diff --git a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
index 1127e91029328..bbd076e46a914 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
@@ -36,6 +36,7 @@ import {
   inferReactivePlaces,
   inferReferenceEffects,
   inlineImmediatelyInvokedFunctionExpressions,
+  inferEffectDependencies,
 } from '../Inference';
 import {
   constantPropagation,
@@ -354,6 +355,10 @@ function* runWithEnvironment(
     value: hir,
   });
 
+  if (env.config.inferEffectDependencies) {
+    inferEffectDependencies(env, hir);
+  }
+
   if (env.config.inlineJsxTransform) {
     inlineJsxTransform(hir, env.config.inlineJsxTransform);
     yield log({
diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
index 855bc039abf37..432eaf96ff99b 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
@@ -233,6 +233,19 @@ const EnvironmentConfigSchema = z.object({
 
   enableFunctionDependencyRewrite: z.boolean().default(true),
 
+  /**
+   * Enables inference of optional dependency chains. Without this flag
+   * a property chain such as `props?.items?.foo` will infer as a dep on
+   * just `props`. With this flag enabled, we'll infer that full path as
+   * the dependency.
+   */
+  enableOptionalDependencies: z.boolean().default(true),
+
+  /**
+   * Enables inference and auto-insertion of effect dependencies. Still experimental.
+   */
+  inferEffectDependencies: z.boolean().default(false),
+
   /**
    * Enables inlining ReactElement object literals in place of JSX
    * An alternative to the standard JSX transform which replaces JSX with React's jsxProd() runtime
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Inference/InferEffectDependencies.ts b/compiler/packages/babel-plugin-react-compiler/src/Inference/InferEffectDependencies.ts
new file mode 100644
index 0000000000000..9dc7dff78a6af
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/Inference/InferEffectDependencies.ts
@@ -0,0 +1,247 @@
+import {CompilerError, SourceLocation} from '..';
+import {
+  ArrayExpression,
+  Effect,
+  Environment,
+  FunctionExpression,
+  GeneratedSource,
+  HIRFunction,
+  IdentifierId,
+  Instruction,
+  isUseEffectHookType,
+  makeInstructionId,
+  TInstruction,
+  InstructionId,
+  ScopeId,
+  ReactiveScopeDependency,
+  Place,
+  ReactiveScopeDependencies,
+} from '../HIR';
+import {
+  createTemporaryPlace,
+  fixScopeAndIdentifierRanges,
+  markInstructionIds,
+} from '../HIR/HIRBuilder';
+import {eachInstructionOperand, eachTerminalOperand} from '../HIR/visitors';
+
+/**
+ * Infers reactive dependencies captured by useEffect lambdas and adds them as
+ * a second argument to the useEffect call if no dependency array is provided.
+ */
+export function inferEffectDependencies(
+  env: Environment,
+  fn: HIRFunction,
+): void {
+  let hasRewrite = false;
+  const fnExpressions = new Map<
+    IdentifierId,
+    TInstruction<FunctionExpression>
+  >();
+  const scopeInfos = new Map<
+    ScopeId,
+    {pruned: boolean; deps: ReactiveScopeDependencies; hasSingleInstr: boolean}
+  >();
+
+  /**
+   * When inserting LoadLocals, we need to retain the reactivity of the base
+   * identifier, as later passes e.g. PruneNonReactiveDeps take the reactivity of
+   * a base identifier as the "maximal" reactivity of all its references.
+   * Concretely,
+   * reactive(Identifier i) = Union_{reference of i}(reactive(reference))
+   */
+  const reactiveIds = inferReactiveIdentifiers(fn);
+
+  for (const [, block] of fn.body.blocks) {
+    if (
+      block.terminal.kind === 'scope' ||
+      block.terminal.kind === 'pruned-scope'
+    ) {
+      const scopeBlock = fn.body.blocks.get(block.terminal.block)!;
+      scopeInfos.set(block.terminal.scope.id, {
+        pruned: block.terminal.kind === 'pruned-scope',
+        deps: block.terminal.scope.dependencies,
+        hasSingleInstr:
+          scopeBlock.instructions.length === 1 &&
+          scopeBlock.terminal.kind === 'goto' &&
+          scopeBlock.terminal.block === block.terminal.fallthrough,
+      });
+    }
+    const rewriteInstrs = new Map<InstructionId, Array<Instruction>>();
+    for (const instr of block.instructions) {
+      const {value, lvalue} = instr;
+      if (value.kind === 'FunctionExpression') {
+        fnExpressions.set(
+          lvalue.identifier.id,
+          instr as TInstruction<FunctionExpression>,
+        );
+      } else if (
+        /*
+         * This check is not final. Right now we only look for useEffects without a dependency array.
