diff --git a/crates/oxc_semantic/src/checker/javascript.rs b/crates/oxc_semantic/src/checker/javascript.rs
index f083938641765..3b17653d42767 100644
--- a/crates/oxc_semantic/src/checker/javascript.rs
+++ b/crates/oxc_semantic/src/checker/javascript.rs
@@ -117,6 +117,7 @@ pub fn check_binding_identifier(ident: &BindingIdentifier, ctx: &SemanticBuilder
         // declare function f(...eval): number; // OK
         // declare function f(...arguments): number; // OK
         // type K = (arguments: any[]) => void; // OK
+        // interface Foo { bar(arguments: any[]): void; } // OK
         // declare function g({eval, arguments}: {eval: number, arguments: number}): number; // Error
         // declare function h([eval, arguments]: [number, number]): number; // Error
         let is_declare_function = |kind: &AstKind| {
@@ -129,11 +130,9 @@ pub fn check_binding_identifier(ident: &BindingIdentifier, ctx: &SemanticBuilder
             AstKind::Function(func) => matches!(func.r#type, FunctionType::TSDeclareFunction),
             AstKind::FormalParameter(_) => {
                 is_declare_function(&ctx.nodes.parent_kind(parent.id()))
-                    || ctx
-                        .nodes
-                        .ancestor_kinds(parent.id())
-                        .nth(1)
-                        .is_some_and(|node| matches!(node, AstKind::TSFunctionType(_)))
+                    || ctx.nodes.ancestor_kinds(parent.id()).nth(1).is_some_and(|node| {
+                        matches!(node, AstKind::TSFunctionType(_) | AstKind::TSMethodSignature(_))
+                    })
             }
             AstKind::BindingRestElement(_) => {
                 let grand_parent = ctx.nodes.parent_node(parent.id());
diff --git a/tasks/coverage/misc/pass/arguments-eval.d.ts b/tasks/coverage/misc/pass/arguments-eval.d.ts
index 59eb0446e0806..97cb76dc8b64c 100644
--- a/tasks/coverage/misc/pass/arguments-eval.d.ts
+++ b/tasks/coverage/misc/pass/arguments-eval.d.ts
@@ -1 +1,5 @@
 type K = (arguments: any[]) => void;
+
+interface Foo {
+  bar(arguments: any[]): void;
+}