diff --git a/src/dale/CommonDecl/CommonDecl.cpp b/src/dale/CommonDecl/CommonDecl.cpp
index 10834c9a..3f0c15a3 100644
--- a/src/dale/CommonDecl/CommonDecl.cpp
+++ b/src/dale/CommonDecl/CommonDecl.cpp
@@ -40,7 +40,7 @@ bool addVariable(Unit *unit, const char *name, Type *type,
     var->type = type;
     var->symbol.append(name);
     var->linkage = Linkage::Extern;
-    bool res = ctx->ns()->addVariable(name, var);
+    bool res = ctx->addVariable(name, var);
     assert(res);
     _unused(res);
 
diff --git a/src/dale/Context/Context.cpp b/src/dale/Context/Context.cpp
index d87ab2b5..a5bbcac2 100644
--- a/src/dale/Context/Context.cpp
+++ b/src/dale/Context/Context.cpp
@@ -54,42 +54,6 @@ Context::~Context() { deleteNamespaces(namespaces); }
 
 Namespace *Context::ns() { return active_ns_nodes.back()->ns; }
 
-bool Context::popUntilNamespace(Namespace *ns) {
-    assert(ns && "null argument to popUntilNamespace");
-
-    for (;;) {
-        if (active_ns_nodes.size() == 0) {
-            fprintf(stderr,
-                    "Internal error: no active namespaces left.\n");
-            abort();
-        }
-        if (active_ns_nodes.back()->ns == ns) {
-            break;
-        }
-        active_ns_nodes.pop_back();
-    }
-    std::vector<NSNode *> new_used_nodes;
-    for (;;) {
-        if (used_ns_nodes.size() == 0) {
-            fprintf(stderr,
-                    "Internal error: no used namespaces left.\n");
-            abort();
-        }
-        if (used_ns_nodes.back()->ns == ns) {
-            break;
-        }
-        if (used_ns_nodes.back()->ns->name.compare(0, 4, "anon")) {
-            new_used_nodes.push_back(used_ns_nodes.back());
-        }
-        used_ns_nodes.pop_back();
-    }
-    std::reverse(new_used_nodes.begin(), new_used_nodes.end());
-    std::copy(new_used_nodes.begin(), new_used_nodes.end(),
-              back_inserter(used_ns_nodes));
-
-    return true;
-}
-
 bool Context::activateNamespace(const char *name) {
     assert(active_ns_nodes.size() && "no active namespace nodes");
 
@@ -182,6 +146,22 @@ bool Context::deactivateAnonymousNamespace() {
     return true;
 }
 
+void Context::activateFunctionScope(Function *fn) {
+    active_function_scopes.push_back(fn);
+}
+
+void Context::deactivateFunctionScope(Function *fn) {
+    assert((active_function_scopes.size() &&
+            active_function_scopes.back() == fn)
+           && "unmatched function scope");
+    active_function_scopes.pop_back();
+}
+
+Function *Context::getCurrentFunctionScope() {
+    if (!active_function_scopes.size()) return NULL;
+    return active_function_scopes.back();
+}
+
 NSNode *getNSNodeFromNode(std::vector<std::string> *ns_parts,
                           NSNode *current) {
     for (std::vector<std::string>::iterator b = ns_parts->begin(),
@@ -471,7 +451,12 @@ Function *Context::getFunction(const char *name,
     return NULL;
 }
 
-Variable *Context::getVariable(const char *name) {
+bool Context::addVariable(const char* name, Variable *var) {
+    var->fn = getCurrentFunctionScope();
+    return ns()->addVariable(name, var);
+}
+
+Variable* Context::getVariableInner(const char *name) {
     if (strchr(name, '.')) {
         Namespace *ns = getNamespace(name, true);
         if (!ns) {
@@ -501,6 +486,15 @@ Variable *Context::getVariable(const char *name) {
     return NULL;
 }
 
