diff --git a/packages/compiler/src/frontend/lowering/lower-stmts.ts b/packages/compiler/src/frontend/lowering/lower-stmts.ts
index 4ab2aae08c..d4c686a90c 100644
--- a/packages/compiler/src/frontend/lowering/lower-stmts.ts
+++ b/packages/compiler/src/frontend/lowering/lower-stmts.ts
@@ -1772,8 +1772,8 @@ export function lowerStmt(lowerer: Lowerer, stmt: ts.Statement): IrStmt | IrStmt
     const symbol = lowerer.checker.getSymbolAtLocation(stmt.name);
     const pre = symbol ? lowerer.ctx.tdzPredeclared.get(symbol) : undefined;
     if (pre) {
-      lowerer.ctx.tdzPredeclared.delete(symbol!);
       const value = lowerer.coerceToExpected(lowerer.lowerClassExpression(stmt), DYN);
+      lowerer.ctx.tdzPredeclared.delete(symbol!);
       return { kind: "assign", localId: pre.id, value, initializes: true, loc: locOf(stmt) };
     }
     const type: IrType = { kind: "classval", className: info.def.name };
@@ -5789,8 +5789,8 @@ export function lowerVarDecl(
       const symbol = lowerer.checker.getSymbolAtLocation(decl.name);
       const pre = symbol ? lowerer.ctx.tdzPredeclared.get(symbol) : undefined;
       if (pre) {
-        lowerer.ctx.tdzPredeclared.delete(symbol!);
         const value = genericBindingStoredValue(lowerer, decl, info);
+        lowerer.ctx.tdzPredeclared.delete(symbol!);
         return { kind: "assign", localId: pre.id, value, initializes: true, loc: locOf(decl) };
       }
       return genericBindingPresenceStore(info, decl);
@@ -5953,11 +5953,13 @@ export function lowerVarDecl(
   // A forward-captured binding pre-declared as a TDZ box (an earlier
   // function in this scope captured it — predeclareForwardCapture): the
   // binding and its scope-entry varDecl already exist; the source
-  // declaration is the one initializing `assign` into the shared box.
+  // declaration is the one initializing `assign` into the shared box. The
+  // box stays pre-declared until the initializer lowers: a statement the
+  // commit point lowers again (localized failure) initializes the same box.
   const pre = declSymbol ? lowerer.ctx.tdzPredeclared.get(declSymbol) : undefined;
   if (pre && decl.initializer) {
-    lowerer.ctx.tdzPredeclared.delete(declSymbol!);
     const init = lowerer.lowerExprExpecting(decl.initializer, pre.type);
+    lowerer.ctx.tdzPredeclared.delete(declSymbol!);
     return { kind: "assign", localId: pre.id, value: init, initializes: true, loc: locOf(decl) };
   }
 
diff --git a/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/localized-failure-forward-capture.ts.json b/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/localized-failure-forward-capture.ts.json
new file mode 100644
index 0000000000..f775701663
--- /dev/null
+++ b/packages/compiler/test/ts7/baselines/order-parity/tests/corpus/localized-failure-forward-capture.ts.json
@@ -0,0 +1,6 @@
+{
+ "order": [
+  "<repo>/tests/corpus/localized-failure-forward-capture.ts"
+ ],
+ "diags": []
+}
diff --git a/tests/corpus/localized-failure-forward-capture.ts b/tests/corpus/localized-failure-forward-capture.ts
new file mode 100644
index 0000000000..9265c113fe
--- /dev/null
+++ b/tests/corpus/localized-failure-forward-capture.ts
@@ -0,0 +1,30 @@
+// Localized failure, stage L4, at a forward-captured binding: functions
+// declared before a const capture it, and the const's initializer has an
+// expression whose type does not compile. The statement lowers again with
+// that expression degraded, and it initializes the binding the functions
+// captured: before the declaration a call throws ReferenceError, after it
+// the call reads the value.
+type Hook = Map<string, (x: number) => string> | AbortSignal | (() => number) | Set<string>;
+interface Plugin {
+  name: string;
+  hook: Hook;
+}
+function load(text: string): unknown {
+  return JSON.parse(text);
+}
+function main(): void {
+  function nameOf(): string {
+    return plugin.name;
+  }
+  function attempt(): string {
+    try {
+      return nameOf();
+    } catch (e) {
+      return e instanceof ReferenceError ? "ReferenceError" : "other";
+    }
+  }
+  console.log(attempt());
+  const plugin = { name: (load('{"name":"tags","hook":null}') as Plugin).name };
+  console.log(attempt(), nameOf().length);
+}
+main();
diff --git a/tests/harness/corpus-costs/localized-failure-forward-capture.ts.json b/tests/harness/corpus-costs/localized-failure-forward-capture.ts.json
new file mode 100644
index 0000000000..3e8d4b6ac5
--- /dev/null
+++ b/tests/harness/corpus-costs/localized-failure-forward-capture.ts.json
@@ -0,0 +1 @@
+{ "plain": 3500 }