diff --git a/src/compiler/compile/render_dom/wrappers/InlineComponent/index.ts b/src/compiler/compile/render_dom/wrappers/InlineComponent/index.ts
index 8c342b0516d4..f793ec6d34ee 100644
--- a/src/compiler/compile/render_dom/wrappers/InlineComponent/index.ts
+++ b/src/compiler/compile/render_dom/wrappers/InlineComponent/index.ts
@@ -133,6 +133,7 @@ export default class InlineComponentWrapper extends Wrapper {
 		const { component } = renderer;
 
 		const name = this.var;
+		block.add_variable(name);
 
 		const component_opts = x`{}` as ObjectExpression;
 
@@ -417,7 +418,7 @@ export default class InlineComponentWrapper extends Wrapper {
 				}
 
 				if (${switch_value}) {
-					var ${name} = new ${switch_value}(${switch_props}(#ctx));
+					${name} = new ${switch_value}(${switch_props}(#ctx));
 
 					${munged_bindings}
 					${munged_handlers}
@@ -495,7 +496,7 @@ export default class InlineComponentWrapper extends Wrapper {
 				${(this.node.attributes.length > 0 || this.node.bindings.length > 0) && b`
 				${props && b`let ${props} = ${attribute_object};`}`}
 				${statements}
-				const ${name} = new ${expression}(${component_opts});
+				${name} = new ${expression}(${component_opts});
 
 				${munged_bindings}
 				${munged_handlers}
diff --git a/src/compiler/compile/render_dom/wrappers/shared/bind_this.ts b/src/compiler/compile/render_dom/wrappers/shared/bind_this.ts
index 2e9fae1f05cd..078eb1839de8 100644
--- a/src/compiler/compile/render_dom/wrappers/shared/bind_this.ts
+++ b/src/compiler/compile/render_dom/wrappers/shared/bind_this.ts
@@ -3,6 +3,7 @@ import Component from '../../../Component';
 import Block from '../../Block';
 import BindingWrapper from '../Element/Binding';
 import { Identifier } from 'estree';
+import { compare_node } from '../../../utils/compare_node';
 
 export default function bind_this(component: Component, block: Block, binding: BindingWrapper, variable: Identifier) {
 	const fn = component.get_unique_name(`${variable.name}_binding`);
@@ -35,13 +36,26 @@ export default function bind_this(component: Component, block: Block, binding: B
 			}
 		`);
 
+		const alias_map = new Map();
 		const args = [];
-		for (const id of params) {
-			args.push(id);
+		for (let id of params) {
+			const value = block.renderer.reference(id.name);
+			let found = false;
 			if (block.variables.has(id.name)) {
-				if (block.renderer.context_lookup.get(id.name).is_contextual) continue;
+				let alias = id.name;
+				for (
+					let i = 1;
+					block.variables.has(alias) && !compare_node(block.variables.get(alias).init, value);
+					alias = `${id.name}_${i++}`
+				);
+				alias_map.set(alias, id.name);
+				id = { type: 'Identifier', name: alias };
+				found = block.variables.has(alias);
+			}
+			args.push(id);
+			if (!found) {
+				block.add_variable(id, value);
 			}
-			block.add_variable(id, block.renderer.reference(id.name));
 		}
 
 		const assign = block.get_unique_name(`assign_${variable.name}`);
@@ -52,8 +66,8 @@ export default function bind_this(component: Component, block: Block, binding: B
 			const ${unassign} = () => ${callee}(null, ${args});
 		`);
 
-		const condition = Array.from(params)
-			.map(name => x`${name} !== ${block.renderer.reference(name.name)}`)
+		const condition = Array.from(args)
+			.map(name => x`${name} !== ${block.renderer.reference(alias_map.get(name.name) || name.name)}`)
 			.reduce((lhs, rhs) => x`${lhs} || ${rhs}`);
 
 		// we push unassign and unshift assign so that references are
@@ -62,7 +76,7 @@ export default function bind_this(component: Component, block: Block, binding: B
 		block.chunks.update.push(b`
 			if (${condition}) {
 				${unassign}();
-				${args.map(a => b`${a} = ${block.renderer.reference(a.name)}`)};
+				${args.map(a => b`${a} = ${block.renderer.reference(alias_map.get(a.name) || a.name)}`)};
 				${assign}();
 			}`
 		);
diff --git a/src/compiler/compile/utils/compare_node.ts b/src/compiler/compile/utils/compare_node.ts
new file mode 100644
index 000000000000..ead79a5ea088
--- /dev/null
+++ b/src/compiler/compile/utils/compare_node.ts
@@ -0,0 +1,19 @@
+import { Node, Literal, Identifier, MemberExpression } from "estree";
+
+export function compare_node(a: Node | void, b: Node | void) {
+	if (a === b) return true;
+	if (!a || !b) return false;
+	if (a.type !== b.type) return false;
+	switch (a.type) {
+		case "Identifier":
+			return a.name === (b as Identifier).name;
+		case "MemberExpression":
+			return (
+				compare_node(a.object, (b as MemberExpression).object) &&
+				compare_node(a.property, (b as MemberExpression).property) &&
+				a.computed === (b as MemberExpression).computed
+      );
+    case 'Literal':
+      return a.value === (b as Literal).value;
+	}
+}
diff --git a/test/js/samples/component-static-array/expected.js b/test/js/samples/component-static-array/expected.js
index 44e8dbfe330f..0ecb0f32ba08 100644
--- a/test/js/samples/component-static-array/expected.js
+++ b/test/js/samples/component-static-array/expected.js
@@ -12,8 +12,9 @@ import {
 } from "svelte/internal";
 
