diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1c2dda552e..5d20016821 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -28,6 +28,7 @@
 - JSX preserve mode: fix "make is not a valid component name". https://github.com/rescript-lang/rescript/pull/7831
 - Rewatch: include parser arguments of experimental features. https://github.com/rescript-lang/rescript/pull/7836
 - Stop mangling tagged templates and backquoted strings. https://github.com/rescript-lang/rescript/pull/7841
+- JSX v4: fix arity mismatch for `@react.component` with `React.forwardRef`. https://github.com/rescript-lang/rescript/pull/7845
 
 #### :memo: Documentation
 
diff --git a/compiler/syntax/src/jsx_v4.ml b/compiler/syntax/src/jsx_v4.ml
index 54f1ea8a2a..68f791ca7a 100644
--- a/compiler/syntax/src/jsx_v4.ml
+++ b/compiler/syntax/src/jsx_v4.ml
@@ -733,6 +733,7 @@ let map_binding ~config ~empty_loc ~pstr_loc ~file_name ~rec_flag binding =
       | _ -> Pat.record (List.rev patterns_with_label) Open
     in
     let expression =
+      (* Shape internal implementation to match wrapper: uncurried when using forwardRef. *)
       Exp.fun_ ~arity:(Some 1) ~async:is_async Nolabel None
         (Pat.constraint_ record_pattern
            (Typ.constr ~loc:empty_loc
@@ -748,6 +749,10 @@ let map_binding ~config ~empty_loc ~pstr_loc ~file_name ~rec_flag binding =
                 | _ -> [Typ.any ()]))))
         expression
     in
+    let expression =
+      if has_forward_ref then expression |> Ast_uncurried.uncurried_fun ~arity:2
+      else expression
+    in
     let expression =
       (* Add new tupes (type a,b,c) to make's definition *)
       newtypes
diff --git a/tests/tests/src/forwardRef_regress.mjs b/tests/tests/src/forwardRef_regress.mjs
new file mode 100644
index 0000000000..4fd0066f78
--- /dev/null
+++ b/tests/tests/src/forwardRef_regress.mjs
@@ -0,0 +1,10 @@
+// Generated by ReScript, PLEASE EDIT WITH CARE
+
+import * as React from "react";
+
+let make = React.forwardRef((props, ref) => props.children);
+
+export {
+  make,
+}
+/* make Not a pure module */
diff --git a/tests/tests/src/forwardRef_regress.res b/tests/tests/src/forwardRef_regress.res
new file mode 100644
index 0000000000..3c81e51022
--- /dev/null
+++ b/tests/tests/src/forwardRef_regress.res
@@ -0,0 +1,8 @@
+@@config({flags: ["-bs-jsx", "4"]})
+
+@react.component
+let make = React.forwardRef((~className=?, ~children, _ref) => {
+  // Constrain type variables to avoid value restriction
+  let _: option<string> = className
+  children
+})