+         * This is likely not how we will ship this feature, but it is good enough for us to make progress
+         * on the implementation and test it.
+         */
+        value.kind === 'CallExpression' &&
+        isUseEffectHookType(value.callee.identifier) &&
+        value.args.length === 1 &&
+        value.args[0].kind === 'Identifier'
+      ) {
+        const fnExpr = fnExpressions.get(value.args[0].identifier.id);
+        if (fnExpr != null) {
+          const scopeInfo =
+            fnExpr.lvalue.identifier.scope != null
+              ? scopeInfos.get(fnExpr.lvalue.identifier.scope.id)
+              : null;
+          CompilerError.invariant(scopeInfo != null, {
+            reason: 'Expected function expression scope to exist',
+            loc: value.loc,
+          });
+          if (scopeInfo.pruned || !scopeInfo.hasSingleInstr) {
+            /**
+             * TODO: retry pipeline that ensures effect function expressions
+             * are placed into their own scope
+             */
+            CompilerError.throwTodo({
+              reason:
+                '[InferEffectDependencies] Expected effect function to have non-pruned scope and its scope to have exactly one instruction',
+              loc: fnExpr.loc,
+            });
+          }
+
+          /**
+           * Step 1: write new instructions to insert a dependency array
+           *
+           * Note that it's invalid to prune non-reactive deps in this pass, see
+           * the `infer-effect-deps/pruned-nonreactive-obj` fixture for an
+           * explanation.
+           */
+          const effectDeps: Array<Place> = [];
+          const newInstructions: Array<Instruction> = [];
+          for (const dep of scopeInfo.deps) {
+            const {place, instructions} = writeDependencyToInstructions(
+              dep,
+              reactiveIds.has(dep.identifier.id),
+              fn.env,
+              fnExpr.loc,
+            );
+            newInstructions.push(...instructions);
+            effectDeps.push(place);
+          }
+          const deps: ArrayExpression = {
+            kind: 'ArrayExpression',
+            elements: effectDeps,
+            loc: GeneratedSource,
+          };
+
+          const depsPlace = createTemporaryPlace(env, GeneratedSource);
+          depsPlace.effect = Effect.Read;
+
+          newInstructions.push({
+            id: makeInstructionId(0),
+            loc: GeneratedSource,
+            lvalue: {...depsPlace, effect: Effect.Mutate},
+            value: deps,
+          });
+
+          // Step 2: insert the deps array as an argument of the useEffect
+          value.args[1] = {...depsPlace, effect: Effect.Freeze};
+          rewriteInstrs.set(instr.id, newInstructions);
+        }
+      }
+    }
+    if (rewriteInstrs.size > 0) {
+      hasRewrite = true;
+      const newInstrs = [];
+      for (const instr of block.instructions) {
+        const newInstr = rewriteInstrs.get(instr.id);
+        if (newInstr != null) {
+          newInstrs.push(...newInstr, instr);
+        } else {
+          newInstrs.push(instr);
+        }
+      }
+      block.instructions = newInstrs;
+    }
+  }
+  if (hasRewrite) {
+    // Renumber instructions and fix scope ranges
+    markInstructionIds(fn.body);
+    fixScopeAndIdentifierRanges(fn.body);
+  }
+}
+
+function writeDependencyToInstructions(
+  dep: ReactiveScopeDependency,
+  reactive: boolean,
+  env: Environment,
+  loc: SourceLocation,
+): {place: Place; instructions: Array<Instruction>} {
+  const instructions: Array<Instruction> = [];
+  let currValue = createTemporaryPlace(env, GeneratedSource);
+  currValue.reactive = reactive;
+  instructions.push({
+    id: makeInstructionId(0),