 function create_fragment(ctx) {
+	let nested;
 	let current;
-	const nested = new /*Nested*/ ctx[0]({ props: { foo: [1, 2, 3] } });
+	nested = new /*Nested*/ ctx[0]({ props: { foo: [1, 2, 3] } });
 
 	return {
 		c() {
diff --git a/test/js/samples/component-static-immutable/expected.js b/test/js/samples/component-static-immutable/expected.js
index a7dd8128fa94..b0c416541334 100644
--- a/test/js/samples/component-static-immutable/expected.js
+++ b/test/js/samples/component-static-immutable/expected.js
@@ -12,8 +12,9 @@ import {
 } from "svelte/internal";
 
 function create_fragment(ctx) {
+	let nested;
 	let current;
-	const nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
+	nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
 
 	return {
 		c() {
diff --git a/test/js/samples/component-static-immutable2/expected.js b/test/js/samples/component-static-immutable2/expected.js
index a7dd8128fa94..b0c416541334 100644
--- a/test/js/samples/component-static-immutable2/expected.js
+++ b/test/js/samples/component-static-immutable2/expected.js
@@ -12,8 +12,9 @@ import {
 } from "svelte/internal";
 
 function create_fragment(ctx) {
+	let nested;
 	let current;
-	const nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
+	nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
 
 	return {
 		c() {
diff --git a/test/js/samples/component-static-var/expected.js b/test/js/samples/component-static-var/expected.js
index 8a27ab6b24db..2cd5ed386f07 100644
--- a/test/js/samples/component-static-var/expected.js
+++ b/test/js/samples/component-static-var/expected.js
@@ -20,14 +20,16 @@ import Foo from "./Foo.svelte";
 import Bar from "./Bar.svelte";
 
 function create_fragment(ctx) {
+	let foo;
 	let t0;
+	let bar;
 	let t1;
 	let input;
 	let current;
 	let mounted;
 	let dispose;
-	const foo = new Foo({ props: { x: y } });
-	const bar = new Bar({ props: { x: /*z*/ ctx[0] } });
+	foo = new Foo({ props: { x: y } });
+	bar = new Bar({ props: { x: /*z*/ ctx[0] } });
 
 	return {
 		c() {
diff --git a/test/js/samples/component-static/expected.js b/test/js/samples/component-static/expected.js
index 26c63f550b65..186f6350e6bd 100644
--- a/test/js/samples/component-static/expected.js
+++ b/test/js/samples/component-static/expected.js
@@ -12,8 +12,9 @@ import {
 } from "svelte/internal";
 
 function create_fragment(ctx) {
+	let nested;
 	let current;
-	const nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
+	nested = new /*Nested*/ ctx[0]({ props: { foo: "bar" } });
 
 	return {
 		c() {
diff --git a/test/js/samples/dynamic-import/expected.js b/test/js/samples/dynamic-import/expected.js
index 4394e7d8a996..d1085f431b7c 100644
--- a/test/js/samples/dynamic-import/expected.js
+++ b/test/js/samples/dynamic-import/expected.js
@@ -14,8 +14,9 @@ import {
 import LazyLoad from "./LazyLoad.svelte";
 
 function create_fragment(ctx) {
+	let lazyload;
 	let current;
-	const lazyload = new LazyLoad({ props: { load: func } });
+	lazyload = new LazyLoad({ props: { load: func } });
 
 	return {
 		c() {
diff --git a/test/js/samples/non-imported-component/expected.js b/test/js/samples/non-imported-component/expected.js
index 2784fd17acb3..5a6b8e8bb730 100644
--- a/test/js/samples/non-imported-component/expected.js
+++ b/test/js/samples/non-imported-component/expected.js
@@ -17,10 +17,12 @@ import {
 import Imported from "Imported.svelte";
 
 function create_fragment(ctx) {
+	let imported;
 	let t;
+	let nonimported;
 	let current;
-	const imported = new Imported({});
-	const nonimported = new NonImported({});
+	imported = new Imported({});
+	nonimported = new NonImported({});
 
 	return {
 		c() {