diff --git a/lib/compress.js b/lib/compress.js
index 596b03fa..ed60ee49 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -642,12 +642,10 @@ merge(Compressor.prototype, {
             // and if it has exactly one reference then attempt to replace its reference
             // in the statement with the var value and then erase the var definition.
 
-            var self = compressor.self();
-            var var_defs_removed = false;
+            var scope = compressor.find_parent(AST_Scope);
             var toplevel = compressor.option("toplevel");
             for (var stat_index = statements.length; --stat_index >= 0;) {
                 var stat = statements[stat_index];
-                if (stat instanceof AST_Definitions) continue;
 
                 // Process child blocks of statement if present.
                 [stat, stat.body, stat.alternative, stat.bcatch, stat.bfinally].forEach(function(node) {
@@ -681,8 +679,8 @@ merge(Compressor.prototype, {
                     var_names_seen[var_name] = true;
 
                     // Only interested in cases with just one reference to the variable.
-                    var def = self.find_variable && self.find_variable(var_name);
-                    if (!def || !def.references || def.references.length !== 1
+                    var def = var_decl.name.definition();
+                    if (def.references.length !== 1
                         || var_name == "arguments" || (!toplevel && def.global)) {
                         side_effects_encountered = true;
                         continue;
@@ -712,7 +710,7 @@ merge(Compressor.prototype, {
 
                     var value_has_side_effects = var_decl.value.has_side_effects(compressor);
                     // Non-constant single use vars can only be replaced in same scope.
-                    if (ref.scope !== self) {
+                    if (ref.scope !== scope) {
                         side_effects_encountered |= value_has_side_effects;
                         continue;
                     }
@@ -740,7 +738,7 @@ merge(Compressor.prototype, {
                                 || (parent instanceof AST_Conditional && node !== parent.condition)
                                 || (node instanceof AST_SymbolRef
                                     && value_has_side_effects
-                                    && !are_references_in_scope(node.definition(), self))
+                                    && !are_references_in_scope(node.definition(), scope))
                                 || (parent instanceof AST_Binary
                                     && (parent.operator == "&&" || parent.operator == "||")
                                     && node === parent.right)
@@ -774,13 +772,6 @@ merge(Compressor.prototype, {
                 }
             }
 
-            // Remove extraneous empty statments in block after removing var definitions.
-            // Leave at least one statement in `statements`.
-            if (var_defs_removed) for (var i = statements.length; --i >= 0;) {
-                if (statements.length > 1 && statements[i] instanceof AST_EmptyStatement)
-                    statements.splice(i, 1);
-            }
-
             return statements;
 
             function is_lvalue(node, parent) {
@@ -795,8 +786,8 @@ merge(Compressor.prototype, {
 
                 var_defs.splice(var_defs_index, 1);
                 if (var_defs.length === 0) {
-                    statements[prev_stat_index] = make_node(AST_EmptyStatement, self);
-                    var_defs_removed = true;
+                    statements.splice(prev_stat_index, 1);
+                    stat_index--;
                 }
                 // Further optimize statement after substitution.
                 stat.reset_opt_flags(compressor);
diff --git a/test/compress/collapse_vars.js b/test/compress/collapse_vars.js
index c01572dd..329a082f 100644
--- a/test/compress/collapse_vars.js
+++ b/test/compress/collapse_vars.js
@@ -282,10 +282,7 @@ collapse_vars_if: {
             return "x" != "Bar" + x / 4 ? g9 : g5;
         }
         function f3(x) {
-            if (x) {
-                return 1;
-            }
-            return 2;
+            return x ? 1 : 2;
         }
     }
 }