+    loc: GeneratedSource,
+    lvalue: {...currValue, effect: Effect.Mutate},
+    value: {
+      kind: 'LoadLocal',
+      place: {
+        kind: 'Identifier',
+        identifier: dep.identifier,
+        effect: Effect.Capture,
+        reactive,
+        loc: loc,
+      },
+      loc: loc,
+    },
+  });
+  for (const path of dep.path) {
+    if (path.optional) {
+      /**
+       * TODO: instead of truncating optional paths, reuse
+       * instructions from hoisted dependencies block(s)
+       */
+      break;
+    }
+    const nextValue = createTemporaryPlace(env, GeneratedSource);
+    nextValue.reactive = reactive;
+    instructions.push({
+      id: makeInstructionId(0),
+      loc: GeneratedSource,
+      lvalue: {...nextValue, effect: Effect.Mutate},
+      value: {
+        kind: 'PropertyLoad',
+        object: {...currValue, effect: Effect.Capture},
+        property: path.property,
+        loc: loc,
+      },
+    });
+    currValue = nextValue;
+  }
+  currValue.effect = Effect.Freeze;
+  return {place: currValue, instructions};
+}
+
+function inferReactiveIdentifiers(fn: HIRFunction): Set<IdentifierId> {
+  const reactiveIds: Set<IdentifierId> = new Set();
+  for (const [, block] of fn.body.blocks) {
+    for (const instr of block.instructions) {
+      /**
+       * No need to traverse into nested functions as
+       * 1. their effects are recorded in `LoweredFunction.dependencies`
+       * 2. we don't mark `reactive` in these anyways
+       */
+      for (const place of eachInstructionOperand(instr)) {
+        if (place.reactive) {
+          reactiveIds.add(place.identifier.id);
+        }
+      }
+    }
+
+    for (const place of eachTerminalOperand(block.terminal)) {
+      if (place.reactive) {
+        reactiveIds.add(place.identifier.id);
+      }
+    }
+  }
+  return reactiveIds;
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Inference/index.ts b/compiler/packages/babel-plugin-react-compiler/src/Inference/index.ts
index ee76a37bcb4b7..93b99fb385262 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Inference/index.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Inference/index.ts
@@ -11,3 +11,4 @@ export {inferMutableRanges} from './InferMutableRanges';
 export {inferReactivePlaces} from './InferReactivePlaces';
 export {default as inferReferenceEffects} from './InferReferenceEffects';
 export {inlineImmediatelyInvokedFunctionExpressions} from './InlineImmediatelyInvokedFunctionExpressions';
+export {inferEffectDependencies} from './InferEffectDependencies';
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.expect.md
new file mode 100644
index 0000000000000..febdd005a3cb0
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.expect.md
@@ -0,0 +1,129 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+const moduleNonReactive = 0;
+
+function Component({foo, bar}) {
+  const localNonreactive = 0;
+  const ref = useRef(0);
+  const localNonPrimitiveReactive = {
+    foo,
+  };
+  const localNonPrimitiveNonreactive = {};
+  useEffect(() => {
+    console.log(foo);
+    console.log(bar);
+    console.log(moduleNonReactive);
+    console.log(localNonreactive);
+    console.log(globalValue);
+    console.log(ref.current);
+    console.log(localNonPrimitiveReactive);
+    console.log(localNonPrimitiveNonreactive);
+  });
+
+  // Optional chains and property accesses
+  // TODO: we may be able to save bytes by omitting property accesses if the
+  // object of the member expression is already included in the inferred deps
+  useEffect(() => {
+    console.log(bar?.baz);
+    console.log(bar.qux);
+  });
+
+  function f() {
+    console.log(foo);
+  }
+
+  // No inferred dep array, the argument is not a lambda
