diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
index 702eaf0f692..0ae338f5c78 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/BuildHIR.ts
@@ -3081,6 +3081,12 @@ function isReorderableExpression(
         return true;
       }
     }
+    case 'TSInstantiationExpression': {
+      const innerExpr = (expr as NodePath<t.TSInstantiationExpression>).get(
+        'expression',
+      ) as NodePath<t.Expression>;
+      return isReorderableExpression(builder, innerExpr, allowLocalIdentifiers);
+    }
     case 'RegExpLiteral':
     case 'StringLiteral':
     case 'NumericLiteral':
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.expect.md
new file mode 100644
index 00000000000..b80c0370f79
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.expect.md
@@ -0,0 +1,62 @@
+
+## Input
+
+```javascript
+function id<T>(x: T): T {
+  return x;
+}
+
+export function Component<T = string>({fn = id<T>}: {fn?: (x: T) => T}) {
+  const value = fn('hi' as T);
+  return <div>{String(value)}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function id(x) {
+  return x;
+}
+
+export function Component(t0) {
+  const $ = _c(4);
+  const { fn: t1 } = t0;
+  const fn = t1 === undefined ? id : t1;
+  let t2;
+  if ($[0] !== fn) {
+    t2 = fn("hi" as T);
+    $[0] = fn;
+    $[1] = t2;
+  } else {
+    t2 = $[1];
+  }
+  const value = t2;
+  const t3 = String(value);
+  let t4;
+  if ($[2] !== t3) {
+    t4 = <div>{t3}</div>;
+    $[2] = t3;
+    $[3] = t4;
+  } else {
+    t4 = $[3];
+  }
+  return t4;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{}],
+};
+
+```
+      
+### Eval output
+(kind: ok) <div>hi</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.tsx b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.tsx
new file mode 100644
index 00000000000..6382962edda
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/ts-instantiation-default-param.tsx
@@ -0,0 +1,13 @@
+function id<T>(x: T): T {
+  return x;
+}
+
+export function Component<T = string>({fn = id<T>}: {fn?: (x: T) => T}) {
+  const value = fn('hi' as T);
+  return <div>{String(value)}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{}],
+};