From 697c6294b07ee49da5f01a0cad0ab3aa6304781e Mon Sep 17 00:00:00 2001
From: Armano <armano2@users.noreply.github.com>
Date: Fri, 7 Aug 2026 12:13:42 +0200
Subject: [PATCH] fix(minifier): preserve Annex B labeled-function bindings in
 implicit-return rewrite (#25349)

fixes #22223
---
 crates/oxc_minifier/src/peephole/minimize_statements.rs  | 8 ++++----
 .../oxc_minifier/tests/peephole/minimize_exit_points.rs  | 9 ++++-----
 2 files changed, 8 insertions(+), 9 deletions(-)

diff --git a/crates/oxc_minifier/src/peephole/minimize_statements.rs b/crates/oxc_minifier/src/peephole/minimize_statements.rs
index 12e7a45eaf..80908cf6e5 100644
--- a/crates/oxc_minifier/src/peephole/minimize_statements.rs
+++ b/crates/oxc_minifier/src/peephole/minimize_statements.rs
@@ -1265,7 +1265,7 @@ impl<'a> PeepholeOptimizations {
         result.push(Statement::LabeledStatement(labeled_stmt));
     }
 
-    /// `appendIfOrLabelBodyPreservingScope`: <https://github.com/evanw/esbuild/blob/v0.24.2/internal/js_ast/js_parser.go#L9852>
+    /// `appendIfOrLabelBodyPreservingScope`: <https://github.com/evanw/esbuild/blob/v0.24.2/internal/js_parser/js_parser.go#L9839>
     fn handle_block(
         result: &mut ArenaVec<'a, Statement<'a>>,
         block_stmt: ArenaBox<'a, BlockStatement<'a>>,
@@ -1280,7 +1280,7 @@ impl<'a> PeepholeOptimizations {
         }
     }
 
-    /// `statementCaresAboutScope`: <https://github.com/evanw/esbuild/blob/v0.24.2/internal/js_ast/js_parser.go#L9767>
+    /// `statementCaresAboutScope`: <https://github.com/evanw/esbuild/blob/v0.24.2/internal/js_parser/js_parser.go#L9754-L9768>
     pub fn statement_cares_about_scope(stmt: &Statement<'a>) -> bool {
         match stmt {
             Statement::BlockStatement(_)
@@ -1299,8 +1299,8 @@ impl<'a> PeepholeOptimizations {
             | Statement::ReturnStatement(_)
             | Statement::ThrowStatement(_)
             | Statement::BreakStatement(_)
-            | Statement::ContinueStatement(_)
-            | Statement::LabeledStatement(_) => false,
+            | Statement::ContinueStatement(_) => false,
+            Statement::LabeledStatement(label) => Self::statement_cares_about_scope(&label.body),
             Statement::VariableDeclaration(decl) => !decl.kind.is_var(),
             _ => true,
         }
diff --git a/crates/oxc_minifier/tests/peephole/minimize_exit_points.rs b/crates/oxc_minifier/tests/peephole/minimize_exit_points.rs
index d2f470819a..ca422368e3 100644
--- a/crates/oxc_minifier/tests/peephole/minimize_exit_points.rs
+++ b/crates/oxc_minifier/tests/peephole/minimize_exit_points.rs
@@ -284,12 +284,11 @@ fn test_for_continue_optimization() {
 }
 
 #[test]
-#[ignore = "TODO: Code motion with function hoisting not yet implemented"]
 fn test_code_motion_doesnt_break_function_hoisting() {
-    test(
-        "function f() { if (x) return; foo(); function foo() {} }",
-        "function f() { if (x); else { function foo() {} foo(); } }",
-    );
+    test_same("function f() { if (x) return; foo(); function foo() {} }");
+    test_same("function f() { if (x) return; foo(); label: function foo() {} }");
+    test_same("function a() { if (typeof f == 'function') return; function f() {} }");
+    test_same("function a() { if (typeof f == 'function') return; label: function f() {} }");
 }
 
 #[test]