+  useEffect(f);
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+const moduleNonReactive = 0;
+
+function Component(t0) {
+  const $ = _c(12);
+  const { foo, bar } = t0;
+
+  const ref = useRef(0);
+  let t1;
+  if ($[0] !== foo) {
+    t1 = { foo };
+    $[0] = foo;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  const localNonPrimitiveReactive = t1;
+  let t2;
+  if ($[2] === Symbol.for("react.memo_cache_sentinel")) {
+    t2 = {};
+    $[2] = t2;
+  } else {
+    t2 = $[2];
+  }
+  const localNonPrimitiveNonreactive = t2;
+  let t3;
+  if ($[3] !== bar || $[4] !== foo || $[5] !== localNonPrimitiveReactive) {
+    t3 = () => {
+      console.log(foo);
+      console.log(bar);
+      console.log(moduleNonReactive);
+      console.log(0);
+      console.log(globalValue);
+      console.log(ref.current);
+      console.log(localNonPrimitiveReactive);
+      console.log(localNonPrimitiveNonreactive);
+    };
+    $[3] = bar;
+    $[4] = foo;
+    $[5] = localNonPrimitiveReactive;
+    $[6] = t3;
+  } else {
+    t3 = $[6];
+  }
+  useEffect(t3, [
+    foo,
+    bar,
+    ref,
+    localNonPrimitiveReactive,
+    localNonPrimitiveNonreactive,
+  ]);
+  let t4;
+  if ($[7] !== bar.baz || $[8] !== bar.qux) {
+    t4 = () => {
+      console.log(bar?.baz);
+      console.log(bar.qux);
+    };
+    $[7] = bar.baz;
+    $[8] = bar.qux;
+    $[9] = t4;
+  } else {
+    t4 = $[9];
+  }
+  useEffect(t4, [bar.baz, bar.qux]);
+  let t5;
+  if ($[10] !== foo) {
+    t5 = function f() {
+      console.log(foo);
+    };
+    $[10] = foo;
+    $[11] = t5;
+  } else {
+    t5 = $[11];
+  }
+  const f = t5;
+
+  useEffect(f);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.js
new file mode 100644
index 0000000000000..6a70bc1298b0a
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/infer-effect-dependencies.js
@@ -0,0 +1,36 @@
+// @inferEffectDependencies
+const moduleNonReactive = 0;
+
+function Component({foo, bar}) {
+  const localNonreactive = 0;
+  const ref = useRef(0);
+  const localNonPrimitiveReactive = {
+    foo,
+  };
+  const localNonPrimitiveNonreactive = {};
+  useEffect(() => {
+    console.log(foo);
+    console.log(bar);
+    console.log(moduleNonReactive);
+    console.log(localNonreactive);
+    console.log(globalValue);
+    console.log(ref.current);
+    console.log(localNonPrimitiveReactive);
+    console.log(localNonPrimitiveNonreactive);
+  });
+
+  // Optional chains and property accesses
+  // TODO: we may be able to save bytes by omitting property accesses if the
+  // object of the member expression is already included in the inferred deps
+  useEffect(() => {
+    console.log(bar?.baz);
+    console.log(bar.qux);
+  });
+
+  function f() {
+    console.log(foo);
+  }
+
+  // No inferred dep array, the argument is not a lambda
+  useEffect(f);
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.expect.md
new file mode 100644
index 0000000000000..1cfbe71e78843
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.expect.md
@@ -0,0 +1,80 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {makeObject_Primitives, print} from 'shared-runtime';
+
+/**
+ * Note that `obj` is currently added to the effect dependency array, even
+ * though it's non-reactive due to memoization.
+ *
+ * This is a TODO in effect dependency inference. Note that we cannot simply
+ * filter out non-reactive effect dependencies, as some non-reactive (by data
+ * flow) values become reactive due to scope pruning. See the
+ * `infer-effect-deps/pruned-nonreactive-obj` fixture for why this matters.
+ *
+ * Realizing that this `useEffect` should have an empty dependency array
+ * requires effect dependency inference to be structured similarly to memo
+ * dependency inference.
