diff --git a/pkgs/racket-test-core/tests/racket/macro.rktl b/pkgs/racket-test-core/tests/racket/macro.rktl
index adb0c90438..2b9855e5b1 100644
--- a/pkgs/racket-test-core/tests/racket/macro.rktl
+++ b/pkgs/racket-test-core/tests/racket/macro.rktl
@@ -2388,6 +2388,33 @@
                (and (exn:fail:syntax? exn) ; the error is from `#%plain-module-begin`
                     (regexp-match? #rx"not currently transforming a module" (exn-message exn)))))
 
+;; ----------------------------------------
+;; Make sure `syntax-local-bind-syntaxes` binds installs `free-identifier=?`
+;; equivalences in a context in which previous definitions in the context are bound
+
+(module syntax-local-bind-syntaxes-free-id-context racket/base
+  (require (for-syntax racket/base))
+  (provide result)
+  (define-syntax (letrec-syntax/intdef stx)
+    (syntax-case stx ()
+      [(_ ([x rhs] ...) e)
+       (let ()
+         (define intdef (syntax-local-make-definition-context))
+         (for ([x (in-list (syntax->list #'(x ...)))]
+               [rhs (in-list (syntax->list #'(rhs ...)))])
+           (syntax-local-bind-syntaxes (list x) rhs intdef))
+         (local-expand #'e 'expression '() intdef))]))
+  (begin-for-syntax
+    (struct indirect-rename-transformer (target-holder)
+      #:property prop:rename-transformer
+      (lambda (self) (syntax-local-value (indirect-rename-transformer-target-holder self)))))
+  (define result
+    (letrec-syntax/intdef ([holder #'add1]
+                           [add1-indirect (indirect-rename-transformer #'holder)])
+      (add1-indirect 10))))
+
+(test 11 dynamic-require ''syntax-local-bind-syntaxes-free-id-context 'result)
+
 ;; ----------------------------------------
 
 (report-errs)
diff --git a/racket/src/expander/expand/definition-context.rkt b/racket/src/expander/expand/definition-context.rkt
index 434d449dea..f748792a17 100644
--- a/racket/src/expander/expand/definition-context.rkt
+++ b/racket/src/expander/expand/definition-context.rkt
@@ -89,21 +89,22 @@
                  (add-local-binding! intdef-id phase counter
                                      #:frame-id (internal-definition-context-frame-id intdef)
                                      #:local-sym local-sym)))
+  (define local-ctx
+    (and s
+         (let ()
+           (define tmp-env (for/fold ([env (expand-context-env ctx)]) ([sym (in-list syms)]
+                                                                       [intdef-id (in-list intdef-ids)])
+                             (env-extend env sym (local-variable intdef-id))))
+           (make-local-expand-context (struct*-copy expand-context ctx
+                                                    [env tmp-env])
+                                      #:context 'expression
+                                      #:intdefs all-intdefs))))
   (define vals
     (cond
      [s
       (define input-s (flip-introduction-scopes (add-intdef-scopes s all-intdefs) ctx))
-      (define tmp-env (for/fold ([env (expand-context-env ctx)]) ([sym (in-list syms)]
-                                                                  [intdef-id (in-list intdef-ids)])
-                        (env-extend env sym (local-variable intdef-id))))
       (log-expand ctx 'enter-bind)
-      (define vals
-        (eval-for-syntaxes-binding 'syntax-local-bind-syntaxes
-                                   input-s ids
-                                   (make-local-expand-context (struct*-copy expand-context ctx
-                                                                            [env tmp-env])
-                                                              #:context 'expression
-                                                              #:intdefs all-intdefs)))
+      (define vals (eval-for-syntaxes-binding 'syntax-local-bind-syntaxes input-s ids local-ctx))
       (log-expand ctx 'exit-bind)
       vals]
      [else
@@ -112,7 +113,8 @@
   (set-box! env-mixins (append (for/list ([intdef-id (in-list intdef-ids)]
                                           [sym (in-list syms)]
                                           [val (in-list vals)])
-                                 (maybe-install-free=id-in-context! val intdef-id phase ctx)
+                                 (when local-ctx
+                                   (maybe-install-free=id-in-context! val intdef-id phase local-ctx))
                                  (env-mixin intdef-id sym val (make-weak-hasheq)))
                                (unbox env-mixins)))
   (log-expand ctx 'exit-local-bind))
diff --git a/racket/src/racket/src/startup.inc b/racket/src/racket/src/startup.inc
index 6b6de29f85..a2aca26fe0 100644
--- a/racket/src/racket/src/startup.inc
+++ b/racket/src/racket/src/startup.inc
@@ -44686,20 +44686,9 @@ static const char *startup_source =
 " for-loop_0)"
 " null"
 " lst_0))))))"
-"(let-values(((vals_0)"
+"(let-values(((local-ctx_0)"
 "(if s_0"
 "(let-values()"
-"(let-values(((input-s_0)"
-"(flip-introduction-scopes"
-"(let-values(((s59_0) s_0)"
-"((all-intdefs60_0)"
-" all-intdefs_0))"
-"(add-intdef-scopes24.1"
-" unsafe-undefined"
-" #f"
-" s59_0"
-" all-intdefs60_0))"
-" ctx_0)))"
 "(let-values(((tmp-env_0)"
 "(let-values(((lst_0) syms_0)"
 "((lst_1)"
@@ -44759,42 +44748,22 @@ static const char *startup_source =
 " env_1)))"
 " env_0)))))"
 " for-loop_0)"
-"(expand-context-env"
-" ctx_0)"
+"(expand-context-env ctx_0)"
 " lst_0"
 " lst_1)))))"
-"(let-values((()"
-"(begin"
-"(let-values(((obs_0)"
-"(expand-context-observer"
-" ctx_0)))"
-"(if obs_0"
-"(let-values()"
-"(let-values()"
-"(call-expand-observe"
-" obs_0"
-" 'enter-bind)))"
-"(void)))"
-"(values))))"
-"(let-values(((vals_0)"
-"(eval-for-syntaxes-binding"
-" 'syntax-local-bind-syntaxes"
-" input-s_0"
-" ids_0"
-"(let-values(((temp61_0)"
-"(let-values(((v_0)"
-" ctx_0))"
+"(let-values(((temp59_0)"
+"(let-values(((v_0) ctx_0))"
 "(let-values(((the-struct_0)"
 " v_0))"
 "(if(expand-context/outer?"
