diff --git a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
index ed0acaa722..bb61d34c7a 100644
--- a/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/Entrypoint/Pipeline.ts
@@ -55,7 +55,11 @@ import {
 } from "../ReactiveScopes";
 import { eliminateRedundantPhi, enterSSA, leaveSSA } from "../SSA";
 import { inferTypes } from "../TypeInference";
-import { logHIRFunction, logReactiveFunction } from "../Utils/logger";
+import {
+  logCodegenFunction,
+  logHIRFunction,
+  logReactiveFunction,
+} from "../Utils/logger";
 import { assertExhaustive } from "../Utils/utils";
 import {
   validateFrozenLambdas,
@@ -319,6 +323,7 @@ export function compileFn(
 export function log(value: CompilerPipelineValue): CompilerPipelineValue {
   switch (value.kind) {
     case "ast": {
+      logCodegenFunction(value.name, value.value);
       break;
     }
     case "hir": {
diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/MemoizeFbtOperandsInSameScope.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/MemoizeFbtOperandsInSameScope.ts
index 09d1265b5a..8673d2a757 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/MemoizeFbtOperandsInSameScope.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/MemoizeFbtOperandsInSameScope.ts
@@ -8,6 +8,7 @@
 import {
   IdentifierId,
   makeInstructionId,
+  Place,
   ReactiveFunction,
   ReactiveInstruction,
   ReactiveValue,
@@ -33,9 +34,18 @@ import {
  * to be independently memoized
  */
 export function memoizeFbtOperandsInSameScope(fn: ReactiveFunction): void {
-  visitReactiveFunction(fn, new Transform(), undefined);
+  const transform = new Transform();
+  while (true) {
+    let size = transform.fbtValues.size;
+    visitReactiveFunction(fn, transform, undefined);
+    if (size === transform.fbtValues.size) {
+      break;
+    }
+  }
 }
 
+const FBT_TAGS: Set<string> = new Set(["fbt", "fbt:param"]);
+
 class Transform extends ReactiveFunctionVisitor<void> {
   // Values that represent *potential* references of `fbt` as a JSX tag name
   // or as a callee.
@@ -52,19 +62,15 @@ class Transform extends ReactiveFunctionVisitor<void> {
     if (
       value.kind === "Primitive" &&
       typeof value.value === "string" &&
-      value.value === "fbt"
+      FBT_TAGS.has(value.value)
     ) {
       // We don't distinguish between tag names and strings, so record
       // all `fbt` string literals in case they are used as a jsx tag.
       this.fbtValues.add(lvalue.identifier.id);
-    } else if (value.kind === "LoadGlobal" && value.name === "fbt") {
+    } else if (value.kind === "LoadGlobal" && FBT_TAGS.has(value.name)) {
       // Record references to `fbt` as a global
       this.fbtValues.add(lvalue.identifier.id);
-    } else if (
-      isFbtJsxExpression(this.fbtValues, value) ||
-      (value.kind === "CallExpression" &&
-        this.fbtValues.has(value.callee.identifier.id))
-    ) {
+    } else if (isFbtCallExpression(this.fbtValues, value)) {
       const fbtScope = lvalue.identifier.scope;
       if (fbtScope === null) {
         return;
@@ -81,10 +87,43 @@ class Transform extends ReactiveFunctionVisitor<void> {
           Math.min(fbtScope.range.start, operand.identifier.mutableRange.start)
         );
       }
+    } else if (
+      isFbtJsxExpression(this.fbtValues, value) ||
+      isFbtJsxChild(this.fbtValues, lvalue, value)
+    ) {
+      const fbtScope = lvalue.identifier.scope;
+      if (fbtScope === null) {
+        return;
+      }
+
+      // if the JSX element's tag was `fbt`, mark all its operands
+      // to ensure that they end up in the same scope as the jsx element
+      // itself.
+      for (const operand of eachReactiveValueOperand(value)) {
+        operand.identifier.scope = fbtScope;
+
+        // Expand the jsx element's range to account for its operands
+        fbtScope.range.start = makeInstructionId(
+          Math.min(fbtScope.range.start, operand.identifier.mutableRange.start)
+        );
+
+        // NOTE: we add the operands as fbt values so that they are also
+        // grouped with this expression
+        this.fbtValues.add(operand.identifier.id);
+      }
     }
   }
 }
 
