diff --git a/packages/compiler/src/frontend/lowering/lower-modules.ts b/packages/compiler/src/frontend/lowering/lower-modules.ts
index 82a1884bd..aefcbc0af 100644
--- a/packages/compiler/src/frontend/lowering/lower-modules.ts
+++ b/packages/compiler/src/frontend/lowering/lower-modules.ts
@@ -3225,7 +3225,14 @@ export function lowerFileInit(
       });
       ctx.hoistedFnDecls.add(stmt);
     }
+    const islandActions = lowerer.islandImportActions.get(sf);
+    const islandPlaced = new Set<ts.Statement>();
     for (const { stmt, dep } of orderedImportsOf(lowerer.program, sf)) {
+      const island = islandActions?.get(stmt);
+      if (island !== undefined) {
+        header.push(...island);
+        islandPlaced.add(stmt);
+      }
       const npm = lowerer.npmInitActions.get(sf)?.get(stmt);
       if (npm !== undefined && npm.length > 0) {
         header.push(...npm);
@@ -3294,6 +3301,11 @@ export function lowerFileInit(
         }
       }
     }
+    // An island load whose statement the import order leaves out keeps the
+    // prelude's place.
+    const islandUnplaced: IrStmt[] = [];
+    for (const [stmt, actions] of islandActions ?? [])
+      if (!islandPlaced.has(stmt)) islandUnplaced.push(...actions);
     if (asyncDeps.length === 1) {
       const dep = asyncDeps[0]!;
       const promiseT: IrType = { kind: "promise", inner: VOID };
@@ -3432,7 +3444,7 @@ export function lowerFileInit(
       if (ms && ms.sf === sf) statics.push({ pos: ms.pos, info: c });
     }
     statics.sort((a, b) => a.pos - b.pos);
-    const body = [...header, ...prelude];
+    const body = [...header, ...islandUnplaced, ...prelude];
     let at = 0;
     for (const stmt of stmts) {
       // `<=`: a mixin instantiation's position IS its statement's start
diff --git a/packages/compiler/src/frontend/lowering/lower-node-island.ts b/packages/compiler/src/frontend/lowering/lower-node-island.ts
index c36dc345f..df515a3d1 100644
--- a/packages/compiler/src/frontend/lowering/lower-node-island.ts
+++ b/packages/compiler/src/frontend/lowering/lower-node-island.ts
@@ -31,6 +31,7 @@ import {
   VOID,
   type IrExpr,
   type IrGlobal,
+  type IrLocal,
   type IrStmt,
   type IrType,
   type SrcLoc,
@@ -390,9 +391,26 @@ function runsAtModuleEvaluation(node: ts.Node): boolean {
   return false;
 }
 
+/** The %init statements that run in `stmt`'s place in its file's %init
+ * header (Lowerer.islandImportActions). */
+function islandStatementActions(lowerer: Lowerer, sf: ts.SourceFile, stmt: ts.Statement): IrStmt[] {
+  let byStatement = lowerer.islandImportActions.get(sf);
+  if (byStatement === undefined) {
+    byStatement = new Map();
+    lowerer.islandImportActions.set(sf, byStatement);
+  }
+  let actions = byStatement.get(stmt);
+  if (actions === undefined) {
+    actions = [];
+    byStatement.set(stmt, actions);
+  }
+  return actions;
+}
+
 /** A static import (or re-export) of an island package: loads the module
- * in the importer's %init prelude. Returns false when `spec` is not an
- * island module. */
+ * in the importer's %init header, in the statement's place among the
+ * dependencies' %init calls, as Node evaluates it in source order. Returns
+ * false when `spec` is not an island module. */
 export function collectIslandImport(
   lowerer: Lowerer,
   sf: ts.SourceFile,
@@ -418,8 +436,7 @@ export function collectIslandImport(
     lowerer.usesNodeIsland = true;
     const exportLoc = locOf(stmt);
     const exported = islandModuleGlobal(lowerer, path);
-    const initActions = lowerer.jsonInitActions.get(sf) ?? [];
-    lowerer.jsonInitActions.set(sf, initActions);
+    const initActions = islandStatementActions(lowerer, sf, stmt);
     initActions.push({
       kind: "assign",
       localId: exported.global.id,
@@ -446,8 +463,7 @@ export function collectIslandImport(
   lowerer.usesNodeIsland = true;
   const loc = locOf(stmt);
   const binding = islandModuleGlobal(lowerer, path);
-  const actions = lowerer.jsonInitActions.get(sf) ?? [];
-  lowerer.jsonInitActions.set(sf, actions);
+  const actions = islandStatementActions(lowerer, sf, stmt);
   actions.push({
     kind: "assign",
     localId: binding.global.id,
