diff --git a/crates/oxc_transformer/src/es2022/class_properties/class.rs b/crates/oxc_transformer/src/es2022/class_properties/class.rs
index 24ae380de5a81..55dff5512283e 100644
--- a/crates/oxc_transformer/src/es2022/class_properties/class.rs
+++ b/crates/oxc_transformer/src/es2022/class_properties/class.rs
@@ -531,7 +531,10 @@ impl<'a, 'ctx> ClassProperties<'a, 'ctx> {
     ) {
         // Get value
         let value = match &mut prop.value {
-            Some(value) => ctx.ast.move_expression(value),
+            Some(value) => {
+                self.transform_instance_initializer(value, ctx);
+                ctx.ast.move_expression(value)
+            }
             None => ctx.ast.void_0(SPAN),
         };
 
diff --git a/crates/oxc_transformer/src/es2022/class_properties/instance_prop_init.rs b/crates/oxc_transformer/src/es2022/class_properties/instance_prop_init.rs
new file mode 100644
index 0000000000000..adc4399d83303
--- /dev/null
+++ b/crates/oxc_transformer/src/es2022/class_properties/instance_prop_init.rs
@@ -0,0 +1,76 @@
+//! ES2022: Class Properties
+//! Transform of instance property initializers.
+
+use std::cell::Cell;
+
+use oxc_ast::{ast::*, visit::VisitMut};
+use oxc_syntax::scope::{ScopeFlags, ScopeId};
+use oxc_traverse::TraverseCtx;
+
+use super::ClassProperties;
+
+impl<'a, 'ctx> ClassProperties<'a, 'ctx> {
+    /// Transform instance property initializer.
+    ///
+    /// Instance property initializers move from the class body into either class constructor,
+    /// or a `_super` function. Change parent scope of first-level scopes in initializer to reflect this.
+    pub(super) fn transform_instance_initializer(
+        &mut self,
+        value: &mut Expression<'a>,
+        ctx: &mut TraverseCtx<'a>,
+    ) {
+        let mut updater = InstanceInitializerVisitor::new(self, ctx);
+        updater.visit_expression(value);
+    }
+}
+
+/// Visitor to change parent scope of first-level scopes in instance property initializer.
+struct InstanceInitializerVisitor<'a, 'v> {
+    /// Incremented when entering a scope, decremented when exiting it.
+    /// Parent `ScopeId` should be updated when `scope_depth == 0`.
+    scope_depth: u32,
+    /// Parent scope
+    parent_scope_id: ScopeId,
+    /// `TraverseCtx` object.
+    ctx: &'v mut TraverseCtx<'a>,
+}
+
+impl<'a, 'v> InstanceInitializerVisitor<'a, 'v> {
+    fn new(
+        class_properties: &'v mut ClassProperties<'a, '_>,
+        ctx: &'v mut TraverseCtx<'a>,
+    ) -> Self {
+        let parent_scope_id = class_properties.instance_inits_scope_id;
+        Self { scope_depth: 0, parent_scope_id, ctx }
+    }
+}
+
+impl<'a, 'v> VisitMut<'a> for InstanceInitializerVisitor<'a, 'v> {
+    /// Update parent scope for first level of scopes.
+    /// Convert scope to sloppy mode if `self.make_sloppy_mode == true`.
+    fn enter_scope(&mut self, _flags: ScopeFlags, scope_id: &Cell<Option<ScopeId>>) {
+        let scope_id = scope_id.get().unwrap();
+
+        // TODO: Not necessary to do this check for all scopes.
+        // In JS, only `Function`, `ArrowFunctionExpression` or `Class` can be the first-level scope,
+        // as all other types which have a scope are statements or `StaticBlock` which would need to be
+        // inside a function or class. But some TS types with scopes could be first level via
+        // e.g. `TaggedTemplateExpression::type_parameters`, which contains `TSType`.
+        // Not sure if that matters though, as they'll be stripped out anyway by TS transform.
+        if self.scope_depth == 0 {
+            self.reparent_scope(scope_id);
+        }
+        self.scope_depth += 1;
+    }
+
+    fn leave_scope(&mut self) {
+        self.scope_depth -= 1;
+    }
+}
+
+impl<'a, 'v> InstanceInitializerVisitor<'a, 'v> {
+    /// Update parent of scope to scope above class.
+    fn reparent_scope(&mut self, scope_id: ScopeId) {
+        self.ctx.scopes_mut().change_parent_id(scope_id, Some(self.parent_scope_id));
+    }
+}
diff --git a/crates/oxc_transformer/src/es2022/class_properties/mod.rs b/crates/oxc_transformer/src/es2022/class_properties/mod.rs
index 60bb2264fe1b3..ca2e661afded9 100644
--- a/crates/oxc_transformer/src/es2022/class_properties/mod.rs
+++ b/crates/oxc_transformer/src/es2022/class_properties/mod.rs
@@ -130,6 +130,7 @@
 //! * `constructor.rs`:       Insertion of property initializers into class constructor.
 //! * `private.rs`:           Transform of private property usages (`this.#prop`).
 //! * `private_props.rs`:     Structures storing details of private properties.
+//! * `instance_prop_init.rs`: Transform of instance property initializers.
 //! * `static_prop_init.rs`:  Transform of static property initializers.
 //! * `class_bindings.rs`:    Structure containing bindings for class name and temp var.
 //! * `super.rs`:             Transform `super` expressions.
@@ -158,6 +159,7 @@ use crate::TransformCtx;
 mod class;
 mod class_bindings;
 mod constructor;
+mod instance_prop_init;
 mod private;
 mod private_props;
 mod static_prop_init;
diff --git a/tasks/transform_conformance/snapshots/babel.snap.md b/tasks/transform_conformance/snapshots/babel.snap.md
index 7a72ff8d9fa86..feaa20d067656 100644
--- a/tasks/transform_conformance/snapshots/babel.snap.md
+++ b/tasks/transform_conformance/snapshots/babel.snap.md
@@ -1,6 +1,6 @@
 commit: 54a8389f
 
