diff --git a/internal/compiler/passes/lower_states.rs b/internal/compiler/passes/lower_states.rs
index f7a91b335..a9b648bf5 100644
--- a/internal/compiler/passes/lower_states.rs
+++ b/internal/compiler/passes/lower_states.rs
@@ -204,27 +204,28 @@ enum ExpressionForProperty {
 fn expression_for_property(element: &ElementRc, name: &str) -> ExpressionForProperty {
     let mut element_it = Some(element.clone());
     let mut in_base = false;
-    while let Some(element) = element_it {
-        if let Some(e) = element.borrow().bindings.get(name) {
+    while let Some(elem) = element_it {
+        if let Some(e) = elem.borrow().bindings.get(name) {
             let e = e.borrow();
             if !e.two_way_bindings.is_empty() {
                 return ExpressionForProperty::TwoWayBinding;
             }
-            if !matches!(e.expression, Expression::Invalid) {
+            let mut expr = e.expression.clone();
+            if !matches!(expr, Expression::Invalid) {
                 if in_base {
                     // Check that the expresison is valid in the new scope
                     let mut has_invalid = false;
-                    e.expression.visit_recursive(&mut |ex| match ex {
+                    expr.visit_recursive_mut(&mut |ex| match ex {
                         Expression::CallbackReference(nr, _)
                         | Expression::PropertyReference(nr)
                         | Expression::FunctionReference(nr, _) => {
                             let e = nr.element();
-                            if !Rc::ptr_eq(&e, &element)
-                                && Weak::ptr_eq(
-                                    &e.borrow().enclosing_component,
-                                    &element.borrow().enclosing_component,
-                                )
-                            {
+                            if Rc::ptr_eq(&e, &elem) {
+                                *nr = NamedReference::new(element, nr.name());
+                            } else if Weak::ptr_eq(
+                                &e.borrow().enclosing_component,
+                                &elem.borrow().enclosing_component,
+                            ) {
                                 has_invalid = true;
                             }
                         }
@@ -235,10 +236,10 @@ fn expression_for_property(element: &ElementRc, name: &str) -> ExpressionForProp
                     }
                 }
 
-                return ExpressionForProperty::Expression(e.expression.clone());
+                return ExpressionForProperty::Expression(expr);
             }
         }
-        element_it = if let ElementType::Component(base) = &element.borrow().base_type {
+        element_it = if let ElementType::Component(base) = &elem.borrow().base_type {
             in_base = true;
             Some(base.root_element.clone())
         } else {
diff --git a/tests/cases/properties/issue5038_state_in_base.slint b/tests/cases/properties/issue5038_state_in_base.slint
new file mode 100644
index 000000000..da0113c4a
--- /dev/null
+++ b/tests/cases/properties/issue5038_state_in_base.slint
@@ -0,0 +1,70 @@
+// Copyright © SixtyFPS GmbH <info@slint.dev>
+// SPDX-License-Identifier: GPL-3.0-only OR LicenseRef-Slint-Royalty-free-1.1 OR LicenseRef-Slint-commercial
+
+export global Glob {
+    in-out property <bool> cond2;
+}
+
+component Base inherits Rectangle {
+    in property <int> value;
+
+}
+
+export component R1 inherits Base {
+
+    t := TouchArea { }
+
+    ti := TextInput { text: Glob.cond2 ? "a" : "b";  }
+
+
+    states [
+        xxx when ti.text == "a" : {
+            value: 1;
+        }
+        hover when t.has-hover: {
+            background: white;
+            value: 2;
+        }
+    ]
+}
+
+export component R2 inherits R1 { }
+
+export component TestCase inherits Window {
+    in property <bool> cond1;
+    r2 := R2 {
+        states [
+            s1 when cond1: {
+                background: white;
+                value: 3;
+            }
+        ]
+    }
+
+    out property <int> value: r2.value;
+}
+
+
+/*
+```cpp
+auto handle = TestCase::create();
+const TestCase &instance = *handle;
+assert_eq(instance.get_value(), 0);
+instance.global<Glob>().set_cond2(true);
+assert_eq(instance.get_value(), 1);
+instance.set_cond1(true);
+assert_eq(instance.get_value(), 3);
+```
+
+
+```rust
+let instance = TestCase::new().unwrap();
+assert_eq!(instance.get_value(), 0);
+instance.global::<Glob<'_>>().set_cond2(true);
+assert_eq!(instance.get_value(), 1);
+instance.set_cond1(true);
+assert_eq!(instance.get_value(), 3);
+```
+
+
+*/