diff --git a/crates/oxc_isolated_declarations/src/scope.rs b/crates/oxc_isolated_declarations/src/scope.rs
index 3130646c4d670..84cef4a5d622f 100644
--- a/crates/oxc_isolated_declarations/src/scope.rs
+++ b/crates/oxc_isolated_declarations/src/scope.rs
@@ -66,7 +66,7 @@ impl<'a> ScopeTree<'a> {
 
     fn add_reference(&mut self, name: Atom<'a>, flags: KindFlags) {
         let scope = self.levels.last_mut().unwrap();
-        scope.references.insert(name, flags);
+        scope.references.entry(name).and_modify(|f| *f |= flags).or_insert(flags);
     }
 
     /// Resolve references in the current scope, and propagate unresolved ones.
@@ -84,7 +84,10 @@ impl<'a> ScopeTree<'a> {
         });
 
         // Merge unresolved references to the parent scope.
-        self.levels.last_mut().unwrap().references.extend(current_references);
+        let parent_scope = self.levels.last_mut().unwrap();
+        for (name, flags) in current_references {
+            parent_scope.references.entry(name).and_modify(|f| *f |= flags).or_insert(flags);
+        }
     }
 }
 
diff --git a/crates/oxc_isolated_declarations/tests/fixtures/shadowed.ts b/crates/oxc_isolated_declarations/tests/fixtures/shadowed.ts
index 157fb222b944b..3a813578a19bd 100644
--- a/crates/oxc_isolated_declarations/tests/fixtures/shadowed.ts
+++ b/crates/oxc_isolated_declarations/tests/fixtures/shadowed.ts
@@ -13,4 +13,21 @@ type Module = () => void;
 namespace Module {
 	export const x = 1;
 }
-export type ModuleType = Module;
\ No newline at end of file
+export type ModuleType = Module;
+
+// https://github.com/oxc-project/oxc/issues/10996
+// Variable emit should not be dropped when variable is shadowed as a type name
+// and the type is part of a class implements interface
+export interface Thing<T> {}
+
+const Test1 = 'test1' as const;
+export type Test1 = typeof Test1;
+export class Class1 {
+  readonly id: 'test1' = Test1;
+}
+
+const Test2 = 'test2' as const;
+export type Test2 = typeof Test2;
+export class Class2 implements Thing<Test2> {
+  readonly id: 'test2' = Test2;
+}
\ No newline at end of file
diff --git a/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap b/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
index e59a8b2e408d0..6c93773a998a2 100644
--- a/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
+++ b/crates/oxc_isolated_declarations/tests/snapshots/shadowed.snap
@@ -17,4 +17,18 @@ declare namespace Module {
 	const x = 1;
 }
 export type ModuleType = Module;
+// https://github.com/oxc-project/oxc/issues/10996
+// Variable emit should not be dropped when variable is shadowed as a type name
+// and the type is part of a class implements interface
+export interface Thing<T> {}
+declare const Test1: "test1";
+export type Test1 = typeof Test1;
+export declare class Class1 {
+	readonly id: "test1";
+}
+declare const Test2: "test2";
+export type Test2 = typeof Test2;
+export declare class Class2 implements Thing<Test2> {
+	readonly id: "test2";
+}
 export {};