@@ -1499,6 +1515,16 @@ function lowerIslandChain(
   return stmts.length > 0 ? { kind: "seqExpr", stmts, result, type: result.type, loc } : result;
 }
 
+/** The local an island handle binding reads here: its own binding, retyped
+ * checked-dynamic, or, inside a closure, the capture of an enclosing
+ * function's binding, which resolveLocal registers. */
+function islandHandleLocal(lowerer: Lowerer, ident: ts.Identifier): IrLocal | null {
+  const origin = lowerer.peekLocal(ident);
+  if (origin === null) return null;
+  origin.type = DYN;
+  return lowerer.resolveLocal(ident);
+}
+
 /** Expressions on island values (the lowerExpr hook; null: not an island
  * expression, the ordinary lowering applies). */
 export function lowerIslandExpr(lowerer: Lowerer, expr: ts.Expression): IrExpr | null {
@@ -1527,7 +1553,7 @@ export function lowerIslandExpr(lowerer: Lowerer, expr: ts.Expression): IrExpr |
           expr,
         );
       lowerer.usesNodeIsland = true;
-      const slot = lowerer.globalOf(expr) ?? lowerer.peekLocal(expr);
+      const slot = lowerer.globalOf(expr) ?? islandHandleLocal(lowerer, expr);
       if (slot === null) return null; // the local is declared dyn
       slot.type = DYN;
       const ref = varRef(slot.id, DYN, loc);
diff --git a/packages/compiler/src/frontend/lowering/lowerer.ts b/packages/compiler/src/frontend/lowering/lowerer.ts
index 43822d695..ac74ee69f 100644
--- a/packages/compiler/src/frontend/lowering/lowerer.ts
+++ b/packages/compiler/src/frontend/lowering/lowerer.ts
@@ -3662,6 +3662,12 @@ export class Lowerer {
   readonly globalsList: IrGlobal[] = [];
 
   readonly npmInitActions = new Map<ts.SourceFile, Map<ts.Statement, IrStmt[]>>();
+  /** Per-file %init statements of static island imports and re-exports,
+   * by the import or export statement that loads the island module: the
+   * importer's %init header runs them in that statement's place among its
+   * dependencies' %init calls, so the island module evaluates in source
+   * order with the native dependencies around it. */
+  readonly islandImportActions = new Map<ts.SourceFile, Map<ts.Statement, IrStmt[]>>();
   /** Per-file %init PRELUDE statements for JSON imports: bakeable DATA
    * assignments with no observable evaluation order of their own —
    * prepended by lowerFileInit so the bindings are live before any
@@ -4380,6 +4386,7 @@ export class Lowerer {
       checkedTable("globalsByDeclNode", () => this.globalsByDeclNode.size),
       checkedTable("globalsList", () => this.globalsList.length),
       checkedTable("npmInitActions", () => this.npmInitActions.size),
+      checkedTable("islandImportActions", () => this.islandImportActions.size),
       checkedTable("jsonInitActions", () => this.jsonInitActions.size),
       checkedTable("jsonRequireModules", () => this.jsonRequireModules.size),
       checkedTable("jsonRequireCalls", () => this.jsonRequireCalls.size),
diff --git a/packages/compiler/src/frontend/program.ts b/packages/compiler/src/frontend/program.ts
index 1b4eb3579..b0fbb0189 100644
--- a/packages/compiler/src/frontend/program.ts
+++ b/packages/compiler/src/frontend/program.ts
@@ -5532,6 +5532,23 @@ export function checkPreflightTs7(
   }
 }
 
+/** Whether a declaration file has the runtime file TypeScript pairs it
+ * with (`x.d.ts` with `x.js`, `x.d.mts` with `x.mjs`, `x.d.cts` with
+ * `x.cjs`): a specifier that resolves to the declaration then still names a
+ * module Node can load. */
+function declarationHasRuntimeFile(declaration: ts.SourceFile): boolean {
+  const name = declaration.fileName;
+  const pairs: [string, string][] = [
+    [".d.ts", ".js"],
+    [".d.mts", ".mjs"],
+    [".d.cts", ".cjs"],
+  ];
+  for (const [declared, runtime] of pairs)
+    if (name.endsWith(declared))
+      return trackedFileExists(name.slice(0, -declared.length) + runtime);
+  return false;
+}
+
 function preflight7(load: LoadResult): {
   diags: ScrDiagnostic[];
   moduleOrder: ts.SourceFile[];
@@ -6065,7 +6082,7 @@ function preflight7(load: LoadResult): {
         // ERR_MODULE_NOT_FOUND), and a declaration file is not a program
         // module: an edge to it would lower the declarations' own imports
         // as code.