-Passed: 564/927
+Passed: 578/927
 
 # All Passed:
 * babel-plugin-transform-class-static-block
@@ -276,7 +276,7 @@ x Output mismatch
 x Output mismatch
 
 
-# babel-plugin-transform-class-properties (178/264)
+# babel-plugin-transform-class-properties (192/264)
 * assumption-constantSuper/complex-super-class/input.js
 x Output mismatch
 
@@ -298,46 +298,6 @@ x Output mismatch
 * assumption-setPublicClassFields/constructor-collision/input.js
 x Output mismatch
 
-* assumption-setPublicClassFields/foobar/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(2): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(3): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
-* assumption-setPublicClassFields/regression-T7364/input.mjs
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(7)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(7): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(8)]
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope children mismatch:
-after transform: ScopeId(8): []
-rebuilt        : ScopeId(5): [ScopeId(6)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(6): Some(ScopeId(5))
-Scope children mismatch:
-after transform: ScopeId(5): [ScopeId(6), ScopeId(9)]
-rebuilt        : ScopeId(7): [ScopeId(8)]
-Scope children mismatch:
-after transform: ScopeId(9): []
-rebuilt        : ScopeId(8): [ScopeId(9)]
-Scope parent mismatch:
-after transform: ScopeId(6): Some(ScopeId(5))
-rebuilt        : ScopeId(9): Some(ScopeId(8))
-
 * assumption-setPublicClassFields/static-infer-name/input.js
 x Output mismatch
 
@@ -378,17 +338,6 @@ x Output mismatch
 * nested-class/super-property-in-decorator/input.js
 x Output mismatch
 
