diff --git a/src/tir/transforms/merge_dynamic_shared_memory_allocations.cc b/src/tir/transforms/merge_dynamic_shared_memory_allocations.cc
index 99055cebf2dc..6c7b0f649cfe 100644
--- a/src/tir/transforms/merge_dynamic_shared_memory_allocations.cc
+++ b/src/tir/transforms/merge_dynamic_shared_memory_allocations.cc
@@ -447,9 +447,13 @@ class DynamicSharedMemoryRewriter : public StmtExprMutator {
       // - leaf stmt(offset = 0)
       // - end of scope(offset < 0)
       // In both cases, we need to handle the kill event correctly
+      auto is_leaf_alloc = [&](const VarNode* var) {
+        return seq[i].scope_pair_offset == 0 &&
+               std::find(it->second.gen.begin(), it->second.gen.end(), var) != it->second.gen.end();
+      };
       if (it != event_map_.end() && seq[i].scope_pair_offset <= 0) {
         for (const VarNode* var : it->second.kill) {
-          this->Free(var);
+          if (!is_leaf_alloc(var)) this->Free(var);
         }
       }
       // scope_pair_offset >= 0 means it is either
@@ -464,6 +468,11 @@ class DynamicSharedMemoryRewriter : public StmtExprMutator {
           alloc_map_[var] = dst_entry;
         }
       }
+      if (it != event_map_.end() && seq[i].scope_pair_offset <= 0) {
+        for (const VarNode* var : it->second.kill) {
+          if (is_leaf_alloc(var)) this->Free(var);
+        }
+      }
     }
   }
   /*!
@@ -510,6 +519,7 @@ class DynamicSharedMemoryRewriter : public StmtExprMutator {
         StorageEntry* e = it->second;
         e->const_nbits = std::max(const_nbits, e->const_nbits);
         const_free_map_.erase(it);
+        it->second->allocs.push_back({op->buffer_var.get()});
         return e;
       }
       // Then start looking at smaller buffers.
diff --git a/tests/python/tir-transform/test_tir_transform_merge_dynamic_shared_memory_allocations.py b/tests/python/tir-transform/test_tir_transform_merge_dynamic_shared_memory_allocations.py
index 37372059a296..5dc5ec863fc1 100644
--- a/tests/python/tir-transform/test_tir_transform_merge_dynamic_shared_memory_allocations.py
+++ b/tests/python/tir-transform/test_tir_transform_merge_dynamic_shared_memory_allocations.py
@@ -376,7 +376,6 @@ def func(
 
             C_local[0] = T.float32(0)
             for i in range(64):
-
                 A_sh[threadIdx_y * 16 + threadIdx_x] = A_flat[
                     blockIdx_y * 16384 + threadIdx_y * 1024 + i * 16 + threadIdx_x
                 ]
@@ -454,5 +453,65 @@ def func(
         return func
 
 
+class TestSimpleAllocNoReuse(tvm.testing.CompareBeforeAfter):
+    """Test alloc and free within the same scope."""
+
+    transform = tvm.tir.transform.MergeDynamicSharedMemoryAllocations()
+
+    def before(self):
+        @T.prim_func
+        def func():
+            threadIdx_x = T.launch_thread("threadIdx.x", 128)
+            A_sh_data = T.allocate([128], "float32", "shared.dyn")
+            B_sh_data = T.allocate([128], "float32", "shared.dyn")
+            A_sh = T.decl_buffer([128], data=A_sh_data, scope="shared.dyn")
+            B_sh = T.decl_buffer([128], data=B_sh_data, scope="shared.dyn")
+            B_sh[threadIdx_x] = A_sh[threadIdx_x]
+
+        return func
+
+    def expected(self):
+        @T.prim_func
+        def func():
+            threadIdx_x = T.launch_thread("threadIdx.x", 128)
+            buf_dyn_shmem = T.allocate([1024], "uint8", "shared.dyn")
+            A_sh = T.decl_buffer((128,), data=buf_dyn_shmem, scope="shared.dyn")
+            B_sh = T.decl_buffer((128,), data=buf_dyn_shmem, scope="shared.dyn")
+            B_sh[threadIdx_x + 128] = A_sh[threadIdx_x]
+
+        return func
+
+
+class TestSimpleAllocReuse(tvm.testing.CompareBeforeAfter):
+    """Test alloc and free within the same scope with a reuse chance."""
+
+    transform = tvm.tir.transform.MergeDynamicSharedMemoryAllocations()
+
+    def before(self):
+        @T.prim_func
+        def func():
+            threadIdx_x = T.launch_thread("threadIdx.x", 128)
+            A_sh_data = T.allocate([128], "float32", "shared.dyn")
+            B_sh_data = T.allocate([128], "float32", "shared.dyn")
+            A_sh = T.decl_buffer([128], data=A_sh_data, scope="shared.dyn")
+            B_sh = T.decl_buffer([128], data=B_sh_data, scope="shared.dyn")
+            A_sh[threadIdx_x] = 0
+            B_sh[threadIdx_x] = 0
+
+        return func
+
+    def expected(self):
+        @T.prim_func
+        def func():
+            threadIdx_x = T.launch_thread("threadIdx.x", 128)
+            buf_dyn_shmem = T.allocate([512], "uint8", "shared.dyn")
+            A_sh = T.decl_buffer((128,), data=buf_dyn_shmem, scope="shared.dyn")
+            B_sh = T.decl_buffer((128,), data=buf_dyn_shmem, scope="shared.dyn")
+            A_sh[threadIdx_x] = 0
+            B_sh[threadIdx_x] = 0
+
+        return func
+
+
 if __name__ == "__main__":
     tvm.testing.main()