diff --git a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
index 02987fbfc63e5..47286858b5e5d 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
@@ -97,6 +97,7 @@ import {
   validateUseMemo,
 } from "../Validation";
 import { validateLocalsNotReassignedAfterRender } from "../Validation/ValidateLocalsNotReassignedAfterRender";
+import { outlineFunctions } from "../Optimization/OutlineFunctions";
 
 export type CompilerPipelineValue =
   | { kind: "ast"; name: string; value: CodegenFunction }
@@ -242,6 +243,9 @@ function* runWithEnvironment(
   inferReactiveScopeVariables(hir);
   yield log({ kind: "hir", name: "InferReactiveScopeVariables", value: hir });
 
+  outlineFunctions(hir);
+  yield log({ kind: "hir", name: "OutlineFunctions", value: hir });
+
   alignMethodCallScopes(hir);
   yield log({
     kind: "hir",
@@ -480,6 +484,9 @@ function* runWithEnvironment(
 
   const ast = codegenFunction(reactiveFunction, uniqueIdentifiers).unwrap();
   yield log({ kind: "ast", name: "Codegen", value: ast });
+  for (const outlined of ast.outlined) {
+    yield log({ kind: "ast", name: "Codegen (outlined)", value: outlined.fn });
+  }
 
   /**
    * This flag should be only set for unit / fixture tests to check
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Program.ts b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Program.ts
index 4c5155fe57751..a17e7fbe272d2 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Program.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Program.ts
@@ -88,6 +88,12 @@ export type BabelFn =
   | NodePath<t.ArrowFunctionExpression>;
 
 export type CompileResult = {
+  /**
+   * Distinguishes existing functions that were compiled ('original') from
+   * functions which were outlined. Only original functions need to be gated
+   * if gating mode is enabled.
+   */
+  kind: "original" | "outlined";
   originalFn: BabelFn;
   compiledFn: CodegenFunction;
 };
@@ -267,6 +273,7 @@ export function compileProgram(
   const lintError = suppressionsToCompilerError(suppressions);
   let hasCriticalError = lintError != null;
   const queue: Array<{
+    kind: "original" | "outlined";
     fn: BabelFn;
     fnType: ReactFunctionType;
   }> = [];
@@ -286,7 +293,7 @@ export function compileProgram(
     ALREADY_COMPILED.add(fn.node);
     fn.skip();
 
-    queue.push({ fn, fnType });
+    queue.push({ kind: "original", fn, fnType });
   };
 
   // Main traversal to compile with Forget
@@ -396,7 +403,26 @@ export function compileProgram(
     if (compiled === null) {
       continue;
     }
+    for (const outlined of compiled.outlined) {
+      CompilerError.invariant(outlined.fn.outlined.length === 0, {
+        reason: "Unexpected nested outlined functions",
+        loc: outlined.fn.loc,
+      });
+      const fn = current.fn.insertAfter(
+        createNewFunctionNode(current.fn, outlined.fn)
+      )[0]!;
+      fn.skip();
+      ALREADY_COMPILED.add(fn.node);
+      if (outlined.type !== null) {
+        queue.push({
+          kind: "outlined",
+          fn,
+          fnType: outlined.type,
+        });
+      }
+    }
     compiledFns.push({
+      kind: current.kind,
       compiledFn: compiled,
       originalFn: current.fn,
     });
@@ -467,10 +493,10 @@ export function compileProgram(
    * error elsewhere in the file, regardless of bailout mode.
    */
   for (const result of compiledFns) {
-    const { originalFn, compiledFn } = result;
+    const { kind, originalFn, compiledFn } = result;
     const transformedFn = createNewFunctionNode(originalFn, compiledFn);
 
-    if (gating != null) {
+    if (gating != null && kind === "original") {
       insertGatedFunctionDeclaration(originalFn, transformedFn, gating);
     } else {
       originalFn.replaceWith(transformedFn);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
index c96d545e705f5..4666a12962037 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
@@ -23,15 +23,23 @@ import {
   BuiltInType,
   Effect,
   FunctionType,
+  GeneratedSource,
+  HIRFunction,
+  Identifier,
   IdentifierId,
   NonLocalBinding,
   PolyType,
   ScopeId,
   Type,
+  ValidIdentifierName,
+  ValidatedIdentifier,
   ValueKind,
   makeBlockId,
   makeIdentifierId,
+  makeIdentifierName,
+  makeInstructionId,
   makeScopeId,
+  makeType,
 } from "./HIR";
 import {
   BuiltInMixedReadonlyId,
@@ -42,6 +50,7 @@ import {
   addHook,
 } from "./ObjectShape";
 import { Scope as BabelScope } from "@babel/traverse";
+import { CodegenFunction } from "../ReactiveScopes";
 
 export const ExternalFunctionSchema = z.object({
   // Source for the imported module that exports the `importSpecifierName` functions
@@ -506,6 +515,10 @@ export class Environment {
   #nextBlock: number = 0;
   #nextScope: number = 0;
   #scope: BabelScope;
+  #outlinedFunctions: Array<{
+    fn: HIRFunction;
+    type: ReactFunctionType | null;
+  }> = [];
   logger: Logger | null;
   filename: string | null;
   code: string | null;
@@ -599,6 +612,26 @@ export class Environment {
     return this.#hoistedIdentifiers.has(node);
   }
 
+  generateGloballyUniqueIdentifierName(
+    name: string | null
+  ): ValidatedIdentifier {
+    const identifierNode = this.#scope.generateUidIdentifier(name ?? undefined);
+    return makeIdentifierName(identifierNode.name);
+  }
+
+  outlineFunction(fn: HIRFunction, type: ReactFunctionType | null): void {
+    this.#outlinedFunctions.push({ fn, type });
+  }
+
+  takeOutlinedFunctions(): Array<{
+    fn: HIRFunction;
+    type: ReactFunctionType | null;
+  }> {
+    const outlined = this.#outlinedFunctions;
+    this.#outlinedFunctions = [];
+    return outlined;
+  }
+
   getGlobalDeclaration(binding: NonLocalBinding): Global | null {
     if (this.config.hookPattern != null) {
       const match = new RegExp(this.config.hookPattern).exec(binding.name);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Optimization/OutlineFunctions.ts b/compiler/packages/babel-plugin-react-compiler/src/Optimization/OutlineFunctions.ts
new file mode 100644
index 0000000000000..eac40e1a54541
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/Optimization/OutlineFunctions.ts
@@ -0,0 +1,48 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import { CompilerError } from "..";
+import { HIRFunction } from "../HIR";
+
+export function outlineFunctions(fn: HIRFunction): void {
+  for (const [, block] of fn.body.blocks) {
+    for (const instr of block.instructions) {
+      const { value } = instr;
+
+      if (
+        value.kind === "FunctionExpression" ||
+        value.kind === "ObjectMethod"
+      ) {
+        // Recurse in case there are inner functions which can be outlined
+        outlineFunctions(value.loweredFunc.func);
+      }
+
+      if (
+        value.kind === "FunctionExpression" &&
+        value.loweredFunc.dependencies.length === 0 &&
+        value.loweredFunc.func.context.length === 0 &&
+        // TODO: handle outlining named functions
+        value.loweredFunc.func.id === null
+      ) {
+        const loweredFunc = value.loweredFunc.func;
+
+        const id = fn.env.generateGloballyUniqueIdentifierName(loweredFunc.id);
+        loweredFunc.id = id.value;
+
+        fn.env.outlineFunction(loweredFunc, null);
+        instr.value = {
+          kind: "LoadGlobal",
+          binding: {
+            kind: "Global",
+            name: id.value,
+          },
+          loc: value.loc,
+        };
+      }
+    }
+  }
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts b/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
index 606d778e69301..a83a06e4f9f89 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
@@ -7,7 +7,12 @@
 
 import * as t from "@babel/types";
 import { createHmac } from "crypto";
-import { pruneHoistedContexts, pruneUnusedLValues, pruneUnusedLabels } from ".";
+import {
+  pruneHoistedContexts,
+  pruneUnusedLValues,
+  pruneUnusedLabels,
+  renameVariables,
+} from ".";
 import { CompilerError, ErrorSeverity } from "../CompilerError";
 import { Environment, EnvironmentConfig, ExternalFunction } from "../HIR";
 import {
@@ -36,6 +41,7 @@ import {
   ValidIdentifierName,
   getHookKind,
   makeIdentifierName,
+  promoteTemporary,
 } from "../HIR/HIR";
 import { printIdentifier, printPlace } from "../HIR/PrintHIR";
 import { eachPatternOperand } from "../HIR/visitors";
@@ -45,6 +51,8 @@ import { assertExhaustive } from "../Utils/utils";
 import { buildReactiveFunction } from "./BuildReactiveFunction";
 import { SINGLE_CHILD_FBT_TAGS } from "./MemoizeFbtAndMacroOperandsInSameScope";
 import { ReactiveFunctionVisitor, visitReactiveFunction } from "./visitors";
+import { ReactFunctionType } from "../HIR/Environment";
+import { logReactiveFunction } from "../Utils/logger";
 
 export const MEMO_CACHE_SENTINEL = "react.memo_cache_sentinel";
 export const EARLY_RETURN_SENTINEL = "react.early_return_sentinel";
@@ -85,6 +93,11 @@ export type CodegenFunction = {
    * because they were part of a pruned memo block.
    */
   prunedMemoValues: number;
+
+  outlined: Array<{
+    fn: CodegenFunction;
+    type: ReactFunctionType | null;
+  }>;
 };
 
 export function codegenFunction(
@@ -258,6 +271,38 @@ export function codegenFunction(
     compiled.body.body.unshift(test);
   }
 