+ * Pass 1: add all potential dependencies regardless of dataflow reactivity
+ * Pass 2: (todo) prune non-reactive dependencies
+ *
+ * Note that instruction reordering should significantly reduce scope pruning
+ */
+function NonReactiveDepInEffect() {
+  const obj = makeObject_Primitives();
+  useEffect(() => print(obj));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect } from "react";
+import { makeObject_Primitives, print } from "shared-runtime";
+
+/**
+ * Note that `obj` is currently added to the effect dependency array, even
+ * though it's non-reactive due to memoization.
+ *
+ * This is a TODO in effect dependency inference. Note that we cannot simply
+ * filter out non-reactive effect dependencies, as some non-reactive (by data
+ * flow) values become reactive due to scope pruning. See the
+ * `infer-effect-deps/pruned-nonreactive-obj` fixture for why this matters.
+ *
+ * Realizing that this `useEffect` should have an empty dependency array
+ * requires effect dependency inference to be structured similarly to memo
+ * dependency inference.
+ * Pass 1: add all potential dependencies regardless of dataflow reactivity
+ * Pass 2: (todo) prune non-reactive dependencies
+ *
+ * Note that instruction reordering should significantly reduce scope pruning
+ */
+function NonReactiveDepInEffect() {
+  const $ = _c(2);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = makeObject_Primitives();
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  const obj = t0;
+  let t1;
+  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => print(obj);
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  useEffect(t1, [obj]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.js
new file mode 100644
index 0000000000000..85d9699750293
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-dep.js
@@ -0,0 +1,25 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {makeObject_Primitives, print} from 'shared-runtime';
+
+/**
+ * Note that `obj` is currently added to the effect dependency array, even
+ * though it's non-reactive due to memoization.
+ *
+ * This is a TODO in effect dependency inference. Note that we cannot simply
+ * filter out non-reactive effect dependencies, as some non-reactive (by data
+ * flow) values become reactive due to scope pruning. See the
+ * `infer-effect-deps/pruned-nonreactive-obj` fixture for why this matters.
+ *
+ * Realizing that this `useEffect` should have an empty dependency array
+ * requires effect dependency inference to be structured similarly to memo
+ * dependency inference.
+ * Pass 1: add all potential dependencies regardless of dataflow reactivity
+ * Pass 2: (todo) prune non-reactive dependencies
+ *
+ * Note that instruction reordering should significantly reduce scope pruning
+ */
+function NonReactiveDepInEffect() {
+  const obj = makeObject_Primitives();
+  useEffect(() => print(obj));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.expect.md
new file mode 100644
index 0000000000000..cf1ebd9252f6a
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.expect.md
@@ -0,0 +1,51 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect, useRef} from 'react';
+import {print} from 'shared-runtime';
+
+/**
+ * Special case of `infer-effect-deps/nonreactive-dep`.
+ *
+ * We know that local `useRef` return values are stable, regardless of
+ * inferred memoization.
+ */
+function NonReactiveRefInEffect() {
+  const ref = useRef('initial value');
+  useEffect(() => print(ref.current));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect, useRef } from "react";
+import { print } from "shared-runtime";
+
+/**
+ * Special case of `infer-effect-deps/nonreactive-dep`.
+ *
+ * We know that local `useRef` return values are stable, regardless of
+ * inferred memoization.
+ */
+function NonReactiveRefInEffect() {
+  const $ = _c(1);
+  const ref = useRef("initial value");
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = () => print(ref.current);
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  useEffect(t0, [ref]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.js
new file mode 100644
index 0000000000000..8a8ab2f636be7
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/nonreactive-ref.js
@@ -0,0 +1,14 @@
+// @inferEffectDependencies
+import {useEffect, useRef} from 'react';
+import {print} from 'shared-runtime';
+
+/**
+ * Special case of `infer-effect-deps/nonreactive-dep`.
+ *
+ * We know that local `useRef` return values are stable, regardless of
+ * inferred memoization.
+ */
+function NonReactiveRefInEffect() {
+  const ref = useRef('initial value');
+  useEffect(() => print(ref.current));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.expect.md
new file mode 100644
index 0000000000000..8272d4793fb8a
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.expect.md
@@ -0,0 +1,46 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+/**
+ * This compiled output is technically incorrect but this is currently the same
+ * case as a bailout (an effect that overfires).