+Variable *Context::getVariable(const char *name) {
+    Variable *ret = getVariableInner(name);
+    if (ret && ret->fn && ret->fn != getCurrentFunctionScope()) {
+        // the variable can't be referenced as a value
+        return NULL;
+    }
+    return ret;
+}
+
 Struct *Context::getStruct(const char *name) {
     if (strchr(name, '.')) {
         Namespace *ns = getNamespace(name, true);
diff --git a/src/dale/Context/Context.h b/src/dale/Context/Context.h
index 42a650dc..85c83e67 100644
--- a/src/dale/Context/Context.h
+++ b/src/dale/Context/Context.h
@@ -50,6 +50,11 @@ class Context {
     std::vector<Variable *> retrieved_var;
     /*! Functions that have been retrieved. */
     std::vector<Function *> retrieved_fn;
+    /*! Active function scopes. It will be an empty vector for global
+     *  variables. */
+    std::vector<Function *> active_function_scopes;
+
+    Variable *getVariableInner(const char *name);
 
     public:
     /*! The native types for the context. Used primarily for type
@@ -87,12 +92,6 @@ class Context {
     /*! Get the currently-active namespace.
      */
     Namespace *ns();
-    /*! Pop active namespaces until the given namespace has been
-     *  reached.  Does the same thing for used namespaces, save that
-     *  only anonymous namespaces are removed.
-     *  @param ns The namespace that needs to be reached.
-     */
-    bool popUntilNamespace(Namespace *ns);
 
     /*! Activate the namespace with the given name.
      *  @param name The name of the namespace.
@@ -135,6 +134,24 @@ class Context {
      */
     bool deactivateAnonymousNamespace();
 
+    /*! Activate a function scope.
+     *
+     *  The function scopes is a set of scopes parallel to namespaces,
+     *  and used to catch invalid variable references to a local
+     *  variable in a different function.
+     *  @param fn The new function scope.
+     */
+    void activateFunctionScope(Function *fn);
+    /*! Deactivate the current function scope.
+     *  @param fn The function scope to deactivate.
+     */
+    void deactivateFunctionScope(Function *fn);
+    /*! Get the current active function scope.
+     *  @return Returns NULL, if currently it's outside of any function
+     *  scope (i.e. the function scope of global variables).
+     */
+    Function *getCurrentFunctionScope();
+
     /*! Retrieve a namespace node by name.
      *  @param name The name of the namespace.
      *  @param ignore_last Whether to ignore the last segment of the
@@ -200,10 +217,14 @@ class Context {
                           Function **closest_fn, bool is_macro,
                           std::vector<bool> *lvalues = NULL,
                           std::vector<Type *> *array_types = NULL);
+    /*! Add a variable to the current active namespace and with the
+     *  current active function scope. */
+    bool addVariable(const char *name, Variable *var);
     /*! Get the variable with the given name.
      *
-     *  See Namespace::getVariable.  As per getFunction, this iterates
-     *  over the used namespaces, calling that method.
+     *  See Namespace::getVariable. As per getFunction, this iterates
+     *  over the used namespaces, calling that method. This also takes
+     *  care of function scopes.
      */
     Variable *getVariable(const char *name);
     /*! Get the struct with the given name.
diff --git a/src/dale/ErrorType/ErrorType.cpp b/src/dale/ErrorType/ErrorType.cpp
index 0e14c44a..47d829f4 100644
--- a/src/dale/ErrorType/ErrorType.cpp
+++ b/src/dale/ErrorType/ErrorType.cpp
@@ -108,7 +108,7 @@ const char *errorInstanceToString(int error_instance) {
             ret = "not in scope: '%s'";
             break;
         case ErrorInst::VariableNotInScope:
-            ret = "variable not in scope: '%s'";
+            ret = "variable not in scope or cannot be used as value: '%s'";
             break;
         case ErrorInst::UnexpectedElement:
             ret = "expected %s for %s (got %s instead)";
diff --git a/src/dale/Form/Function/Function.cpp b/src/dale/Form/Function/Function.cpp
index 66fb8c8c..a9fe8180 100644
--- a/src/dale/Form/Function/Function.cpp
+++ b/src/dale/Form/Function/Function.cpp
@@ -189,7 +189,7 @@ Type *parseReturnType(Units *units, Context *ctx,
     for (std::vector<Variable *>::iterator b = parameters->begin(),
                                            e = parameters->end();
          b != e; ++b) {
-        ctx->ns()->addVariable((*b)->name.c_str(), (*b));
+        ctx->addVariable((*b)->name.c_str(), (*b));
     }
 
