diff --git a/ets2panda/checker/ETSAnalyzer.cpp b/ets2panda/checker/ETSAnalyzer.cpp
index ca365e2a61a38520779e0572b1f9310578e60b12..7fb55ea9e9969329a1dfeca860bf43ae10d753d6 100644
--- a/ets2panda/checker/ETSAnalyzer.cpp
+++ b/ets2panda/checker/ETSAnalyzer.cpp
@@ -82,6 +82,13 @@ checker::Type *ETSAnalyzer::Check(ir::CatchClause *st) const
 
 checker::Type *ETSAnalyzer::Check(ir::ClassDefinition *node) const
 {
+    for (auto p = node->Parent(); p != nullptr; p = p->Parent()) {
+        if (p->IsWhileStatement() || p->IsForInStatement() || p->IsForOfStatement()) {
+            checker->LogError(diagnostic::CLASS_SHOULD_NOT_IN_LOOP, {}, node->Start());
+            node->SetTsType(checker->GlobalTypeError());
+            return node->TsType();
+        }
+    }
     ETSChecker *checker = GetETSChecker();
 
     if (node->TsType() == nullptr) {
diff --git a/ets2panda/test/ast/compiler/ets/class_should_not_in_loop.ets b/ets2panda/test/ast/compiler/ets/class_should_not_in_loop.ets
new file mode 100644
index 0000000000000000000000000000000000000000..15649d758431a983a6daeed691553efc410dea53
--- /dev/null
+++ b/ets2panda/test/ast/compiler/ets/class_should_not_in_loop.ets
@@ -0,0 +1,114 @@
+/*
+ * Copyright (c) 2024-2025 Huawei Device Co., Ltd.
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+function foo(v: int) {
+    label: while (v) {
+        class C {
+            static {
+                if (v === 1) {
+                    // Simulate break label
+                    flagStore.flagBreakLabel = true;
+                    return;
+                }
+                if (v === 2) {
+                    // Simulate continue label
+                    flagStore.flagContinueLabel = true;
+                    return;
+                }
+                if (v === 3) {
+                    // Simulate break
+                    flagStore.flagBreak = true;
+                    return;
+                }
+                if (v === 4) {
+                    // Simulate continue
+                    flagStore.flagContinue = true;
+                    return;
+                }
+            }
+        }
+
+        // Check flags set inside static block
+        if (flagStore.flagBreakLabel) {
+            flagStore.flagBreakLabel = false;
+            break label;
+        }
+        if (flagStore.flagContinueLabel) {
+            flagStore.flagContinueLabel = false;
+            continue label;
+        }
+        if (flagStore.flagBreak) {
+            flagStore.flagBreak = false;
+            break;
+        }
+        if (flagStore.flagContinue) {
+            flagStore.flagContinue = false;
+            continue;
+        }
+
+        if (v === 5) {
+            break label;
+        }
+        if (v === 6) {
+            continue label;
+        }
+        if (v === 7) {
+            break;
+        }
+        if (v === 8) {
+            continue;
+        }
+    }
+
+    class C {
+        static {
+            // Simulate labeled block with a self-breaking loop
+            inner: while (true) {
+                break inner;
+            }
+
+            loop: while (v) {
+                if (v === 1) break loop;
+                if (v === 2) continue loop;
+                if (v === 3) break;
+                if (v === 4) continue;
+                break loop;
+            }
+
+            switch (v) {
+                default: break;
+            }
+        }
+    }
+}
+
+// Define a local object to store flags with explicit typing
+interface FlagStore {
+    flagBreakLabel: boolean;
+    flagContinueLabel: boolean;
+    flagBreak: boolean;
+    flagContinue: boolean;
+}
+
+const flagStore: FlagStore = {
+    flagBreakLabel: false,
+    flagContinueLabel: false,
+    flagBreak: false,
+    flagContinue: false
+};
+
+
+
+/* @@? 3:21 Error TypeError: Local class declaration is not allowed. */
diff --git a/ets2panda/util/diagnostic/semantic.yaml b/ets2panda/util/diagnostic/semantic.yaml
index 4c4ae2e28ecd4f21ea96d41b0697c01a66857615..a516e52063ba559a4cf25c8349b35ce97e47880d 100644
--- a/ets2panda/util/diagnostic/semantic.yaml
+++ b/ets2panda/util/diagnostic/semantic.yaml
@@ -1514,3 +1514,7 @@ semantic:
 - name: DYMANIC_INIT_WITH_OBJEXPR
   id: 382
   message: "Dymanic Type {} cannot be initialize with an object expression"
+
+- name: CLASS_SHOULD_NOT_IN_LOOP
+  id: 383
+  message: "Local class declaration is not allowed."