-* private/call/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3), ScopeId(4)]
-rebuilt        : ScopeId(1): [ScopeId(2), ScopeId(4)]
-Scope children mismatch:
-after transform: ScopeId(4): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
 * private/class-shadow-builtins/input.mjs
 x Output mismatch
 
@@ -398,17 +347,6 @@ x Output mismatch
 * private/extracted-this/input.js
 x Output mismatch
 
-* private/foobar/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(2): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(3): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
 * private/nested-class-computed-redeclared/input.js
 x Output mismatch
 
@@ -439,52 +377,12 @@ x Output mismatch
 * private/parenthesized-optional-member-call-with-transform/input.js
 x Output mismatch
 
-* private/regression-T7364/input.mjs
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(7)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(7): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(8)]
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope children mismatch:
-after transform: ScopeId(8): []
-rebuilt        : ScopeId(5): [ScopeId(6)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(6): Some(ScopeId(5))
-Scope children mismatch:
-after transform: ScopeId(5): [ScopeId(6), ScopeId(9)]
-rebuilt        : ScopeId(7): [ScopeId(8)]
-Scope children mismatch:
-after transform: ScopeId(9): []
-rebuilt        : ScopeId(8): [ScopeId(9)]
-Scope parent mismatch:
-after transform: ScopeId(6): Some(ScopeId(5))
-rebuilt        : ScopeId(9): Some(ScopeId(8))
-
 * private/static-infer-name/input.js
 x Output mismatch
 
 * private/static-shadow/input.js
 x Output mismatch
 
-* private-loose/call/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3), ScopeId(4)]
-rebuilt        : ScopeId(1): [ScopeId(2), ScopeId(4)]
-Scope children mismatch:
-after transform: ScopeId(4): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
 * private-loose/class-shadow-builtins/input.mjs
 x Output mismatch
 
@@ -494,17 +392,6 @@ x Output mismatch
 * private-loose/extracted-this/input.js
 x Output mismatch
 
-* private-loose/foobar/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(2): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(3): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
 * private-loose/nested-class-computed-redeclared/input.js
 x Output mismatch
 
@@ -573,17 +460,6 @@ x Output mismatch
 * private-loose/static-infer-name/input.js
 x Output mismatch
 
-* public/call/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3), ScopeId(4)]
-rebuilt        : ScopeId(1): [ScopeId(2), ScopeId(4)]
-Scope children mismatch:
-after transform: ScopeId(4): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
 * public/class-shadow-builtins/input.mjs
 x Output mismatch
 
@@ -599,46 +475,6 @@ x Output mismatch
 * public/extracted-this/input.js
 x Output mismatch
 
-* public/foobar/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(2): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(3): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
-* public/regression-T7364/input.mjs
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(7)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(7): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(8)]
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope children mismatch:
-after transform: ScopeId(8): []
-rebuilt        : ScopeId(5): [ScopeId(6)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(6): Some(ScopeId(5))
-Scope children mismatch:
-after transform: ScopeId(5): [ScopeId(6), ScopeId(9)]
-rebuilt        : ScopeId(7): [ScopeId(8)]
-Scope children mismatch:
-after transform: ScopeId(9): []
-rebuilt        : ScopeId(8): [ScopeId(9)]
-Scope parent mismatch:
-after transform: ScopeId(6): Some(ScopeId(5))
-rebuilt        : ScopeId(9): Some(ScopeId(8))
-
 * public/static-infer-name/input.js
 x Output mismatch
 
@@ -654,46 +490,6 @@ x Output mismatch
 * public-loose/constructor-collision/input.js
 x Output mismatch
 