     Type *ret_type =
@@ -473,9 +473,6 @@ bool FormFunctionParse(Units *units, Node *node, const char *name,
         return true;
     }
 
-    ctx->activateAnonymousNamespace();
-    std::string anon_name = ctx->ns()->name;
-
     units->top()->pushGlobalFunction(fn);
     FormProcBodyParse(units, node, fn, llvm_fn, (next_index + 2),
                       is_anonymous, llvm_return_value);
@@ -488,8 +485,6 @@ bool FormFunctionParse(Units *units, Node *node, const char *name,
         addInitChannelsCall(ctx, llvm_fn);
     }
 
-    ctx->deactivateNamespace(anon_name.c_str());
-
     if (units->debug) {
         moduleDebugPass(units->top()->module);
     }
diff --git a/src/dale/Form/Proc/Def/Def.cpp b/src/dale/Form/Proc/Def/Def.cpp
index 784effba..644d05e7 100644
--- a/src/dale/Form/Proc/Def/Def.cpp
+++ b/src/dale/Form/Proc/Def/Def.cpp
@@ -37,22 +37,10 @@ bool typeRequiresExplicitInit(Context *ctx, Type *type) {
 
 llvm::Constant *parseGlobalLiteral(Units *units, Type *type,
                                    Node *node) {
-    Context *ctx = units->top()->ctx;
-
-    std::vector<NSNode *> active_ns_nodes = ctx->active_ns_nodes;
-    std::vector<NSNode *> used_ns_nodes = ctx->used_ns_nodes;
-    if (!units->prefunction_ns) {
-        units->prefunction_ns = ctx->active_ns_nodes.front()->ns;
-    }
-    ctx->popUntilNamespace(units->prefunction_ns);
-
     llvm::Constant *init = NULL;
     int size;
     init = FormValueParse(units, type, node, &size);
 
-    ctx->active_ns_nodes = active_ns_nodes;
-    ctx->used_ns_nodes = used_ns_nodes;
-
     return init;
 }
 
@@ -242,7 +230,7 @@ bool parseImplicitVarDefinition(Units *units, Function *fn,
         llvm::cast<llvm::Value>(builder.CreateAlloca(llvm_type));
     var->value = dst_ptr;
 
-    res = ctx->ns()->addVariable(name, var);
+    res = ctx->addVariable(name, var);
     if (!res) {
         Error *e = new Error(RedefinitionOfVariable, node, name);
         ctx->er->addError(e);
@@ -313,7 +301,7 @@ bool parseExplicitVarDefinition(Units *units, Function *fn,
         var->value = dst_ptr;
         var->linkage = linkage;
 
-        bool res = ctx->ns()->addVariable(name, var);
+        bool res = ctx->addVariable(name, var);
         if (!res) {
             Error *e = new Error(RedefinitionOfVariable, node, name);
             ctx->er->addError(e);
@@ -440,7 +428,7 @@ bool parseExplicitVarDefinition(Units *units, Function *fn,
 
         llvm_var->setInitializer(init);
 
-        bool res = ctx->ns()->addVariable(name, var);
+        bool res = ctx->addVariable(name, var);
         if (!res) {
             Error *e = new Error(RedefinitionOfVariable, node, name);
             ctx->er->addError(e);
diff --git a/src/dale/Form/Proc/Inst/Inst.cpp b/src/dale/Form/Proc/Inst/Inst.cpp
index ded69804..8b94269f 100644
--- a/src/dale/Form/Proc/Inst/Inst.cpp
+++ b/src/dale/Form/Proc/Inst/Inst.cpp
@@ -31,13 +31,6 @@ bool createAnonymousFunction(Units *units, llvm::BasicBlock *block,
     Context *ctx = units->top()->ctx;
     int preindex = ctx->lv_index;
 
