diff --git a/crates/oxc_isolated_declarations/src/declaration.rs b/crates/oxc_isolated_declarations/src/declaration.rs
index fe049d3c5038b..6943a2083b901 100644
--- a/crates/oxc_isolated_declarations/src/declaration.rs
+++ b/crates/oxc_isolated_declarations/src/declaration.rs
@@ -203,7 +203,7 @@ impl<'a> IsolatedDeclarations<'a> {
                     || matches!(
                         &decl.id,
                         TSModuleDeclarationName::Identifier(ident)
-                            if self.scope.has_value_reference(&ident.name)
+                            if self.scope.has_reference(&ident.name)
                     )
                 {
                     Some(Declaration::TSModuleDeclaration(
diff --git a/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference-complex.ts b/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference-complex.ts
new file mode 100644
index 0000000000000..f83a175e10303
--- /dev/null
+++ b/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference-complex.ts
@@ -0,0 +1,47 @@
+// Test various namespace reference scenarios
+
+// Simple namespace reference
+export type SimpleRef = NS1.Type1;
+
+namespace NS1 {
+  export type Type1 = string;
+}
+
+// Nested namespace reference
+export type NestedRef = Outer.Inner.Type2;
+
+namespace Outer {
+  export namespace Inner {
+    export type Type2 = number;
+  }
+}
+
+// Multiple references to same namespace
+export type Ref1 = NS2.TypeA;
+export type Ref2 = NS2.TypeB;
+
+namespace NS2 {
+  export type TypeA = boolean;
+  export type TypeB = symbol;
+}
+
+// Namespace used in union type
+export type UnionRef = NS3.Type3 | string;
+
+namespace NS3 {
+  export type Type3 = "literal";
+}
+
+// Namespace used in interface
+export interface InterfaceWithNS {
+  field: NS4.Type4;
+}
+
+namespace NS4 {
+  export type Type4 = bigint;
+}
+
+// Unreferenced namespace should not be included
+namespace UnusedNS {
+  export type UnusedType = never;
+}
diff --git a/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference.ts b/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference.ts
new file mode 100644
index 0000000000000..5b8359fffac7f
--- /dev/null
+++ b/crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference.ts
@@ -0,0 +1,6 @@
+// This ends up being `any` 
+export type A = Foo.Bar;
+
+namespace Foo {
+  export type Bar = "bar"
+}
diff --git a/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference-complex.snap b/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference-complex.snap
new file mode 100644
index 0000000000000..53196efdf4e88
--- /dev/null
+++ b/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference-complex.snap
@@ -0,0 +1,40 @@
+---
+source: crates/oxc_isolated_declarations/tests/mod.rs
+input_file: crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference-complex.ts
+---
+```
+==================== .D.TS ====================
+
+// Test various namespace reference scenarios
+// Simple namespace reference
+export type SimpleRef = NS1.Type1;
+declare namespace NS1 {
+	type Type1 = string;
+}
+// Nested namespace reference
+export type NestedRef = Outer.Inner.Type2;
+declare namespace Outer {
+	namespace Inner {
+		type Type2 = number;
+	}
+}
+// Multiple references to same namespace
+export type Ref1 = NS2.TypeA;
+export type Ref2 = NS2.TypeB;
+declare namespace NS2 {
+	type TypeA = boolean;
+	type TypeB = symbol;
+}
+// Namespace used in union type
+export type UnionRef = NS3.Type3 | string;
+declare namespace NS3 {
+	type Type3 = "literal";
+}
+// Namespace used in interface
+export interface InterfaceWithNS {
+	field: NS4.Type4;
+}
+declare namespace NS4 {
+	type Type4 = bigint;
+}
+export {};
diff --git a/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference.snap b/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference.snap
new file mode 100644
index 0000000000000..8225aa1dc182d
--- /dev/null
+++ b/crates/oxc_isolated_declarations/tests/snapshots/namespace-type-reference.snap
@@ -0,0 +1,13 @@
+---
+source: crates/oxc_isolated_declarations/tests/mod.rs
+input_file: crates/oxc_isolated_declarations/tests/fixtures/namespace-type-reference.ts
+---
+```
+==================== .D.TS ====================
+
+// This ends up being `any` 
+export type A = Foo.Bar;
+declare namespace Foo {
+	type Bar = "bar";
+}
+export {};
diff --git a/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap b/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
index 0e7c4df574cff..e59a8b2e408d0 100644
--- a/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
+++ b/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
@@ -13,5 +13,8 @@ export type Bar = {
 type Func = () => void;
 export type FuncType = Func;
 type Module = () => void;
+declare namespace Module {
+	const x = 1;
+}
 export type ModuleType = Module;
 export {};