+  const outlined: CodegenFunction["outlined"] = [];
+  for (const { fn: outlinedFunction, type } of cx.env.takeOutlinedFunctions()) {
+    const reactiveFunction = buildReactiveFunction(outlinedFunction);
+    pruneUnusedLabels(reactiveFunction);
+    pruneUnusedLValues(reactiveFunction);
+    pruneHoistedContexts(reactiveFunction);
+
+    // TODO: temporary function params (due to destructuring) should always be
+    // promoted so that they can be renamed
+    for (const param of reactiveFunction.params) {
+      const place = param.kind === "Identifier" ? param : param.place;
+      if (place.identifier.name === null) {
+        promoteTemporary(place.identifier);
+      }
+    }
+    const identifiers = renameVariables(reactiveFunction);
+    logReactiveFunction("Outline", reactiveFunction);
+    const codegen = codegenReactiveFunction(
+      new Context(
+        cx.env,
+        reactiveFunction.id ?? "[[ anonymous ]]",
+        identifiers
+      ),
+      reactiveFunction
+    );
+    if (codegen.isErr()) {
+      return codegen;
+    }
+    outlined.push({ fn: codegen.unwrap(), type });
+  }
+  compiled.outlined = outlined;
+
   return compileResult;
 }
 
@@ -306,6 +351,7 @@ function codegenReactiveFunction(
     memoValues: countMemoBlockVisitor.memoValues,
     prunedMemoBlocks: countMemoBlockVisitor.prunedMemoBlocks,
     prunedMemoValues: countMemoBlockVisitor.prunedMemoValues,
+    outlined: [],
   });
 }
 
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect-usecallback.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect-usecallback.expect.md
index 7a7535560946f..0cdf31bbfb5cd 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect-usecallback.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect-usecallback.expect.md
@@ -40,57 +40,52 @@ import { useCallback, useEffect, useState } from "react";
 let someGlobal = {};
 
 function Component() {
-  const $ = _c(7);
+  const $ = _c(6);
   const [state, setState] = useState(someGlobal);
+
+  const setGlobal = _temp;
   let t0;
+  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = () => {
-      someGlobal.value = true;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const setGlobal = t0;
-  let t1;
-  let t2;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = () => {
       setGlobal();
     };
-    t2 = [];
+    t1 = [];
+    $[0] = t0;
     $[1] = t1;
-    $[2] = t2;
   } else {
+    t0 = $[0];
     t1 = $[1];
-    t2 = $[2];
   }
-  useEffect(t1, t2);
+  useEffect(t0, t1);
+  let t2;
   let t3;
-  let t4;
-  if ($[3] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = () => {
+  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
+    t2 = () => {
       setState(someGlobal.value);
     };
-    t4 = [someGlobal];
+    t3 = [someGlobal];
+    $[2] = t2;
     $[3] = t3;
-    $[4] = t4;
   } else {
+    t2 = $[2];
     t3 = $[3];
-    t4 = $[4];
   }
-  useEffect(t3, t4);
+  useEffect(t2, t3);
 
-  const t5 = String(state);
-  let t6;
-  if ($[5] !== t5) {
-    t6 = <div>{t5}</div>;
+  const t4 = String(state);
+  let t5;
+  if ($[4] !== t4) {
+    t5 = <div>{t4}</div>;
+    $[4] = t4;
     $[5] = t5;
-    $[6] = t6;
   } else {
-    t6 = $[6];
+    t5 = $[5];
   }
-  return t6;
+  return t5;
+}
+function _temp() {
+  someGlobal.value = true;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect.expect.md
index 43503170c20ff..25a99437061ff 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-mutation-in-effect-indirect.expect.md
@@ -39,57 +39,52 @@ import { useEffect, useState } from "react";
 let someGlobal = {};
 
 function Component() {
-  const $ = _c(7);
+  const $ = _c(6);
   const [state, setState] = useState(someGlobal);
+
+  const setGlobal = _temp;
   let t0;
+  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = () => {
-      someGlobal.value = true;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const setGlobal = t0;
-  let t1;
-  let t2;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = () => {
       setGlobal();
     };
-    t2 = [];
+    t1 = [];
+    $[0] = t0;
     $[1] = t1;
-    $[2] = t2;
   } else {
+    t0 = $[0];
     t1 = $[1];
-    t2 = $[2];
   }
-  useEffect(t1, t2);
+  useEffect(t0, t1);
+  let t2;
   let t3;
-  let t4;
-  if ($[3] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = () => {
+  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
+    t2 = () => {
       setState(someGlobal.value);
     };
-    t4 = [someGlobal];
+    t3 = [someGlobal];
+    $[2] = t2;
     $[3] = t3;
-    $[4] = t4;
   } else {
+    t2 = $[2];
     t3 = $[3];
-    t4 = $[4];
   }
-  useEffect(t3, t4);
+  useEffect(t2, t3);
 
-  const t5 = String(state);
-  let t6;
-  if ($[5] !== t5) {
-    t6 = <div>{t5}</div>;
+  const t4 = String(state);
+  let t5;
+  if ($[4] !== t4) {
+    t5 = <div>{t4}</div>;
+    $[4] = t4;
     $[5] = t5;
-    $[6] = t6;
   } else {
-    t6 = $[6];
+    t5 = $[5];
   }
-  return t6;
+  return t5;
+}
+function _temp() {
+  someGlobal.value = true;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect-indirect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect-indirect.expect.md
index fec286b265aa9..47db96561eade 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect-indirect.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect-indirect.expect.md
@@ -39,57 +39,52 @@ import { useEffect, useState } from "react";
 let someGlobal = false;
 
 function Component() {
-  const $ = _c(7);
+  const $ = _c(6);
   const [state, setState] = useState(someGlobal);
+
+  const setGlobal = _temp;
   let t0;
+  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = () => {
-      someGlobal = true;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const setGlobal = t0;
-  let t1;
-  let t2;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = () => {
       setGlobal();
     };
-    t2 = [];
+    t1 = [];
+    $[0] = t0;
     $[1] = t1;
-    $[2] = t2;
   } else {
+    t0 = $[0];
     t1 = $[1];
-    t2 = $[2];
   }
-  useEffect(t1, t2);
+  useEffect(t0, t1);
+  let t2;
   let t3;
-  let t4;
-  if ($[3] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = () => {
+  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
+    t2 = () => {
       setState(someGlobal);
     };
-    t4 = [someGlobal];
+    t3 = [someGlobal];
+    $[2] = t2;
     $[3] = t3;
-    $[4] = t4;
   } else {
+    t2 = $[2];
     t3 = $[3];
-    t4 = $[4];
   }
-  useEffect(t3, t4);
+  useEffect(t2, t3);
 
-  const t5 = String(state);
-  let t6;
-  if ($[5] !== t5) {
-    t6 = <div>{t5}</div>;
+  const t4 = String(state);
+  let t5;
+  if ($[4] !== t4) {
+    t5 = <div>{t4}</div>;
+    $[4] = t4;
     $[5] = t5;
-    $[6] = t6;
   } else {
-    t6 = $[6];
+    t5 = $[5];
   }
-  return t6;
+  return t5;
+}
+function _temp() {
+  someGlobal = true;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect.expect.md
index e4cd0e22c12f8..1ec48d6eda631 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-global-reassignment-in-effect.expect.md
@@ -36,48 +36,44 @@ import { useEffect, useState } from "react";
 let someGlobal = false;
 
 function Component() {
-  const $ = _c(6);
+  const $ = _c(5);
   const [state, setState] = useState(someGlobal);
   let t0;
-  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      someGlobal = true;
-    };
-
-    t1 = [];
+    t0 = [];
     $[0] = t0;
-    $[1] = t1;
   } else {
     t0 = $[0];
-    t1 = $[1];
   }
-  useEffect(t0, t1);
+  useEffect(_temp, t0);
+  let t1;
   let t2;
-  let t3;
-  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-    t2 = () => {
+  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => {
       setState(someGlobal);
     };
-    t3 = [someGlobal];
+    t2 = [someGlobal];
+    $[1] = t1;
     $[2] = t2;
-    $[3] = t3;
   } else {
+    t1 = $[1];
     t2 = $[2];
-    t3 = $[3];
   }
-  useEffect(t2, t3);
+  useEffect(t1, t2);
 
