diff --git a/lib/scope.js b/lib/scope.js
index afd6c1f2..0be4894a 100644
--- a/lib/scope.js
+++ b/lib/scope.js
@@ -202,11 +202,7 @@ AST_Toplevel.DEFMETHOD("figure_out_scope", function(options){
             // scope when we encounter the AST_Defun node (which is
             // instanceof AST_Scope) but we get to the symbol a bit
             // later.
-            var parent_lambda = defun.parent_scope;
-            while (parent_lambda.is_block_scope()) {
-                parent_lambda = parent_lambda.parent_scope;
-            }
-            (node.scope = parent_lambda).def_function(node, in_export, in_block);
+            (node.scope = defun.parent_scope).def_function(node, in_export, in_block);
         }
         else if (node instanceof AST_SymbolClass) {
             defun.def_variable(node, in_export, in_block);
diff --git a/test/compress/dead-code.js b/test/compress/dead-code.js
index afe4026c..0179725e 100644
--- a/test/compress/dead-code.js
+++ b/test/compress/dead-code.js
@@ -68,10 +68,9 @@ dead_code_constant_boolean_should_warn_more: {
         side_effects : true,
     };
     input: {
-        while (!((foo && bar) || (x + "0"))) {
+        while (!(foo || (x + "0"))) {
             console.log("unreachable");
             var foo;
-            function bar() {}
         }
         for (var x = 10, y; x && (y || x) && (!typeof x); ++x) {
             asdf();
@@ -81,7 +80,6 @@ dead_code_constant_boolean_should_warn_more: {
     }
     expect: {
         var foo;
-        function bar() {}
         // nothing for the while
         // as for the for, it should keep:
         var x = 10, y;