diff --git a/.changeset/tough-peaches-burn.md b/.changeset/tough-peaches-burn.md
new file mode 100644
index 0000000000000..5814def9a6b3d
--- /dev/null
+++ b/.changeset/tough-peaches-burn.md
@@ -0,0 +1,5 @@
+---
+"next": patch
+---
+
+Fix name tracking for closures in server actions transform
diff --git a/crates/next-custom-transforms/src/transforms/server_actions.rs b/crates/next-custom-transforms/src/transforms/server_actions.rs
index 7a24df04db473..3fd09d097a051 100644
--- a/crates/next-custom-transforms/src/transforms/server_actions.rs
+++ b/crates/next-custom-transforms/src/transforms/server_actions.rs
@@ -1011,6 +1011,12 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             self.fn_decl_ident = old_fn_decl_ident;
         }
 
+        let mut child_names = take(&mut self.names);
+
+        if self.should_track_names {
+            self.names = [old_names, child_names.clone()].concat();
+        }
+
         if let Some(directive) = directive {
             if !f.is_async {
                 emit_error(ServerActionsErrorKind::InlineSyncFunction {
@@ -1028,12 +1034,6 @@ impl<C: Comments> VisitMut for ServerActions<C> {
                 return;
             }
 
-            let mut child_names = take(&mut self.names);
-
-            if self.should_track_names {
-                self.names = [old_names, child_names.clone()].concat();
-            }
-
             if let Directive::UseCache { cache_kind } = directive {
                 // Collect all the identifiers defined inside the closure and used
                 // in the cache function. With deduplication.
@@ -1181,6 +1181,12 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             self.in_default_export_decl = old_in_default_export_decl;
         }
 
+        let mut child_names = take(&mut self.names);
+
+        if self.should_track_names {
+            self.names = [old_names, child_names.clone()].concat();
+        }
+
         if let Some(directive) = directive {
             if !a.is_async {
                 emit_error(ServerActionsErrorKind::InlineSyncFunction {
@@ -1199,12 +1205,6 @@ impl<C: Comments> VisitMut for ServerActions<C> {
                 return;
             }
 
-            let mut child_names = take(&mut self.names);
-
-            if self.should_track_names {
-                self.names = [old_names, child_names.clone()].concat();
-            }
-
             // Collect all the identifiers defined inside the closure and used
             // in the action function. With deduplication.
             retain_names_from_declared_idents(
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/input.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/input.js
new file mode 100644
index 0000000000000..14367767c2903
--- /dev/null
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/input.js
@@ -0,0 +1,29 @@
+export function ComponentA({ list, y }) {
+  return (
+    <form
+      action={async () => {
+        'use server'
+        console.log(list.find((x) => x === y))
+      }}
+    >
+      <button>submit</button>
+    </form>
+  )
+}
+
+export function ComponentB({ list, y }) {
+  return (
+    <form
+      action={async () => {
+        'use server'
+        console.log(
+          list.find(function (x) {
+            return x === y
+          })
+        )
+      }}
+    >
+      <button>submit</button>
+    </form>
+  )
+}
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/output.js
new file mode 100644
index 0000000000000..10417e25b2c85
--- /dev/null
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/61/output.js
@@ -0,0 +1,22 @@
+/* __next_internal_action_entry_do_not_use__ {"406a88810ecce4a4e8b59d53b8327d7e98bbf251d7":"$$RSC_SERVER_ACTION_0","4090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1"} */ import { registerServerReference } from "private-next-rsc-server-reference";
+import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
+export const $$RSC_SERVER_ACTION_0 = async function action($$ACTION_CLOSURE_BOUND) {
+    var [$$ACTION_ARG_0, $$ACTION_ARG_1] = await decryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", $$ACTION_CLOSURE_BOUND);
+    console.log($$ACTION_ARG_0.find((x)=>x === $$ACTION_ARG_1));
+};
+export function ComponentA({ list, y }) {
+    return <form action={registerServerReference($$RSC_SERVER_ACTION_0, "406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", null).bind(null, encryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", list, y))}>
+      <button>submit</button>
+    </form>;
+}
+export const $$RSC_SERVER_ACTION_1 = async function action($$ACTION_CLOSURE_BOUND) {
+    var [$$ACTION_ARG_0, $$ACTION_ARG_1] = await decryptActionBoundArgs("4090b5db271335765a4b0eab01f044b381b5ebd5cd", $$ACTION_CLOSURE_BOUND);
+    console.log($$ACTION_ARG_0.find(function(x) {
+        return x === $$ACTION_ARG_1;
+    }));
+};
+export function ComponentB({ list, y }) {
+    return <form action={registerServerReference($$RSC_SERVER_ACTION_1, "4090b5db271335765a4b0eab01f044b381b5ebd5cd", null).bind(null, encryptActionBoundArgs("4090b5db271335765a4b0eab01f044b381b5ebd5cd", list, y))}>
+      <button>submit</button>
+    </form>;
+}