 " the-struct_0)"
-"(let-values(((env64_0)"
+"(let-values(((env62_0)"
 " tmp-env_0)"
-"((inner65_0)"
+"((inner63_0)"
 "(root-expand-context/outer-inner"
 " v_0)))"
 "(expand-context/outer1.1"
-" inner65_0"
+" inner63_0"
 "(root-expand-context/outer-post-expansion"
 " the-struct_0)"
 "(root-expand-context/outer-use-site-scopes"
@@ -44803,7 +44772,7 @@ static const char *startup_source =
 " the-struct_0)"
 "(expand-context/outer-context"
 " the-struct_0)"
-" env64_0"
+" env62_0"
 "(expand-context/outer-scopes"
 " the-struct_0)"
 "(expand-context/outer-def-ctx-scopes"
@@ -44824,21 +44793,54 @@ static const char *startup_source =
 " the-struct_0)))"
 "(raise-argument-error"
 " 'struct-copy"
-"                                                                                                                    \"expand-context/outer?\""
+"                                                                                                 \"expand-context/outer?\""
 " the-struct_0)))))"
-"((temp62_0)"
-" 'expression)"
-"((all-intdefs63_0)"
+"((temp60_0) 'expression)"
+"((all-intdefs61_0)"
 " all-intdefs_0))"
 "(make-local-expand-context42.1"
-" temp62_0"
-" all-intdefs63_0"
+" temp60_0"
+" all-intdefs61_0"
 " #t"
 " unsafe-undefined"
 " #f"
 " #f"
 " #f"
-" temp61_0)))))"
+" temp59_0))))"
+" #f)))"
+"(let-values(((vals_0)"
+"(if s_0"
+"(let-values()"
+"(let-values(((input-s_0)"
+"(flip-introduction-scopes"
+"(let-values(((s64_0) s_0)"
+"((all-intdefs65_0)"
+" all-intdefs_0))"
+"(add-intdef-scopes24.1"
+" unsafe-undefined"
+" #f"
+" s64_0"
+" all-intdefs65_0))"
+" ctx_0)))"
+"(let-values((()"
+"(begin"
+"(let-values(((obs_0)"
+"(expand-context-observer"
+" ctx_0)))"
+"(if obs_0"
+"(let-values()"
+"(let-values()"
+"(call-expand-observe"
+" obs_0"
+" 'enter-bind)))"
+"(void)))"
+"(values))))"
+"(let-values(((vals_0)"
+"(eval-for-syntaxes-binding"
+" 'syntax-local-bind-syntaxes"
+" input-s_0"
+" ids_0"
+" local-ctx_0)))"
 "(begin"
 "(let-values(((obs_0)"
 "(expand-context-observer"
@@ -44850,7 +44852,7 @@ static const char *startup_source =
 " obs_0"
 " 'exit-bind)))"
 "(void)))"
-" vals_0))))))"
+" vals_0)))))"
 "(let-values()"
 "(reverse$1"
 "(let-values(((lst_0) intdef-ids_0))"
@@ -44883,7 +44885,8 @@ static const char *startup_source =
 " fold-var_1))))"
 "(values"
 " fold-var_2)))))"
-"(if(not #f)"
+"(if(not"
+" #f)"
 "(for-loop_0"
 " fold-var_1"
 " rest_0)"
@@ -44954,11 +44957,14 @@ static const char *startup_source =
 "(cons"
 "(let-values()"
 "(begin"
+"(if local-ctx_0"
+"(let-values()"
 "(maybe-install-free=id-in-context!"
 " val_0"
 " intdef-id_0"
 " phase_0"
-" ctx_0)"
+" local-ctx_0))"
+"(void))"
 "(env-mixin2.1"
 " intdef-id_0"
 " sym_0"
@@ -44986,7 +44992,7 @@ static const char *startup_source =
 "(let-values()"
 "(let-values()"
 "(call-expand-observe obs_0 'exit-local-bind)))"
-"(void))))))))))))))))))))))))))))"
+"(void)))))))))))))))))))))))))))))"
 "(case-lambda"
 "((ids_0 s_0 intdef_0)(begin 'syntax-local-bind-syntaxes(syntax-local-bind-syntaxes11_0 ids_0 s_0 intdef_0 '())))"
 "((ids_0 s_0 intdef_0 extra-intdefs7_0)(syntax-local-bind-syntaxes11_0 ids_0 s_0 intdef_0 extra-intdefs7_0)))))"