diff --git a/test/components-compilation/fixtures-html/arrow-functions/expected.js b/test/components-compilation/fixtures-html/arrow-functions/expected.js
new file mode 100644
index 000000000..11ac2045b
--- /dev/null
+++ b/test/components-compilation/fixtures-html/arrow-functions/expected.js
@@ -0,0 +1,45 @@
+"use strict";
+
+var marko_template = module.exports = require("marko/src/html").t(__filename),
+    marko_component = {
+        onCreate: function() {
+          this.state = {
+              message: "didnt run it"
+            };
+
+          if (true) {
+            runIt(() => {
+                this.state.message = 'ran it';
+            });
+          }
+        }
+      },
+    marko_componentType = "/marko-test$1.0.0/components-compilation/fixtures-html/arrow-functions/index.marko",
+    components_helpers = require("marko/src/components/helpers"),
+    marko_renderer = components_helpers.r,
+    marko_defineComponent = components_helpers.c,
+    marko_helpers = require("marko/src/runtime/html/helpers"),
+    marko_escapeXml = marko_helpers.x;
+
+function runIt(fn) {
+    fn()
+};
+
+function render(input, out, __component, component, state) {
+  var data = input;
+
+  out.w("<div>Broken [" +
+    marko_escapeXml(state.message) +
+    "]</div>");
+}
+
+marko_template._ = marko_renderer(render, {
+    ___type: marko_componentType
+  }, marko_component);
+
+marko_template.Component = marko_defineComponent(marko_component, marko_template._);
+
+marko_template.meta = {
+    id: "/marko-test$1.0.0/components-compilation/fixtures-html/arrow-functions/index.marko",
+    component: "./"
+  };
diff --git a/test/components-compilation/fixtures-html/arrow-functions/index.marko b/test/components-compilation/fixtures-html/arrow-functions/index.marko
new file mode 100644
index 000000000..54ff5fba2
--- /dev/null
+++ b/test/components-compilation/fixtures-html/arrow-functions/index.marko
@@ -0,0 +1,19 @@
+static {
+    function runIt(fn) {
+        fn()
+    }
+}
+class {
+    onCreate() {
+        this.state = {
+            message : "didnt run it"
+        }
+        if (true) {
+            runIt(()=>{
+                this.state.message = "ran it"
+            })
+        }
+
+    }
+}
+<div>Broken [${state.message}]</div>
\ No newline at end of file
diff --git a/test/components-compilation/fixtures-html/arrow-functions/test.js b/test/components-compilation/fixtures-html/arrow-functions/test.js
new file mode 100644
index 000000000..2e2abbd97
--- /dev/null
+++ b/test/components-compilation/fixtures-html/arrow-functions/test.js
@@ -0,0 +1 @@
+module.exports.fails = "issue #1181";