diff --git a/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts b/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
index 7330b63ddce..35a8bc21ce7 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
@@ -23,6 +23,7 @@ import {
   markInstructionIds,
   markPredecessors,
   mergeConsecutiveBlocks,
+  promoteTemporaryJsxTag,
   reversePostorderBlocks,
 } from '../HIR';
 import {
@@ -62,7 +63,12 @@ export function constantPropagation(fn: HIRFunction): void {
 
 function constantPropagationImpl(fn: HIRFunction, constants: Constants): void {
   while (true) {
-    const haveTerminalsChanged = applyConstantPropagation(fn, constants);
+    const jsxTagIdentifiers = collectJsxTagIdentifiers(fn);
+    const haveTerminalsChanged = applyConstantPropagation(
+      fn,
+      constants,
+      jsxTagIdentifiers,
+    );
     if (!haveTerminalsChanged) {
       break;
     }
@@ -106,6 +112,7 @@ function constantPropagationImpl(fn: HIRFunction, constants: Constants): void {
 function applyConstantPropagation(
   fn: HIRFunction,
   constants: Constants,
+  jsxTagIdentifiers: Set<IdentifierId>,
 ): boolean {
   let hasChanges = false;
   for (const [, block] of fn.body.blocks) {
@@ -130,7 +137,7 @@ function applyConstantPropagation(
         continue;
       }
       const instr = block.instructions[i]!;
-      const value = evaluateInstruction(constants, instr);
+      const value = evaluateInstruction(constants, instr, jsxTagIdentifiers);
       if (value !== null) {
         constants.set(instr.lvalue.identifier.id, value);
       }
@@ -239,6 +246,7 @@ function evaluatePhi(phi: Phi, constants: Constants): Constant | null {
 function evaluateInstruction(
   constants: Constants,
   instr: Instruction,
+  jsxTagIdentifiers: Set<IdentifierId>,
 ): Constant | null {
   const value = instr.value;
   switch (value.kind) {
@@ -593,6 +601,14 @@ function evaluateInstruction(
     case 'LoadLocal': {
       const placeValue = read(constants, value.place);
       if (placeValue !== null) {
+        if (
+          instr.lvalue != null &&
+          jsxTagIdentifiers.has(instr.lvalue.identifier.id) &&
+          placeValue.kind === 'LoadGlobal' &&
+          instr.lvalue.identifier.name == null
+        ) {
+          promoteTemporaryJsxTag(instr.lvalue.identifier);
+        }
         instr.value = placeValue;
       }
       return placeValue;
@@ -639,3 +655,19 @@ function read(constants: Constants, place: Place): Constant | null {
 
 type Constant = Primitive | LoadGlobal;
 type Constants = Map<IdentifierId, Constant>;
+
+function collectJsxTagIdentifiers(fn: HIRFunction): Set<IdentifierId> {
+  const identifiers = new Set<IdentifierId>();
+
+  for (const [, block] of fn.body.blocks) {
+    for (const instr of block.instructions) {
+      if (
+        instr.value.kind === 'JsxExpression' &&
+        instr.value.tag.kind === 'Identifier'
+      ) {
+        identifiers.add(instr.value.tag.identifier.id);
+      }
+    }
+  }
+  return identifiers;
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-local-tag-in-lambda.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-local-tag-in-lambda.expect.md
index a7d27bc3819..d6da6da2c18 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-local-tag-in-lambda.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-local-tag-in-lambda.expect.md
@@ -37,7 +37,8 @@ function useFoo() {
   return t0;
 }
 function _temp() {
-  return <Stringify value={4} />;
+  const T0 = Stringify;
+  return <T0 value={4} />;
 }
 
 export const FIXTURE_ENTRYPOINT = {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-tag-evaluation-order.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-tag-evaluation-order.expect.md
index b59db512231..259fdc19947 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-tag-evaluation-order.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-tag-evaluation-order.expect.md
@@ -31,10 +31,12 @@ import { StaticText1, StaticText2 } from "shared-runtime";
 function Component(props) {
   const $ = _c(3);
 
+  const T0 = StaticText1;
   const t0 = props.value;
+  const T1 = StaticText2;
   let t1;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t1 = <StaticText2 />;
+    t1 = <T1 />;
     $[0] = t1;
   } else {
     t1 = $[0];
@@ -42,10 +44,10 @@ function Component(props) {
   let t2;
   if ($[1] !== t0) {
     t2 = (
-      <StaticText1>
+      <T0>
         {t0}
         {t1}
-      </StaticText1>
+      </T0>
     );
     $[1] = t0;
     $[2] = t2;
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.expect.md
new file mode 100644
index 00000000000..cc8790b2bde
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.expect.md
@@ -0,0 +1,57 @@
+
+## Input
+
+```javascript
+import React from 'react';
+
+const base = 'div';
+
+const TestComponent: React.FC = () => {
+  const Comp = base;
+  return <Comp />;
+};
+
+export default function Home() {
+  return <TestComponent />;
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+import React from "react";
+
+const base = "div";
+
+const TestComponent: React.FC = () => {
+  const $ = _c(1);
+
+  const T0 = base;
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <T0 />;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+};
+
+export default function Home() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <TestComponent />;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.tsx b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.tsx
new file mode 100644
index 00000000000..c4d2604293e
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-jsx-dynamic-tag-alias.tsx
@@ -0,0 +1,12 @@
+import React from 'react';
+
+const base = 'div';
+
+const TestComponent: React.FC = () => {
+  const Comp = base;
+  return <Comp />;
+};
+
+export default function Home() {
+  return <TestComponent />;
+}