+function isFbtCallExpression(
+  fbtValues: Set<IdentifierId>,
+  value: ReactiveValue
+): boolean {
+  return (
+    value.kind === "CallExpression" && fbtValues.has(value.callee.identifier.id)
+  );
+}
+
 function isFbtJsxExpression(
   fbtValues: Set<IdentifierId>,
   value: ReactiveValue
@@ -93,6 +132,18 @@ function isFbtJsxExpression(
     value.kind === "JsxExpression" &&
     ((value.tag.kind === "Identifier" &&
       fbtValues.has(value.tag.identifier.id)) ||
-      (value.tag.kind === "BuiltinTag" && value.tag.name === "fbt"))
+      (value.tag.kind === "BuiltinTag" && FBT_TAGS.has(value.tag.name)))
+  );
+}
+
+function isFbtJsxChild(
+  fbtValues: Set<IdentifierId>,
+  lvalue: Place | null,
+  value: ReactiveValue
+): boolean {
+  return (
+    (value.kind === "JsxExpression" || value.kind === "JsxFragment") &&
+    lvalue !== null &&
+    fbtValues.has(lvalue.identifier.id)
   );
 }
diff --git a/compiler/packages/babel-plugin-react-forget/src/Utils/logger.ts b/compiler/packages/babel-plugin-react-forget/src/Utils/logger.ts
index 201215aab4..1d865dbf45 100644
--- a/compiler/packages/babel-plugin-react-forget/src/Utils/logger.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/Utils/logger.ts
@@ -5,10 +5,13 @@
  * LICENSE file in the root directory of this source tree.
  */
 
+import generate from "@babel/generator";
+import * as t from "@babel/types";
 import chalk from "chalk";
+import { format } from "prettier";
 import { HIR, HIRFunction, ReactiveFunction } from "../HIR/HIR";
 import { printFunction, printHIR } from "../HIR/PrintHIR";
-import { printReactiveFunction } from "../ReactiveScopes";
+import { CodegenFunction, printReactiveFunction } from "../ReactiveScopes";
 
 let ENABLED: boolean = false;
 
@@ -30,6 +33,34 @@ export function logHIR(step: string, ir: HIR): void {
   }
 }
 
+export function logCodegenFunction(step: string, fn: CodegenFunction): void {
+  if (ENABLED) {
+    let printed: string | null = null;
+    try {
+      const node = t.functionDeclaration(
+        fn.id,
+        fn.params,
+        fn.body,
+        fn.generator,
+        fn.async
+      );
+      const ast = generate(node);
+      printed = format(ast.code);
+    } catch (e) {
+      console.log("Error formatting AST: " + e.message);
+    }
+    if (printed === null) {
+      return;
+    }
+    if (printed !== lastLogged) {
+      lastLogged = printed;
+      process.stdout.write(`${chalk.green(step)}:\n${printed}\n\n`);
+    } else {
+      process.stdout.write(`${chalk.blue(step)}: (no change)\n\n`);
+    }
+  }
+}
+
 export function logHIRFunction(step: string, fn: HIRFunction): void {
   if (ENABLED) {
     const printed = printFunction(fn);
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbt-params-complex-param-value.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbt-params-complex-param-value.expect.md
index 400fb92d33..43e9aa7f7a 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbt-params-complex-param-value.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbt-params-complex-param-value.expect.md
@@ -21,28 +21,21 @@ import { unstable_useMemoCache as useMemoCache } from "react";
 import fbt from "fbt";
 
