diff --git a/pkgs/racket-test-core/tests/racket/macro.rktl b/pkgs/racket-test-core/tests/racket/macro.rktl
index 8f05db53b8..2d570f7311 100644
--- a/pkgs/racket-test-core/tests/racket/macro.rktl
+++ b/pkgs/racket-test-core/tests/racket/macro.rktl
@@ -1171,6 +1171,93 @@
        
        ((mylam (x) (x 1 2)) 'any))))))
 
+;; ----------------------------------------
+;; Make sure an internal-definition context expansion
+;; propagates the context's scope while expanding an expression:
+;; (Test from Spencer Florence)
+
+(module check-intfdef-expansion-scope racket/base
+  (require (for-syntax syntax/parse
+                       racket/base))
+
+  ;; a standard context for identifiers
+  (define-for-syntax ctx #'ctx)
+
+  ;; create an ID with the context `ctx`, and the current
+  ;; expander mark (so that the mark is canceled later),
+  ;; and the location loc
+  (define-for-syntax (make-id loc)
+    (syntax-local-introduce
+     (datum->syntax ctx 'id loc)))
+
+  ;; This introduces a binding
+  (define-syntax (def stx)
+    (syntax-parse stx
+      [(def)
+       (with-syntax ([id (make-id #'here)])
+         #'(define id 5))]))
+
+  ;; this attempts to use the binding introduced by `def`
+  (define-syntax (use stx)
+    (syntax-parse stx
+      [(use)
+       (with-syntax ([id (make-id #'here)])
+         #'id)]))
+
+  (let ()
+    (def)
+    (use)))
+
+;; ----------------------------------------
+;; Similar to preceding, but at module level using an initialy
+;; empty scope set:
+
+(module check-module-recur-expansion-scope racket/kernel
+  (#%require racket/base)
+  (require (for-syntax racket/base
+                       syntax/parse))
+  ;; empty context:
+  (define-for-syntax ctx (datum->syntax #f 'ctx))
+  (define-for-syntax (make-id loc)
+    (syntax-local-introduce
+     (datum->syntax ctx 'id loc)))
+  (define-syntax (def stx)
+    (syntax-parse stx
+      [(def)
+       (with-syntax ([id (make-id #'here)])
+         #'(define-syntax-rule (id) (define x 1)))]))
+  (define-syntax (use stx)
+    (syntax-parse stx
+      [(use)
+       (with-syntax ([id (make-id #'here)])
+         #'(id))]))
+  (begin
+    (def)
+    (use)))
+
+;; Module body is expanded with `local-expand`:
+(module check-module-local-expand-recur-expansion-scope racket/base
+  (require (for-syntax racket/base
+                       syntax/parse))
+  ;; empty context:
+  (define-for-syntax ctx (datum->syntax #f 'ctx))
+  (define-for-syntax (make-id loc)
+    (syntax-local-introduce
+     (datum->syntax ctx 'id loc)))
+  (define-syntax (def stx)
+    (syntax-parse stx
+      [(def)
+       (with-syntax ([id (make-id #'here)])
+         #'(define-syntax-rule (id) (define x 1)))]))
+  (define-syntax (use stx)
+    (syntax-parse stx
+      [(use)
+       (with-syntax ([id (make-id #'here)])
+         #'(id))]))
+  (begin
+    (def)
+    (use)))
+
 ;; ----------------------------------------
 
 (report-errs)
diff --git a/pkgs/racket-test/tests/units/test-unit.rkt b/pkgs/racket-test/tests/units/test-unit.rkt
index cf52e135a4..520056b0ce 100644
--- a/pkgs/racket-test/tests/units/test-unit.rkt
+++ b/pkgs/racket-test/tests/units/test-unit.rkt
@@ -1811,6 +1811,26 @@
         (define-values/invoke-unit u@ (import) (export s^))
         x))
 
+;; ----------------------------------------
+;; May sure unit body expansion doesn't mangle context:
+
+(test 5
+      (invoke-unit
+       (let ([x 5])
+         (define-syntax-rule (m) x)
+         (unit (import) (export)
+           (define x 6)
+           (m)))))
+
+(test 5
+      (invoke-unit
+       (let-syntax ([x (syntax-rules ()
+                         [(_) 5])])
+         (define-syntax-rule (m) (x))
+         (unit (import) (export)
+           (define (x) 6)
+           (m)))))
+
 ;; ----------------------------------------
 