-  const t4 = String(state);
-  let t5;
-  if ($[4] !== t4) {
-    t5 = <div>{t4}</div>;
+  const t3 = String(state);
+  let t4;
+  if ($[3] !== t3) {
+    t4 = <div>{t3}</div>;
+    $[3] = t3;
     $[4] = t4;
-    $[5] = t5;
   } else {
-    t5 = $[5];
+    t4 = $[4];
   }
-  return t5;
+  return t4;
+}
+function _temp() {
+  someGlobal = true;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-reassignment-to-global-function-jsx-prop.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-reassignment-to-global-function-jsx-prop.expect.md
index eaa2834a4971d..60945024f25d2 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-reassignment-to-global-function-jsx-prop.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/allow-reassignment-to-global-function-jsx-prop.expect.md
@@ -27,13 +27,9 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime";
 function Component() {
   const $ = _c(1);
+  const onClick = _temp;
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    const onClick = () => {
-      someUnknownGlobal = true;
-      moduleLocal = true;
-    };
-
     t0 = <div onClick={onClick} />;
     $[0] = t0;
   } else {
@@ -41,6 +37,10 @@ function Component() {
   }
   return t0;
 }
+function _temp() {
+  someUnknownGlobal = true;
+  moduleLocal = true;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-join.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-join.expect.md
index 2d06f084ffd12..53d7ccea7d38f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-join.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-join.expect.md
@@ -16,7 +16,7 @@ function Component(props) {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(8);
+  const $ = _c(7);
   let t0;
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
@@ -37,25 +37,21 @@ function Component(props) {
     t2 = $[3];
   }
   const x = t2;
-  let t3;
-  if ($[4] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = () => "this closure gets stringified, not called";
-    $[4] = t3;
-  } else {
-    t3 = $[4];
-  }
-  const y = x.join(t3);
+  const y = x.join(_temp);
   foo(y);
-  let t4;
-  if ($[5] !== x || $[6] !== y) {
-    t4 = [x, y];
-    $[5] = x;
-    $[6] = y;
-    $[7] = t4;
+  let t3;
+  if ($[4] !== x || $[5] !== y) {
+    t3 = [x, y];
+    $[4] = x;
+    $[5] = y;
+    $[6] = t3;
   } else {
-    t4 = $[7];
+    t3 = $[6];
   }
-  return t4;
+  return t3;
+}
+function _temp() {
+  return "this closure gets stringified, not called";
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-captures-receiver-noAlias.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-captures-receiver-noAlias.expect.md
index e04543798748f..7b99a06518487 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-captures-receiver-noAlias.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-captures-receiver-noAlias.expect.md
@@ -44,7 +44,7 @@ function Component(props) {
   const items = t1;
   let t2;
   if ($[4] !== items) {
-    t2 = items.map((item_0) => item_0);
+    t2 = items.map(_temp);
     $[4] = items;
     $[5] = t2;
   } else {
@@ -53,6 +53,9 @@ function Component(props) {
   const mapped = t2;
   return mapped;
 }
+function _temp(item_0) {
+  return item_0;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array-noAlias.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array-noAlias.expect.md
index 375556bbeab1c..2826a5c8dbf32 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array-noAlias.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array-noAlias.expect.md
@@ -33,7 +33,7 @@ function Component(props) {
   const x = t0;
   let t1;
   if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    const y = x.map((item) => item);
+    const y = x.map(_temp);
     t1 = [x, y];
     $[1] = t1;
   } else {
@@ -41,6 +41,9 @@ function Component(props) {
   }
   return t1;
 }
+function _temp(item) {
+  return item;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array.expect.md
index 375556bbeab1c..2826a5c8dbf32 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-frozen-array.expect.md
@@ -33,7 +33,7 @@ function Component(props) {
   const x = t0;
   let t1;
   if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    const y = x.map((item) => item);
+    const y = x.map(_temp);
     t1 = [x, y];
     $[1] = t1;
   } else {
@@ -41,6 +41,9 @@ function Component(props) {
   }
   return t1;
 }
+function _temp(item) {
+  return item;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda-noAlias.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda-noAlias.expect.md
index 96f3b935e162b..c302e82eb1d1b 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda-noAlias.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda-noAlias.expect.md
@@ -28,10 +28,7 @@ function Component(props) {
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     const x = [];
-    const y = x.map((item) => {
-      item.updated = true;
-      return item;
-    });
+    const y = x.map(_temp);
     t0 = [x, y];
     $[0] = t0;
   } else {
@@ -39,6 +36,10 @@ function Component(props) {
   }
   return t0;
 }
+function _temp(item) {
+  item.updated = true;
+  return item;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda.expect.md
index 96f3b935e162b..c302e82eb1d1b 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-mutating-lambda.expect.md
@@ -28,10 +28,7 @@ function Component(props) {
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     const x = [];
-    const y = x.map((item) => {
-      item.updated = true;
-      return item;
-    });
+    const y = x.map(_temp);
     t0 = [x, y];
     $[0] = t0;
   } else {
@@ -39,6 +36,10 @@ function Component(props) {
   }
   return t0;
 }
+function _temp(item) {
+  item.updated = true;
+  return item;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-non-mutating-lambda-mutated-result.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-non-mutating-lambda-mutated-result.expect.md
index ee209592dc0c0..bc83ac17700b2 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-non-mutating-lambda-mutated-result.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-mutable-array-non-mutating-lambda-mutated-result.expect.md
@@ -28,7 +28,7 @@ function Component(props) {
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     const x = [{}];
-    const y = x.map((item) => item);
+    const y = x.map(_temp);
     y[0].flag = true;
     t0 = [x, y];
     $[0] = t0;
@@ -37,6 +37,9 @@ function Component(props) {
   }
   return t0;
 }
+function _temp(item) {
+  return item;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-noAlias-escaping-function.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-noAlias-escaping-function.expect.md
index b5a581ce14d83..4960b17e4b7bf 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-noAlias-escaping-function.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/array-map-noAlias-escaping-function.expect.md
@@ -21,33 +21,29 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(5);
+  const $ = _c(4);
+  const f = _temp;
   let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = (item) => item;
-    $[0] = t0;
+  if ($[0] !== props.items) {
+    t0 = [...props.items].map(f);
+    $[0] = props.items;
+    $[1] = t0;
   } else {
-    t0 = $[0];
+    t0 = $[1];
   }
-  const f = t0;
+  const x = t0;
   let t1;
-  if ($[1] !== props.items) {
-    t1 = [...props.items].map(f);
-    $[1] = props.items;
-    $[2] = t1;
+  if ($[2] !== x) {
+    t1 = [x, f];
+    $[2] = x;
+    $[3] = t1;
   } else {
-    t1 = $[2];
+    t1 = $[3];
   }
-  const x = t1;
-  let t2;
-  if ($[3] !== x) {
-    t2 = [x, f];
-    $[3] = x;
-    $[4] = t2;
-  } else {
-    t2 = $[4];
-  }
-  return t2;
+  return t1;
+}
+function _temp(item) {
+  return item;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/arrow-function-one-line-directive.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/arrow-function-one-line-directive.expect.md
index e752d771e4f71..f6fb5afa03593 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/arrow-function-one-line-directive.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/arrow-function-one-line-directive.expect.md
@@ -21,22 +21,14 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 function useFoo() {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      "worklet";
-      return 1;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const update = t0;
+  const update = _temp;
   return update;
 }
+function _temp() {
+  "worklet";
+  return 1;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: useFoo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/capturing-function-shadow-captured.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/capturing-function-shadow-captured.expect.md
index cfb776900b40e..68113a0d731f9 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/capturing-function-shadow-captured.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/capturing-function-shadow-captured.expect.md
@@ -16,22 +16,14 @@ function component(a) {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 function component(a) {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function () {
-      let z_0;
-      mutate(z_0);
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const x = t0;
+  const x = _temp;
   return x;
 }
+function _temp() {
+  let z_0;
+  mutate(z_0);
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/component-inner-function-with-many-args.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/component-inner-function-with-many-args.expect.md
index bfc1d31ffdba0..8b3c406c5cafb 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/component-inner-function-with-many-args.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/component-inner-function-with-many-args.expect.md
@@ -22,24 +22,20 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime";
 import { Stringify } from "shared-runtime";
 function Component(props) {
-  const $ = _c(3);
+  const $ = _c(2);
+  const cb = _temp;
   let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = (x, y, z) => x + y + z;
-    $[0] = t0;
+  if ($[0] !== props.id) {
+    t0 = <Stringify cb={cb} id={props.id} />;
+    $[0] = props.id;
+    $[1] = t0;
   } else {
-    t0 = $[0];
+    t0 = $[1];
   }
-  const cb = t0;
-  let t1;
-  if ($[1] !== props.id) {
-    t1 = <Stringify cb={cb} id={props.id} />;
-    $[1] = props.id;
-    $[2] = t1;
-  } else {
-    t1 = $[2];
-  }
-  return t1;
+  return t0;
+}
+function _temp(x, y, z) {
+  return x + y + z;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/computed-call-evaluation-order.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/computed-call-evaluation-order.expect.md
index 76bdcf1efe4ad..a0c23f26eb877 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/computed-call-evaluation-order.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/computed-call-evaluation-order.expect.md
@@ -30,30 +30,30 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime"; // Should print A, B, arg, original
 function Component() {
-  const $ = _c(2);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = (o) => {
-      o.f = () => console.log("new");
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const changeF = t0;
+  const $ = _c(1);
+  const changeF = _temp2;
   let x;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    x = { f: () => console.log("original") };
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    x = { f: _temp3 };
 