+ *
+ * To ensure an empty deps array is passed, we need special case
+ * `InferEffectDependencies` for outlined functions (likely easier) or run it
+ * before OutlineFunctions
+ */
+function OutlinedFunctionInEffect() {
+  useEffect(() => print('hello world!'));
+}
+
+```
+
+## Code
+
+```javascript
+// @inferEffectDependencies
+import { useEffect } from "react";
+import { print } from "shared-runtime";
+/**
+ * This compiled output is technically incorrect but this is currently the same
+ * case as a bailout (an effect that overfires).
+ *
+ * To ensure an empty deps array is passed, we need special case
+ * `InferEffectDependencies` for outlined functions (likely easier) or run it
+ * before OutlineFunctions
+ */
+function OutlinedFunctionInEffect() {
+  useEffect(_temp);
+}
+function _temp() {
+  return print("hello world!");
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.js
new file mode 100644
index 0000000000000..2ee2c94e3c249
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/outlined-function.js
@@ -0,0 +1,14 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+/**
+ * This compiled output is technically incorrect but this is currently the same
+ * case as a bailout (an effect that overfires).
+ *
+ * To ensure an empty deps array is passed, we need special case
+ * `InferEffectDependencies` for outlined functions (likely easier) or run it
+ * before OutlineFunctions
+ */
+function OutlinedFunctionInEffect() {
+  useEffect(() => print('hello world!'));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.expect.md
new file mode 100644
index 0000000000000..fbb88fb32801d
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.expect.md
@@ -0,0 +1,119 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useIdentity, mutate, makeObject} from 'shared-runtime';
+import {useEffect} from 'react';
+
+/**
+ * When a semantically non-reactive value has a pruned scope (i.e. the object
+ * identity becomes reactive, but the underlying value it represents should be
+ * constant), the compiler can choose to either
+ * - add it as a dependency (and rerun the effect)
+ * - not add it as a dependency
+ *
+ * We keep semantically non-reactive values in both memo block and effect
+ * dependency arrays to avoid versioning invariants e.g. `x !== y.aliasedX`.
+ * ```js
+ * function Component() {
+ *   // obj is semantically non-reactive, but its memo scope is pruned due to
+ *   // the interleaving hook call
+ *   const obj = {};
+ *   useHook();
+ *   write(obj);
+ *
+ *   const ref = useRef();
+ *
+ *   // this effect needs to be rerun when obj's referential identity changes,
+ *   // because it might alias obj to a useRef / mutable store.
+ *   useEffect(() => ref.current = obj, ???);
+ *
+ *   // in a custom hook (or child component), the user might expect versioning
+ *   // invariants to hold
+ *   useHook(ref, obj);
+ * }
+ *
+ * // defined elsewhere
+ * function useHook(someRef, obj) {
+ *   useEffect(
+ *     () => assert(someRef.current === obj),
+ *     [someRef, obj]
+ *   );
+ * }
+ * ```
+ */
+function PrunedNonReactive() {
+  const obj = makeObject();
+  useIdentity(null);
+  mutate(obj);
+
+  useEffect(() => print(obj.value));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useIdentity, mutate, makeObject } from "shared-runtime";
+import { useEffect } from "react";
+
+/**
+ * When a semantically non-reactive value has a pruned scope (i.e. the object
+ * identity becomes reactive, but the underlying value it represents should be
+ * constant), the compiler can choose to either
+ * - add it as a dependency (and rerun the effect)
+ * - not add it as a dependency
+ *
+ * We keep semantically non-reactive values in both memo block and effect
+ * dependency arrays to avoid versioning invariants e.g. `x !== y.aliasedX`.
+ * ```js
+ * function Component() {
+ *   // obj is semantically non-reactive, but its memo scope is pruned due to
+ *   // the interleaving hook call
+ *   const obj = {};
+ *   useHook();
+ *   write(obj);
+ *
+ *   const ref = useRef();
+ *
+ *   // this effect needs to be rerun when obj's referential identity changes,
+ *   // because it might alias obj to a useRef / mutable store.