 ;; Make sure that right-hand side of a `define-values`
diff --git a/racket/src/racket/src/compile.c b/racket/src/racket/src/compile.c
index 6eda66f72a..9c0200438b 100644
--- a/racket/src/racket/src/compile.c
+++ b/racket/src/racket/src/compile.c
@@ -4964,6 +4964,12 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
   form = compile_expand_macro_app(name, menv, var, form, env, rec, drec, need_macro_scope);
   SCHEME_EXPAND_OBSERVE_EXIT_MACRO(rec[drec].observer, form);
 
+  if (env->expand_result_adjust) {
+    Scheme_Expand_Result_Adjust_Proc adjust;
+    adjust = env->expand_result_adjust;
+    form = adjust(form, env->expand_result_adjust_arg);
+  }
+
   if (rec[drec].comp)
     goto top;
   else {
@@ -5640,6 +5646,11 @@ static Scheme_Object *beginify(Scheme_Comp_Env *env, Scheme_Object *lst)
                                 0, 0);
 }
 
+static Scheme_Object *add_scope_at_arbitrary_phase(Scheme_Object *stx, Scheme_Object *rib)
+{
+  return scheme_stx_add_scope(stx, rib, scheme_make_integer(0));
+}
+
 static Scheme_Object *
 compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env, 
                      Scheme_Compile_Expand_Info *rec, int drec,
@@ -5685,10 +5696,13 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
                                      env);
   env->intdef_name = ectx;
 
+  env->expand_result_adjust = add_scope_at_arbitrary_phase;
+  env->expand_result_adjust_arg = rib;
+
   forms = scheme_datum_to_syntax(forms, scheme_false, scheme_false, 0, 0);
 
   old = forms;
-  forms = scheme_stx_add_scope(forms, rib, scheme_env_phase(env->genv));
+  forms = add_scope_at_arbitrary_phase(forms, rib);
   SCHEME_EXPAND_OBSERVE_BLOCK_RENAMES(rec[drec].observer, forms, old);
 
  try_again:
@@ -5709,16 +5723,10 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
     is_last = SCHEME_STX_NULLP(SCHEME_STX_CDR(forms));
 
     result = forms;
-    old = first;
 
     /* Check for macro expansion, which could mask the real
        define-values, define-syntax, etc.: */
     first = scheme_check_immediate_macro(first, env, rec, drec, &gval, is_last);
-
-    if (!SAME_OBJ(first, old)) {
-      old = first;
-      first = scheme_stx_add_scope(first, rib, scheme_env_phase(env->genv));
-    }
     
     if (SAME_OBJ(gval, scheme_begin_syntax)) {
       /* Inline content */
@@ -5925,6 +5933,8 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 	  /* Remember extended environment */
           env = scheme_new_compilation_frame(0, SCHEME_INTDEF_FRAME, frame_scopes, new_env);
           env->intdef_name = ectx;
+          env->expand_result_adjust = add_scope_at_arbitrary_phase;
+          env->expand_result_adjust_arg = rib;
 	}
 
       define_try_again:
diff --git a/racket/src/racket/src/eval.c b/racket/src/racket/src/eval.c
index bb55b9eb97..bd4c12adaf 100644
--- a/racket/src/racket/src/eval.c
+++ b/racket/src/racket/src/eval.c
@@ -3972,7 +3972,7 @@ static void *compile_k(void)
   Resolve_Prefix *rp;
   Resolve_Info *ri;
   Optimize_Info *oi;
-  Scheme_Object *gval, *insp;
+  Scheme_Object *gval, *insp, *rib;
   Scheme_Comp_Env *cenv;
 
   form = (Scheme_Object *)p->ku.k.p1;
@@ -3992,7 +3992,9 @@ static void *compile_k(void)
   /* Renamings for requires: */
   if (rename) {
     form = scheme_top_introduce(form, genv);
-  }
+    rib = genv->stx_context;
+  } else
+    rib = NULL;
 
   tl_queue = scheme_null;
 