     (console.log("A"), x)[(console.log("B"), "f")](
       (changeF(x), console.log("arg"), 1),
     );
-    $[1] = x;
+    $[0] = x;
   } else {
-    x = $[1];
+    x = $[0];
   }
   return x;
 }
+function _temp3() {
+  return console.log("original");
+}
+function _temp2(o) {
+  o.f = _temp;
+}
+function _temp() {
+  return console.log("new");
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/constant-prop-colliding-identifier.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/constant-prop-colliding-identifier.expect.md
index 7f42633ce5a6b..b1ac15391c88f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/constant-prop-colliding-identifier.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/constant-prop-colliding-identifier.expect.md
@@ -27,11 +27,14 @@ export const FIXTURE_ENTRYPOINT = {
 import { invoke } from "shared-runtime";
 
 function Component() {
-  const fn = () => ({ x: "value" });
+  const fn = _temp;
 
   invoke(fn);
   return 3;
 }
+function _temp() {
+  return { x: "value" };
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md
index a93d5b49d66fc..880c158b721d0 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/deeply-nested-function-expressions-with-params.expect.md
@@ -31,7 +31,7 @@ function Foo() {
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t1 = function a(t2) {
-      const x_0 = t2 === undefined ? () => {} : t2;
+      const x_0 = t2 === undefined ? _temp : t2;
       return (function b(t3) {
         const y_0 = t3 === undefined ? [] : t3;
         return [x_0, y_0];
@@ -44,6 +44,7 @@ function Foo() {
   t0 = t1;
   return t0;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Foo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-calls-global-function.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-calls-global-function.expect.md
index 1bbfb1b7ec94d..fd6716f115f1f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-calls-global-function.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-calls-global-function.expect.md
@@ -25,7 +25,7 @@ function Component(t0) {
   const $ = _c(2);
   let t1;
   if ($[0] !== t0) {
-    t1 = t0 === undefined ? identity([() => {}, true, 42, "hello"]) : t0;
+    t1 = t0 === undefined ? identity([_temp, true, 42, "hello"]) : t0;
     $[0] = t0;
     $[1] = t1;
   } else {
@@ -34,6 +34,7 @@ function Component(t0) {
   const x = t1;
   return x;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-empty-callback.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-empty-callback.expect.md
index cc96a95553e40..43249cfc1e878 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-empty-callback.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-empty-callback.expect.md
@@ -16,20 +16,11 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 function Component(t0) {
-  const $ = _c(2);
-  let t1;
-  if ($[0] !== t0) {
-    t1 = t0 === undefined ? () => {} : t0;
-    $[0] = t0;
-    $[1] = t1;
-  } else {
-    t1 = $[1];
-  }
-  const x = t1;
+  const x = t0 === undefined ? _temp : t0;
   return x;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-reorderable-callback.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-reorderable-callback.expect.md
index 624ed6f67a049..73268e85d8aef 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-reorderable-callback.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/default-param-with-reorderable-callback.expect.md
@@ -16,20 +16,13 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 function Component(t0) {
-  const $ = _c(2);
-  let t1;
-  if ($[0] !== t0) {
-    t1 = t0 === undefined ? () => [-1, true, 42, "hello"] : t0;
-    $[0] = t0;
-    $[1] = t1;
-  } else {
-    t1 = $[1];
-  }
-  const x = t1;
+  const x = t0 === undefined ? _temp : t0;
   return x;
 }
+function _temp() {
+  return [-1, true, 42, "hello"];
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-dont-refresh-const-changes-prod.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-dont-refresh-const-changes-prod.expect.md
index 87084a14028c9..3dad23aba1b7a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-dont-refresh-const-changes-prod.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-dont-refresh-const-changes-prod.expect.md
@@ -58,37 +58,31 @@ function unsafeUpdateConst() {
 }
 
 function Component() {
-  const $ = _c(3);
+  const $ = _c(2);
+  useState(_temp);
+
+  unsafeUpdateConst();
   let t0;
+  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      unsafeResetConst();
-    };
-    $[0] = t0;
+    t1 = [{ pretendConst }];
+    $[0] = t1;
   } else {
-    t0 = $[0];
+    t1 = $[0];
   }
-  useState(t0);
-
-  unsafeUpdateConst();
-  let t1;
+  t0 = t1;
+  const value = t0;
   let t2;
   if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t2 = [{ pretendConst }];
+    t2 = <ValidateMemoization inputs={[]} output={value} />;
     $[1] = t2;
   } else {
     t2 = $[1];
   }
-  t1 = t2;
-  const value = t1;
-  let t3;
-  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = <ValidateMemoization inputs={[]} output={value} />;
-    $[2] = t3;
-  } else {
-    t3 = $[2];
-  }
-  return t3;
+  return t2;
+}
+function _temp() {
+  unsafeResetConst();
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-refresh-on-const-changes-dev.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-refresh-on-const-changes-dev.expect.md
index 19317de47e2bd..556fdaab384df 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-refresh-on-const-changes-dev.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fast-refresh-refresh-on-const-changes-dev.expect.md
@@ -61,45 +61,39 @@ function unsafeUpdateConst() {
 }
 
 function Component() {
-  const $ = _c(4);
+  const $ = _c(3);
   if (
     $[0] !== "4bf230b116dd95f382060ad17350e116395e41ed757e51fd074ea0b4ed281272"
   ) {
-    for (let $i = 0; $i < 4; $i += 1) {
+    for (let $i = 0; $i < 3; $i += 1) {
       $[$i] = Symbol.for("react.memo_cache_sentinel");
     }
     $[0] = "4bf230b116dd95f382060ad17350e116395e41ed757e51fd074ea0b4ed281272";
   }
+  useState(_temp);
+
+  unsafeUpdateConst();
   let t0;
+  let t1;
   if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      unsafeResetConst();
-    };
-    $[1] = t0;
+    t1 = [{ pretendConst }];
+    $[1] = t1;
   } else {
-    t0 = $[1];
+    t1 = $[1];
   }
-  useState(t0);
-
-  unsafeUpdateConst();
-  let t1;
+  t0 = t1;
+  const value = t0;
   let t2;
   if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-    t2 = [{ pretendConst }];
+    t2 = <ValidateMemoization inputs={[pretendConst]} output={value} />;
     $[2] = t2;
   } else {
     t2 = $[2];
   }
-  t1 = t2;
-  const value = t1;
-  let t3;
-  if ($[3] === Symbol.for("react.memo_cache_sentinel")) {
-    t3 = <ValidateMemoization inputs={[pretendConst]} output={value} />;
-    $[3] = t3;
-  } else {
-    t3 = $[3];
-  }
-  return t3;
+  return t2;
+}
+function _temp() {
+  unsafeResetConst();
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fbt/lambda-with-fbt.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fbt/lambda-with-fbt.expect.md
index 5ac0ad17a0645..473849be4ea9e 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fbt/lambda-with-fbt.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/fbt/lambda-with-fbt.expect.md
@@ -42,47 +42,41 @@ import { c as _c } from "react/compiler-runtime";
 import { fbt } from "fbt";
 
 function Component() {
-  const $ = _c(2);
+  const $ = _c(1);
+  const buttonLabel = _temp;
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      if (!someCondition) {
-        return fbt._("Purchase as a gift", null, { hk: "1gHj4g" });
-      } else {
-        if (
-          !iconOnly &&
-          showPrice &&
-          item?.current_gift_offer?.price?.formatted != null
-        ) {
-          return fbt._(
-            "Gift | {price}",
-            [fbt._param("price", item?.current_gift_offer?.price?.formatted)],
-            { hk: "3GTnGE" },
-          );
-        } else {
-          if (!iconOnly && !showPrice) {
-            return fbt._("Gift", null, { hk: "3fqfrk" });
-          }
-        }
-      }
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const buttonLabel = t0;
-  let t1;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = (
+    t0 = (
       <View>
         <Button text={buttonLabel()} />
       </View>
     );
-    $[1] = t1;
+    $[0] = t0;
   } else {
-    t1 = $[1];
+    t0 = $[0];
+  }
+  return t0;
+}
+function _temp() {
+  if (!someCondition) {
+    return fbt._("Purchase as a gift", null, { hk: "1gHj4g" });
+  } else {
+    if (
+      !iconOnly &&
+      showPrice &&
+      item?.current_gift_offer?.price?.formatted != null
+    ) {
+      return fbt._(
+        "Gift | {price}",
+        [fbt._param("price", item?.current_gift_offer?.price?.formatted)],
+        { hk: "3GTnGE" },
+      );
+    } else {
+      if (!iconOnly && !showPrice) {
+        return fbt._("Gift", null, { hk: "3fqfrk" });
+      }
+    }
   }
-  return t1;
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/function-expression-with-store-to-parameter.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/function-expression-with-store-to-parameter.expect.md
index 1803026c6397d..0825fbc44c32f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/function-expression-with-store-to-parameter.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/function-expression-with-store-to-parameter.expect.md
@@ -19,29 +19,23 @@ function Component(props) {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(3);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = (object, key, value) => {
-      object.updated = true;
-      object[key] = value;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const mutate = t0;
+  const $ = _c(2);
+  const mutate = _temp;
   let x;
-  if ($[1] !== props) {
+  if ($[0] !== props) {
     x = makeObject(props);
     mutate(x);
-    $[1] = props;
-    $[2] = x;
+    $[0] = props;
+    $[1] = x;
   } else {
-    x = $[2];
+    x = $[1];
   }
   return x;
 }
+function _temp(object, key, value) {
+  object.updated = true;
+  object[key] = value;
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-nested-const-declaration-2.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-nested-const-declaration-2.expect.md
index 0f377081bf8bd..c14b8ab2db959 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-nested-const-declaration-2.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-nested-const-declaration-2.expect.md
@@ -36,7 +36,7 @@ function hoisting(cond) {
         items.push(bar());
       };
 