-        if (reDep !== null && reDep.isDeclarationFile) {
+        if (reDep !== null && reDep.isDeclarationFile && !declarationHasRuntimeFile(reDep)) {
           diags.push(
             unsupportedDiag(
               "SC1010",
@@ -6271,7 +6288,7 @@ function preflight7(load: LoadResult): {
       // edge would lower its imports as if it were code (SC2013 for every
       // specifier inside a package's `.d.ts`). Type-only imports were
       // already erased above; this is the value form.
-      if (dep !== null && dep.isDeclarationFile && !isJson) {
+      if (dep !== null && dep.isDeclarationFile && !isJson && !declarationHasRuntimeFile(dep)) {
         diags.push(
           unsupportedDiag(
             "SC1010",
diff --git a/packages/compiler/test/lib-diagnostics-options.test.ts b/packages/compiler/test/lib-diagnostics-options.test.ts
index 1ef69d867..c561f1c2f 100644
--- a/packages/compiler/test/lib-diagnostics-options.test.ts
+++ b/packages/compiler/test/lib-diagnostics-options.test.ts
@@ -88,7 +88,7 @@ test("noUnusedLocals and noUnusedParameters report nothing in declaration files"
   const codes = (extension: string, text: string): string[] =>
     checkPreflightTs7(
       project(options, {
-        "main.ts": 'import "./extra.js";\nexport {};\n',
+        "main.ts": 'export type {} from "./extra.js";\n',
         [`extra.${extension}`]: text,
       }),
     ).diags.map((d) => d.message);
diff --git a/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/node-island-import-order/main.ts.json b/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/node-island-import-order/main.ts.json
new file mode 100644
index 000000000..a6aa6d7e8
--- /dev/null
+++ b/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/node-island-import-order/main.ts.json
@@ -0,0 +1,10 @@
+{
+ "order": [
+  "<repo>/tests/corpus/node-island-import-order/native-a.ts",
+  "<repo>/tests/corpus/node-island-import-order/barrel.ts",
+  "<repo>/tests/corpus/node-island-import-order/native-b.ts",
+  "<repo>/tests/corpus/node-island-import-order/user.ts",
+  "<repo>/tests/corpus/node-island-import-order/main.ts"
+ ],
+ "diags": []
+}
diff --git a/tests/corpus/6897-node-island-declared-arrays/main.ts b/tests/corpus/6897-node-island-declared-arrays/main.ts
index a5c02a23d..9093d97de 100644
--- a/tests/corpus/6897-node-island-declared-arrays/main.ts
+++ b/tests/corpus/6897-node-island-declared-arrays/main.ts
@@ -38,3 +38,13 @@ const second = list();
 const sortedNative: string[] = [...first];
 sortedNative.sort();
 console.log(sortedNative.join(","), second.join(","), describe(first));
+
+// A function-local island array captured by an arrow crosses the same way.
+function captured(): string {
+  const local = list();
+  const show = (): string => describe(local);
+  const size = (): number => local.length;
+  const spread = (): string => [...local].join(",");
+  return `${show()} ${size()} ${spread()}`;
+}
+console.log(captured());
diff --git a/tests/corpus/node-island-import-order/barrel.ts b/tests/corpus/node-island-import-order/barrel.ts
new file mode 100644
index 000000000..525d358c0
--- /dev/null
+++ b/tests/corpus/node-island-import-order/barrel.ts
@@ -0,0 +1,5 @@
+// The island re-export comes first, so the island module evaluates before
+// the native module this barrel imports next.
+export { tag } from "sidekit";
+import { a } from "./native-a.ts";
+console.log("barrel evaluates", a);
diff --git a/tests/corpus/node-island-import-order/main.ts b/tests/corpus/node-island-import-order/main.ts
new file mode 100644
index 000000000..92f18fad9
--- /dev/null
+++ b/tests/corpus/node-island-import-order/main.ts
@@ -0,0 +1,8 @@
+// @requires-libnode
+// Static imports and re-exports of a Node island package evaluate the
+// island module in source order among the native modules a file imports,
+// as Node evaluates dependencies: an island package's top-level code runs
+// before a native module imported after it, and after one imported before.