@@ -4036,6 +4038,11 @@ static void *compile_k(void)
                                SCHEME_TOPLEVEL_FRAME
                                | SCHEME_KEEP_SCOPES_FRAME);
 
+    if (rib) {
+      cenv->expand_result_adjust = scheme_stx_push_introduce_module_context;
+      cenv->expand_result_adjust_arg = rib;
+    }
+
     if (for_eval) {
       /* Need to look for top-level `begin', and if we
 	 find one, break it up to eval first expression
@@ -4833,9 +4840,9 @@ scheme_make_lifted_defn(Scheme_Object *sys_wraps, Scheme_Object **_ids, Scheme_O
   return scheme_datum_to_syntax(l, scheme_false, scheme_false, 0, 0);
 }
 
-static Scheme_Object *add_intdef_renamings(Scheme_Object *l, Scheme_Object *renaming, Scheme_Object *phase)
+static Scheme_Object *add_intdef_renamings(Scheme_Object *l, Scheme_Object *renaming)
 {
-  Scheme_Object *rl = renaming;
+  Scheme_Object *rl = renaming, *phase = scheme_make_integer(0);
 
   if (SCHEME_PAIRP(renaming)) {
     while (!SCHEME_NULLP(rl)) {
@@ -4877,7 +4884,7 @@ static void update_intdef_chain(Scheme_Object *intdef)
 static Scheme_Object *
 do_local_expand(const char *name, int for_stx, int catch_lifts, int for_expr, int argc, Scheme_Object **argv)
 {
-  Scheme_Comp_Env *env, *orig_env, **ip;
+  Scheme_Comp_Env *env, *orig_env, *adjust_env = NULL, **ip;
   Scheme_Object *l, *local_scope, *renaming = NULL, *orig_l, *exp_expr = NULL;
   int cnt, pos, kind, is_modstar;
   int bad_sub_env = 0, bad_intdef = 0, keep_ref_ids = 0;
@@ -4900,9 +4907,10 @@ do_local_expand(const char *name, int for_stx, int catch_lifts, int for_expr, in
 
   if (for_expr)
     kind = 0; /* expression */
-  else if (!for_stx && SAME_OBJ(argv[1], module_symbol))
+  else if (!for_stx && SAME_OBJ(argv[1], module_symbol)) {
     kind = SCHEME_MODULE_FRAME | SCHEME_USE_SCOPES_TO_NEXT; /* module body */
-  else if (!for_stx && SAME_OBJ(argv[1], module_begin_symbol))
+    adjust_env = orig_env;
+  } else if (!for_stx && SAME_OBJ(argv[1], module_begin_symbol))
     kind = SCHEME_MODULE_BEGIN_FRAME; /* just inside module for expanding to `#%module-begin` */
   else if (SAME_OBJ(argv[1], top_level_symbol)) {
     kind = SCHEME_TOPLEVEL_FRAME;
@@ -4988,6 +4996,12 @@ do_local_expand(const char *name, int for_stx, int catch_lifts, int for_expr, in
 					 | kind),
 				     NULL,
                                      env);
+
+  if (adjust_env && adjust_env->expand_result_adjust) {
+    env->expand_result_adjust = adjust_env->expand_result_adjust;
+    env->expand_result_adjust_arg = adjust_env->expand_result_adjust_arg;
+  }
+  
   if (catch_lifts < 0) {
     /* Note: extra frames can get inserted after env by pair_lifted */
     ip = MALLOC_N(Scheme_Comp_Env *, 1);
@@ -5090,8 +5104,11 @@ do_local_expand(const char *name, int for_stx, int catch_lifts, int for_expr, in
     l = scheme_stx_flip_scope(l, local_scope, scheme_env_phase(env->genv));
   }
 
-  if (renaming)
-    l = add_intdef_renamings(l, renaming, scheme_env_phase(env->genv));
+  if (renaming) {
+    l = add_intdef_renamings(l, renaming);
+    env->expand_result_adjust = add_intdef_renamings;
+    env->expand_result_adjust_arg = renaming;
+  }
 