-    std::vector<NSNode *> active_ns_nodes = ctx->active_ns_nodes;
-    std::vector<NSNode *> used_ns_nodes = ctx->used_ns_nodes;
-    if (!units->prefunction_ns) {
-        units->prefunction_ns = ctx->active_ns_nodes.front()->ns;
-    }
-    ctx->popUntilNamespace(units->prefunction_ns);
-
     int error_count_begin =
         ctx->er->getErrorTypeCount(ErrorType::Error);
 
@@ -49,8 +42,6 @@ bool createAnonymousFunction(Units *units, llvm::BasicBlock *block,
     int error_count_end = ctx->er->getErrorTypeCount(ErrorType::Error);
 
     if (error_count_begin != error_count_end) {
-        ctx->active_ns_nodes = active_ns_nodes;
-        ctx->used_ns_nodes = used_ns_nodes;
         return false;
     }
 
@@ -76,9 +67,6 @@ bool createAnonymousFunction(Units *units, llvm::BasicBlock *block,
         (*b)->index = 0;
     }
 
-    ctx->active_ns_nodes = active_ns_nodes;
-    ctx->used_ns_nodes = used_ns_nodes;
-
     return true;
 }
 
diff --git a/src/dale/Form/ProcBody/ProcBody.cpp b/src/dale/Form/ProcBody/ProcBody.cpp
index 27d855fc..4302d1e2 100644
--- a/src/dale/Form/ProcBody/ProcBody.cpp
+++ b/src/dale/Form/ProcBody/ProcBody.cpp
@@ -69,7 +69,7 @@ bool addVariables(Context *ctx, Node *node, Function *fn,
             }
         }
         bool res =
-            ctx->ns()->addVariable(param_var->name.c_str(), param_var);
+            ctx->addVariable(param_var->name.c_str(), param_var);
         if (!res) {
             Error *e = new Error(RedefinitionOfVariable, node,
                                  param_var->name.c_str());
@@ -105,7 +105,7 @@ bool addRetval(Context *ctx, Node *node, Function *fn,
     var->index = 0;
     var->linkage = Linkage::Auto;
 
-    bool res = ctx->ns()->addVariable(var->name.c_str(), var);
+    bool res = ctx->addVariable(var->name.c_str(), var);
     if (!res) {
         Error *e =
             new Error(RedefinitionOfVariable, node, var->name.c_str());
@@ -330,9 +330,9 @@ void removePostTerminators(llvm::Function *llvm_fn) {
     }
 }
 
-bool FormProcBodyParse(Units *units, Node *node, Function *fn,
-                       llvm::Function *llvm_fn, int skip,
-                       bool is_anonymous, llvm::Value *return_value) {
+static bool FormProcBodyParseInner(Units *units, Node *node, Function *fn,
+                                   llvm::Function *llvm_fn, int skip,
+                                   bool is_anonymous, llvm::Value *return_value) {
     Context *ctx = units->top()->ctx;
 
     std::vector<Node *> *lst = node->list;
@@ -405,4 +405,21 @@ bool FormProcBodyParse(Units *units, Node *node, Function *fn,
 
     return true;
 }
+
+bool FormProcBodyParse(Units *units, Node *node, Function *fn,
+                       llvm::Function *llvm_fn, int skip,
+                       bool is_anonymous, llvm::Value *return_value) {
+    Context *ctx = units->top()->ctx;
+    ctx->activateAnonymousNamespace();
+    std::string anon_name = ctx->ns()->name;
+    ctx->activateFunctionScope(fn);
+
+    bool ret = FormProcBodyParseInner(units, node, fn, llvm_fn, skip, is_anonymous, return_value);
+
+    ctx->deactivateFunctionScope(fn);
+    ctx->deactivateNamespace(anon_name.c_str());
+
+    return ret;
+}
+
 }
diff --git a/src/dale/Form/TopLevel/GlobalVariable/GlobalVariable.cpp b/src/dale/Form/TopLevel/GlobalVariable/GlobalVariable.cpp
index d6494475..57ea1b01 100644
--- a/src/dale/Form/TopLevel/GlobalVariable/GlobalVariable.cpp
+++ b/src/dale/Form/TopLevel/GlobalVariable/GlobalVariable.cpp
@@ -134,7 +134,7 @@ bool FormTopLevelGlobalVariableParse(Units *units, Node *node,
     var->once_tag = units->top()->once_tag;
     var->linkage = linkage;
 
