diff --git a/test/function/preserves-default-exports-used-locally/_config.js b/test/function/preserves-default-exports-used-locally/_config.js
new file mode 100644
index 0000000..98c090b
--- /dev/null
+++ b/test/function/preserves-default-exports-used-locally/_config.js
@@ -0,0 +1,3 @@
+module.exports = {
+	description: 'preserves default exports that are only used locally (#984)'
+};
diff --git a/test/function/preserves-default-exports-used-locally/foo.js b/test/function/preserves-default-exports-used-locally/foo.js
new file mode 100644
index 0000000..4f1664d
--- /dev/null
+++ b/test/function/preserves-default-exports-used-locally/foo.js
@@ -0,0 +1,5 @@
+export default function foo () {
+	global.foo = 1;
+}
+
+foo();
diff --git a/test/function/preserves-default-exports-used-locally/main.js b/test/function/preserves-default-exports-used-locally/main.js
new file mode 100644
index 0000000..d8df81e
--- /dev/null
+++ b/test/function/preserves-default-exports-used-locally/main.js
@@ -0,0 +1,2 @@
+import './foo';
+assert.equal( global.foo, 1 );