diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
index dbdbb1dcba..998ed43b04 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
@@ -72,7 +72,7 @@ export function lower(
   env: Environment,
   // Bindings captured from the outer function, in case lower() is called recursively (for lambdas)
   bindings: Bindings | null = null,
-  capturedRefs: Array<t.Identifier> = [],
+  capturedRefs: Map<t.Identifier, SourceLocation> = new Map(),
 ): Result<HIRFunction, CompilerError> {
   const builder = new HIRBuilder(env, {
     bindings,
@@ -80,13 +80,13 @@ export function lower(
   });
   const context: HIRFunction['context'] = [];
 
-  for (const ref of capturedRefs ?? []) {
+  for (const [ref, loc] of capturedRefs ?? []) {
     context.push({
       kind: 'Identifier',
       identifier: builder.resolveBinding(ref),
       effect: Effect.Unknown,
       reactive: false,
-      loc: ref.loc ?? GeneratedSource,
+      loc,
     });
   }
 
@@ -3439,10 +3439,12 @@ function lowerFunction(
    * This isn't a problem in practice because use Babel's scope analysis to
    * identify the correct references.
    */
-  const lowering = lower(expr, builder.environment, builder.bindings, [
-    ...builder.context,
-    ...capturedContext,
-  ]);
+  const lowering = lower(
+    expr,
+    builder.environment,
+    builder.bindings,
+    new Map([...builder.context, ...capturedContext]),
+  );
   let loweredFunc: HIRFunction;
   if (lowering.isErr()) {
     lowering
@@ -4160,6 +4162,11 @@ function captureScopes({from, to}: {from: Scope; to: Scope}): Set<Scope> {
   return scopes;
 }
 
+/**
+ * Returns a mapping of "context" identifiers — references to free variables that
+ * will become part of the function expression's `context` array — along with the
+ * source location of their first reference within the function.
+ */
 function gatherCapturedContext(
   fn: NodePath<
     | t.FunctionExpression
@@ -4168,8 +4175,8 @@ function gatherCapturedContext(
     | t.ObjectMethod
   >,
   componentScope: Scope,
-): Array<t.Identifier> {
-  const capturedIds = new Set<t.Identifier>();
+): Map<t.Identifier, SourceLocation> {
+  const capturedIds = new Map<t.Identifier, SourceLocation>();
 
   /*
    * Capture all the scopes from the parent of this function up to and including
@@ -4212,8 +4219,15 @@ function gatherCapturedContext(
 
     // Add the base identifier binding as a dependency.
     const binding = baseIdentifier.scope.getBinding(baseIdentifier.node.name);
-    if (binding !== undefined && pureScopes.has(binding.scope)) {
-      capturedIds.add(binding.identifier);
+    if (
+      binding !== undefined &&
+      pureScopes.has(binding.scope) &&
+      !capturedIds.has(binding.identifier)
+    ) {
+      capturedIds.set(
+        binding.identifier,
+        path.node.loc ?? binding.identifier.loc ?? GeneratedSource,
+      );
     }
   }
 
@@ -4250,7 +4264,7 @@ function gatherCapturedContext(
     },
   });
 
-  return [...capturedIds.keys()];
+  return capturedIds;
 }
 
 function notNull<T>(value: T | null): value is T {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/HIRBuilder.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/HIRBuilder.ts
index 19ccd9a6e8..c3a6c18d3a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/HIRBuilder.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/HIRBuilder.ts
@@ -106,7 +106,7 @@ export default class HIRBuilder {
   #current: WipBlock;
   #entry: BlockId;
   #scopes: Array<Scope> = [];
-  #context: Array<t.Identifier>;
+  #context: Map<t.Identifier, SourceLocation>;
   #bindings: Bindings;
   #env: Environment;
   #exceptionHandlerStack: Array<BlockId> = [];
@@ -121,7 +121,7 @@ export default class HIRBuilder {
     return this.#env.nextIdentifierId;
   }
 
-  get context(): Array<t.Identifier> {
+  get context(): Map<t.Identifier, SourceLocation> {
     return this.#context;
   }
 
@@ -137,13 +137,13 @@ export default class HIRBuilder {
     env: Environment,
     options?: {
       bindings?: Bindings | null;
-      context?: Array<t.Identifier>;
+      context?: Map<t.Identifier, SourceLocation>;
       entryBlockKind?: BlockKind;
     },
   ) {
     this.#env = env;
     this.#bindings = options?.bindings ?? new Map();
-    this.#context = options?.context ?? [];
+    this.#context = options?.context ?? new Map();
     this.#entry = makeBlockId(env.nextBlockId);
     this.#current = newBlock(this.#entry, options?.entryBlockKind ?? 'block');
   }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.todo-valid-functiondecl-hoisting.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.todo-valid-functiondecl-hoisting.expect.md
index fb8988c8f8..e057305d05 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.todo-valid-functiondecl-hoisting.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.todo-valid-functiondecl-hoisting.expect.md
@@ -34,13 +34,13 @@ export const FIXTURE_ENTRYPOINT = {
 ## Error
 
 ```
-  13 |     return bar();
+  11 |
+  12 |   function foo() {
+> 13 |     return bar();
+     |            ^^^ Todo: [PruneHoistedContexts] Rewrite hoisted function references (13:13)
   14 |   }
-> 15 |   function bar() {
-     |            ^^^ Todo: [PruneHoistedContexts] Rewrite hoisted function references (15:15)
+  15 |   function bar() {
   16 |     return 42;
-  17 |   }
-  18 |
 ```
           
       
\ No newline at end of file