-    bool res = ctx->ns()->addVariable(name, var);
+    bool res = ctx->addVariable(name, var);
     if (!res) {
         Error *e = new Error(RedefinitionOfVariable, def_node, name);
         ctx->er->addError(e);
diff --git a/src/dale/Form/TopLevel/Macro/Macro.cpp b/src/dale/Form/TopLevel/Macro/Macro.cpp
index 3d4c259c..042926ca 100644
--- a/src/dale/Form/TopLevel/Macro/Macro.cpp
+++ b/src/dale/Form/TopLevel/Macro/Macro.cpp
@@ -221,12 +221,9 @@ bool FormTopLevelMacroParse(Units *units, Node *node,
     int error_count_begin =
         ctx->er->getErrorTypeCount(ErrorType::Error);
 
-    ctx->activateAnonymousNamespace();
-    std::string anon_name = ctx->ns()->name;
     units->top()->pushGlobalFunction(fn);
     FormProcBodyParse(units, top, fn, llvm_fn, 3, 0);
     units->top()->popGlobalFunction();
-    ctx->deactivateNamespace(anon_name.c_str());
 
     int error_count_end = ctx->er->getErrorTypeCount(ErrorType::Error);
 
diff --git a/src/dale/Form/Value/Value.cpp b/src/dale/Form/Value/Value.cpp
index 000d26d3..691756b1 100644
--- a/src/dale/Form/Value/Value.cpp
+++ b/src/dale/Form/Value/Value.cpp
@@ -34,23 +34,10 @@ bool parseFunction(Units *units, Type *type, Node *top, Function *fn) {
     nodes.push_back(top);
     Node *copy_top = new Node(&nodes);
 
-    std::vector<NSNode *> active_ns_nodes = ctx->active_ns_nodes;
-    std::vector<NSNode *> used_ns_nodes = ctx->used_ns_nodes;
-    if (!units->prefunction_ns) {
-        units->prefunction_ns = ctx->active_ns_nodes.front()->ns;
-    }
-    ctx->popUntilNamespace(units->prefunction_ns);
-
     units->top()->pushGlobalFunction(fn);
-    ctx->activateAnonymousNamespace();
-    std::string anon_name = ctx->ns()->name;
     FormProcBodyParse(units, copy_top, fn, llvm_fn, 0, 0);
-    ctx->deactivateNamespace(anon_name.c_str());
     units->top()->popGlobalFunction();
 
-    ctx->active_ns_nodes = active_ns_nodes;
-    ctx->used_ns_nodes = used_ns_nodes;
-
     int error_count_end = ctx->er->getErrorTypeCount(ErrorType::Error);
     if (error_count_begin != error_count_end) {
         llvm_fn->replaceAllUsesWith(
diff --git a/src/dale/Introspection/Introspection.cpp b/src/dale/Introspection/Introspection.cpp
index 9aeb4d93..32814a6b 100644
--- a/src/dale/Introspection/Introspection.cpp
+++ b/src/dale/Introspection/Introspection.cpp
@@ -869,20 +869,10 @@ bool eval_2D_expression(MContext *mc, DNode *type_form, DNode *form,
 
     units->top()->makeTemporaryGlobalFunction();
 
-    std::vector<NSNode *> active_ns_nodes = ctx->active_ns_nodes;
-    std::vector<NSNode *> used_ns_nodes = ctx->used_ns_nodes;
-    if (!units->prefunction_ns) {
-        units->prefunction_ns = ctx->active_ns_nodes.front()->ns;
-    }
-    ctx->popUntilNamespace(units->prefunction_ns);
-
     llvm::Constant *init = NULL;
     int size;
     init = FormValueParse(units, type, n, &size);
 