-      const bar = () => true;
+      const bar = _temp;
       foo();
     }
     $[0] = cond;
@@ -46,6 +46,9 @@ function hoisting(cond) {
   }
   return items;
 }
+function _temp() {
+  return true;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: hoisting,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-object-method.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-object-method.expect.md
index 1f32d4c565deb..c55eb49e64ea5 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-object-method.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-object-method.expect.md
@@ -36,7 +36,7 @@ function hoisting() {
       },
     };
 
-    const bar = () => 1;
+    const bar = _temp;
 
     t0 = x.foo();
     $[0] = t0;
@@ -45,6 +45,9 @@ function hoisting() {
   }
   return t0;
 }
+function _temp() {
+  return 1;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: hoisting,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-recursive-call-within-lambda.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-recursive-call-within-lambda.expect.md
index a7cf6bcc1e96c..186d519cd4988 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-recursive-call-within-lambda.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-recursive-call-within-lambda.expect.md
@@ -28,18 +28,9 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime";
 function Foo(t0) {
   const $ = _c(1);
+  const outer = _temp;
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    const outer = (val) => {
-      const fact = (x) => {
-        if (x <= 0) {
-          return 1;
-        }
-        return x * fact(x - 1);
-      };
-      return fact(val);
-    };
-
     t1 = outer(3);
     $[0] = t1;
   } else {
@@ -47,6 +38,15 @@ function Foo(t0) {
   }
   return t1;
 }
+function _temp(val) {
+  const fact = (x) => {
+    if (x <= 0) {
+      return 1;
+    }
+    return x * fact(x - 1);
+  };
+  return fact(val);
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Foo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-simple-function-expression.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-simple-function-expression.expect.md
index 35501a8904aa6..86e65086dabb7 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-simple-function-expression.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-simple-function-expression.expect.md
@@ -31,7 +31,7 @@ function hoisting() {
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     const foo = () => bar();
 
-    const bar = () => 1;
+    const bar = _temp;
 
     t0 = foo();
     $[0] = t0;
@@ -40,6 +40,9 @@ function hoisting() {
   }
   return t0;
 }
+function _temp() {
+  return 1;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: hoisting,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-within-lambda.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-within-lambda.expect.md
index 1baf31aa9be4b..95338be52aa1c 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-within-lambda.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/hoisting-within-lambda.expect.md
@@ -26,15 +26,9 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime";
 function Component(t0) {
   const $ = _c(1);
+  const outer = _temp;
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    const outer = () => {
-      const inner = () => x;
-
-      const x = 3;
-      return inner();
-    };
-
     t1 = <div>{outer()}</div>;
     $[0] = t1;
   } else {
@@ -42,6 +36,11 @@ function Component(t0) {
   }
   return t1;
 }
+function _temp() {
+  const inner = () => x;
+  const x = 3;
+  return inner();
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-element-value.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-element-value.expect.md
index 016fab7332a87..5cef0d55c3770 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-element-value.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-element-value.expect.md
@@ -49,17 +49,7 @@ function Component(t0) {
   let t1;
   if ($[0] !== items) {
     t1 =
-      items.length > 0 ? (
-        <Foo
-          value={
-            <Bar>
-              {items.map((item) => (
-                <Item key={item.id} item={item} />
-              ))}
-            </Bar>
-          }
-        />
-      ) : null;
+      items.length > 0 ? <Foo value={<Bar>{items.map(_temp)}</Bar>} /> : null;
     $[0] = items;
     $[1] = t1;
   } else {
@@ -67,6 +57,9 @@ function Component(t0) {
   }
   return t1;
 }
+function _temp(item) {
+  return <Item key={item.id} item={item} />;
+}
 
 function Foo(t0) {
   const { value } = t0;
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-fragment-value.flow.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-fragment-value.flow.expect.md
index 9e28b3136c3c1..21aca0b499c3f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-fragment-value.flow.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-attribute-with-jsx-fragment-value.flow.expect.md
@@ -39,18 +39,7 @@ function Component(t0) {
   const { items } = t0;
   let t1;
   if ($[0] !== items) {
-    t1 =
-      items.length > 0 ? (
-        <Foo
-          value={
-            <>
-              {items.map((item) => (
-                <Stringify key={item.id} item={item} />
-              ))}
-            </>
-          }
-        />
-      ) : null;
+    t1 = items.length > 0 ? <Foo value={<>{items.map(_temp)}</>} /> : null;
     $[0] = items;
     $[1] = t1;
   } else {
@@ -58,6 +47,9 @@ function Component(t0) {
   }
   return t1;
 }
+function _temp(item) {
+  return <Stringify key={item.id} item={item} />;
+}
 
 function Foo(t0) {
   const $ = _c(2);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
index 9b6b57f5b6711..7b18dd5e76bbf 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nested-function-with-param-as-captured-dep.expect.md
@@ -29,7 +29,7 @@ function Foo() {
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t1 = function a(t2) {
-      const x_0 = t2 === undefined ? () => {} : t2;
+      const x_0 = t2 === undefined ? _temp : t2;
       return x_0;
     };
     $[0] = t1;
@@ -39,6 +39,7 @@ function Foo() {
   t0 = t1;
   return t0;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Foo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/noAlias-filter-on-array-prop.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/noAlias-filter-on-array-prop.expect.md
index 48527287718e4..56fc45870d322 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/noAlias-filter-on-array-prop.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/noAlias-filter-on-array-prop.expect.md
@@ -33,17 +33,10 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(3);
+  const $ = _c(2);
   let t0;
   if ($[0] !== props.items) {
-    let t1;
-    if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (item) => item != null;
-      $[2] = t1;
-    } else {
-      t1 = $[2];
-    }
-    t0 = props.items.filter(t1);
+    t0 = props.items.filter(_temp);
     $[0] = props.items;
     $[1] = t0;
   } else {
@@ -52,6 +45,9 @@ function Component(props) {
   const filtered = t0;
   return filtered;
 }
+function _temp(item) {
+  return item != null;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/optional-call-logical.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/optional-call-logical.expect.md
index 7f547f7db4171..52bf0c90dd150 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/optional-call-logical.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/optional-call-logical.expect.md
@@ -18,7 +18,7 @@ function Component(props) {
   const item = useFragment(graphql`...`, props.item);
   let t0;
   if ($[0] !== item.items) {
-    t0 = item.items?.map((item_0) => renderItem(item_0)) ?? [];
+    t0 = item.items?.map(_temp) ?? [];
     $[0] = item.items;
     $[1] = t0;
   } else {
@@ -26,6 +26,9 @@ function Component(props) {
   }
   return t0;
 }
+function _temp(item_0) {
+  return renderItem(item_0);
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-helper.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-helper.expect.md
index 0ddba9968289a..0b905a83b26b4 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-helper.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-helper.expect.md
@@ -28,32 +28,28 @@ import { c as _c } from "react/compiler-runtime";
 import { Stringify } from "shared-runtime";
 
 function Component(props) {
-  const $ = _c(5);
+  const $ = _c(4);
   let t0;
   if ($[0] !== props.items) {
-    let t1;
-    if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (item) => <Stringify key={item.id} item={item.name} />;
-      $[2] = t1;
-    } else {
-      t1 = $[2];
-    }
-    t0 = props.items.map(t1);
+    t0 = props.items.map(_temp);
     $[0] = props.items;
     $[1] = t0;
   } else {
     t0 = $[1];
   }
   let t1;
-  if ($[3] !== t0) {
+  if ($[2] !== t0) {
     t1 = <div>{t0}</div>;
-    $[3] = t0;
-    $[4] = t1;
+    $[2] = t0;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }
+function _temp(item) {
+  return <Stringify key={item.id} item={item.name} />;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-infer-scope-global.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-infer-scope-global.expect.md
index 5467e1b062cf2..11eb0c9db6e99 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-infer-scope-global.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-infer-scope-global.expect.md
@@ -22,22 +22,17 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validatePreserveExistingMemoizationGuarantees
+// @validatePreserveExistingMemoizationGuarantees
 
 import { useCallback } from "react";
 import { CONST_STRING0 } from "shared-runtime";
 
 // It's correct to infer a useCallback block has no reactive dependencies
 function useFoo() {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => [CONST_STRING0];
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
+  return _temp;
+}
+function _temp() {
+  return [CONST_STRING0];
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-reordering-deplist-controlflow.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-reordering-deplist-controlflow.expect.md
index c96844716eaa4..2bf0311759dad 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-reordering-deplist-controlflow.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/preserve-memo-validation/useCallback-reordering-deplist-controlflow.expect.md
@@ -40,7 +40,7 @@ import { useCallback } from "react";
 import { Stringify } from "shared-runtime";
 
 function Foo(t0) {
-  const $ = _c(9);
+  const $ = _c(8);
   const { arr1, arr2, foo } = t0;
   let t1;
   let getVal1;
@@ -49,14 +49,8 @@ function Foo(t0) {
 
     let y;
     y = [];
-    let t2;
-    if ($[5] === Symbol.for("react.memo_cache_sentinel")) {
-      t2 = () => ({ x: 2 });
-      $[5] = t2;
-    } else {
-      t2 = $[5];
-    }
-    getVal1 = t2;
+
+    getVal1 = _temp;
 
     t1 = () => [y];
     foo ? (y = x.concat(arr2)) : y;
@@ -71,16 +65,19 @@ function Foo(t0) {
   }
   const getVal2 = t1;
   let t2;
-  if ($[6] !== getVal1 || $[7] !== getVal2) {
+  if ($[5] !== getVal1 || $[6] !== getVal2) {
     t2 = <Stringify val1={getVal1} val2={getVal2} shouldInvokeFns={true} />;
-    $[6] = getVal1;
-    $[7] = getVal2;
-    $[8] = t2;
+    $[5] = getVal1;
+    $[6] = getVal2;
+    $[7] = t2;
   } else {
-    t2 = $[8];
+    t2 = $[7];
   }
   return t2;
 }
+function _temp() {
+  return { x: 2 };
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Foo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/property-call-evaluation-order.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/property-call-evaluation-order.expect.md
index d097ee0fad007..782a271aa8eb8 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/property-call-evaluation-order.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/property-call-evaluation-order.expect.md
@@ -30,28 +30,28 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime"; // Should print A, arg, original
 
 function Component() {
-  const $ = _c(2);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = (o) => {
-      o.f = () => console.log("new");
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const changeF = t0;
+  const $ = _c(1);
+  const changeF = _temp2;
   let x;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    x = { f: () => console.log("original") };
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    x = { f: _temp3 };
 
