diff --git a/jerry-core/parser/js/js-scanner-util.c b/jerry-core/parser/js/js-scanner-util.c
index 10960ca11..a8bfe924f 100644
--- a/jerry-core/parser/js/js-scanner-util.c
+++ b/jerry-core/parser/js/js-scanner-util.c
@@ -371,6 +371,7 @@ scanner_push_literal_pool (parser_context_t *context_p, /**< context */
   if (!(status_flags & SCANNER_LITERAL_POOL_FUNCTION))
   {
     JERRY_ASSERT (prev_literal_pool_p != NULL);
+    status_flags |= SCANNER_LITERAL_POOL_NO_ARGUMENTS;
 
     if (prev_literal_pool_p->status_flags & SCANNER_LITERAL_POOL_IN_WITH)
     {
diff --git a/tests/jerry/arguments.js b/tests/jerry/arguments.js
index a9b3193fe..b1014d599 100644
--- a/tests/jerry/arguments.js
+++ b/tests/jerry/arguments.js
@@ -129,3 +129,17 @@ fn_expr (1);
 (function () {
  var a = [arguments];
 })();
+
+function nested_args()
+{
+  var a;
+  for (var i = 0; i < 1; i++)
+  {
+    if (i == 0)
+    {
+      a = arguments[i];
+    }
+  }
+  assert(a === 3);
+}
+nested_args(3);