diff --git a/lib/Parser/Hash.h b/lib/Parser/Hash.h
index 68140d26b28..70b4f997703 100644
--- a/lib/Parser/Hash.h
+++ b/lib/Parser/Hash.h
@@ -27,12 +27,12 @@ ULONG CaseInsensitiveComputeHash(LPCOLESTR posz);
 
 enum
 {
-    fidNil        =     0x0000,
-    fidKwdRsvd    = 0x0001,     // the keyword is a reserved word
-    fidKwdFutRsvd = 0x0002,     // a future reserved word, but only in strict mode
+    fidNil          = 0x0000,
+    fidKwdRsvd      = 0x0001,     // the keyword is a reserved word
+    fidKwdFutRsvd   = 0x0002,     // a future reserved word, but only in strict mode
 
     // Flags to identify tracked aliases of "eval"
-    fidEval       =    0x0008,
+    fidEval         = 0x0008,
     // Flags to identify tracked aliases of "let"
     fidLetOrConst   = 0x0010,     // ID has previously been used in a block-scoped declaration
 
@@ -40,10 +40,11 @@ enum
     // CountDcls sets the bit as it walks through the var decls so that
     // it can skip duplicates. FillDcls clears the bit as it walks through
     // again to skip duplicates.
-    fidGlobalDcl  =    0x2000,
+    fidGlobalDcl    = 0x2000,
 
-    fidUsed       =    0x4000  // name referenced by source code
+    fidUsed         = 0x4000,  // name referenced by source code
 
+    fidModuleExport = 0x8000    // name is module export
 };
 
 struct BlockIdsStack
@@ -84,8 +85,6 @@ struct PidRefStack
     bool IsAssignment() const { return isAsg; }
     bool IsDynamicBinding() const { return isDynamic; }
     void SetDynamicBinding()  { isDynamic = true; }
-    bool IsModuleExport() const { return isModuleExport; }
-    void SetModuleExport()    { isModuleExport = true; }
 
     Symbol **GetSymRef()
     {
@@ -283,6 +282,9 @@ struct Ident
 
     void SetIsLetOrConst() { m_grfid |= fidLetOrConst; }
     BOOL GetIsLetOrConst() const { return m_grfid & fidLetOrConst; }
+
+    void SetIsModuleExport() { m_grfid |= fidModuleExport; }
+    BOOL GetIsModuleExport() const { return m_grfid & fidModuleExport; }
 };
 
 
diff --git a/lib/Parser/Parse.cpp b/lib/Parser/Parse.cpp
index 8c6f1f0c0de..0aa8f6596fd 100644
--- a/lib/Parser/Parse.cpp
+++ b/lib/Parser/Parse.cpp
@@ -1368,15 +1368,6 @@ ParseNodePtr Parser::CreateModuleImportDeclNode(IdentPtr localName)
     return declNode;
 }
 
-void Parser::MarkIdentifierReferenceIsModuleExport(IdentPtr localName)
-{
-    PidRefStack* pidRef = this->PushPidRef(localName);
-
-    Assert(pidRef != nullptr);
-
-    pidRef->SetModuleExport();
-}
-
 ParseNodePtr Parser::CreateVarDeclNode(IdentPtr pid, SymbolType symbolType, bool autoArgumentsObject, ParseNodePtr pnodeFnc, bool errorOnRedecl)
 {
     ParseNodePtr pnode = CreateDeclNode(knopVarDecl, pid, symbolType, errorOnRedecl);
@@ -1679,6 +1670,11 @@ void Parser::BindPidRefsInScope(IdentPtr pid, Symbol *sym, int blockId, uint max
     Js::LocalFunctionId funcId = GetCurrentFunctionNode()->sxFnc.functionId;
     Assert(sym);
 
+    if (pid->GetIsModuleExport())
+    {
+        sym->SetIsModuleExportStorage(true);
+    }
+
     for (ref = pid->GetTopRef(); ref && ref->GetScopeId() >= blockId; ref = nextRef)
     {
         // Fix up sym* on PID ref.
@@ -1702,11 +1698,6 @@ void Parser::BindPidRefsInScope(IdentPtr pid, Symbol *sym, int blockId, uint max
             }
         }
 
-        if (ref->IsModuleExport())
-        {
-            sym->SetIsModuleExportStorage(true);
-        }
-
         if (ref->GetFuncScopeId() != funcId && !sym->GetIsGlobal() && !sym->GetIsModuleExportStorage())
         {
             Assert(ref->GetFuncScopeId() > funcId);
@@ -2142,7 +2133,7 @@ void Parser::ParseNamedImportOrExportClause(ModuleImportOrExportEntryList* impor
             }
             else
             {
-                MarkIdentifierReferenceIsModuleExport(identifierName);
+                identifierName->SetIsModuleExport();
                 AddModuleImportOrExportEntry(importOrExportEntryList, nullptr, identifierName, identifierAs, nullptr);
             }
         }
diff --git a/test/es6/module-functionality.js b/test/es6/module-functionality.js
index bf91b582083..45b73736714 100644
--- a/test/es6/module-functionality.js
+++ b/test/es6/module-functionality.js
@@ -291,6 +291,17 @@ var tests = [
             WScript.LoadModule(functionBody, 'samethread');
         }
     },
+    {
+        name: "Nested function in module function body which captures exported symbol doesn't create empty frame object",
+        body: function() { 
+            let functionBody = 
+                `function foo() { };
+                export { foo };
+                function bar() { foo(); };`;
+                
+            WScript.LoadModule(functionBody, 'samethread');
+        }
+    },
 ];
 
 testRunner.runTests(tests, { verbose: WScript.Arguments[0] != "summary" });