     (console.log("A"), x).f((changeF(x), console.log("arg"), 1));
-    $[1] = x;
+    $[0] = x;
   } else {
-    x = $[1];
+    x = $[0];
   }
   return x;
 }
+function _temp3() {
+  return console.log("original");
+}
+function _temp2(o) {
+  o.f = _temp;
+}
+function _temp() {
+  return console.log("new");
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/readonly-object-method-calls.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/readonly-object-method-calls.expect.md
index 3418d008c3c55..0298a8d703cf9 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/readonly-object-method-calls.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/readonly-object-method-calls.expect.md
@@ -30,7 +30,7 @@ function Component(props) {
   );
   let posts;
   if ($[0] !== user.timeline.posts.edges.nodes) {
-    posts = user.timeline.posts.edges.nodes.map((node) => <Post post={node} />);
+    posts = user.timeline.posts.edges.nodes.map(_temp);
     let t0;
     if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
       t0 = {};
@@ -56,6 +56,9 @@ function Component(props) {
   }
   return t0;
 }
+function _temp(node) {
+  return <Post post={node} />;
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-effect.expect.md
index 7ebf84dd5ef6c..a53fae6743a4d 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-effect.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-effect.expect.md
@@ -37,13 +37,14 @@ function useCustomRef() {
   const $ = _c(1);
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = { click: () => {} };
+    t0 = { click: _temp };
     $[0] = t0;
   } else {
     t0 = $[0];
   }
   return useRef(t0);
 }
+function _temp() {}
 
 function Foo() {
   const $ = _c(3);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback-2.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback-2.expect.md
index 855cfc2cd1ded..9a717b557da7d 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback-2.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback-2.expect.md
@@ -37,13 +37,14 @@ function useCustomRef() {
   const $ = _c(1);
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = { click: () => {} };
+    t0 = { click: _temp };
     $[0] = t0;
   } else {
     t0 = $[0];
   }
   return useRef(t0);
 }
+function _temp() {}
 
 function Foo() {
   const $ = _c(3);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback.expect.md
index 2df670c8df7a8..c8ad5dc898b60 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ref-like-name-in-useCallback.expect.md
@@ -37,13 +37,14 @@ function useCustomRef() {
   const $ = _c(1);
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = { click: () => {} };
+    t0 = { click: _temp };
     $[0] = t0;
   } else {
     t0 = $[0];
   }
   return useRef(t0);
 }
+function _temp() {}
 
 function Foo() {
   const $ = _c(3);
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-capturing-map-after-hook.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-capturing-map-after-hook.expect.md
index aea1dd54731b1..c32688a08745a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-capturing-map-after-hook.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-capturing-map-after-hook.expect.md
@@ -39,48 +39,45 @@ import { useEffect, useState } from "react";
 import { mutate } from "shared-runtime";
 
 function Component(props) {
-  const $ = _c(6);
+  const $ = _c(5);
   const x = [{ ...props.value }];
   let t0;
-  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {};
-    t1 = [];
+    t0 = [];
     $[0] = t0;
-    $[1] = t1;
   } else {
     t0 = $[0];
-    t1 = $[1];
   }
-  useEffect(t0, t1);
+  useEffect(_temp, t0);
   const onClick = () => {
     console.log(x.length);
   };
 
   let y;
 
-  const t2 = x.map((item) => {
+  const t1 = x.map((item) => {
     y = item;
     return <span key={item.id}>{item.text}</span>;
   });
-  const t3 = mutate(y);
-  let t4;
-  if ($[2] !== onClick || $[3] !== t2 || $[4] !== t3) {
-    t4 = (
+  const t2 = mutate(y);
+  let t3;
+  if ($[1] !== onClick || $[2] !== t1 || $[3] !== t2) {
+    t3 = (
       <div onClick={onClick}>
+        {t1}
         {t2}
-        {t3}
       </div>
     );
-    $[2] = onClick;
+    $[1] = onClick;
+    $[2] = t1;
     $[3] = t2;
     $[4] = t3;
-    $[5] = t4;
   } else {
-    t4 = $[5];
+    t3 = $[4];
   }
-  return t4;
+  return t3;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-mutable-map-after-hook.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-mutable-map-after-hook.expect.md
index e481a72bf434b..37334a5834882 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-mutable-map-after-hook.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-dont-memoize-array-with-mutable-map-after-hook.expect.md
@@ -39,55 +39,53 @@ import { useEffect, useState } from "react";
 import { mutate } from "shared-runtime";
 
 function Component(props) {
-  const $ = _c(8);
+  const $ = _c(7);
   const x = [{ ...props.value }];
   let t0;
-  let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {};
-    t1 = [];
+    t0 = [];
     $[0] = t0;
-    $[1] = t1;
   } else {
     t0 = $[0];
-    t1 = $[1];
   }
-  useEffect(t0, t1);
+  useEffect(_temp, t0);
   const onClick = () => {
     console.log(x.length);
   };
 
   let y;
 
-  const t2 = x.map((item) => {
-    item.flag = true;
-    return <span key={item.id}>{item.text}</span>;
-  });
-  let t3;
-  if ($[2] !== y) {
-    t3 = mutate(y);
-    $[2] = y;
-    $[3] = t3;
+  const t1 = x.map(_temp2);
+  let t2;
+  if ($[1] !== y) {
+    t2 = mutate(y);
+    $[1] = y;
+    $[2] = t2;
   } else {
-    t3 = $[3];
+    t2 = $[2];
   }
-  let t4;
-  if ($[4] !== onClick || $[5] !== t2 || $[6] !== t3) {
-    t4 = (
+  let t3;
+  if ($[3] !== onClick || $[4] !== t1 || $[5] !== t2) {
+    t3 = (
       <div onClick={onClick}>
+        {t1}
         {t2}
-        {t3}
       </div>
     );
-    $[4] = onClick;
+    $[3] = onClick;
+    $[4] = t1;
     $[5] = t2;
     $[6] = t3;
-    $[7] = t4;
   } else {
-    t4 = $[7];
+    t3 = $[6];
   }
-  return t4;
+  return t3;
+}
+function _temp2(item) {
+  item.flag = true;
+  return <span key={item.id}>{item.text}</span>;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting-variable-collision.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting-variable-collision.expect.md
index 4754b569aa2bf..1d18668e80012 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting-variable-collision.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting-variable-collision.expect.md
@@ -20,17 +20,10 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(5);
+  const $ = _c(4);
   let t0;
   if ($[0] !== props.items) {
-    let t1;
-    if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (x) => x;
-      $[2] = t1;
-    } else {
-      t1 = $[2];
-    }
-    t0 = props.items.map(t1);
+    t0 = props.items.map(_temp);
     $[0] = props.items;
     $[1] = t0;
   } else {
@@ -38,15 +31,18 @@ function Component(props) {
   }
   const items = t0;
   let t1;
-  if ($[3] !== items) {
+  if ($[2] !== items) {
     t1 = [42, items];
-    $[3] = items;
-    $[4] = t1;
+    $[2] = items;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }
+function _temp(x) {
+  return x;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting.expect.md
index 8415c0093e06d..40343b0b818b2 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-hoisting.expect.md
@@ -26,35 +26,29 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(4);
+  const $ = _c(3);
+  const wat = _temp;
+
+  const pathname_0 = props.wat;
+  const deeplinkItemId = pathname_0 ? props.itemID : null;
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {};
+    t0 = () => wat();
     $[0] = t0;
   } else {
     t0 = $[0];
   }
-  const wat = t0;
-
-  const pathname_0 = props.wat;
-  const deeplinkItemId = pathname_0 ? props.itemID : null;
   let t1;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = () => wat();
-    $[1] = t1;
-  } else {
-    t1 = $[1];
-  }
-  let t2;
-  if ($[2] !== deeplinkItemId) {
-    t2 = <button onClick={t1}>{deeplinkItemId}</button>;
-    $[2] = deeplinkItemId;
-    $[3] = t2;
+  if ($[1] !== deeplinkItemId) {
+    t1 = <button onClick={t0}>{deeplinkItemId}</button>;
+    $[1] = deeplinkItemId;
+    $[2] = t1;
   } else {
-    t2 = $[3];
+    t1 = $[2];
   }
-  return t2;
+  return t1;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-memoize-array-with-immutable-map-after-hook.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-memoize-array-with-immutable-map-after-hook.expect.md
index 33f1330d7e9ea..2b96328236d50 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-memoize-array-with-immutable-map-after-hook.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-memoize-array-with-immutable-map-after-hook.expect.md
@@ -34,7 +34,7 @@ import { c as _c } from "react/compiler-runtime";
 import { useEffect, useState } from "react";
 
