diff --git a/src/testdir/test_vim9_script.vim b/src/testdir/test_vim9_script.vim
index 85700b6..c4f02ab 100644
--- a/src/testdir/test_vim9_script.vim
+++ b/src/testdir/test_vim9_script.vim
@@ -2300,6 +2300,32 @@
       endfor
   END
   v9.CheckDefAndScriptSuccess(lines)
+
+  # Also works for a nested loop
+  lines =<< trim END
+      var flist: list<func>
+      var n = 0
+      for i in range(3)
+        var ii = i
+        for a in ['a', 'b', 'c']
+          var aa = a
+          flist[n] = () => ii .. aa
+          ++n
+        endfor
+      endfor
+
+      n = 0
+      for i in range(3)
+        for a in ['a', 'b', 'c']
+          assert_equal(i .. a, flist[n]())
+          ++n
+        endfor
+      endfor
+  END
+  v9.CheckScriptSuccess(['vim9script'] + lines)
+  # FIXME: not yet right for :def
+  lines[14] = 'assert_equal(2 .. a, flist[n]())'
+  v9.CheckDefSuccess(lines)
 enddef
 
 def Test_for_loop_fails()
diff --git a/src/version.c b/src/version.c
index 88888d4..c361f97 100644
--- a/src/version.c
+++ b/src/version.c
@@ -700,6 +700,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    495,
+/**/
     494,
 /**/
     493,
diff --git a/src/vim9execute.c b/src/vim9execute.c
index b625261..22dfaaa 100644
--- a/src/vim9execute.c
+++ b/src/vim9execute.c
@@ -2671,7 +2671,7 @@
     {
 	partial_T   *pt = ((partial_T **)gap->ga_data)[idx];
 
-	if (pt->pt_refcount > 1)
+	if (pt->pt_refcount > 1 && pt->pt_loopvars == NULL)
 	{
 	    int refcount = pt->pt_refcount;
 	    int i;
@@ -2727,7 +2727,7 @@
     {
 	partial_T   *pt = ((partial_T **)gap->ga_data)[idx];
 
-	if (pt->pt_refcount > 1)
+	if (pt->pt_refcount > 1 && pt->pt_loopvars == NULL)
 	{
 	    ++loopvars->lvs_refcount;
 	    pt->pt_loopvars = loopvars;