diff --git a/compiler/noirc_frontend/src/elaborator/mod.rs b/compiler/noirc_frontend/src/elaborator/mod.rs
index dc99ceae2f0..31c40815c36 100644
--- a/compiler/noirc_frontend/src/elaborator/mod.rs
+++ b/compiler/noirc_frontend/src/elaborator/mod.rs
@@ -1190,7 +1190,7 @@ impl<'context> Elaborator<'context> {
         self.current_item = Some(DependencyId::Global(global_id));
         let let_stmt = global.stmt_def;
 
-        if !self.in_contract
+        if !self.module_id().module(self.def_maps).is_contract
             && let_stmt.attributes.iter().any(|attr| matches!(attr, SecondaryAttribute::Abi(_)))
         {
             let span = let_stmt.pattern.span();
diff --git a/test_programs/compile_success_contract/abi_attribute/Nargo.toml b/test_programs/compile_success_contract/abi_attribute/Nargo.toml
new file mode 100644
index 00000000000..56fa88ccb68
--- /dev/null
+++ b/test_programs/compile_success_contract/abi_attribute/Nargo.toml
@@ -0,0 +1,6 @@
+[package]
+name = "abi_attribute"
+type = "contract"
+authors = [""]
+
+[dependencies]
diff --git a/test_programs/compile_success_contract/abi_attribute/src/main.nr b/test_programs/compile_success_contract/abi_attribute/src/main.nr
new file mode 100644
index 00000000000..1ac63775908
--- /dev/null
+++ b/test_programs/compile_success_contract/abi_attribute/src/main.nr
@@ -0,0 +1,4 @@
+contract Foo {
+    #[abi(foo)]
+    global foo: Field = 42;
+}