-    ctx->active_ns_nodes = active_ns_nodes;
-    ctx->used_ns_nodes = used_ns_nodes;
-
     units->top()->removeTemporaryGlobalFunction();
 
     int error_count_end = ctx->er->getErrorTypeCount(ErrorType::Error);
diff --git a/src/dale/REPL/REPL.cpp b/src/dale/REPL/REPL.cpp
index 1d191213..9c93ef75 100644
--- a/src/dale/REPL/REPL.cpp
+++ b/src/dale/REPL/REPL.cpp
@@ -297,7 +297,7 @@ bool REPLLoop(Units *units) {
 
     ctx->deactivateNamespace(anon_name.c_str());
     if (!exists) {
-        res = ctx->ns()->addVariable(var_name.c_str(), var);
+        res = ctx->addVariable(var_name.c_str(), var);
         if (!res) {
             fprintf(stderr, "Internal error: cannot add variable.\n");
             abort();
diff --git a/src/dale/Variable/Variable.cpp b/src/dale/Variable/Variable.cpp
index a3df725b..4ddbc9f0 100644
--- a/src/dale/Variable/Variable.cpp
+++ b/src/dale/Variable/Variable.cpp
@@ -8,6 +8,7 @@ Variable::Variable() {
     linkage = Linkage::Auto;
     type = NULL;
     value = NULL;
+    fn = NULL;
 }
 
 Variable::Variable(const char *name, Type *type) {
@@ -19,6 +20,7 @@ Variable::Variable(const char *name, Type *type) {
     serialise = true;
     linkage = Linkage::Auto;
     value = NULL;
+    fn = NULL;
 }
 
 Variable::~Variable() {}
@@ -31,6 +33,7 @@ void Variable::copyTo(Variable *other) {
     other->once_tag = this->once_tag;
     other->index = this->index;
     other->linkage = this->linkage;
+    other->fn = this->fn;
 }
 
 bool Variable::isEqualTo(Variable *other) {
diff --git a/src/dale/Variable/Variable.h b/src/dale/Variable/Variable.h
index ee22959b..82889928 100644
--- a/src/dale/Variable/Variable.h
+++ b/src/dale/Variable/Variable.h
@@ -15,6 +15,8 @@
 #include "llvm/Support/raw_ostream.h"
 
 namespace dale {
+class Function;
+
 /*! Variable
 
     A class for storing the details of a variable.
@@ -42,6 +44,9 @@ class Variable {
     int linkage;
     /*! Whether the variable should be serialised. */
     bool serialise;
+    /*! The function scope the variable is in. NULL if it's a global, or
+     *  function scope is not applicable. */
+    Function *fn;
 
     Variable();
     /*! Construct a new variable with the given name and type.
diff --git a/t/004namespace/009anonfn-scope.t b/t/004namespace/009anonfn-scope.t
new file mode 100644
index 00000000..3617398c
--- /dev/null
+++ b/t/004namespace/009anonfn-scope.t
@@ -0,0 +1,17 @@
+#!/usr/bin/env perl
+
+use warnings;
+use strict;
+$ENV{"DALE_TEST_ARGS"} ||= "";
+my $test_dir = $ENV{"DALE_TEST_DIR"} || ".";
+$ENV{PATH} .= ":.";
+
+use Data::Dumper;
+use Test::More tests => 1;
+
+my $res = `dalec $ENV{"DALE_TEST_ARGS"} $test_dir/t/src/anonfn-scope.dt -o anonfn-scope`;
+is($res, "*Struct* exists\n*Struct* exists\n", "Got expected results");
+
+`rm anonfn-scope`;
+
+1;
diff --git a/t/009module/018dtm-noimport.t b/t/009module/018dtm-noimport.t
index b21f4fe1..97df558f 100644
--- a/t/009module/018dtm-noimport.t
+++ b/t/009module/018dtm-noimport.t
@@ -17,7 +17,7 @@ my @res =
 ok((not @res), 'No compilation errors');
 @res = map { chomp; $_ } `dalec $ENV{"DALE_TEST_ARGS"} $test_dir/t/src/dtm-noimport-user.dt 2>&1`;
 is_deeply(\@res,
-["$test_dir/t/src/dtm-noimport-user.dt:8:19: error: variable not in scope: 'y'"],
+["$test_dir/t/src/dtm-noimport-user.dt:8:19: error: variable not in scope or cannot be used as value: 'y'"],
         'Got correct compilation errors');
 
