diff --git a/compiler/src/dotty/tools/dotc/quoted/PickledQuotes.scala b/compiler/src/dotty/tools/dotc/quoted/PickledQuotes.scala
index a25f80da2786..1b354abf929f 100644
--- a/compiler/src/dotty/tools/dotc/quoted/PickledQuotes.scala
+++ b/compiler/src/dotty/tools/dotc/quoted/PickledQuotes.scala
@@ -98,7 +98,7 @@ object PickledQuotes {
 
   /** Replace all term holes with the spliced terms */
   private def spliceTerms(tree: Tree, typeHole: TypeHole, termHole: ExprHole)(using Context): Tree = {
-    def evaluateHoles = new TreeMap {
+    def evaluateHoles = new TreeMapWithPreciseStatContexts {
       override def transform(tree: tpd.Tree)(using Context): tpd.Tree = tree match {
         case Hole(isTerm, idx, args, _) =>
           inContext(SpliceScope.contextWithNewSpliceScope(tree.sourcePos)) {
diff --git a/tests/pos-macros/i18358/Macro_1.scala b/tests/pos-macros/i18358/Macro_1.scala
new file mode 100644
index 000000000000..7471bca97449
--- /dev/null
+++ b/tests/pos-macros/i18358/Macro_1.scala
@@ -0,0 +1,4 @@
+import scala.quoted.*
+inline def generateCode: Unit = ${ testLocalDummyOwner }
+def testLocalDummyOwner(using Quotes): Expr[Unit] = '{ trait E { $valInBlock } }
+def valInBlock(using Quotes): Expr[Unit] = '{ val x: Int = 2; () }
diff --git a/tests/pos-macros/i18358/Test_2.scala b/tests/pos-macros/i18358/Test_2.scala
new file mode 100644
index 000000000000..7110731760a6
--- /dev/null
+++ b/tests/pos-macros/i18358/Test_2.scala
@@ -0,0 +1 @@
+def test = generateCode