   SCHEME_EXPAND_OBSERVE_LOCAL_PRE(observer, l);
 
@@ -5148,7 +5165,7 @@ do_local_expand(const char *name, int for_stx, int catch_lifts, int for_expr, in
   SCHEME_EXPAND_OBSERVE_LOCAL_POST(observer, l);
 
   if (renaming)
-    l = add_intdef_renamings(l, renaming, scheme_env_phase(env->genv));
+    l = add_intdef_renamings(l, renaming);
 
   if (for_expr) {
     /* Package up expanded expr with the environment. */
diff --git a/racket/src/racket/src/module.c b/racket/src/racket/src/module.c
index 119152fd44..7662f9adda 100644
--- a/racket/src/racket/src/module.c
+++ b/racket/src/racket/src/module.c
@@ -8682,6 +8682,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 
   rn_set = env->genv->stx_context;
 
+  xenv->expand_result_adjust = introduce_to_module_context;
+  xenv->expand_result_adjust_arg = rn_set;
+    
   vec = get_table(bxs->tables, scheme_make_integer(phase));
   if (SCHEME_FALSEP(SCHEME_VEC_ELS(vec)[0]))
     SCHEME_VEC_ELS(vec)[0] = (Scheme_Object *)env->genv->toplevel;
diff --git a/racket/src/racket/src/mzmark_compenv.inc b/racket/src/racket/src/mzmark_compenv.inc
index f9a584175e..6d8bed0805 100644
--- a/racket/src/racket/src/mzmark_compenv.inc
+++ b/racket/src/racket/src/mzmark_compenv.inc
@@ -25,6 +25,8 @@ static int mark_comp_env_MARK(void *p, struct NewGC *gc) {
   gcMARK2(e->use, gc);
   gcMARK2(e->lifts, gc);
 
+  gcMARK2(e->expand_result_adjust_arg, gc);
+
   return
   gcBYTES_TO_WORDS(sizeof(Scheme_Comp_Env));
 }
@@ -49,6 +51,8 @@ static int mark_comp_env_FIXUP(void *p, struct NewGC *gc) {
   gcFIXUP2(e->use, gc);
   gcFIXUP2(e->lifts, gc);
 
+  gcFIXUP2(e->expand_result_adjust_arg, gc);
+
   return
   gcBYTES_TO_WORDS(sizeof(Scheme_Comp_Env));
 }
diff --git a/racket/src/racket/src/mzmarksrc.c b/racket/src/racket/src/mzmarksrc.c
index ae4c9cda28..477e05a0d3 100644
--- a/racket/src/racket/src/mzmarksrc.c
+++ b/racket/src/racket/src/mzmarksrc.c
@@ -1269,6 +1269,8 @@ mark_comp_env {
   gcMARK2(e->use, gc);
   gcMARK2(e->lifts, gc);
 
+  gcMARK2(e->expand_result_adjust_arg, gc);
+
  size:
   gcBYTES_TO_WORDS(sizeof(Scheme_Comp_Env));
 }
diff --git a/racket/src/racket/src/schpriv.h b/racket/src/racket/src/schpriv.h
index d11639198e..022317015b 100644
--- a/racket/src/racket/src/schpriv.h
+++ b/racket/src/racket/src/schpriv.h
@@ -2547,6 +2547,8 @@ typedef struct Comp_Prefix
   Scheme_Hash_Table *stxes;     /* syntax objects */
 } Comp_Prefix;
 
+typedef Scheme_Object *(*Scheme_Expand_Result_Adjust_Proc)(Scheme_Object *stx, Scheme_Object *arg);
+
 typedef struct Scheme_Comp_Env
 {
   MZTAG_IF_REQUIRED
@@ -2579,6 +2581,9 @@ typedef struct Scheme_Comp_Env
   Scheme_Hash_Tree *skip_table; /* for jumping ahead in the chain */
   int skip_depth;                /* depth in simple frames, used to trigger skip_table creation */
 
+  Scheme_Expand_Result_Adjust_Proc expand_result_adjust;
+  Scheme_Object *expand_result_adjust_arg;
+
   struct Scheme_Comp_Env *next;
 } Scheme_Comp_Env;