diff --git a/lib/reek/smell_detectors/module_initialize.rb b/lib/reek/smell_detectors/module_initialize.rb
index a9f0dea38..5d00075a9 100644
--- a/lib/reek/smell_detectors/module_initialize.rb
+++ b/lib/reek/smell_detectors/module_initialize.rb
@@ -21,14 +21,18 @@ def self.contexts # :nodoc:
       # @return [Array<SmellWarning>]
       #
       def sniff
-        context.defined_instance_methods.each do |node|
-          if node.name == :initialize
-            return smell_warning(
-              lines:   [source_line],
-              message: 'has initialize method')
-          end
-        end
-        []
+        return [] if does_not_have_initializer_method?
+
+        smell_warning(
+          lines:   [source_line],
+          message: 'has initialize method')
+      end
+
+      private
+
+      # :reek:FeatureEnvy
+      def does_not_have_initializer_method?
+        context.exp.direct_children.none? { |child| child.type == :def && child.name == :initialize }
       end
     end
   end
diff --git a/spec/reek/smell_detectors/module_initialize_spec.rb b/spec/reek/smell_detectors/module_initialize_spec.rb
index c53bbc745..11ce3d07a 100644
--- a/spec/reek/smell_detectors/module_initialize_spec.rb
+++ b/spec/reek/smell_detectors/module_initialize_spec.rb
@@ -86,4 +86,44 @@ def initialize; end
 
     expect(src).not_to reek_of(:ModuleInitialize)
   end
+
+  it 'reports nothing for a method named initialize in a class assigned to a let variable' do
+    src = <<-RUBY
+      module Alfa
+        RSpec.describe Bravo do
+          let(:klass) do
+            Class.new do
+              def initialize; end
+            end
+          end
+        end
+      end
+    RUBY
+
+    expect(src).not_to reek_of(:ModuleInitialize)
+  end
+
+  it 'reports nothing for a DSL-based' do
+    src = <<-RUBY
+      module Alfa
+        bravo Class.new do
+          def initialize; end
+        end
+      end
+    RUBY
+
+    expect(src).not_to reek_of(:ModuleInitialize)
+  end
+
+  it 'reports nothing for a method named initialize in a variable assignment' do
+    src = <<-RUBY
+      module Alfa
+        bravo = Class.new do
+          def initialize; end
+        end
+      end
+    RUBY
+
+    expect(src).not_to reek_of(:ModuleInitialize)
+  end
 end