diff --git a/src/passes/PostAssemblyScript.cpp b/src/passes/PostAssemblyScript.cpp
index eeb077ce902..8691771f7b1 100644
--- a/src/passes/PostAssemblyScript.cpp
+++ b/src/passes/PostAssemblyScript.cpp
@@ -364,8 +364,16 @@ struct OptimizeARC : public WalkerPass<PostWalker<OptimizeARC>> {
     return (*releaseLocation)->cast<Call>()->operands[0]->cast<LocalGet>();
   }
 
+  // Tests if the given retain is generally eliminable (does not retain an
+  // allocation and does not reach an escape)
+  bool testRetainEliminable(LocalSet* retain, AliasGraph& graph) {
+    return !testRetainsAllocation(getRetainedExpression(retain), graph) &&
+           !testReachesEscape(retain, graph);
+  }
+
   // Tests if a release has balanced retains, that is it is being retained in
-  // any path leading to the release. For example
+  // any path leading to the release and that each path is generally eliminable.
+  // For example
   //
   //   var c = somethingElse() || a;
   //   ...
@@ -395,7 +403,8 @@ struct OptimizeARC : public WalkerPass<PostWalker<OptimizeARC>> {
       if (localSet == nullptr) {
         return cache[release] = false;
       }
-      if (retains.find(localSet) == retains.end()) {
+      auto it = retains.find(localSet);
+      if (it == retains.end()) {
         if (auto* localGet = localSet->value->dynCast<LocalGet>()) {
           if (seen.find(localGet) == seen.end()) {
             seen.insert(localGet);
@@ -408,6 +417,8 @@ struct OptimizeARC : public WalkerPass<PostWalker<OptimizeARC>> {
         } else {
           return cache[release] = false;
         }
+      } else if (!testRetainEliminable(it->first, graph)) {
+        return cache[release] = false;
       }
     }
     return cache[release] = true;
@@ -441,71 +452,60 @@ struct OptimizeARC : public WalkerPass<PostWalker<OptimizeARC>> {
     Set<Expression**> redundantReleases;
     Map<LocalGet*, bool> balancedRetainsCache;
 
-    // For each retain, check that it
-    //
-    // * doesn't reach an escape
-    // * doesn't retain an allocation
+    // For each retain, check that it is
+    // * generally eliminable (does not retain an allocation / reach an escape)
     // * reaches at least one release
-    // * reaches only releases with balanced retains
-    //
+    // * reaches only releases with balanced (generally eliminable) retains
     for (auto& pair : retains) {
       auto* retain = pair.first;
       auto** retainLocation = pair.second;
-      if (!testReachesEscape(retain, graph)) {
-        if (!testRetainsAllocation(getRetainedExpression(retain), graph)) {
-          Set<Expression**> releaseLocations;
-          collectReleases(retain, graph, releaseLocations);
-          if (!releaseLocations.empty()) {
-            bool allBalanced = true;
-            for (auto** releaseLocation : releaseLocations) {
-              if (!testBalancedRetains(getReleaseByLocation(releaseLocation),
-                                       graph,
-                                       balancedRetainsCache)) {
-                allBalanced = false;
-                break;
-              }
+      if (testRetainEliminable(retain, graph)) {
+        Set<Expression**> releaseLocations;
+        collectReleases(retain, graph, releaseLocations);
+        if (!releaseLocations.empty()) {
+          bool allBalanced = true;
+          for (auto** releaseLocation : releaseLocations) {
+            if (!testBalancedRetains(getReleaseByLocation(releaseLocation),
+                                     graph,
+                                     balancedRetainsCache)) {
+              allBalanced = false;
+              break;
             }
-            if (allBalanced) {
-#ifdef POST_ASSEMBLYSCRIPT_DEBUG
-              std::cerr << "  eliminating ";
-              WasmPrinter::printExpression(retain, std::cerr, true);
-              std::cerr << " reaching\n";
-#endif
-              redundantRetains.insert(retainLocation);
-              for (auto** getLocation : releaseLocations) {
+          }
+          if (allBalanced) {
 #ifdef POST_ASSEMBLYSCRIPT_DEBUG
-                std::cerr << "    ";
-                WasmPrinter::printExpression(*getLocation, std::cerr, true);
-                std::cerr << "\n";
+            std::cerr << "  eliminating ";
+            WasmPrinter::printExpression(retain, std::cerr, true);
+            std::cerr << " reaching\n";
