diff --git a/compiler/forget/packages/babel-plugin-react-forget/src/Inference/AnalyseFunctions.ts b/compiler/forget/packages/babel-plugin-react-forget/src/Inference/AnalyseFunctions.ts
index bbfdb796cb..c40fc5fee2 100644
--- a/compiler/forget/packages/babel-plugin-react-forget/src/Inference/AnalyseFunctions.ts
+++ b/compiler/forget/packages/babel-plugin-react-forget/src/Inference/AnalyseFunctions.ts
@@ -17,7 +17,7 @@ import {
   Place,
   ReactiveScopeDependency,
 } from "../HIR";
-import { constantPropagation } from "../Optimization";
+import { constantPropagation, deadCodeElimination } from "../Optimization";
 import { inferReactiveScopeVariables } from "../ReactiveScopes";
 import { eliminateRedundantPhi, enterSSA, leaveSSA } from "../SSA";
 import { inferTypes } from "../TypeInference";
@@ -113,6 +113,7 @@ function lower(func: HIRFunction): void {
 
   analyseFunctions(func);
   inferReferenceEffects(func, { isFunctionExpression: true });
+  deadCodeElimination(func);
   inferMutableRanges(func);
   leaveSSA(func);
   inferReactiveScopeVariables(func);
@@ -133,6 +134,7 @@ function infer(
     ) {
       mutations.set(operand.identifier.name, operand.effect);
     }
+    operand.identifier.mutableRange.end = operand.identifier.mutableRange.start;
   }
 
   for (const dep of value.dependencies) {
diff --git a/compiler/forget/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts b/compiler/forget/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
index a9a495d780..257565715a 100644
--- a/compiler/forget/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
+++ b/compiler/forget/packages/babel-plugin-react-forget/src/ReactiveScopes/CodegenReactiveFunction.ts
@@ -31,7 +31,6 @@ import {
 } from "../HIR/HIR";
 import { printPlace } from "../HIR/PrintHIR";
 import { eachPatternOperand } from "../HIR/visitors";
-import { deadCodeElimination } from "../Optimization";
 import { Err, Ok, Result } from "../Utils/Result";
 import { assertExhaustive } from "../Utils/utils";
 import { buildReactiveFunction } from "./BuildReactiveFunction";
@@ -962,7 +961,6 @@ function codegenInstructionValue(
     case "FunctionExpression": {
       if (cx.env.enableOptimizeFunctionExpressions) {
         const loweredFunc = instrValue.loweredFunc;
-        deadCodeElimination(loweredFunc);
         const reactiveFunction = buildReactiveFunction(loweredFunc);
         pruneUnusedLabels(reactiveFunction);
         pruneUnusedLValues(reactiveFunction);
diff --git a/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.expect.md b/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.expect.md
new file mode 100644
index 0000000000..13e811b62f
--- /dev/null
+++ b/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.expect.md
@@ -0,0 +1,48 @@
+
+## Input
+
+```javascript
+// @enableOptimizeFunctionExpressions
+function Component(props) {
+  return () => {
+    let str;
+    if (arguments.length) {
+      str = arguments[0];
+    } else {
+      str = props.str;
+    }
+    global.log(str);
+  };
+}
+
+```
+
+## Code
+
+```javascript
+import { unstable_useMemoCache as useMemoCache } from "react"; // @enableOptimizeFunctionExpressions
+function Component(props) {
+  const $ = useMemoCache(2);
+  const c_0 = $[0] !== props.str;
+  let t0;
+  if (c_0) {
+    t0 = () => {
+      let str = undefined;
+      if (arguments.length) {
+        str = arguments[0];
+      } else {
+        str = props.str;
+      }
+
+      global.log(str);
+    };
+    $[0] = props.str;
+    $[1] = t0;
+  } else {
+    t0 = $[1];
+  }
+  return t0;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.js b/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.js
new file mode 100644
index 0000000000..dcf5ecc79c
--- /dev/null
+++ b/compiler/forget/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/reassigned-phi-in-returned-function-expression.js
@@ -0,0 +1,12 @@
+// @enableOptimizeFunctionExpressions
+function Component(props) {
+  return () => {
+    let str;
+    if (arguments.length) {
+      str = arguments[0];
+    } else {
+      str = props.str;
+    }
+    global.log(str);
+  };
+}