 function Component(props) {
-  const $ = useMemoCache(4);
+  const $ = useMemoCache(2);
   const c_0 = $[0] !== props.name;
-  let t1;
+  let t0;
   if (c_0) {
-    const c_2 = $[2] !== props.name;
-    let t0;
-    if (c_2) {
-      t0 = capitalize(props.name);
-      $[2] = props.name;
-      $[3] = t0;
-    } else {
-      t0 = $[3];
-    }
-    t1 = fbt._("Hello {user name}", [fbt._param("user name", t0)], {
-      hk: "2zEDKF",
-    });
+    t0 = fbt._(
+      "Hello {user name}",
+      [fbt._param("user name", capitalize(props.name))],
+      { hk: "2zEDKF" }
+    );
     $[0] = props.name;
-    $[1] = t1;
+    $[1] = t0;
   } else {
-    t1 = $[1];
+    t0 = $[1];
   }
-  return t1;
+  return t0;
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.expect.md
new file mode 100644
index 0000000000..886cd3de01
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.expect.md
@@ -0,0 +1,84 @@
+
+## Input
+
+```javascript
+// @debug
+import fbt from "fbt";
+
+function Component({ name, data, icon }) {
+  return (
+    <Text type="body4">
+      <fbt desc="Lorem ipsum">
+        <fbt:param name="item author">
+          <Text type="h4">{name}</Text>
+        </fbt:param>
+        <fbt:param name="icon">{icon}</fbt:param>
+        <Text type="h4">
+          <fbt:param name="item details">{data}</fbt:param>
+        </Text>
+      </fbt>
+    </Text>
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { unstable_useMemoCache as useMemoCache } from "react"; // @debug
+import fbt from "fbt";
+
+function Component(t39) {
+  const $ = useMemoCache(6);
+  const { name, data, icon } = t39;
+  const c_0 = $[0] !== name;
+  const c_1 = $[1] !== icon;
+  const c_2 = $[2] !== data;
+  let t0;
+  if (c_0 || c_1 || c_2) {
+    t0 = fbt._(
+      "{item author}{icon}{=m2}",
+      [
+        fbt._param(
+          "item author",
+
+          <Text type="h4">{name}</Text>
+        ),
+        fbt._param(
+          "icon",
+
+          icon
+        ),
+        fbt._implicitParam(
+          "=m2",
+          <Text type="h4">
+            {fbt._("{item details}", [fbt._param("item details", data)], {
+              hk: "4jLfVq",
+            })}
+          </Text>
+        ),
+      ],
+      { hk: "2HLm2j" }
+    );
+    $[0] = name;
+    $[1] = icon;
+    $[2] = data;
+    $[3] = t0;
+  } else {
+    t0 = $[3];
+  }
+  const c_4 = $[4] !== t0;
+  let t1;
+  if (c_4) {
+    t1 = <Text type="body4">{t0}</Text>;
+    $[4] = t0;
+    $[5] = t1;
+  } else {
+    t1 = $[5];
+  }
+  return t1;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.js
new file mode 100644
index 0000000000..eed8c729d6
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/fbtparam-with-jsx-element-content.js
@@ -0,0 +1,18 @@
+// @debug
+import fbt from "fbt";
+
+function Component({ name, data, icon }) {
+  return (
+    <Text type="body4">
+      <fbt desc="Lorem ipsum">
+        <fbt:param name="item author">
+          <Text type="h4">{name}</Text>
+        </fbt:param>
+        <fbt:param name="icon">{icon}</fbt:param>
+        <Text type="h4">
+          <fbt:param name="item details">{data}</fbt:param>
+        </Text>
+      </fbt>
+    </Text>
+  );
+}
diff --git a/compiler/packages/sprout/src/SproutTodoFilter.ts b/compiler/packages/sprout/src/SproutTodoFilter.ts
index 6c6420e71c..9f2ddb2cab 100644
--- a/compiler/packages/sprout/src/SproutTodoFilter.ts
+++ b/compiler/packages/sprout/src/SproutTodoFilter.ts
@@ -454,6 +454,7 @@ const skipFilter = new Set([
   "infer-function-expression-React-memo-gating",
   "infer-skip-components-without-hooks-or-jsx",
   "class-component-with-render-helper",
+  "fbtparam-with-jsx-element-content",
 ]);
 
 export default skipFilter;