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diff --git a/js/src/tests/test262/annexB/language/function-code/block-decl-nested-blocks-with-fun-decl.js b/js/src/tests/test262/annexB/language/function-code/block-decl-nested-blocks-with-fun-decl.js
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--- /dev/null
+++ b/js/src/tests/test262/annexB/language/function-code/block-decl-nested-blocks-with-fun-decl.js
@@ -0,0 +1,42 @@
+// Copyright (C) 2018 André Bargull. All rights reserved.
+// This code is governed by the BSD license found in the LICENSE file.
+
+/*---
+esid: sec-web-compat-functiondeclarationinstantiation
+description: >
+  Nested function declarations, the second declaration is not Annex-B applicable.
+info: |
+  B.3.3.1 Changes to FunctionDeclarationInstantiation
+
+  1. If strict is false, then
+    a. For each FunctionDeclaration f that is directly contained in the
+       StatementList of a Block, CaseClause, or DefaultClause, do
+      i. Let F be StringValue of the BindingIdentifier of FunctionDeclaration f.
+      ii. If replacing the FunctionDeclaration f with a VariableStatement that
+          has F as a BindingIdentifier would not produce any Early Errors for
+          func and F is not an element of parameterNames, then
+       ...
+flags: [noStrict]
+---*/
+
+function g() {
+    // Create an outer block-statement.
+    {
+        // A lexically declared function declaration.
+        // This function is applicable for Annex-B semantics.
+        function f() { return 1; }
+
+        // An inner block-statement with another function declaration.
+        // This function is not applicable for Annex-B semantics, because
+        // replacing it with |var f| would result in a SyntaxError.
+        {
+            function f() { return 2; }
+        }
+    }
+
+    assert.sameValue(f(), 1);
+}
+
+g();
+
+reportCompare(0, 0);