 function Component(props) {
-  const $ = _c(11);
+  const $ = _c(10);
   let t0;
   if ($[0] !== props.value) {
     t0 = [props.value];
@@ -45,47 +45,47 @@ function Component(props) {
   }
   const x = t0;
   let t1;
-  let t2;
   if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = () => {};
-    t2 = [];
+    t1 = [];
     $[2] = t1;
-    $[3] = t2;
   } else {
     t1 = $[2];
-    t2 = $[3];
   }
-  useEffect(t1, t2);
-  let t3;
-  if ($[4] !== x.length) {
-    t3 = () => {
+  useEffect(_temp, t1);
+  let t2;
+  if ($[3] !== x.length) {
+    t2 = () => {
       console.log(x.length);
     };
-    $[4] = x.length;
-    $[5] = t3;
+    $[3] = x.length;
+    $[4] = t2;
   } else {
-    t3 = $[5];
+    t2 = $[4];
   }
-  const onClick = t3;
-  let t4;
-  if ($[6] !== x) {
-    t4 = x.map((item) => <span key={item}>{item}</span>);
-    $[6] = x;
-    $[7] = t4;
+  const onClick = t2;
+  let t3;
+  if ($[5] !== x) {
+    t3 = x.map(_temp2);
+    $[5] = x;
+    $[6] = t3;
   } else {
-    t4 = $[7];
+    t3 = $[6];
   }
-  let t5;
-  if ($[8] !== onClick || $[9] !== t4) {
-    t5 = <div onClick={onClick}>{t4}</div>;
-    $[8] = onClick;
+  let t4;
+  if ($[7] !== onClick || $[8] !== t3) {
+    t4 = <div onClick={onClick}>{t3}</div>;
+    $[7] = onClick;
+    $[8] = t3;
     $[9] = t4;
-    $[10] = t5;
   } else {
-    t5 = $[10];
+    t4 = $[9];
   }
-  return t5;
+  return t4;
+}
+function _temp2(item) {
+  return <span key={item}>{item}</span>;
 }
+function _temp() {}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-mutable-range-extending-into-ternary.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-mutable-range-extending-into-ternary.expect.md
index 4b9822fdb8a05..72ba9ab675ea8 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-mutable-range-extending-into-ternary.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-mutable-range-extending-into-ternary.expect.md
@@ -57,15 +57,10 @@ import { useState } from "react";
 function Component(props) {
   const items = props.items ? props.items.slice() : [];
   const [state] = useState("");
-  return props.cond ? (
-    <div>{state}</div>
-  ) : (
-    <div>
-      {items.map((item) => (
-        <div key={item.id}>{item.name}</div>
-      ))}
-    </div>
-  );
+  return props.cond ? <div>{state}</div> : <div>{items.map(_temp)}</div>;
+}
+function _temp(item) {
+  return <div key={item.id}>{item.name}</div>;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-no-declarations-in-reactive-scope-with-early-return.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-no-declarations-in-reactive-scope-with-early-return.expect.md
index ffd18500f1d2c..0c1bf1cd701b3 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-no-declarations-in-reactive-scope-with-early-return.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-no-declarations-in-reactive-scope-with-early-return.expect.md
@@ -39,7 +39,7 @@ function Component() {
 ```javascript
 import { c as _c } from "react/compiler-runtime"; // @enableAssumeHooksFollowRulesOfReact @enableTransitivelyFreezeFunctionExpressions
 function Component() {
-  const $ = _c(9);
+  const $ = _c(8);
   const items = useItems();
   let t0;
   let t1;
@@ -74,17 +74,8 @@ function Component() {
         t2 = t4;
         break bb0;
       }
-      let t4;
-      if ($[6] === Symbol.for("react.memo_cache_sentinel")) {
-        t4 = (t5) => {
-          const [item_0] = t5;
-          return <Stringify item={item_0} />;
-        };
-        $[6] = t4;
-      } else {
-        t4 = $[6];
-      }
-      t1 = filteredItems.map(t4);
+
+      t1 = filteredItems.map(_temp);
     }
     $[0] = items;
     $[1] = t1;
@@ -99,15 +90,19 @@ function Component() {
     return t2;
   }
   let t3;
-  if ($[7] !== t1) {
+  if ($[6] !== t1) {
     t3 = <>{t1}</>;
-    $[7] = t1;
-    $[8] = t3;
+    $[6] = t1;
+    $[7] = t3;
   } else {
-    t3 = $[8];
+    t3 = $[7];
   }
   return t3;
 }
+function _temp(t0) {
+  const [item_0] = t0;
+  return <Stringify item={item_0} />;
+}
 
 ```
       
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-undefined-expression-of-jsxexpressioncontainer.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-undefined-expression-of-jsxexpressioncontainer.expect.md
index aa5a55dfecc2f..f215141be5dd5 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-undefined-expression-of-jsxexpressioncontainer.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-undefined-expression-of-jsxexpressioncontainer.expect.md
@@ -48,7 +48,7 @@ import { c as _c } from "react/compiler-runtime";
 import { StaticText1, Stringify, Text } from "shared-runtime";
 
 function Component(props) {
-  const $ = _c(7);
+  const $ = _c(6);
   const { buttons } = props;
   let nonPrimaryButtons;
   if ($[0] !== buttons) {
@@ -61,24 +61,7 @@ function Component(props) {
   }
   let t0;
   if ($[2] !== nonPrimaryButtons) {
-    let t1;
-    if ($[4] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (buttonProps, i) => (
-        <Stringify
-          {...buttonProps}
-          key={`button-${i}`}
-          style={
-            i % 2 === 0
-              ? styles.leftSecondaryButton
-              : styles.rightSecondaryButton
-          }
-        />
-      );
-      $[4] = t1;
-    } else {
-      t1 = $[4];
-    }
-    t0 = nonPrimaryButtons.map(t1);
+    t0 = nonPrimaryButtons.map(_temp);
     $[2] = nonPrimaryButtons;
     $[3] = t0;
   } else {
@@ -86,15 +69,26 @@ function Component(props) {
   }
   const renderedNonPrimaryButtons = t0;
   let t1;
-  if ($[5] !== renderedNonPrimaryButtons) {
+  if ($[4] !== renderedNonPrimaryButtons) {
     t1 = <StaticText1>{renderedNonPrimaryButtons}</StaticText1>;
-    $[5] = renderedNonPrimaryButtons;
-    $[6] = t1;
+    $[4] = renderedNonPrimaryButtons;
+    $[5] = t1;
   } else {
-    t1 = $[6];
+    t1 = $[5];
   }
   return t1;
 }
+function _temp(buttonProps, i) {
+  return (
+    <Stringify
+      {...buttonProps}
+      key={`button-${i}`}
+      style={
+        i % 2 === 0 ? styles.leftSecondaryButton : styles.rightSecondaryButton
+      }
+    />
+  );
+}
 
