diff --git a/src/babel/transformation/transformers/es6/block-scoping.js b/src/babel/transformation/transformers/es6/block-scoping.js
index a3ec489dc0..34d68d04b2 100644
--- a/src/babel/transformation/transformers/es6/block-scoping.js
+++ b/src/babel/transformation/transformers/es6/block-scoping.js
@@ -122,13 +122,13 @@ var letReferenceFunctionVisitor = {
     // not a direct reference
     if (!this.isReferencedIdentifier()) return;
 
+    // not a part of our scope
+    if (!state.letReferences[node.name]) return;
+
     // this scope has a variable with the same name so it couldn't belong
     // to our let scope
     if (scope.hasOwnBinding(node.name)) return;
 
-    // not a part of our scope
-    if (!state.letReferences[node.name]) return;
-
     state.closurify = true;
   }
 };
@@ -159,6 +159,18 @@ var loopLabelVisitor = {
   }
 };
 
+var continuationVisitor = {
+  enter(node, parent, scope, state) {
+    if (this.isAssignmentExpression() || this.isUpdateExpression()) {
+      var bindings = this.getBindingIdentifiers();
+      for (var name in bindings) {
+        if (state.outsideReferences[name] !== scope.getBindingIdentifier(name)) continue;
+        state.reassignments[name] = true;
+      }
+    }
+  }
+};
+
 var loopNodeTo = function (node) {
   if (t.isBreakStatement(node)) {
     return "break";
@@ -352,16 +364,20 @@ class BlockScoping {
 
     // turn outsideLetReferences into an array
     var params = values(outsideRefs);
+    var args   = values(outsideRefs);
 
     // build the closure that we're going to wrap the block with
     var fn = t.functionExpression(null, params, t.blockStatement(block.body));
     fn.shadow = true;
 
+    // continuation
+    this.addContinuations(fn);
+
     // replace the current block body with the one we're going to build
     block.body = this.body;
 
     // build a call and a unique id that we can assign the return value to
-    var call = t.callExpression(fn, params);
+    var call = t.callExpression(fn, args);
     var ret  = this.scope.generateUidIdentifier("ret");
 
     // handle generators
@@ -381,6 +397,36 @@ class BlockScoping {
     this.build(ret, call);
   }
 
+  /**
+   * If any of the outer let variables are reassigned then we need to rename them in
+   * the closure so we can get direct access to the outer variable to continue the
+   * iteration with bindings based on each iteration.
+   *
+   * Reference: https://github.com/babel/babel/issues/1078
+   */
+
+  addContinuations(fn) {
+    var state = {
+      reassignments: {},
+      outsideReferences: this.outsideLetReferences
+    };
+
+    this.scope.traverse(fn, continuationVisitor, state);
+
+    for (var i = 0; i < fn.params.length; i++) {
+      var param = fn.params[i];
+      if (!state.reassignments[param.name]) continue;
+
+      var newParam = this.scope.generateUidIdentifier(param.name);
+      fn.params[i] = newParam;
+
+      this.scope.rename(param.name, newParam.name, fn);
+
+      // assign outer reference as it's been modified internally and needs to be retained
+      fn.body.body.push(t.expressionStatement(t.assignmentExpression("=", param, newParam)));
+    }
+  }
+
   /**
    * Description
    */
@@ -542,7 +588,7 @@ class BlockScoping {
           single.consequent[0]
         )));
       } else {
-        // #998
+        // https://github.com/babel/babel/issues/998
         for (var i = 0; i < cases.length; i++) {
           var caseConsequent = cases[i].consequent[0];
           if (t.isBreakStatement(caseConsequent) && !caseConsequent.label) {
diff --git a/src/babel/traversal/scope.js b/src/babel/traversal/scope.js
index b71bf0cd33..5fc212aa12 100644
--- a/src/babel/traversal/scope.js
+++ b/src/babel/traversal/scope.js
@@ -238,16 +238,16 @@ export default class Scope {
    * Description
    */
 
-  rename(oldName: string, newName: string) {
+  rename(oldName: string, newName: string, block?) {
     newName ||= this.generateUidIdentifier(oldName).name;
 
     var info = this.getBinding(oldName);
     if (!info) return;
 
     var binding = info.identifier;
-    var scope = info.scope;
+    var scope   = info.scope;
 
-    scope.traverse(scope.block, {
+    scope.traverse(block || scope.block, {
       enter(node, parent, scope) {
         if (t.isReferencedIdentifier(node, parent) && node.name === oldName) {
           node.name = newName;
@@ -264,10 +264,12 @@ export default class Scope {
       }
     });
 
-    scope.removeOwnBinding(oldName);
-    scope.bindings[newName] = info;
+    if (!block) {
+      scope.removeOwnBinding(oldName);
+      scope.bindings[newName] = info;
 
-    binding.name = newName;
+      binding.name = newName;
+    }
   }
 
   /**
diff --git a/test/core/fixtures/transformation/es6.block-scoping-exec/for-continuation.js b/test/core/fixtures/transformation/es6.block-scoping-exec/for-continuation.js
new file mode 100644
index 0000000000..4e99464f72
--- /dev/null
+++ b/test/core/fixtures/transformation/es6.block-scoping-exec/for-continuation.js
@@ -0,0 +1,12 @@
+var fns = [];
+
+for (let i = 0; i < 10; i++) {
+  fns.push(function () { return i; });
+  i += 1;
+}
+
+assert.equal(fns[0](), 1);
+assert.equal(fns[1](), 3);
+assert.equal(fns[2](), 5);
+assert.equal(fns[3](), 7);
+assert.equal(fns[4](), 9);
diff --git a/test/core/fixtures/transformation/es6.block-scoping/for-continuation/actual.js b/test/core/fixtures/transformation/es6.block-scoping/for-continuation/actual.js
new file mode 100644
index 0000000000..6e645274d3
--- /dev/null
+++ b/test/core/fixtures/transformation/es6.block-scoping/for-continuation/actual.js
@@ -0,0 +1,5 @@
+for (let i = 0; i < 2; i++) {
+  () => { i };
+  console.log(i);
+  i += 1;
+}
diff --git a/test/core/fixtures/transformation/es6.block-scoping/for-continuation/expected.js b/test/core/fixtures/transformation/es6.block-scoping/for-continuation/expected.js
new file mode 100644
index 0000000000..c3ab8c3179
--- /dev/null
+++ b/test/core/fixtures/transformation/es6.block-scoping/for-continuation/expected.js
@@ -0,0 +1,12 @@
+"use strict";
+
+for (var i = 0; i < 2; i++) {
+  (function (_i) {
+    (function () {
+      _i;
+    });
+    console.log(_i);
+    _i += 1;
+    i = _i;
+  })(i);
+}