diff --git a/rules/consistent-function-scoping.js b/rules/consistent-function-scoping.js
index a8992a40e8..6b9e469518 100644
--- a/rules/consistent-function-scoping.js
+++ b/rules/consistent-function-scoping.js
@@ -75,6 +75,26 @@ function checkReferences(scope, parent, scopeManager) {
 		);
 }
 
+// https://reactjs.org/docs/hooks-reference.html
+const reactHooks = new Set([
+	'useState',
+	'useEffect',
+	'useContext',
+	'useReducer',
+	'useCallback',
+	'useMemo',
+	'useRef',
+	'useImperativeHandle',
+	'useLayoutEffect',
+	'useDebugValue'
+]);
+const isReactHook = scope =>
+	scope.block &&
+	scope.block.parent &&
+	scope.block.parent.callee &&
+	scope.block.parent.callee.type === 'Identifier' &&
+	reactHooks.has(scope.block.parent.callee.name);
+
 function checkNode(node, scopeManager) {
 	const scope = scopeManager.acquire(node);
 	if (!scope) {
@@ -102,7 +122,7 @@ function checkNode(node, scopeManager) {
 	}
 
 	const parentScope = scopeManager.acquire(parentNode);
-	if (!parentScope || parentScope.type === 'global') {
+	if (!parentScope || parentScope.type === 'global' || isReactHook(parentScope)) {
 		return true;
 	}
 
diff --git a/test/consistent-function-scoping.js b/test/consistent-function-scoping.js
index dbe565d7eb..14e11d366e 100644
--- a/test/consistent-function-scoping.js
+++ b/test/consistent-function-scoping.js
@@ -194,6 +194,12 @@ ruleTester.run('consistent-function-scoping', rule, {
 				return Bar;
 			};
 		`,
+		// React Hooks
+		outdent`
+			useEffect(() => {
+				function foo() {}
+			}, [])
+		`,
 		// #391
 		outdent`
 			const enrichErrors = (packageName, cliArgs, f) => async (...args) => {
@@ -377,6 +383,18 @@ ruleTester.run('consistent-function-scoping', rule, {
 				}
 			`,
 			errors: [createError({name: 'doBar'})]
+		},
+		// React Hooks
+		{
+			code: outdent`
+				useEffect(() => {
+					function foo() {
+						function bar() {
+						}
+					}
+				}, [])
+			`,
+			errors: [createError({name: 'bar'})]
 		}
 	]
 });