diff --git a/compiler/constrain/src/expr.rs b/compiler/constrain/src/expr.rs
index 77b8a3c82c..5584779f03 100644
--- a/compiler/constrain/src/expr.rs
+++ b/compiler/constrain/src/expr.rs
@@ -9,7 +9,7 @@ use roc_can::expected::PExpected;
 use roc_can::expr::Expr::{self, *};
 use roc_can::expr::{Field, WhenBranch};
 use roc_can::pattern::Pattern;
-use roc_collections::all::{ImMap, Index, SendMap};
+use roc_collections::all::{ImMap, Index, MutSet, SendMap};
 use roc_module::ident::{Lowercase, TagName};
 use roc_module::symbol::{ModuleId, Symbol};
 use roc_region::all::{Located, Region};
@@ -1438,13 +1438,15 @@ fn instantiate_rigids(
     annotation: &Type,
     introduced_vars: &IntroducedVariables,
     new_rigids: &mut Vec<Variable>,
-    ftv: &mut ImMap<Lowercase, Variable>,
+    ftv: &mut ImMap<Lowercase, Variable>, // rigids defined before the current annotation
     loc_pattern: &Located<Pattern>,
     headers: &mut SendMap<Symbol, Located<Type>>,
 ) -> Type {
     let mut annotation = annotation.clone();
     let mut rigid_substitution: ImMap<Variable, Type> = ImMap::default();
 
+    let outside_rigids: MutSet<Variable> = ftv.values().copied().collect();
+
     for (name, var) in introduced_vars.var_by_name.iter() {
         if let Some(existing_rigid) = ftv.get(name) {
             rigid_substitution.insert(*var, Type::Variable(*existing_rigid));
@@ -1464,7 +1466,12 @@ fn instantiate_rigids(
         &Located::at(loc_pattern.region, annotation.clone()),
     ) {
         for (symbol, loc_type) in new_headers {
-            new_rigids.extend(loc_type.value.variables());
+            for var in loc_type.value.variables() {
+                // a rigid is only new if this annotation is the first occurence of this rigid
+                if !outside_rigids.contains(&var) {
+                    new_rigids.push(var);
+                }
+            }
             headers.insert(symbol, loc_type);
         }
     }
diff --git a/compiler/test_gen/src/gen_primitives.rs b/compiler/test_gen/src/gen_primitives.rs
index d183b95d0b..1de82fa5f7 100644
--- a/compiler/test_gen/src/gen_primitives.rs
+++ b/compiler/test_gen/src/gen_primitives.rs
@@ -2906,3 +2906,77 @@ fn do_pass_bool_byte_closure_layout() {
         RocStr
     );
 }
+
+#[test]
+fn nested_rigid_list() {
+    assert_evals_to!(
+        indoc!(
+            r#"
+                app "test" provides [ main ] to "./platform"
+
+                foo : List a -> List a
+                foo = \list ->
+                    p2 : List a
+                    p2 = list
+
+                    p2
+
+                main =
+                    when foo [] is
+                        _ -> "hello world"
+            "#
+        ),
+        RocStr::from_slice(b"hello world"),
+        RocStr
+    );
+}
+
+#[test]
+fn nested_rigid_alias() {
+    assert_evals_to!(
+        indoc!(
+            r#"
+                app "test" provides [ main ] to "./platform"
+
+                Identity a : [ @Identity a ]
+
+                foo : Identity a -> Identity a
+                foo = \list ->
+                    p2 : Identity a
+                    p2 = list
+
+                    p2
+
+                main =
+                    when foo (@Identity "foo") is
+                        _ -> "hello world"
+            "#
+        ),
+        RocStr::from_slice(b"hello world"),
+        RocStr
+    );
+}
+
+#[test]
+fn nested_rigid_tag_union() {
+    assert_evals_to!(
+        indoc!(
+            r#"
+                app "test" provides [ main ] to "./platform"
+
+                foo : [ @Identity a ] -> [ @Identity a ]
+                foo = \list ->
+                    p2 : [ @Identity a ]
+                    p2 = list
+
+                    p2
+
+                main =
+                    when foo (@Identity "foo") is
+                        _ -> "hello world"
+            "#
+        ),
+        RocStr::from_slice(b"hello world"),
+        RocStr
+    );
+}