+import { tag } from "./barrel.ts";
+import "./user.ts";
+console.log("main", tag("main"));
diff --git a/tests/corpus/node-island-import-order/native-a.ts b/tests/corpus/node-island-import-order/native-a.ts
new file mode 100644
index 000000000..41180e891
--- /dev/null
+++ b/tests/corpus/node-island-import-order/native-a.ts
@@ -0,0 +1,2 @@
+console.log("native module a evaluates");
+export const a = "a";
diff --git a/tests/corpus/node-island-import-order/native-b.ts b/tests/corpus/node-island-import-order/native-b.ts
new file mode 100644
index 000000000..63f51a2e8
--- /dev/null
+++ b/tests/corpus/node-island-import-order/native-b.ts
@@ -0,0 +1,2 @@
+console.log("native module b evaluates");
+export const b = "b";
diff --git a/tests/corpus/node-island-import-order/node_modules/laterkit/index.d.ts b/tests/corpus/node-island-import-order/node_modules/laterkit/index.d.ts
new file mode 100644
index 000000000..ee4242fe4
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/laterkit/index.d.ts
@@ -0,0 +1 @@
+export declare function tag(text: string): string;
diff --git a/tests/corpus/node-island-import-order/node_modules/laterkit/index.js b/tests/corpus/node-island-import-order/node_modules/laterkit/index.js
new file mode 100644
index 000000000..9498a667c
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/laterkit/index.js
@@ -0,0 +1,4 @@
+"use strict";
+// Top-level code with an observable effect: when it runs is the test.
+console.log("second island module evaluates");
+exports.tag = (text) => "<" + text + ">";
diff --git a/tests/corpus/node-island-import-order/node_modules/laterkit/package.json b/tests/corpus/node-island-import-order/node_modules/laterkit/package.json
new file mode 100644
index 000000000..17c4d36a7
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/laterkit/package.json
@@ -0,0 +1 @@
+{ "name": "laterkit", "version": "1.0.0", "main": "index.js", "types": "index.d.ts" }
diff --git a/tests/corpus/node-island-import-order/node_modules/sidekit/index.d.ts b/tests/corpus/node-island-import-order/node_modules/sidekit/index.d.ts
new file mode 100644
index 000000000..ee4242fe4
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/sidekit/index.d.ts
@@ -0,0 +1 @@
+export declare function tag(text: string): string;
diff --git a/tests/corpus/node-island-import-order/node_modules/sidekit/index.js b/tests/corpus/node-island-import-order/node_modules/sidekit/index.js
new file mode 100644
index 000000000..c0de7152d
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/sidekit/index.js
@@ -0,0 +1,4 @@
+"use strict";
+// Top-level code with an observable effect: when it runs is the test.
+console.log("island module evaluates");
+exports.tag = (text) => "[" + text + "]";
diff --git a/tests/corpus/node-island-import-order/node_modules/sidekit/package.json b/tests/corpus/node-island-import-order/node_modules/sidekit/package.json
new file mode 100644
index 000000000..1d6608b2f
--- /dev/null
+++ b/tests/corpus/node-island-import-order/node_modules/sidekit/package.json
@@ -0,0 +1 @@
+{ "name": "sidekit", "version": "1.0.0", "main": "index.js", "types": "index.d.ts" }
diff --git a/tests/corpus/node-island-import-order/package.json b/tests/corpus/node-island-import-order/package.json
new file mode 100644
index 000000000..c4ccd8ecc
--- /dev/null
+++ b/tests/corpus/node-island-import-order/package.json
@@ -0,0 +1 @@
+{ "name": "node-island-import-order", "private": true, "type": "module", "scriptc": { "packages": { "sidekit": "node", "laterkit": "node" } } }
diff --git a/tests/corpus/node-island-import-order/user.ts b/tests/corpus/node-island-import-order/user.ts
new file mode 100644
index 000000000..afb0b0edd
--- /dev/null
+++ b/tests/corpus/node-island-import-order/user.ts
@@ -0,0 +1,5 @@
+// A native import, then an island import, then another native import.
+import { b } from "./native-b.ts";
+import { tag } from "laterkit";
+import { a } from "./native-a.ts";
+console.log("user evaluates", tag(a + b));