+ *   useEffect(() => ref.current = obj, ???);
+ *
+ *   // in a custom hook (or child component), the user might expect versioning
+ *   // invariants to hold
+ *   useHook(ref, obj);
+ * }
+ *
+ * // defined elsewhere
+ * function useHook(someRef, obj) {
+ *   useEffect(
+ *     () => assert(someRef.current === obj),
+ *     [someRef, obj]
+ *   );
+ * }
+ * ```
+ */
+function PrunedNonReactive() {
+  const $ = _c(2);
+  const obj = makeObject();
+  useIdentity(null);
+  mutate(obj);
+  let t0;
+  if ($[0] !== obj.value) {
+    t0 = () => print(obj.value);
+    $[0] = obj.value;
+    $[1] = t0;
+  } else {
+    t0 = $[1];
+  }
+  useEffect(t0, [obj.value]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.js
new file mode 100644
index 0000000000000..692b97b5144b3
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/pruned-nonreactive-obj.js
@@ -0,0 +1,48 @@
+// @inferEffectDependencies
+import {useIdentity, mutate, makeObject} from 'shared-runtime';
+import {useEffect} from 'react';
+
+/**
+ * When a semantically non-reactive value has a pruned scope (i.e. the object
+ * identity becomes reactive, but the underlying value it represents should be
+ * constant), the compiler can choose to either
+ * - add it as a dependency (and rerun the effect)
+ * - not add it as a dependency
+ *
+ * We keep semantically non-reactive values in both memo block and effect
+ * dependency arrays to avoid versioning invariants e.g. `x !== y.aliasedX`.
+ * ```js
+ * function Component() {
+ *   // obj is semantically non-reactive, but its memo scope is pruned due to
+ *   // the interleaving hook call
+ *   const obj = {};
+ *   useHook();
+ *   write(obj);
+ *
+ *   const ref = useRef();
+ *
+ *   // this effect needs to be rerun when obj's referential identity changes,
+ *   // because it might alias obj to a useRef / mutable store.
+ *   useEffect(() => ref.current = obj, ???);
+ *
+ *   // in a custom hook (or child component), the user might expect versioning
+ *   // invariants to hold
+ *   useHook(ref, obj);
+ * }
+ *
+ * // defined elsewhere
+ * function useHook(someRef, obj) {
+ *   useEffect(
+ *     () => assert(someRef.current === obj),
+ *     [someRef, obj]
+ *   );
+ * }
+ * ```
+ */
+function PrunedNonReactive() {
+  const obj = makeObject();
+  useIdentity(null);
+  mutate(obj);
+
+  useEffect(() => print(obj.value));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.expect.md
new file mode 100644
index 0000000000000..82eb54a908829
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.expect.md
@@ -0,0 +1,49 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveMemberExprMerge({propVal}) {
+  const obj = {a: {b: propVal}};
+  useEffect(() => print(obj.a, obj.a.b));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect } from "react";
+import { print } from "shared-runtime";
+
+function ReactiveMemberExprMerge(t0) {
+  const $ = _c(4);
+  const { propVal } = t0;
+  let t1;
+  if ($[0] !== propVal) {
+    t1 = { a: { b: propVal } };
+    $[0] = propVal;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  const obj = t1;
+  let t2;
+  if ($[2] !== obj.a) {
+    t2 = () => print(obj.a, obj.a.b);
+    $[2] = obj.a;
+    $[3] = t2;
+  } else {
+    t2 = $[3];
+  }
+  useEffect(t2, [obj.a]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.js
new file mode 100644
index 0000000000000..071f5abbf545c
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr-merge.js
@@ -0,0 +1,8 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveMemberExprMerge({propVal}) {
+  const obj = {a: {b: propVal}};
+  useEffect(() => print(obj.a, obj.a.b));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.expect.md
new file mode 100644
index 0000000000000..74c4b9eb1ee20
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.expect.md
@@ -0,0 +1,49 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveMemberExpr({propVal}) {
+  const obj = {a: {b: propVal}};
+  useEffect(() => print(obj.a.b));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect } from "react";
