diff --git a/test/form/unused-declarations-in-function/_config.js b/test/form/unused-declarations-in-function/_config.js
new file mode 100644
index 0000000..21c7d2d
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_config.js
@@ -0,0 +1,3 @@
+module.exports = {
+	description: 'removes unused declarations and statements inside function (#1187)'
+};
diff --git a/test/form/unused-declarations-in-function/_expected/amd.js b/test/form/unused-declarations-in-function/_expected/amd.js
new file mode 100644
index 0000000..da2ca35
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_expected/amd.js
@@ -0,0 +1,9 @@
+define(function () { 'use strict';
+
+	function foo() {
+		console.log("foo");
+	}
+
+	foo();
+
+});
diff --git a/test/form/unused-declarations-in-function/_expected/cjs.js b/test/form/unused-declarations-in-function/_expected/cjs.js
new file mode 100644
index 0000000..0aadb82
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_expected/cjs.js
@@ -0,0 +1,7 @@
+'use strict';
+
+function foo() {
+	console.log("foo");
+}
+
+foo();
diff --git a/test/form/unused-declarations-in-function/_expected/es.js b/test/form/unused-declarations-in-function/_expected/es.js
new file mode 100644
index 0000000..343a59b
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_expected/es.js
@@ -0,0 +1,5 @@
+function foo() {
+	console.log("foo");
+}
+
+foo();
diff --git a/test/form/unused-declarations-in-function/_expected/iife.js b/test/form/unused-declarations-in-function/_expected/iife.js
new file mode 100644
index 0000000..b1ac97f
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_expected/iife.js
@@ -0,0 +1,10 @@
+(function () {
+	'use strict';
+
+	function foo() {
+		console.log("foo");
+	}
+
+	foo();
+
+}());
diff --git a/test/form/unused-declarations-in-function/_expected/umd.js b/test/form/unused-declarations-in-function/_expected/umd.js
new file mode 100644
index 0000000..2498f7e
--- /dev/null
+++ b/test/form/unused-declarations-in-function/_expected/umd.js
@@ -0,0 +1,13 @@
+(function (global, factory) {
+	typeof exports === 'object' && typeof module !== 'undefined' ? factory() :
+	typeof define === 'function' && define.amd ? define(factory) :
+	(factory());
+}(this, (function () { 'use strict';
+
+	function foo() {
+		console.log("foo");
+	}
+
+	foo();
+
+})));
diff --git a/test/form/unused-declarations-in-function/main.js b/test/form/unused-declarations-in-function/main.js
new file mode 100644
index 0000000..d7d2a56
--- /dev/null
+++ b/test/form/unused-declarations-in-function/main.js
@@ -0,0 +1,18 @@
+(function UnusedFunctionExpression() {});
+(class UnusedClassExpression {});
+var UnusedClassExpression = class UnusedClassExpression {};
+var unusedVar;
+let unusedLet;
+const unusedConst = 1;
+
+function foo() {
+	(function UnusedFunctionExpression() {});
+	(class UnusedClassExpression {});
+	var UnusedClassExpression = class UnusedClassExpression {};
+	var unusedVar;
+	let unusedLet;
+	const unusedConst = 1;
+	console.log("foo");
+}
+
+foo();