diff --git a/IDEHelper/Compiler/BfModule.cpp b/IDEHelper/Compiler/BfModule.cpp
index be2501ee..1e7c4853 100644
--- a/IDEHelper/Compiler/BfModule.cpp
+++ b/IDEHelper/Compiler/BfModule.cpp
@@ -22502,10 +22502,18 @@ BfModuleMethodInstance BfModule::GetLocalMethodInstance(BfLocalMethod* localMeth
 			}
 		}
 
-		// Keep outs for being marked as assigned
+		// Keep outs from being marked as assigned
 		auto rootMethodState = mCurMethodState->GetRootMethodState();
 		BfDeferredLocalAssignData deferredLocalAssignData(rootMethodState->mCurScope);
 		deferredLocalAssignData.mVarIdBarrier = rootMethodState->mCurLocalVarId;
+		if (rootMethodState->mDeferredLocalAssignData != NULL)
+		{
+			auto prevDLA = rootMethodState->mDeferredLocalAssignData;
+			while ((prevDLA != NULL) && (prevDLA->mIsChained))
+				prevDLA = prevDLA->mChainedAssignData;
+			deferredLocalAssignData.mAssignedLocals = prevDLA->mAssignedLocals;
+			deferredLocalAssignData.mLeftBlockUncond = prevDLA->mLeftBlockUncond;
+		}
 		SetAndRestoreValue<BfDeferredLocalAssignData*> prevDLA(rootMethodState->mDeferredLocalAssignData, &deferredLocalAssignData);
 		if (!mIgnoreErrors)
 			localMethod->mDidBodyErrorPass = true;
diff --git a/IDEHelper/Tests/src/LocalFunctions.bf b/IDEHelper/Tests/src/LocalFunctions.bf
index 937afa99..ac9b283d 100644
--- a/IDEHelper/Tests/src/LocalFunctions.bf
+++ b/IDEHelper/Tests/src/LocalFunctions.bf
@@ -347,22 +347,29 @@ namespace Tests
 		public static void TestL()
 		{
 			int a = 8;
+			int b;
 
-			int LocalA()
+			if (a == 8)
 			{
-				return 9;
+				b = 9;
+
+				int LocalA()
+				{
+					return 9;
+				}
+
+				int LocalB()
+				{
+					int q = b;
+					return a;
+				}
+
+				function int() func = => LocalA;
+				Test.Assert(func() == 9);
+
+				delegate int() dlg = scope => LocalB;
+				Test.Assert(dlg() == 8);
 			}
-
-			int LocalB()
-			{
-				return a;
-			}
-
-			function int() func = => LocalA;
-			Test.Assert(func() == 9);
-
-			delegate int() dlg = scope => LocalB;
-			Test.Assert(dlg() == 8);
 		}
 	}
 }