diff --git a/packages/metro-transform-plugins/src/__tests__/constant-folding-plugin-test.js b/packages/metro-transform-plugins/src/__tests__/constant-folding-plugin-test.js
index b38e9785d0..26a235f9a8 100644
--- a/packages/metro-transform-plugins/src/__tests__/constant-folding-plugin-test.js
+++ b/packages/metro-transform-plugins/src/__tests__/constant-folding-plugin-test.js
@@ -346,4 +346,20 @@ describe('constant expressions', () => {
 
     compare([constantFoldingPlugin], nonChanged, nonChanged);
   });
+
+  it('does not confuse function identifiers with variables in inner scope', () => {
+    const code = `
+      export function foo() {
+        let foo;
+      }
+    `;
+
+    const expected = `
+      export function foo() {
+        let foo;
+      }
+    `;
+
+    compare([constantFoldingPlugin], code, expected);
+  });
 });
diff --git a/packages/metro-transform-plugins/src/constant-folding-plugin.js b/packages/metro-transform-plugins/src/constant-folding-plugin.js
index 404829ded0..510b1ba34d 100644
--- a/packages/metro-transform-plugins/src/constant-folding-plugin.js
+++ b/packages/metro-transform-plugins/src/constant-folding-plugin.js
@@ -54,7 +54,7 @@ function constantFoldingPlugin(context: {types: Types, ...}): Visitors {
   const FunctionDeclaration = {
     exit(path, state): void {
       const binding =
-        path.node.id != null && path.scope.getBinding(path.node.id.name);
+        path.node.id != null && path.scope.parent.getBinding(path.node.id.name);
 
       if (binding && !binding.referenced) {
         state.stripped = true;