diff --git a/crates/oxc_minifier/src/peephole/minimize_statements.rs b/crates/oxc_minifier/src/peephole/minimize_statements.rs
index 1032abf5efed4..0f1fc15894184 100644
--- a/crates/oxc_minifier/src/peephole/minimize_statements.rs
+++ b/crates/oxc_minifier/src/peephole/minimize_statements.rs
@@ -59,7 +59,9 @@ impl<'a> PeepholeOptimizations {
                 break;
             }
         }
-        if let Some(stmt) = keep_var.get_variable_declaration_statement() {
+        if let Some(stmt) = keep_var.get_variable_declaration_statement()
+            && let Some(stmt) = Self::remove_unused_variable_declaration(stmt, ctx)
+        {
             stmts.push(stmt);
         }
 
diff --git a/crates/oxc_minifier/src/peephole/remove_dead_code.rs b/crates/oxc_minifier/src/peephole/remove_dead_code.rs
index ec44ddff16a76..eccbf06afc925 100644
--- a/crates/oxc_minifier/src/peephole/remove_dead_code.rs
+++ b/crates/oxc_minifier/src/peephole/remove_dead_code.rs
@@ -90,7 +90,9 @@ impl<'a> PeepholeOptimizations {
             } else {
                 keep_var.visit_statement(&if_stmt.consequent);
             }
-            let var_stmt = keep_var.get_variable_declaration_statement();
+            let var_stmt = keep_var
+                .get_variable_declaration_statement()
+                .and_then(|stmt| Self::remove_unused_variable_declaration(stmt, ctx));
             let has_var_stmt = var_stmt.is_some();
             if let Some(var_stmt) = var_stmt {
                 if boolean {
@@ -508,10 +510,17 @@ impl<'a> PeepholeOptimizations {
 #[cfg(test)]
 mod test {
     use crate::{
-        CompressOptions,
-        tester::{test, test_options, test_same, test_same_options},
+        CompressOptions, CompressOptionsUnused,
+        tester::{default_options, test, test_options, test_same, test_same_options},
     };
 
+    #[track_caller]
+    fn test_unused(source_text: &str, expected: &str) {
+        let options =
+            CompressOptions { unused: CompressOptionsUnused::Remove, ..default_options() };
+        test_options(source_text, expected, &options);
+    }
+
     #[test]
     fn test_fold_block() {
         test("{{foo()}}", "foo()");
@@ -629,6 +638,8 @@ mod test {
         test("if (foo) {} else {}", "foo");
         test("if (false) {}", "");
         test("if (true) {}", "");
+        test("if (false) { var a; console.log(a) }", "if (0) var a");
+        test_unused("if (false) { var a; console.log(a) }", "");
     }
 
     #[test]
@@ -668,6 +679,9 @@ mod test {
         test("while(true) { continue a; unreachable;}", "for(;;) continue a");
         test("while(true) { throw a; unreachable;}", "for(;;) throw a");
         test("while(true) { return a; unreachable;}", "for(;;) return a");
+
+        test("(function () { return; var a })()", "(function () { return; var a })()");
+        test_unused("(function () { return; var a })()", "");
     }
 
     #[test]
diff --git a/crates/oxc_minifier/src/peephole/remove_unused_declaration.rs b/crates/oxc_minifier/src/peephole/remove_unused_declaration.rs
index 67953160ca80e..f5a38088da72d 100644
--- a/crates/oxc_minifier/src/peephole/remove_unused_declaration.rs
+++ b/crates/oxc_minifier/src/peephole/remove_unused_declaration.rs
@@ -5,11 +5,17 @@ use crate::{CompressOptionsUnused, ctx::Ctx};
 use super::PeepholeOptimizations;
 
 impl<'a> PeepholeOptimizations {
+    fn can_remove_unused_declarators(ctx: &Ctx<'a, '_>) -> bool {
+        ctx.state.options.unused != CompressOptionsUnused::Keep
+            && !Self::keep_top_level_var_in_script_mode(ctx)
+            && !ctx.scoping().root_scope_flags().contains_direct_eval()
+    }
+
     pub fn should_remove_unused_declarator(
         decl: &VariableDeclarator<'a>,
         ctx: &Ctx<'a, '_>,
     ) -> bool {
-        if ctx.state.options.unused == CompressOptionsUnused::Keep {
+        if !Self::can_remove_unused_declarators(ctx) {
             return false;
         }
         if let BindingPatternKind::BindingIdentifier(ident) = &decl.id.kind {
@@ -17,13 +23,6 @@ impl<'a> PeepholeOptimizations {
             if decl.kind.is_using() {
                 return false;
             }
-            if Self::keep_top_level_var_in_script_mode(ctx) {
-                return false;
-            }
-            // It is unsafe to remove if direct eval is involved.
-            if ctx.scoping().root_scope_flags().contains_direct_eval() {
-                return false;
-            }
             if let Some(symbol_id) = ident.symbol_id.get() {
                 return ctx.scoping().symbol_is_unused(symbol_id);
             }
@@ -31,6 +30,21 @@ impl<'a> PeepholeOptimizations {
         false
     }
 
+    pub fn remove_unused_variable_declaration(
+        mut stmt: Statement<'a>,
+        ctx: &Ctx<'a, '_>,
+    ) -> Option<Statement<'a>> {
+        let Statement::VariableDeclaration(var_decl) = &mut stmt else { return Some(stmt) };
+        if !Self::can_remove_unused_declarators(ctx) {
+            return Some(stmt);
+        }
+        var_decl.declarations.retain(|decl| !Self::should_remove_unused_declarator(decl, ctx));
+        if var_decl.declarations.is_empty() {
+            return None;
+        }
+        Some(stmt)
+    }
+
     pub fn remove_unused_function_declaration(stmt: &mut Statement<'a>, ctx: &mut Ctx<'a, '_>) {
         let Statement::FunctionDeclaration(f) = stmt else { return };
         if ctx.state.options.unused == CompressOptionsUnused::Keep {