diff --git a/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts b/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
index 7aaf4a980a..0f3e292b7c 100644
--- a/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
+++ b/compiler/forget/src/ReactiveScopes/PropagateScopeDependencies.ts
@@ -537,6 +537,15 @@ class PropagationVisitor extends ReactiveFunctionVisitor<Context> {
         id,
         scope: context.currentScope,
       });
+    } else if (value.kind === "DeclareLocal") {
+      // Some variables may be declared and never initialized. We need
+      // to retain (and hoist) these declarations if they are included
+      // in a reactive scope. One approach is to simply add all `DeclareLocal`s
+      // as scope declarations.
+      context.declare(value.lvalue.place.identifier, {
+        id,
+        scope: context.currentScope,
+      });
     } else if (value.kind === "Destructure") {
       context.visitOperand(value.value);
       for (const place of eachPatternOperand(value.lvalue.pattern)) {
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.uninitialized-declaration-in-reactive-scope.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/uninitialized-declaration-in-reactive-scope.expect.md
similarity index 69%
rename from compiler/forget/src/__tests__/fixtures/compiler/_bug.uninitialized-declaration-in-reactive-scope.expect.md
rename to compiler/forget/src/__tests__/fixtures/compiler/uninitialized-declaration-in-reactive-scope.expect.md
index 014e51ac59..de9b7dee92 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/_bug.uninitialized-declaration-in-reactive-scope.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/uninitialized-declaration-in-reactive-scope.expect.md
@@ -16,22 +16,25 @@ function Component(props) {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function Component(props) {
-  const $ = useMemoCache(2);
+  const $ = useMemoCache(3);
+  let y;
   let x;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     x = mutate();
-    let y;
+
     foo(x);
-    $[0] = x;
+    $[0] = y;
+    $[1] = x;
   } else {
-    x = $[0];
+    y = $[0];
+    x = $[1];
   }
   let t0;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = [y, x];
-    $[1] = t0;
+    $[2] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[2];
   }
   return t0;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.uninitialized-declaration-in-reactive-scope.js b/compiler/forget/src/__tests__/fixtures/compiler/uninitialized-declaration-in-reactive-scope.js
similarity index 100%
rename from compiler/forget/src/__tests__/fixtures/compiler/_bug.uninitialized-declaration-in-reactive-scope.js
rename to compiler/forget/src/__tests__/fixtures/compiler/uninitialized-declaration-in-reactive-scope.js