diff --git a/tests/hooks-support-IIFE.js b/tests/hooks-support-IIFE.js
new file mode 100644
index 0000000..52a8df3
--- /dev/null
+++ b/tests/hooks-support-IIFE.js
@@ -0,0 +1,6 @@
+// ? works with IIFE
+while (item) {
+    ;((item) => {
+        useFoo()
+    })(item)
+}
diff --git a/typescript/README.md b/typescript/README.md
index f05e8e0..9421c15 100644
--- a/typescript/README.md
+++ b/typescript/README.md
@@ -1,5 +1,7 @@
 # react-refresh-typescript
 
+This package currently matches the upstream (babel version) at https://github.com/facebook/react/commit/516b76b9ae177ecc38cc64ba33ddfc7cfe5f5a99 which means it can be used with `react-refresh@0.10.*`.
+
 This package implements the plugin to integrate Fast Refresh into bundlers. Fast Refresh is a feature that lets you edit React components in a running application without losing their state.
 
 This package is primarily aimed at developers of bundler plugins. If you’re working on one, here is [a rough guide](https://github.com/facebook/react/issues/16604#issuecomment-528663101) for Fast Refresh integration using this package.
diff --git a/typescript/__snapshots__/hooks-support-IIFE.js b/typescript/__snapshots__/hooks-support-IIFE.js
new file mode 100644
index 0000000..7d1277c
--- /dev/null
+++ b/typescript/__snapshots__/hooks-support-IIFE.js
@@ -0,0 +1,10 @@
+var _a;
+_a = $RefreshSig$();
+// ? works with IIFE
+while (item) {
+    ;
+    (_a((item) => {
+        _a();
+        useFoo();
+    }, "useFoo{}", true))(item);
+}
diff --git a/typescript/package.json b/typescript/package.json
index dde409b..79837ba 100644
--- a/typescript/package.json
+++ b/typescript/package.json
@@ -1,6 +1,6 @@
 {
     "name": "react-refresh-typescript",
-    "version": "1.1.1",
+    "version": "2.0.0",
     "description": "React Refresh transformer for TypeScript",
     "scripts": {
         "test": "jest",
@@ -24,7 +24,8 @@
     },
     "homepage": "https://github.com/Jack-Works/react-refresh-transformer#readme",
     "peerDependencies": {
-        "typescript": "^4"
+        "typescript": "^4",
+        "react-refresh": "0.10.x"
     },
     "devDependencies": {},
     "@pika/pack": {
diff --git a/typescript/src/core.ts b/typescript/src/core.ts
index c0c16b9..64d6e5c 100644
--- a/typescript/src/core.ts
+++ b/typescript/src/core.ts
@@ -305,6 +305,7 @@ export default function (opts: Options = {}): TransformerFactory<SourceFile> {
                         node = newFunction
                         // if it is an inner decl, we can update it safely
                         if (findAncestor(oldNode.parent, ts.isFunctionLike)) node = wrapped
+                        else if (isIIFEFunction(oldNode)) return wrapped
                     }
                 }
                 return updateStatements(node, addSignatureReport)
@@ -646,6 +647,12 @@ export default function (opts: Options = {}): TransformerFactory<SourceFile> {
         if (['createElement', 'jsx', 'jsxs', 'jsxDEV'].includes(f)) return true
         return false
     }
+    function isIIFEFunction(f: HandledFunction): boolean {
+        let node: Node = f
+        while (ts.isParenthesizedExpression(node.parent)) node = node.parent
+        if (ts.isCallExpression(node.parent) && node.parent.expression === node) return true
+        return false
+    }
 }
 
 function startsWithLowerCase(str: string) {