diff --git a/src/compile/nodes/shared/Expression.ts b/src/compile/nodes/shared/Expression.ts
index 5e223cd53d..0d4dbd4960 100644
--- a/src/compile/nodes/shared/Expression.ts
+++ b/src/compile/nodes/shared/Expression.ts
@@ -240,7 +240,7 @@ export default class Expression {
 							dependencies.add(name);
 							component.template_references.add(name);
 						}
-					} else if (!is_synthetic && !component.hoistable_names.has(name) && !component.imported_declarations.has(name)) {
+					} else if (!is_synthetic && !(component.hoistable_names.has(name) && template_scope.isTopLevel(name)) && !component.imported_declarations.has(name)) {
 						code.prependRight(node.start, key === 'key' && parent.shorthand
 							? `${name}: ctx.`
 							: 'ctx.');
diff --git a/src/compile/nodes/shared/TemplateScope.ts b/src/compile/nodes/shared/TemplateScope.ts
index c9b81070b8..8d31e848e6 100644
--- a/src/compile/nodes/shared/TemplateScope.ts
+++ b/src/compile/nodes/shared/TemplateScope.ts
@@ -40,4 +40,8 @@ export default class TemplateScope {
 		if (this.parent) return this.parent.containsMutable(names);
 		else return false;
 	}
+
+	isTopLevel(name: string) {
+		return !this.parent || !this.names.has(name) && this.parent.isTopLevel(name);
+	}
 }
\ No newline at end of file
diff --git a/test/runtime/samples/each-block-scope-shadow/_config.js b/test/runtime/samples/each-block-scope-shadow/_config.js
new file mode 100644
index 0000000000..8005bc93d5
--- /dev/null
+++ b/test/runtime/samples/each-block-scope-shadow/_config.js
@@ -0,0 +1,3 @@
+export default {
+	html: '(alpaca)(baboon)(capybara)'
+};
diff --git a/test/runtime/samples/each-block-scope-shadow/main.html b/test/runtime/samples/each-block-scope-shadow/main.html
new file mode 100644
index 0000000000..b6c256e14f
--- /dev/null
+++ b/test/runtime/samples/each-block-scope-shadow/main.html
@@ -0,0 +1,8 @@
+{#each animals as animal}
+	({animal})
+{/each}
+
+<script>
+	let animal = 'lemur';
+	let animals = ['alpaca', 'baboon', 'capybara'];
+</script>
\ No newline at end of file