diff --git a/pkgs/racket-test-core/tests/racket/optimize.rktl b/pkgs/racket-test-core/tests/racket/optimize.rktl
index 0af03d685e..dece1e3213 100644
--- a/pkgs/racket-test-core/tests/racket/optimize.rktl
+++ b/pkgs/racket-test-core/tests/racket/optimize.rktl
@@ -2111,6 +2111,18 @@
            '(lambda (z) (lambda ()
                           (lambda () z)))
            #f)
+;; Don't move omittable expressions that keep a reference:
+(test-comp '(lambda (z) (let ([r (pair? z)])
+                          (lambda () r)))
+           '(lambda (z) (lambda ()
+                          (lambda () (pair? z))))
+           #f)
+(test-comp '(lambda (z) (when (list? z)
+                          (let ([r (list->vector z)])
+                            (lambda () r))))
+           '(lambda (z) (when (list? z)
+                          (lambda () (list->vector z))))
+           #f)
 
 
 (test-comp '(if (let ([z (random)]) null) 1 2)
diff --git a/racket/src/racket/src/optimize.c b/racket/src/racket/src/optimize.c
index 11887408bd..11635cc351 100644
--- a/racket/src/racket/src/optimize.c
+++ b/racket/src/racket/src/optimize.c
@@ -1616,8 +1616,10 @@ static int movable_expression(Scheme_Object *expr, Optimize_Info *info,
     }
     break;
   case scheme_application_type:
-    if (SCHEME_APPN_FLAGS((Scheme_App_Rec *)expr) & APPN_FLAG_OMITTABLE)
-      can_move = 1;
+    if (!cross_lambda
+        && !cross_k
+        && (SCHEME_APPN_FLAGS((Scheme_App_Rec *)expr) & APPN_FLAG_OMITTABLE))
+      can_move = -1;
     else
       can_move = is_movable_prim(((Scheme_App_Rec *)expr)->args[0], ((Scheme_App_Rec *)expr)->num_args,
                                  cross_lambda, cross_k, info);
@@ -1633,8 +1635,10 @@ static int movable_expression(Scheme_Object *expr, Optimize_Info *info,
     }
     break;
   case scheme_application2_type:
-    if (SCHEME_APPN_FLAGS((Scheme_App2_Rec *)expr) & APPN_FLAG_OMITTABLE)
-      can_move = 1;
+    if (!cross_lambda
+        && !cross_k
+        && (SCHEME_APPN_FLAGS((Scheme_App2_Rec *)expr) & APPN_FLAG_OMITTABLE))
+      can_move = -1;
     else
       can_move = is_movable_prim(((Scheme_App2_Rec *)expr)->rator, 1, cross_lambda, cross_k, info);
     if (can_move) {
@@ -1645,8 +1649,10 @@ static int movable_expression(Scheme_Object *expr, Optimize_Info *info,
     }
     break;
   case scheme_application3_type:
-    if (SCHEME_APPN_FLAGS((Scheme_App3_Rec *)expr) & APPN_FLAG_OMITTABLE)
-      can_move = 1;
+    if (!cross_lambda
+        && !cross_k
+        && (SCHEME_APPN_FLAGS((Scheme_App3_Rec *)expr) & APPN_FLAG_OMITTABLE))
+      can_move = -1;
     else
       can_move = is_movable_prim(((Scheme_App3_Rec *)expr)->rator, 2, cross_lambda, cross_k, info);
     if (can_move) {