diff --git a/crates/oxc_transformer/src/lib.rs b/crates/oxc_transformer/src/lib.rs
index 307d96b546a31..44ee5dd5cccb0 100644
--- a/crates/oxc_transformer/src/lib.rs
+++ b/crates/oxc_transformer/src/lib.rs
@@ -597,9 +597,6 @@ impl<'a> Traverse<'a, TransformState<'a>> for TransformerImpl<'a> {
         stmts: &mut ArenaVec<'a, Statement<'a>>,
         ctx: &mut TraverseCtx<'a>,
     ) {
-        if let Some(typescript) = self.x0_typescript.as_mut() {
-            typescript.exit_statements(stmts, ctx);
-        }
         self.common.exit_statements(stmts, ctx);
     }
 
diff --git a/crates/oxc_transformer/src/typescript/annotations.rs b/crates/oxc_transformer/src/typescript/annotations.rs
index 1d953eb8fec66..45ca8567d1749 100644
--- a/crates/oxc_transformer/src/typescript/annotations.rs
+++ b/crates/oxc_transformer/src/typescript/annotations.rs
@@ -1,7 +1,7 @@
 use oxc_allocator::{TakeIn, Vec as ArenaVec};
 use oxc_ast::ast::*;
 use oxc_diagnostics::OxcDiagnostic;
-use oxc_semantic::SymbolFlags;
+use oxc_semantic::{Reference, SymbolFlags};
 use oxc_span::{Atom, GetSpan, SPAN, Span};
 use oxc_syntax::{
     operator::AssignmentOperator,
@@ -362,19 +362,14 @@ impl<'a> Traverse<'a, TransformState<'a>> for TypeScriptAnnotations<'a> {
     fn enter_statements(
         &mut self,
         stmts: &mut ArenaVec<'a, Statement<'a>>,
-        _ctx: &mut TraverseCtx<'a>,
+        ctx: &mut TraverseCtx<'a>,
     ) {
-        // Remove TypeScript type-only declarations (interfaces, type aliases, etc.)
-        // but NOT declarations with `declare` keyword - those will be handled
-        // by their respective enter_* methods which will remove the `declare` flag
-        stmts.retain(|stmt| {
-            if let Some(decl) = stmt.as_declaration() {
-                // Only remove pure TypeScript type declarations
-                // Keep all other declarations including those with `declare`
-                !decl.is_type()
-            } else {
-                true
+        // Remove TS-only statements early to avoid traversing their children
+        stmts.retain(|stmt| match stmt {
+            match_declaration!(Statement) => {
+                self.should_keep_declaration(stmt.to_declaration(), ctx)
             }
+            _ => true,
         });
     }
 
@@ -399,39 +394,6 @@ impl<'a> Traverse<'a, TransformState<'a>> for TypeScriptAnnotations<'a> {
         self.has_super_call = true;
     }
 
-    fn exit_statements(
-        &mut self,
-        stmts: &mut ArenaVec<'a, Statement<'a>>,
-        _ctx: &mut TraverseCtx<'a>,
-    ) {
-        // Remove TS specific statements
-        stmts.retain_mut(|stmt| match stmt {
-            Statement::ExpressionStatement(s) => !s.expression.is_typescript_syntax(),
-            match_declaration!(Statement) => {
-                let decl = stmt.to_declaration_mut();
-                match decl {
-                    Declaration::VariableDeclaration(var_decl) => {
-                        // Remove declare variable declarations entirely
-                        !var_decl.declare
-                    }
-                    Declaration::FunctionDeclaration(func_decl) => {
-                        // Remove declare function declarations and function overload signatures entirely
-                        // Keep only function implementations (those with a body)
-                        !func_decl.declare && func_decl.body.is_some()
-                    }
-                    Declaration::ClassDeclaration(class_decl) => {
-                        // Remove declare class declarations entirely
-                        !class_decl.declare
-                    }
-                    // Remove type-only declarations
-                    _ => !decl.is_typescript_syntax(),
-                }
-            }
-            // Ignore ModuleDeclaration as it's handled in the program
-            _ => true,
-        });
-    }
-
     /// Transform if statement's consequent and alternate to block statements if they are super calls
     /// ```ts
     /// if (true) super() else super();
@@ -535,6 +497,51 @@ impl<'a> Traverse<'a, TransformState<'a>> for TypeScriptAnnotations<'a> {
 }
 
 impl<'a> TypeScriptAnnotations<'a> {
+    #[inline]
+    fn should_keep_declaration(&self, decl: &Declaration<'a>, ctx: &mut TraverseCtx<'a>) -> bool {
+        match decl {
+            // Remove type aliases, interfaces, and `declare global {}`
+            Declaration::TSTypeAliasDeclaration(_)
+            | Declaration::TSInterfaceDeclaration(_)
+            | Declaration::TSGlobalDeclaration(_) => false,
+            // Remove `declare var/let/const`
+            Declaration::VariableDeclaration(var_decl) => !var_decl.declare,
+            // Remove `declare function` and function overload signatures (no body)
+            Declaration::FunctionDeclaration(func_decl) => {
+                !func_decl.declare && func_decl.body.is_some()
+            }
+            // Remove `declare class`
+            Declaration::ClassDeclaration(class_decl) => !class_decl.declare,
+            // Remove `declare module` or uninstantiated namespace declarations.
+            // Keep instantiated `module` declarations — they have runtime
+            // representation and need to be transformed.
+            Declaration::TSModuleDeclaration(module_decl) => {
+                !module_decl.declare
+                    && !matches!(
+                        &module_decl.id,
+                        TSModuleDeclarationName::Identifier(ident)
+                            if ctx.scoping().symbol_flags(ident.symbol_id()).is_namespace_module()
+                    )
+            }
+            // Remove `declare enum`
+            Declaration::TSEnumDeclaration(enum_decl) => !enum_decl.declare,
+            // Remove unused import-equals (used ones are transformed by module transform)
+            Declaration::TSImportEqualsDeclaration(import_equals) => {
+                let keep = import_equals.import_kind.is_value()
+                    && (self.only_remove_type_imports
+                        || !ctx
+                            .scoping()
+                            .get_resolved_references(import_equals.id.symbol_id())
+                            .all(Reference::is_type));
+                if !keep {
+                    let scope_id = ctx.current_scope_id();
+                    ctx.scoping_mut().remove_binding(scope_id, import_equals.id.name);
+                }
+                keep
+            }
+        }
+    }
+
     /// Check if the given name is a JSX pragma or fragment pragma import
     /// and if the file contains JSX elements or fragments
     fn is_jsx_imports(&self, name: &str) -> bool {
diff --git a/crates/oxc_transformer/src/typescript/mod.rs b/crates/oxc_transformer/src/typescript/mod.rs
index 8cb005e387cc5..205576d52bde2 100644
--- a/crates/oxc_transformer/src/typescript/mod.rs
+++ b/crates/oxc_transformer/src/typescript/mod.rs
@@ -214,14 +214,6 @@ impl<'a> Traverse<'a, TransformState<'a>> for TypeScript<'a> {
         self.annotations.enter_statements(stmts, ctx);
     }
 