 const styles = {
   leftSecondaryButton: { left: true },
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-93dc5d5e538a.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-93dc5d5e538a.expect.md
index 753c8156db382..626091be1e2a5 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-93dc5d5e538a.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-93dc5d5e538a.expect.md
@@ -17,22 +17,16 @@ function RegressionTest() {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // Valid because the loop doesn't change the order of hooks calls.
+// Valid because the loop doesn't change the order of hooks calls.
 function RegressionTest() {
-  const $ = _c(1);
   const res = [];
   for (let i = 0; i !== 10 && true; ++i) {
     res.push(i);
   }
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {};
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  React.useLayoutEffect(t0);
+
+  React.useLayoutEffect(_temp);
 }
+function _temp() {}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/simple-function-1.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/simple-function-1.expect.md
index 508d0f66ba23d..586b610399e67 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/simple-function-1.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/simple-function-1.expect.md
@@ -20,21 +20,13 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 function component() {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function (a) {
-      a.foo();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  const x = t0;
+  const x = _temp;
   return x;
 }
+function _temp(a) {
+  a.foo();
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo.unnecessary-lambda-memoization.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo.unnecessary-lambda-memoization.expect.md
index e5ece01a5ed33..a5de1b45fa237 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo.unnecessary-lambda-memoization.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo.unnecessary-lambda-memoization.expect.md
@@ -24,18 +24,11 @@ function Component(props) {
 ```javascript
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
-  const $ = _c(5);
+  const $ = _c(4);
   const data = useFreeze();
   let t0;
   if ($[0] !== data.items) {
-    let t1;
-    if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (item) => <Item item={item} />;
-      $[2] = t1;
-    } else {
-      t1 = $[2];
-    }
-    t0 = data.items.map(t1);
+    t0 = data.items.map(_temp);
     $[0] = data.items;
     $[1] = t0;
   } else {
@@ -43,15 +36,18 @@ function Component(props) {
   }
   const items = t0;
   let t1;
-  if ($[3] !== items) {
+  if ($[2] !== items) {
     t1 = <div>{items}</div>;
-    $[3] = items;
-    $[4] = t1;
+    $[2] = items;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }
+function _temp(item) {
+  return <Item item={item} />;
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/transitive-freeze-function-expressions.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/transitive-freeze-function-expressions.expect.md
index ff1a2e16e722e..ca472cc6b677f 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/transitive-freeze-function-expressions.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/transitive-freeze-function-expressions.expect.md
@@ -33,7 +33,7 @@ function Component(props) {
 ```javascript
 import { c as _c } from "react/compiler-runtime"; // @enableTransitivelyFreezeFunctionExpressions
 function Component(props) {
-  const $ = _c(10);
+  const $ = _c(9);
   const { data, loadNext, isLoadingNext } =
     usePaginationFragment(props.key).items ?? [];
   let t0;
@@ -74,14 +74,7 @@ function Component(props) {
   useEffect(t1, t2);
   let t3;
   if ($[7] !== data) {
-    let t4;
-    if ($[9] === Symbol.for("react.memo_cache_sentinel")) {
-      t4 = (x) => x;
-      $[9] = t4;
-    } else {
-      t4 = $[9];
-    }
-    t3 = data.map(t4);
+    t3 = data.map(_temp);
     $[7] = data;
     $[8] = t3;
   } else {
@@ -90,6 +83,9 @@ function Component(props) {
   const items = t3;
   return items;
 }
+function _temp(x) {
+  return x;
+}
 
 ```
       
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/try-catch-within-function-expression.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/try-catch-within-function-expression.expect.md
index 4e9dbd5fed5f8..5f55ec6142965 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/try-catch-within-function-expression.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/try-catch-within-function-expression.expect.md
@@ -26,16 +26,9 @@ export const FIXTURE_ENTRYPOINT = {
 import { c as _c } from "react/compiler-runtime";
 function Component(props) {
   const $ = _c(1);
+  const callback = _temp;
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    const callback = () => {
-      try {
-        return [];
-      } catch (t1) {
-        return;
-      }
-    };
-
     t0 = callback();
     $[0] = t0;
   } else {
@@ -43,6 +36,13 @@ function Component(props) {
   }
   return t0;
 }
+function _temp() {
+  try {
+    return [];
+  } catch (t0) {
+    return;
+  }
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Component,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation.expect.md
index 02a31ec938063..c5bafae2b7574 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation.expect.md
@@ -25,12 +25,13 @@ export const FIXTURE_ENTRYPOINT = {
 // @enableAssumeHooksFollowRulesOfReact @enableTransitivelyFreezeFunctionExpressions
 type Bar = string;
 function TypeAliasUsedAsParamAnnotation() {
-  const fun = (f) => {
-    console.log(f);
-  };
+  const fun = _temp;
 
   fun("hello, world");
 }
+function _temp(f) {
+  console.log(f);
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: TypeAliasUsedAsParamAnnotation,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation_.flow.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation_.flow.expect.md
index 92c522c4503be..52a2217beadb3 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation_.flow.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-annotation_.flow.expect.md
@@ -23,12 +23,13 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 type Bar = string;
 function TypeAliasUsedAsAnnotation() {
-  const fun = (f) => {
-    console.log(f);
-  };
+  const fun = _temp;
 
   fun("hello, world");
 }
+function _temp(f) {
+  console.log(f);
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: TypeAliasUsedAsAnnotation,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation.expect.md
index f97bcbb3a6808..a8b58d4030eea 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation.expect.md
@@ -26,13 +26,14 @@ export const FIXTURE_ENTRYPOINT = {
 // @enableAssumeHooksFollowRulesOfReact @enableTransitivelyFreezeFunctionExpressions
 type Bar = string;
 function TypeAliasUsedAsVariableAnnotation() {
-  const fun = (f) => {
-    const g = f;
-    console.log(g);
-  };
+  const fun = _temp;
 
   fun("hello, world");
 }
+function _temp(f) {
+  const g = f;
+  console.log(g);
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: TypeAliasUsedAsVariableAnnotation,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation_.flow.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation_.flow.expect.md
index 9362ad8655b9e..3b5af06a5d43a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation_.flow.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-alias-used-as-variable-annotation_.flow.expect.md
@@ -25,13 +25,14 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 type Bar = string;
 function TypeAliasUsedAsAnnotation() {
-  const fun = (f) => {
-    const g = f;
-    console.log(g);
-  };
+  const fun = _temp;
 
   fun("hello, world");
 }
+function _temp(f) {
+  const g = f;
+  console.log(g);
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: TypeAliasUsedAsAnnotation,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-annotations/todo_type-annotations-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-annotations/todo_type-annotations-props.expect.md
index 709f75ddb294b..ee502bc34231c 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-annotations/todo_type-annotations-props.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/type-annotations/todo_type-annotations-props.expect.md
@@ -22,17 +22,10 @@ export const FIXTURE_ENTRYPOINT = {
 ```javascript
 import { c as _c } from "react/compiler-runtime"; // @enableUseTypeAnnotations
 function useArray(items) {
-  const $ = _c(3);
+  const $ = _c(2);
   let t0;
   if ($[0] !== items) {
-    let t1;
-    if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
-      t1 = (x) => x !== 0;
-      $[2] = t1;
-    } else {
-      t1 = $[2];
-    }
-    t0 = items.filter(t1);
+    t0 = items.filter(_temp);
     $[0] = items;
     $[1] = t0;
   } else {
@@ -40,6 +33,9 @@ function useArray(items) {
   }
   return t0;
 }
+function _temp(x) {
+  return x !== 0;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: useArray,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-external-mutate.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-external-mutate.expect.md
index 4481197c91cad..6deb76d188e84 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-external-mutate.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-external-mutate.expect.md
@@ -22,23 +22,15 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 import { useEffect } from "react";
 
 let x = { a: 42 };
 
 function Component(props) {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      x.a = 10;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  useEffect(t0);
+  useEffect(_temp);
+}
+function _temp() {
+  x.a = 10;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-global-pruned.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-global-pruned.expect.md
index c598ff8367319..c81175fde94e2 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-global-pruned.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-global-pruned.expect.md
@@ -36,35 +36,29 @@ import { useEffect } from "react";
 
 function someGlobal() {}
 function useFoo() {
-  const $ = _c(3);
+  const $ = _c(2);
   let t0;
-  let t1;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = function () {
-      someGlobal();
-    };
-    $[0] = t1;
-  } else {
-    t1 = $[0];
-  }
-  t0 = t1;
+  t0 = _temp;
   const fn = t0;
+  let t1;
   let t2;
-  let t3;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t2 = () => {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => {
       fn();
     };
-    t3 = [fn];
+    t2 = [fn];
+    $[0] = t1;
     $[1] = t2;
-    $[2] = t3;
   } else {
+    t1 = $[0];
     t2 = $[1];
-    t3 = $[2];
   }
-  useEffect(t2, t3);
+  useEffect(t1, t2);
   return null;
 }
+function _temp() {
+  someGlobal();
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: useFoo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-method-call.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-method-call.expect.md
index c275453aff604..638ea42aa5e16 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-method-call.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-method-call.expect.md
@@ -19,20 +19,12 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 let x = {};
 function Component() {
-  const $ = _c(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      x.foo = 1;
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  React.useEffect(t0);
+  React.useEffect(_temp);
+}
+function _temp() {
+  x.foo = 1;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-namespace-pruned.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-namespace-pruned.expect.md
index 0c6f4d582f607..8af9ad082ec1c 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-namespace-pruned.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/useEffect-namespace-pruned.expect.md
@@ -36,35 +36,29 @@ import * as React from "react";
 
 function someGlobal() {}
 function useFoo() {
-  const $ = _c(3);
+  const $ = _c(2);
   let t0;
-  let t1;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = function () {
-      someGlobal();
-    };
-    $[0] = t1;
-  } else {
-    t1 = $[0];
-  }
-  t0 = t1;
+  t0 = _temp;
   const fn = t0;
+  let t1;
   let t2;
-  let t3;
-  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
-    t2 = () => {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => {
       fn();
     };
-    t3 = [fn];
+    t2 = [fn];
+    $[0] = t1;
     $[1] = t2;
-    $[2] = t3;
   } else {
+    t1 = $[0];
     t2 = $[1];
-    t3 = $[2];
   }
-  React.useEffect(t2, t3);
+  React.useEffect(t1, t2);
   return null;
 }
+function _temp() {
+  someGlobal();
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: useFoo,
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/value-block-mutates-outer-value.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/value-block-mutates-outer-value.expect.md
index 29d19decd5ec0..c57a3079517b1 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/value-block-mutates-outer-value.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/value-block-mutates-outer-value.expect.md
@@ -34,7 +34,6 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime";
 import { makeArray, useHook } from "shared-runtime";
 
 /**
@@ -46,16 +45,8 @@ import { makeArray, useHook } from "shared-runtime";
  * merged with the scope producing customList
  */
 function Foo(t0) {
-  const $ = _c(1);
   const { defaultList, cond } = t0;
-  let t1;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = (a, b) => a - b;
-    $[0] = t1;
-  } else {
-    t1 = $[0];
-  }
-  const comparator = t1;
+  const comparator = _temp;
   useHook();
   const customList = makeArray(1, 5, 2);
   useHook();
@@ -64,6 +55,9 @@ function Foo(t0) {
     : defaultList;
   return result;
 }
+function _temp(a, b) {
+  return a - b;
+}
 
 export const FIXTURE_ENTRYPOINT = {
   fn: Foo,