diff --git a/crates/oxc_transformer/src/es2015/arrow_functions.rs b/crates/oxc_transformer/src/es2015/arrow_functions.rs
index 4843258123df9..12b0f56b9ea05 100644
--- a/crates/oxc_transformer/src/es2015/arrow_functions.rs
+++ b/crates/oxc_transformer/src/es2015/arrow_functions.rs
@@ -99,6 +99,9 @@ impl<'a> ArrowFunctions<'a> {
 }
 
 impl<'a> Traverse<'a> for ArrowFunctions<'a> {
+    // Note: No visitors for `TSModuleBlock` because `this` is not legal in TS module blocks.
+    // <https://www.typescriptlang.org/play/?#code/HYQwtgpgzgDiDGEAEAxA9mpBvAsAKCSXjWCgBckANJAXiQAoBKWgPiTIAsBLKAbnwC++fGDQATAK4AbZACEQAJ2z5CxUhWp0mrdtz6D8QA>
+
     /// Insert `var _this = this;` for the global scope.
     fn exit_program(&mut self, program: &mut Program<'a>, _ctx: &mut TraverseCtx<'a>) {
         debug_assert!(self.inside_arrow_function_stack.len() == 1);
@@ -168,6 +171,18 @@ impl<'a> Traverse<'a> for ArrowFunctions<'a> {
         self.inside_arrow_function_stack.pop().unwrap();
     }
 
+    fn enter_static_block(&mut self, _block: &mut StaticBlock<'a>, _ctx: &mut TraverseCtx<'a>) {
+        self.this_var_stack.push(None);
+        // No need to push to `inside_arrow_function_stack` because `enter_class` already pushed `false`
+    }
+
+    fn exit_static_block(&mut self, block: &mut StaticBlock<'a>, _ctx: &mut TraverseCtx<'a>) {
+        let this_var = self.this_var_stack.pop().unwrap();
+        if let Some(this_var) = this_var {
+            self.insert_this_var_statement_at_the_top_of_statements(&mut block.body, &this_var);
+        }
+    }
+
     fn enter_jsx_element_name(
         &mut self,
         element_name: &mut JSXElementName<'a>,
@@ -255,13 +270,16 @@ impl<'a> ArrowFunctions<'a> {
             let target_scope_id = ctx
                 .scopes()
                 .ancestors(ctx.current_scope_id())
+                // We're inside arrow function, so parent scope can't be what we're looking for.
+                // It's either the arrow function, or a block nested within arrow function.
                 .skip(1)
                 .find(|&scope_id| {
                     let scope_flags = ctx.scopes().get_flags(scope_id);
-                    // Function but not arrow function
-                    scope_flags & (ScopeFlags::Function | ScopeFlags::Arrow) == ScopeFlags::Function
+                    scope_flags.intersects(
+                        ScopeFlags::Function | ScopeFlags::Top | ScopeFlags::ClassStaticBlock,
+                    ) && !scope_flags.contains(ScopeFlags::Arrow)
                 })
-                .unwrap_or(ctx.scopes().root_scope_id());
+                .unwrap();
 
             this_var.replace(BoundIdentifier::new_uid(
                 "this",
diff --git a/crates/oxc_transformer/src/es2015/mod.rs b/crates/oxc_transformer/src/es2015/mod.rs
index 6500930fa4e41..e1a007dedac9b 100644
--- a/crates/oxc_transformer/src/es2015/mod.rs
+++ b/crates/oxc_transformer/src/es2015/mod.rs
@@ -95,6 +95,18 @@ impl<'a> Traverse<'a> for ES2015<'a> {
         }
     }
 
+    fn enter_static_block(&mut self, block: &mut StaticBlock<'a>, ctx: &mut TraverseCtx<'a>) {
+        if self.options.arrow_function.is_some() {
+            self.arrow_functions.enter_static_block(block, ctx);
+        }
+    }
+
+    fn exit_static_block(&mut self, block: &mut StaticBlock<'a>, ctx: &mut TraverseCtx<'a>) {
+        if self.options.arrow_function.is_some() {
+            self.arrow_functions.exit_static_block(block, ctx);
+        }
+    }
+
     fn enter_variable_declarator(
         &mut self,
         node: &mut VariableDeclarator<'a>,
diff --git a/crates/oxc_transformer/src/lib.rs b/crates/oxc_transformer/src/lib.rs
index 39f2ca91408fa..bcde55095e51c 100644
--- a/crates/oxc_transformer/src/lib.rs
+++ b/crates/oxc_transformer/src/lib.rs
@@ -167,6 +167,14 @@ impl<'a> Traverse<'a> for Transformer<'a> {
         self.x0_typescript.enter_class_body(body, ctx);
     }
 
+    fn enter_static_block(&mut self, block: &mut StaticBlock<'a>, ctx: &mut TraverseCtx<'a>) {
+        self.x3_es2015.enter_static_block(block, ctx);
+    }
+
+    fn exit_static_block(&mut self, block: &mut StaticBlock<'a>, ctx: &mut TraverseCtx<'a>) {
+        self.x3_es2015.exit_static_block(block, ctx);
+    }
+
     fn enter_ts_module_declaration(
         &mut self,
         decl: &mut TSModuleDeclaration<'a>,
diff --git a/tasks/transform_conformance/oxc.snap.md b/tasks/transform_conformance/oxc.snap.md
index c1c31d7dbd9f4..afe94fbacf4ee 100644
--- a/tasks/transform_conformance/oxc.snap.md
+++ b/tasks/transform_conformance/oxc.snap.md
@@ -1,6 +1,6 @@
 commit: 3bcfee23
 
-Passed: 43/53
+Passed: 44/54
 
 # All Passed:
 * babel-plugin-transform-nullish-coalescing-operator
diff --git a/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/input.js b/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/input.js
new file mode 100644
index 0000000000000..b97bacf168224
--- /dev/null
+++ b/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/input.js
@@ -0,0 +1,6 @@
+let f;
+class C {
+  static {
+    f = () => this;
+  }
+}
diff --git a/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/output.js b/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/output.js
new file mode 100644
index 0000000000000..d6799b25c2b1f
--- /dev/null
+++ b/tasks/transform_conformance/tests/babel-plugin-transform-arrow-functions/test/fixtures/arrow-in-class-static-block/output.js
@@ -0,0 +1,9 @@
+let f;
+class C {
+  static {
+	var _this = this;
+	f = function() {
+	  return _this;
+	};
+  }
+}