diff --git a/src/Expr.cc b/src/Expr.cc
index ad6c18432c..ce9ae47868 100644
--- a/src/Expr.cc
+++ b/src/Expr.cc
@@ -4366,6 +4366,11 @@ LambdaExpr::LambdaExpr(std::unique_ptr<function_ingredients> arg_ing,
 	id->SetConst();
 	}
 
+Scope* LambdaExpr::GetScope() const
+	{
+	return ingredients->scope.get();
+	}
+
 IntrusivePtr<Val> LambdaExpr::Eval(Frame* f) const
 	{
 	auto lamb = make_intrusive<BroFunc>(
diff --git a/src/Expr.h b/src/Expr.h
index 95c1167abe..69ae43b4be 100644
--- a/src/Expr.h
+++ b/src/Expr.h
@@ -61,6 +61,7 @@ extern const char* expr_name(BroExprTag t);
 template <class T> class IntrusivePtr;
 class Stmt;
 class Frame;
+class Scope;
 class ListExpr;
 class NameExpr;
 class IndexExpr;
@@ -813,6 +814,8 @@ public:
 	IntrusivePtr<Val> Eval(Frame* f) const override;
 	TraversalCode Traverse(TraversalCallback* cb) const override;
 
+	Scope* GetScope() const;
+
 protected:
 	void ExprDescribe(ODesc* d) const override;
 
diff --git a/src/ID.cc b/src/ID.cc
index f8d4c97bd1..c7228a6901 100644
--- a/src/ID.cc
+++ b/src/ID.cc
@@ -12,7 +12,6 @@
 #include "Scope.h"
 #include "Type.h"
 #include "File.h"
-#include "Scope.h"
 #include "Traverse.h"
 #include "Val.h"
 #include "zeekygen/Manager.h"
diff --git a/src/Var.cc b/src/Var.cc
index d49323b7f3..461de5e99f 100644
--- a/src/Var.cc
+++ b/src/Var.cc
@@ -419,32 +419,25 @@ void begin_func(ID* id, const char* module_name, function_flavor flavor,
 class OuterIDBindingFinder : public TraversalCallback {
 public:
 	OuterIDBindingFinder(Scope* s)
-		: scope(s) { }
+		{
+		scopes.emplace_back(s);
+		}
 
 	virtual TraversalCode PreExpr(const Expr*);
 	virtual TraversalCode PostExpr(const Expr*);
 
-	Scope* scope;
+	std::vector<Scope*> scopes;
 	vector<const NameExpr*> outer_id_references;
-	int lambda_depth = 0;
-	// Note: think we really ought to toggle this to false to prevent
-	// considering locals within inner-lambdas as "outer", but other logic
-	// for "selective cloning" and locating IDs in the closure chain may
-	// depend on current behavior and also needs to be changed.
-	bool search_inner_lambdas = true;
 };
 
 TraversalCode OuterIDBindingFinder::PreExpr(const Expr* expr)
 	{
 	if ( expr->Tag() == EXPR_LAMBDA )
-		++lambda_depth;
-
-	if ( lambda_depth > 0 && ! search_inner_lambdas )
-		// Don't inspect the bodies of inner lambdas as they will have their
-		// own traversal to find outer IDs and we don't want to detect
-		// references to local IDs inside and accidentally treat them as
-		// "outer" since they can't be found in current scope.
+		{
+		auto le = static_cast<const LambdaExpr*>(expr);
+		scopes.emplace_back(le->GetScope());
 		return TC_CONTINUE;
+		}
 
 	if ( expr->Tag() != EXPR_NAME )
 		return TC_CONTINUE;
@@ -454,8 +447,11 @@ TraversalCode OuterIDBindingFinder::PreExpr(const Expr* expr)
 	if ( e->Id()->IsGlobal() )
 		return TC_CONTINUE;
 
-	if ( scope->Lookup(e->Id()->Name()) )
-		return TC_CONTINUE;
+	for ( const auto& scope : scopes )
+		if ( scope->Lookup(e->Id()->Name()) )
+			// Shadowing is not allowed, so if it's found at inner scope, it's
+			// not something we have to worry about also being at outer scope.
+			return TC_CONTINUE;
 
 	outer_id_references.push_back(e);
 	return TC_CONTINUE;
@@ -464,10 +460,7 @@ TraversalCode OuterIDBindingFinder::PreExpr(const Expr* expr)
 TraversalCode OuterIDBindingFinder::PostExpr(const Expr* expr)
 	{
 	if ( expr->Tag() == EXPR_LAMBDA )
-		{
-		--lambda_depth;
-		assert(lambda_depth >= 0);
-		}
+		scopes.pop_back();
 
 	return TC_CONTINUE;
 	}
diff --git a/testing/btest/Baseline/language.lambda-nested-copy/out b/testing/btest/Baseline/language.lambda-nested-copy/out
new file mode 100644
index 0000000000..b963e085f3
--- /dev/null
+++ b/testing/btest/Baseline/language.lambda-nested-copy/out
@@ -0,0 +1,2 @@
+106
+106
diff --git a/testing/btest/language/lambda-nested-copy.zeek b/testing/btest/language/lambda-nested-copy.zeek
new file mode 100644
index 0000000000..6cf0e6952a
--- /dev/null
+++ b/testing/btest/language/lambda-nested-copy.zeek
@@ -0,0 +1,19 @@
+# @TEST-EXEC: zeek -b %INPUT >out
+# @TEST-EXEC: btest-diff out
+
+local outer = 100;
+
+local lambda = function()
+	{
+	local inner = function(a: count, b: count, c: count, d: count, e: count, f: count)
+		{
+		print outer + f;
+		};
+
+	inner(1, 2, 3, 4, 5, 6);
+	};
+
+lambda();
+
+local copyLambda = copy(copy(copy(lambda)));
+copyLambda();