-* public-loose/foobar/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(2): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(3): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
-* public-loose/regression-T7364/input.mjs
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(7)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(7): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(8)]
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope children mismatch:
-after transform: ScopeId(8): []
-rebuilt        : ScopeId(5): [ScopeId(6)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(6): Some(ScopeId(5))
-Scope children mismatch:
-after transform: ScopeId(5): [ScopeId(6), ScopeId(9)]
-rebuilt        : ScopeId(7): [ScopeId(8)]
-Scope children mismatch:
-after transform: ScopeId(9): []
-rebuilt        : ScopeId(8): [ScopeId(9)]
-Scope parent mismatch:
-after transform: ScopeId(6): Some(ScopeId(5))
-rebuilt        : ScopeId(9): Some(ScopeId(8))
-
 * public-loose/static-infer-name/input.js
 x Output mismatch
 
@@ -706,17 +502,6 @@ x Output mismatch
 * regression/6153/input.js
 x Output mismatch
 
-* regression/6154/input.js
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(6)]
-rebuilt        : ScopeId(3): [ScopeId(4)]
-Scope children mismatch:
-after transform: ScopeId(6): []
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(5): Some(ScopeId(4))
-
 * regression/7951/input.mjs
 x Output mismatch
 
@@ -734,35 +519,6 @@ Symbol scope ID mismatch for "_bar":
 after transform: SymbolId(3): ScopeId(2)
 rebuilt        : SymbolId(3): ScopeId(0)
 
-* regression/T7364/input.mjs
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(7)]
-rebuilt        : ScopeId(1): [ScopeId(2)]
-Scope children mismatch:
-after transform: ScopeId(7): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-Scope children mismatch:
-after transform: ScopeId(3): [ScopeId(4), ScopeId(8)]
-rebuilt        : ScopeId(4): [ScopeId(5)]
-Scope children mismatch:
-after transform: ScopeId(8): []
-rebuilt        : ScopeId(5): [ScopeId(6)]
-Scope parent mismatch:
-after transform: ScopeId(4): Some(ScopeId(3))
-rebuilt        : ScopeId(6): Some(ScopeId(5))
-Scope children mismatch:
-after transform: ScopeId(5): [ScopeId(6), ScopeId(9)]
-rebuilt        : ScopeId(7): [ScopeId(8)]
-Scope children mismatch:
-after transform: ScopeId(9): []
-rebuilt        : ScopeId(8): [ScopeId(9)]
-Scope parent mismatch:
-after transform: ScopeId(6): Some(ScopeId(5))
-rebuilt        : ScopeId(9): Some(ScopeId(8))
-
 
 # babel-plugin-transform-nullish-coalescing-operator (5/12)
 * assumption-noDocumentAll/transform/input.js
diff --git a/tasks/transform_conformance/snapshots/oxc.snap.md b/tasks/transform_conformance/snapshots/oxc.snap.md
index 387c20f4e124e..2612af6f909ad 100644
--- a/tasks/transform_conformance/snapshots/oxc.snap.md
+++ b/tasks/transform_conformance/snapshots/oxc.snap.md
@@ -1,6 +1,6 @@
 commit: 54a8389f
 
-Passed: 107/121
+Passed: 108/121
 
 # All Passed:
 * babel-plugin-transform-class-static-block
@@ -16,18 +16,7 @@ Passed: 107/121
 * regexp
 
 
-# babel-plugin-transform-class-properties (8/11)
-* private-loose-tagged-template/input.js
-Scope children mismatch:
-after transform: ScopeId(1): [ScopeId(2), ScopeId(3), ScopeId(4)]
-rebuilt        : ScopeId(1): [ScopeId(2), ScopeId(4)]
-Scope children mismatch:
-after transform: ScopeId(4): []
-rebuilt        : ScopeId(2): [ScopeId(3)]
-Scope parent mismatch:
-after transform: ScopeId(2): Some(ScopeId(1))
-rebuilt        : ScopeId(3): Some(ScopeId(2))
-
+# babel-plugin-transform-class-properties (9/11)
 * typescript/optional-call/input.ts
 Symbol reference IDs mismatch for "X":
 after transform: SymbolId(0): [ReferenceId(0), ReferenceId(2), ReferenceId(6), ReferenceId(11), ReferenceId(16)]