diff --git a/jerry-core/parser/js/js-scanner-util.c b/jerry-core/parser/js/js-scanner-util.c
index 58a0d5cc2..c1e86c172 100644
--- a/jerry-core/parser/js/js-scanner-util.c
+++ b/jerry-core/parser/js/js-scanner-util.c
@@ -525,7 +525,8 @@ scanner_pop_literal_pool (parser_context_t *context_p, /**< context */
     }
 
 #if ENABLED (JERRY_ES2015)
-    if (is_function && (type & (SCANNER_LITERAL_IS_FUNC | SCANNER_LITERAL_IS_LOCAL)) == SCANNER_LITERAL_IS_FUNC)
+    if (is_function
+        && (type & (SCANNER_LITERAL_IS_FUNC | SCANNER_LITERAL_IS_FUNC_DECLARATION)) == SCANNER_LITERAL_IS_FUNC)
     {
       if (prev_literal_pool_p == NULL
           && (context_p->global_status_flags & ECMA_PARSE_DIRECT_EVAL)
diff --git a/tests/jerry/es2015/regression-test-issue-3658.js b/tests/jerry/es2015/regression-test-issue-3658.js
new file mode 100644
index 000000000..ed4299945
--- /dev/null
+++ b/tests/jerry/es2015/regression-test-issue-3658.js
@@ -0,0 +1,24 @@
+// Copyright JS Foundation and other contributors, http://js.foundation
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+function g({
+  ["y"]: {
+      a
+  }
+})
+{
+  {
+    function a() {}
+  }
+}