName(functionName) || isHook(functionName))
-  ) {
+  if (functionName !== null && isComponentName(functionName)) {
     return (
       // As an added check we also look for hook invocations or JSX
       callsHooksOrCreatesJsx(node) &&
@@ -503,7 +500,11 @@ function isComponentOrHookLike(
        */
       node.get("params").length <= 1
     );
+  } else if (functionName !== null && isHook(functionName)) {
+    // Hooks have hook invocations or JSX, but can take any # of arguments
+    return callsHooksOrCreatesJsx(node);
   }
+
   /*
    * Otherwise for function or arrow function expressions, check if they
    * appear as the argument to React.forwardRef() or React.memo():
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.expect.md
new file mode 100644
index 0000000000..ded2aed352
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.expect.md
@@ -0,0 +1,52 @@
+
+## Input
+
+```javascript
+// @compilationMode(infer)
+import { useNoAlias } from "shared-runtime";
+
+// This should be compiled by Forget
+function useFoo(value1, value2) {
+  return {
+    value: useNoAlias(value1 + value2),
+  };
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: useFoo,
+  params: [1, 2],
+};
+
+```
+
+## Code
+
+```javascript
+import { unstable_useMemoCache as useMemoCache } from "react"; // @compilationMode(infer)
+import { useNoAlias } from "shared-runtime";
+
+// This should be compiled by Forget
+function useFoo(value1, value2) {
+  const $ = useMemoCache(2);
+
+  const t0 = useNoAlias(value1 + value2);
+  let t1;
+  if ($[0] !== t0) {
+    t1 = { value: t0 };
+    $[0] = t0;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  return t1;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: useFoo,
+  params: [1, 2],
+};
+
+```
+      
+### Eval output
+(kind: ok) {"value":{}}
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.js
new file mode 100644
index 0000000000..2190b3a356
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-compile-hooks-with-multiple-params.js
@@ -0,0 +1,14 @@
+// @compilationMode(infer)
+import { useNoAlias } from "shared-runtime";
+
+// This should be compiled by Forget
+function useFoo(value1, value2) {
+  return {
+    value: useNoAlias(value1 + value2),
+  };
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: useFoo,
+  params: [1, 2],
+};
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/dont-compile-functions-with-multiple-params.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-dont-compile-components-with-multiple-params.expect.md
similarity index 100%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/dont-compile-functions-with-multiple-params.expect.md
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-dont-compile-components-with-multiple-params.expect.md
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/dont-compile-functions-with-multiple-params.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-dont-compile-components-with-multiple-params.js
similarity index 100%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/dont-compile-functions-with-multiple-params.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/infer-dont-compile-components-with-multiple-params.js