 `rm libdtm-noimport.bc`;
diff --git a/t/error-src/anonymous-scopes.dt.errors b/t/error-src/anonymous-scopes.dt.errors
index a00822ad..f09ad1bf 100644
--- a/t/error-src/anonymous-scopes.dt.errors
+++ b/t/error-src/anonymous-scopes.dt.errors
@@ -1 +1 @@
-./t/error-src/anonymous-scopes.dt:6:17: error: variable not in scope: 'var2' (see macro at 6:11)
+./t/error-src/anonymous-scopes.dt:6:17: error: variable not in scope or cannot be used as value: 'var2' (see macro at 6:11)
diff --git a/t/error-src/for-loop.dt.errors b/t/error-src/for-loop.dt.errors
index 68600400..24d68cc4 100644
--- a/t/error-src/for-loop.dt.errors
+++ b/t/error-src/for-loop.dt.errors
@@ -1 +1 @@
-./t/error-src/for-loop.dt:6:25: error: variable not in scope: 'asdf' (see macro at 6:5)
+./t/error-src/for-loop.dt:6:25: error: variable not in scope or cannot be used as value: 'asdf' (see macro at 6:5)
diff --git a/t/error-src/invalid-intern-var.dt.errors b/t/error-src/invalid-intern-var.dt.errors
index 9a4b2f4e..11db31f6 100644
--- a/t/error-src/invalid-intern-var.dt.errors
+++ b/t/error-src/invalid-intern-var.dt.errors
@@ -1,2 +1,2 @@
-t/error-src/invalid-intern-var.dt:5:32: error: variable not in scope: 'asdf'
-t/error-src/invalid-intern-var.dt:6:17: error: variable not in scope: 'testvar'
+t/error-src/invalid-intern-var.dt:5:32: error: variable not in scope or cannot be used as value: 'asdf'
+t/error-src/invalid-intern-var.dt:6:17: error: variable not in scope or cannot be used as value: 'testvar'
diff --git a/t/error-src/macro-error-position.dt.errors b/t/error-src/macro-error-position.dt.errors
index e3366cd7..f8252c72 100644
--- a/t/error-src/macro-error-position.dt.errors
+++ b/t/error-src/macro-error-position.dt.errors
@@ -1,2 +1,2 @@
 ./t/error-src/macro-error-position.dt:9:13: error: invalid type (see macro at 14:27)
-./t/error-src/macro-error-position.dt:15:25: error: variable not in scope: 'a-string'
+./t/error-src/macro-error-position.dt:15:25: error: variable not in scope or cannot be used as value: 'a-string'
diff --git a/t/error-src/ml-comment-line-numbers.dt.errors b/t/error-src/ml-comment-line-numbers.dt.errors
index b2fbbcec..03edd086 100644
--- a/t/error-src/ml-comment-line-numbers.dt.errors
+++ b/t/error-src/ml-comment-line-numbers.dt.errors
@@ -1 +1 @@
-./t/error-src/ml-comment-line-numbers.dt:19:3: error: variable not in scope: 'asdf'
+./t/error-src/ml-comment-line-numbers.dt:19:3: error: variable not in scope or cannot be used as value: 'asdf'
diff --git a/t/error-src/ml-string-line-numbers.dt.errors b/t/error-src/ml-string-line-numbers.dt.errors
index c98756e4..f06e4914 100644
--- a/t/error-src/ml-string-line-numbers.dt.errors
+++ b/t/error-src/ml-string-line-numbers.dt.errors
@@ -1 +1 @@
-./t/error-src/ml-string-line-numbers.dt:15:3: error: variable not in scope: 'asdf'
+./t/error-src/ml-string-line-numbers.dt:15:3: error: variable not in scope or cannot be used as value: 'asdf'
diff --git a/t/error-src/no-vla.dt.errors b/t/error-src/no-vla.dt.errors
index 6c59352d..2d74e5a4 100644
--- a/t/error-src/no-vla.dt.errors
