diff --git a/CHANGELOG.md b/CHANGELOG.md
index bb20b8affc..c53d07088c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,9 @@
 
 # 12.0.0-alpha.6 (Unreleased)
 
+#### :bug: Bug fix
+- Fix bug where a ref assignment is moved ouside a conditional. https://github.com/rescript-lang/rescript/pull/7176
+
 # 12.0.0-alpha.5
 
 #### :rocket: New Feature
diff --git a/compiler/core/js_analyzer.mli b/compiler/core/js_analyzer.mli
index 7a1f281663..786c29fece 100644
--- a/compiler/core/js_analyzer.mli
+++ b/compiler/core/js_analyzer.mli
@@ -29,7 +29,7 @@
 
 val free_variables_of_statement : J.statement -> Set_ident.t
 
-val free_variables_of_expression : J.finish_ident_expression -> Set_ident.t
+val free_variables_of_expression : J.expression -> Set_ident.t
 
 (* val no_side_effect_expression_desc :
    J.expression_desc -> bool *)
diff --git a/compiler/core/js_stmt_make.ml b/compiler/core/js_stmt_make.ml
index 0067e89ccc..e4d87302e9 100644
--- a/compiler/core/js_stmt_make.ml
+++ b/compiler/core/js_stmt_make.ml
@@ -232,8 +232,6 @@ let rec block_last_is_return_throw_or_continue (x : J.block) =
 *)
 let if_ ?comment ?declaration ?else_ (e : J.expression) (then_ : J.block) : t =
   let declared = ref false in
-  let common_prefix_blocks = ref [] in
-  let add_prefix b = common_prefix_blocks := b :: !common_prefix_blocks in
   let rec aux ?comment (e : J.expression) (ifso : J.block) (ifnot : J.block) : t
       =
     match (e.expression_desc, ifnot) with
@@ -301,14 +299,6 @@ let if_ ?comment ?declaration ?else_ (e : J.expression) (then_ : J.block) : t =
       | _, [{statement_desc = If (pred1, ifso1, ifnot1)}]
         when Js_analyzer.eq_block ifso ifnot1 ->
         aux ?comment (E.or_ e (E.not pred1)) ifso ifso1
-      | ifso1 :: ifso_rest, ifnot1 :: ifnot_rest
-        when Js_analyzer.eq_statement ifnot1 ifso1
-             && Js_analyzer.no_side_effect_expression e ->
-        (* here we do agressive optimization, because it can help optimization later,
-            move code outside of branch is generally helpful later
-        *)
-        add_prefix ifso1;
-        aux ?comment e ifso_rest ifnot_rest
       | _ -> {statement_desc = If (e, ifso, ifnot); comment})
   in
   let if_block =
@@ -317,12 +307,9 @@ let if_ ?comment ?declaration ?else_ (e : J.expression) (then_ : J.block) : t =
       | None -> []
       | Some v -> v)
   in
-  let prefix = !common_prefix_blocks in
   match (!declared, declaration) with
-  | true, _ | _, None ->
-    if prefix = [] then if_block else block (List.rev_append prefix [if_block])
-  | false, Some (kind, id) ->
-    block (declare_variable ~kind id :: List.rev_append prefix [if_block])
+  | true, _ | _, None -> if_block
+  | false, Some (kind, id) -> block (declare_variable ~kind id :: [if_block])
 
 let assign ?comment id e : t =
   {statement_desc = J.Exp (E.assign (E.var id) e); comment}
diff --git a/tests/tests/src/move_ref_assignment.mjs b/tests/tests/src/move_ref_assignment.mjs
new file mode 100644
index 0000000000..acd9050656
--- /dev/null
+++ b/tests/tests/src/move_ref_assignment.mjs
@@ -0,0 +1,33 @@
+// Generated by ReScript, PLEASE EDIT WITH CARE
+
+
+let j = 1;
+
+let k = {
+  c: 1
+};
+
+function upd() {
+  k.c = 3;
+}
+
+if (k.c === 1) {
+  upd();
+  j = j + 2 | 0;
+  console.log("correct");
+} else {
+  upd();
+  j = j + 2 | 0;
+  console.log("incorrect");
+}
+
+let j$1 = 0;
+
+let k$1 = 0;
+
+export {
+  upd,
+  j$1 as j,
+  k$1 as k,
+}
+/*  Not a pure module */
diff --git a/tests/tests/src/move_ref_assignment.res b/tests/tests/src/move_ref_assignment.res
new file mode 100644
index 0000000000..3e6af9b5ca
--- /dev/null
+++ b/tests/tests/src/move_ref_assignment.res
@@ -0,0 +1,19 @@
+type t = {mutable c: int}
+
+let j = {c: 1}
+let k = {c: 1}
+
+let upd = () => k.c = 3
+
+if k.c == 1 {
+  upd()
+  j.c = j.c + 2
+  Console.log("correct")
+} else {
+  upd()
+  j.c = j.c + 2
+  Console.log("incorrect")
+}
+
+let j = 0
+let k = 0
diff --git a/tests/tests/src/test_ramification.mjs b/tests/tests/src/test_ramification.mjs
index 18fb48f4f4..bcde916376 100644
--- a/tests/tests/src/test_ramification.mjs
+++ b/tests/tests/src/test_ramification.mjs
@@ -33,11 +33,12 @@ function f(x) {
 function f2(x) {
   let v = 0;
   let y;
-  v = 1;
   if (x.TAG === "A") {
+    v = 1;
     let z = 33;
     y = z + 3 | 0;
   } else {
+    v = 1;
     let z$1 = 33;
     y = z$1 + 4 | 0;
   }
@@ -47,8 +48,13 @@ function f2(x) {
 function f3(x) {
   let v = 0;
   let y;
-  v = 1;
-  y = x.TAG === "A" ? 3 : 4;
+  if (x.TAG === "A") {
+    v = 1;
+    y = 3;
+  } else {
+    v = 1;
+    y = 4;
+  }
   return y + 32 | 0;
 }