diff --git a/ets2panda/test/ast/compiler/ets/nested_var_declaration.ets b/ets2panda/test/ast/compiler/ets/nested_var_declaration.ets
new file mode 100644
index 0000000000000000000000000000000000000000..fc663fbc08a0f36b94681c9bc70d293241d0b770
--- /dev/null
+++ b/ets2panda/test/ast/compiler/ets/nested_var_declaration.ets
@@ -0,0 +1,24 @@
+/*
+ * Copyright (c) 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 main() {
+    let x = 1;
+    {
+        var x = 1;
+    }
+}
+
+/* @@? 19:13 Error SyntaxError: 'var' keyword is not supported. Use 'let' instead. */
+/* @@? 19:13 Error TypeError: Variable 'x' has already been declared. */
diff --git a/ets2panda/varbinder/varbinder.h b/ets2panda/varbinder/varbinder.h
index ff674f639bedec5df0df93fdecf5d21aab8b3379..65ca0bc65243e868f1d05653a028b270959ef213 100644
--- a/ets2panda/varbinder/varbinder.h
+++ b/ets2panda/varbinder/varbinder.h
@@ -427,6 +427,10 @@ std::tuple<T *, varbinder::Variable *> VarBinder::NewVarDecl(const lexer::Source
         var = scope_->FindLocal(decl->Name(), ResolveBindingOptions::BINDINGS);
     }
 
+    if (var == nullptr && decl->IsVarDecl()) {
+        var = scope_->Find(decl->Name(), ResolveBindingOptions::BINDINGS).variable;
+    }
+
     ES2PANDA_ASSERT(var != nullptr);
     return {decl, var};
 }