+++ b/t/error-src/no-vla.dt.errors
@@ -1 +1 @@
-./t/error-src/no-vla.dt:3:30: error: variable not in scope: 'x'
+./t/error-src/no-vla.dt:3:30: error: variable not in scope or cannot be used as value: 'x'
diff --git a/t/error-src/qq-problems.dt.errors b/t/error-src/qq-problems.dt.errors
index 7a328944..c49f0392 100644
--- a/t/error-src/qq-problems.dt.errors
+++ b/t/error-src/qq-problems.dt.errors
@@ -1,18 +1,18 @@
 ./t/error-src/qq-problems.dt:6:11: error: only DNodes may be unquoted (see macro at 6:3)
 ./t/error-src/qq-problems.dt:6:3: error: macro expansion error (see previous)
-./t/error-src/qq-problems.dt:7:11: error: variable not in scope: 'asdf' (see macro at 7:3)
+./t/error-src/qq-problems.dt:7:11: error: variable not in scope or cannot be used as value: 'asdf' (see macro at 7:3)
 ./t/error-src/qq-problems.dt:7:3: error: macro expansion error (see previous)
 ./t/error-src/qq-problems.dt:8:12: error: only DNodes may be unquoted (see macro at 8:3)
 ./t/error-src/qq-problems.dt:8:3: error: macro expansion error (see previous)
-./t/error-src/qq-problems.dt:9:12: error: variable not in scope: 'asdf' (see macro at 9:3)
+./t/error-src/qq-problems.dt:9:12: error: variable not in scope or cannot be used as value: 'asdf' (see macro at 9:3)
 ./t/error-src/qq-problems.dt:9:3: error: macro expansion error (see previous)
 ./t/error-src/qq-problems.dt:10:14: error: only DNodes may be unquoted (see macro at 10:3)
 ./t/error-src/qq-problems.dt:10:3: error: macro expansion error (see previous)
-./t/error-src/qq-problems.dt:11:14: error: variable not in scope: 'asdf' (see macro at 11:3)
+./t/error-src/qq-problems.dt:11:14: error: variable not in scope or cannot be used as value: 'asdf' (see macro at 11:3)
 ./t/error-src/qq-problems.dt:11:3: error: macro expansion error (see previous)
 ./t/error-src/qq-problems.dt:12:15: error: only DNodes may be unquoted (see macro at 12:3)
 ./t/error-src/qq-problems.dt:12:3: error: macro expansion error (see previous)
-./t/error-src/qq-problems.dt:13:15: error: variable not in scope: 'asdf' (see macro at 13:3)
+./t/error-src/qq-problems.dt:13:15: error: variable not in scope or cannot be used as value: 'asdf' (see macro at 13:3)
 ./t/error-src/qq-problems.dt:13:3: error: macro expansion error (see previous)
 ./t/error-src/qq-problems.dt:17:9: error: unquoting null node (see macro at 17:5)
 ./t/error-src/qq-problems.dt:27:5: error: macro expansion error (see previous)
diff --git a/t/src/anonfn-scope.dt b/t/src/anonfn-scope.dt
new file mode 100644
index 00000000..c21d5784
--- /dev/null
+++ b/t/src/anonfn-scope.dt
@@ -0,0 +1,16 @@
+(import macros)
+
+(using-namespace std.macros
+  (def check-struct (macro intern (void)
+    (if (exists-type mc (mnfv mc "*Struct*"))
+        (printf "*Struct* exists\n")
+        (printf "*Struct* does not exist\n"))
+    (nullptr DNode))))
+
+(def main (fn extern-c int (void)
+  (def *Struct* (struct intern ((a int))))
+  (check-struct)
+  (def anon-func (var auto \ (fn void (void)
+                               (check-struct))))
+  0))
+