 #endif
-                redundantReleases.insert(getLocation);
-              }
+            redundantRetains.insert(retainLocation);
+            for (auto** getLocation : releaseLocations) {
 #ifdef POST_ASSEMBLYSCRIPT_DEBUG
-            } else {
-              std::cerr << "  cannot eliminate ";
-              WasmPrinter::printExpression(retain, std::cerr, true);
-              std::cerr << " - unbalanced\n";
+              std::cerr << "    ";
+              WasmPrinter::printExpression(*getLocation, std::cerr, true);
+              std::cerr << "\n";
 #endif
+              redundantReleases.insert(getLocation);
             }
 #ifdef POST_ASSEMBLYSCRIPT_DEBUG
           } else {
             std::cerr << "  cannot eliminate ";
             WasmPrinter::printExpression(retain, std::cerr, true);
-            std::cerr << " - zero releases\n";
+            std::cerr << " - unbalanced\n";
 #endif
           }
 #ifdef POST_ASSEMBLYSCRIPT_DEBUG
         } else {
           std::cerr << "  cannot eliminate ";
           WasmPrinter::printExpression(retain, std::cerr, true);
-          std::cerr << " - retains allocation\n";
+          std::cerr << " - zero releases\n";
 #endif
         }
 #ifdef POST_ASSEMBLYSCRIPT_DEBUG
       } else {
         std::cerr << "  cannot eliminate ";
         WasmPrinter::printExpression(retain, std::cerr, true);
-        std::cerr << " - reaches return\n";
+        std::cerr << " - not eliminable\n";
 #endif
       }
     }
diff --git a/test/passes/post-assemblyscript.txt b/test/passes/post-assemblyscript.txt
index 2b3111e91b3..7e024b8c0b5 100644
--- a/test/passes/post-assemblyscript.txt
+++ b/test/passes/post-assemblyscript.txt
@@ -3,10 +3,11 @@
  (type $i32_=>_none (func (param i32)))
  (type $i32_i32_i32_=>_none (func (param i32 i32 i32)))
  (type $i32_=>_i32 (func (param i32) (result i32)))
- (type $none_=>_i32 (func (result i32)))
  (type $i32_i32_=>_i32 (func (param i32 i32) (result i32)))
+ (type $none_=>_i32 (func (result i32)))
  (import "rt" "retain" (func $~lib/rt/pure/__retain (param i32) (result i32)))
  (import "rt" "release" (func $~lib/rt/pure/__release (param i32)))
+ (import "rt" "alloc" (func $~lib/rt/tlsf/__alloc (param i32 i32) (result i32)))
  (import "rc" "getRetainedRef" (func $getRetainedRef (result i32)))
  (func $eliminates.linearArgument (param $0 i32)
   (local.set $0
@@ -260,4 +261,40 @@
    )
   )
  )
+ (func $keeps.balancedRetainsWithAllocation (param $0 i32) (param $cond1 i32) (param $cond2 i32)
+  (local $3 i32)
+  (local $flat i32)
+  (if
+   (local.get $cond1)
+   (if
+    (local.get $cond2)
+    (local.set $3
+     (call $~lib/rt/pure/__retain
+      (local.get $0)
+     )
+    )
+    (block $block
+     (local.set $flat
+      (call $~lib/rt/tlsf/__alloc
+       (i32.const 16)
+       (i32.const 0)
+      )
+     )
+     (local.set $3
+      (call $~lib/rt/pure/__retain
+       (local.get $flat)
+      )
+     )
+    )
+   )
+   (local.set $3
+    (call $~lib/rt/pure/__retain
+     (local.get $0)
+    )
+   )
+  )
+  (call $~lib/rt/pure/__release
+   (local.get $3)
+  )
+ )
 )
diff --git a/test/passes/post-assemblyscript.wast b/test/passes/post-assemblyscript.wast
index c79bfe1d98f..6aee3fa7e86 100644
--- a/test/passes/post-assemblyscript.wast
+++ b/test/passes/post-assemblyscript.wast
@@ -3,6 +3,7 @@
 (module
  (import "rt" "retain" (func $~lib/rt/pure/__retain (param i32) (result i32)))
  (import "rt" "release" (func $~lib/rt/pure/__release (param i32)))
+ (import "rt" "alloc" (func $~lib/rt/tlsf/__alloc (param i32 i32) (result i32)))
  (func $eliminates.linearArgument (param $0 i32)
   (local.set $0
    (call $~lib/rt/pure/__retain
@@ -339,4 +340,40 @@
    )
   )
  )
+ (func $keeps.balancedRetainsWithAllocation (param $0 i32) (param $cond1 i32) (param $cond2 i32)
+  (local $3 i32)
+  (local $flat i32)
+  (if
+   (local.get $cond1)
+   (if
+    (local.get $cond2)
+    (local.set $3
+     (call $~lib/rt/pure/__retain
+      (local.get $0)
+     )
+    )
+    (block
+     (local.set $flat
+      (call $~lib/rt/tlsf/__alloc
+       (i32.const 16)
+       (i32.const 0)
+      )
+     )
+     (local.set $3
+      (call $~lib/rt/pure/__retain
+       (local.get $flat)
+      )
+     )
+    )
+   )
+   (local.set $3
+    (call $~lib/rt/pure/__retain
+     (local.get $0)
+    )
+   )
+  )
+  (call $~lib/rt/pure/__release
+   (local.get $3)
+  )
+ )
 )