-    fn exit_statements(
-        &mut self,
-        stmts: &mut ArenaVec<'a, Statement<'a>>,
-        ctx: &mut TraverseCtx<'a>,
-    ) {
-        self.annotations.exit_statements(stmts, ctx);
-    }
-
     fn enter_statement(&mut self, stmt: &mut Statement<'a>, ctx: &mut TraverseCtx<'a>) {
         self.r#enum.enter_statement(stmt, ctx);
         self.module.enter_statement(stmt, ctx);
diff --git a/tasks/coverage/snapshots/semantic_babel.snap b/tasks/coverage/snapshots/semantic_babel.snap
index 30abf3fb880e3..e5a7efa103e0c 100644
--- a/tasks/coverage/snapshots/semantic_babel.snap
+++ b/tasks/coverage/snapshots/semantic_babel.snap
@@ -2,7 +2,7 @@ commit: 92c052dc
 
 semantic_babel Summary:
 AST Parsed     : 2224/2224 (100.00%)
-Positive Passed: 2024/2224 (91.01%)
+Positive Passed: 2025/2224 (91.05%)
 semantic Error: tasks/coverage/babel/packages/babel-parser/test/fixtures/comments/decorators/decorators-after-export/input.js
 Symbol span mismatch for "C":
 after transform: SymbolId(0): Span { start: 65, end: 66 }
@@ -655,12 +655,7 @@ rebuilt        : ScopeId(0): []
 
 semantic Error: tasks/coverage/babel/packages/babel-parser/test/fixtures/typescript/import/type-asi/input.ts
 Bindings mismatch:
-after transform: ScopeId(0): ["A", "B", "a", "b"]
-rebuilt        : ScopeId(0): []
-
-semantic Error: tasks/coverage/babel/packages/babel-parser/test/fixtures/typescript/import/type-equals-require/input.ts
-Bindings mismatch:
-after transform: ScopeId(0): ["a"]
+after transform: ScopeId(0): ["B", "b"]
 rebuilt        : ScopeId(0): []
 
 semantic Error: tasks/coverage/babel/packages/babel-parser/test/fixtures/typescript/interface/extends/input.ts
diff --git a/tasks/coverage/snapshots/semantic_typescript.snap b/tasks/coverage/snapshots/semantic_typescript.snap
index 802f9a50ec033..d061bc2f04e09 100644
--- a/tasks/coverage/snapshots/semantic_typescript.snap
+++ b/tasks/coverage/snapshots/semantic_typescript.snap
@@ -2,7 +2,7 @@ commit: 95e3aaa9
 
 semantic_typescript Summary:
 AST Parsed     : 5482/5482 (100.00%)
-Positive Passed: 2950/5482 (53.81%)
+Positive Passed: 2951/5482 (53.83%)
 semantic Error: tasks/coverage/typescript/tests/cases/compiler/2dArrays.ts
 Symbol reference IDs mismatch for "Cell":
 after transform: SymbolId(0): [ReferenceId(1)]
@@ -30085,11 +30085,6 @@ Bindings mismatch:
 after transform: ScopeId(0): ["from"]
 rebuilt        : ScopeId(0): []
 
-semantic Error: tasks/coverage/typescript/tests/cases/conformance/externalModules/typeOnly/importDefaultNamedType3.ts
-Bindings mismatch:
-after transform: ScopeId(0): ["from"]
-rebuilt        : ScopeId(0): []
-
 semantic Error: tasks/coverage/typescript/tests/cases/conformance/externalModules/typeOnly/mergedWithLocalValue.ts
 Symbol flags mismatch for "A":
 after transform: SymbolId(0): SymbolFlags(BlockScopedVariable | ConstVariable | TypeImport)
@@ -30231,7 +30226,7 @@ rebuilt        : SymbolId(0): SymbolFlags(BlockScopedVariable)
 
 semantic Error: tasks/coverage/typescript/tests/cases/conformance/externalModules/verbatimModuleSyntaxRestrictionsESM.ts
 Bindings mismatch:
-after transform: ScopeId(0): ["CJSy", "CJSy2", "CJSy3", "types"]
+after transform: ScopeId(0): ["CJSy", "CJSy3", "types"]
 rebuilt        : ScopeId(0): ["CJSy"]
 
 semantic Error: tasks/coverage/typescript/tests/cases/conformance/functions/functionOverloadCompatibilityWithVoid02.ts