diff --git a/packages/react-refresh/src/__tests__/ReactFreshBabelPlugin-test.js b/packages/react-refresh/src/__tests__/ReactFreshBabelPlugin-test.js
index 320cfe17041a6..f56f16069dd77 100644
--- a/packages/react-refresh/src/__tests__/ReactFreshBabelPlugin-test.js
+++ b/packages/react-refresh/src/__tests__/ReactFreshBabelPlugin-test.js
@@ -524,4 +524,16 @@ describe('ReactFreshBabelPlugin', () => {
         '". If you want to override this check, pass {skipEnvCheck: true} as plugin options.',
     );
   });
+
+  it('does not get tripped by IIFEs', () => {
+    expect(
+      transform(`
+        while (item) {
+          (item => {
+            useFoo();
+          })(item);
+        }
+      `),
+    ).toMatchSnapshot();
+  });
 });
diff --git a/packages/react-refresh/src/__tests__/__snapshots__/ReactFreshBabelPlugin-test.js.snap b/packages/react-refresh/src/__tests__/__snapshots__/ReactFreshBabelPlugin-test.js.snap
index 273d60cbe2a2a..4e2f8eec0518c 100644
--- a/packages/react-refresh/src/__tests__/__snapshots__/ReactFreshBabelPlugin-test.js.snap
+++ b/packages/react-refresh/src/__tests__/__snapshots__/ReactFreshBabelPlugin-test.js.snap
@@ -86,6 +86,18 @@ var _c;
 $RefreshReg$(_c, "App");
 `;
 
+exports[`ReactFreshBabelPlugin does not get tripped by IIFEs 1`] = `
+while (item) {
+  var _s = $RefreshSig$();
+
+  _s(_s(item => {
+    _s();
+
+    useFoo();
+  }, "useFoo{}", true)(item), "useFoo{}", true);
+}
+`;
+
 exports[`ReactFreshBabelPlugin generates signatures for function declarations calling hooks 1`] = `
 var _s = $RefreshSig$();