diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/actual.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/actual.js
new file mode 100644
index 0000000000..bd66737f0c
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/actual.js
@@ -0,0 +1,14 @@
+const AppItem = () => {
+  return <div>child</div>;
+};
+
+export default class App extends React.Component {
+  render() {
+    return (
+      <div>
+        <p>Parent</p>
+        <AppItem />
+      </div>
+    );
+  }
+}
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/expected.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/expected.js
new file mode 100644
index 0000000000..eb5e2b2e0c
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-2/expected.js
@@ -0,0 +1,16 @@
+var _ref = <div>child</div>;
+
+const AppItem = () => {
+  return _ref;
+};
+
+var _ref2 = <div>
+        <p>Parent</p>
+        <AppItem />
+      </div>;
+
+export default class App extends React.Component {
+  render() {
+    return _ref2;
+  }
+}
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/actual.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/actual.js
new file mode 100644
index 0000000000..b90a17e116
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/actual.js
@@ -0,0 +1,16 @@
+(function () {
+  class App extends React.Component {
+    render() {
+      return (
+        <div>
+          <p>Parent</p>
+          <AppItem />
+        </div>
+      );
+    }
+  }
+
+  const AppItem = () => {
+    return <div>child</div>;
+  };
+});
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/expected.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/expected.js
new file mode 100644
index 0000000000..cceca3a5e8
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-3/expected.js
@@ -0,0 +1,18 @@
+var _ref = <p>Parent</p>;
+
+var _ref2 = <div>child</div>;
+
+(function () {
+  class App extends React.Component {
+    render() {
+      return <div>
+          {_ref}
+          <AppItem />
+        </div>;
+    }
+  }
+
+  const AppItem = () => {
+    return _ref2;
+  };
+});
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/actual.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/actual.js
new file mode 100644
index 0000000000..4bb8f9b561
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/actual.js
@@ -0,0 +1,16 @@
+(function () {
+  const AppItem = () => {
+    return <div>child</div>;
+  };
+
+  class App extends React.Component {
+    render() {
+      return (
+        <div>
+          <p>Parent</p>
+          <AppItem />
+        </div>
+      );
+    }
+  }
+});
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/expected.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/expected.js
new file mode 100644
index 0000000000..1a6411bc82
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope-4/expected.js
@@ -0,0 +1,20 @@
+var _ref = <div>child</div>;
+
+var _ref3 = <p>Parent</p>;
+
+(function () {
+  const AppItem = () => {
+    return _ref;
+  };
+
+  var _ref2 = <div>
+          {_ref3}
+          <AppItem />
+        </div>;
+
+  class App extends React.Component {
+    render() {
+      return _ref2;
+    }
+  }
+});
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/actual.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/actual.js
new file mode 100644
index 0000000000..1727938441
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/actual.js
@@ -0,0 +1,14 @@
+export default class App extends React.Component {
+  render() {
+    return (
+      <div>
+        <p>Parent</p>
+        <AppItem />
+      </div>
+    );
+  }
+}
+
+const AppItem = () => {
+  return <div>child</div>;
+};
diff --git a/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/expected.js b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/expected.js
new file mode 100644
index 0000000000..5fc8260845
--- /dev/null
+++ b/packages/babel-plugin-transform-react-constant-elements/test/fixtures/constant-elements/append-to-end-when-declared-in-scope/expected.js
@@ -0,0 +1,16 @@
+var _ref = <p>Parent</p>;
+
+export default class App extends React.Component {
+  render() {
+    return <div>
+        {_ref}
+        <AppItem />
+      </div>;
+  }
+}
+
+var _ref2 = <div>child</div>;
+
+const AppItem = () => {
+  return _ref2;
+};
diff --git a/packages/babel-traverse/src/path/lib/hoister.js b/packages/babel-traverse/src/path/lib/hoister.js
index 075333aea6..f218eaf2ad 100644
--- a/packages/babel-traverse/src/path/lib/hoister.js
+++ b/packages/babel-traverse/src/path/lib/hoister.js
@@ -61,6 +61,36 @@ export default class PathHoister {
   }
 
   getAttachmentPath() {
+    let path = this._getAttachmentPath();
+    if (!path) return;
+
+    let targetScope = path.scope;
+
+    // don't allow paths that have their own lexical environments to pollute
+    if (targetScope.path === path) {
+      targetScope = path.scope.parent;
+    }
+
+    // avoid hoisting to a scope that contains bindings that are executed after our attachment path
+    if (targetScope.path.isProgram() || targetScope.path.isFunction()) {
+      for (let name in this.bindings) {
+        // check binding is a direct child of this paths scope
+        if (!targetScope.hasOwnBinding(name)) continue;
+
+        let binding = this.bindings[name];
+
+        // allow parameter references
+        if (binding.kind === "param") continue;
+
+        // if this binding appears after our attachment point then don't hoist it
+        if (binding.path.getStatementParent().key > path.key) return;
+      }
+    }
+
+    return path;
+  }
+
+  _getAttachmentPath() {
     let scopes = this.scopes;
 
     let scope = scopes.pop();
@@ -112,8 +142,8 @@ export default class PathHoister {
     // don't bother hoisting to the same function as this will cause multiple branches to be evaluated more than once leading to a bad optimisation
     if (attachTo.getFunctionParent() === this.path.getFunctionParent()) return;
 
+    // generate declaration and insert it to our point
     let uid = attachTo.scope.generateUidIdentifier("ref");
-
     attachTo.insertBefore([
       t.variableDeclaration("var", [
         t.variableDeclarator(uid, this.path.node)
@@ -121,7 +151,6 @@ export default class PathHoister {
     ]);
 
     let parent = this.path.parentPath;
-
     if (parent.isJSXElement() && this.path.container === parent.node.children) {
       // turning the `span` in `<div><span /></div>` to an expression so we need to wrap it with
       // an expression container