+import { print } from "shared-runtime";
+
+function ReactiveMemberExpr(t0) {
+  const $ = _c(4);
+  const { propVal } = t0;
+  let t1;
+  if ($[0] !== propVal) {
+    t1 = { a: { b: propVal } };
+    $[0] = propVal;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  const obj = t1;
+  let t2;
+  if ($[2] !== obj.a.b) {
+    t2 = () => print(obj.a.b);
+    $[2] = obj.a.b;
+    $[3] = t2;
+  } else {
+    t2 = $[3];
+  }
+  useEffect(t2, [obj.a.b]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.js
new file mode 100644
index 0000000000000..0eabc54657339
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-memberexpr.js
@@ -0,0 +1,8 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveMemberExpr({propVal}) {
+  const obj = {a: {b: propVal}};
+  useEffect(() => print(obj.a.b));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.expect.md
new file mode 100644
index 0000000000000..7c9f21b85cdab
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.expect.md
@@ -0,0 +1,60 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+// TODO: take optional chains as dependencies
+function ReactiveMemberExpr({cond, propVal}) {
+  const obj = {a: cond ? {b: propVal} : null};
+  useEffect(() => print(obj.a?.b));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect } from "react";
+import { print } from "shared-runtime";
+
+// TODO: take optional chains as dependencies
+function ReactiveMemberExpr(t0) {
+  const $ = _c(7);
+  const { cond, propVal } = t0;
+  let t1;
+  if ($[0] !== cond || $[1] !== propVal) {
+    t1 = cond ? { b: propVal } : null;
+    $[0] = cond;
+    $[1] = propVal;
+    $[2] = t1;
+  } else {
+    t1 = $[2];
+  }
+  let t2;
+  if ($[3] !== t1) {
+    t2 = { a: t1 };
+    $[3] = t1;
+    $[4] = t2;
+  } else {
+    t2 = $[4];
+  }
+  const obj = t2;
+  let t3;
+  if ($[5] !== obj.a?.b) {
+    t3 = () => print(obj.a?.b);
+    $[5] = obj.a?.b;
+    $[6] = t3;
+  } else {
+    t3 = $[6];
+  }
+  useEffect(t3, [obj.a]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.js
new file mode 100644
index 0000000000000..8a76784e241b5
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-optional-chain.js
@@ -0,0 +1,9 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+// TODO: take optional chains as dependencies
+function ReactiveMemberExpr({cond, propVal}) {
+  const obj = {a: cond ? {b: propVal} : null};
+  useEffect(() => print(obj.a?.b));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.expect.md
new file mode 100644
index 0000000000000..6443b90e4affa
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.expect.md
@@ -0,0 +1,49 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveVariable({propVal}) {
+  const arr = [propVal];
+  useEffect(() => print(arr));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import { useEffect } from "react";
+import { print } from "shared-runtime";
+
+function ReactiveVariable(t0) {
+  const $ = _c(4);
+  const { propVal } = t0;
+  let t1;
+  if ($[0] !== propVal) {
+    t1 = [propVal];
+    $[0] = propVal;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  const arr = t1;
+  let t2;
+  if ($[2] !== arr) {
+    t2 = () => print(arr);
+    $[2] = arr;
+    $[3] = t2;
+  } else {
+    t2 = $[3];
+  }
+  useEffect(t2, [arr]);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.js
new file mode 100644
index 0000000000000..ae3ee2c8e2f64
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/reactive-variable.js
@@ -0,0 +1,8 @@
+// @inferEffectDependencies
+import {useEffect} from 'react';
+import {print} from 'shared-runtime';
+
+function ReactiveVariable({propVal}) {
+  const arr = [propVal];
+  useEffect(() => print(arr));
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.expect.md
new file mode 100644
index 0000000000000..6302067a5a5eb
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.expect.md
@@ -0,0 +1,50 @@
+
+## Input
+
+```javascript
+// @inferEffectDependencies
+import * as React from 'react';
+
+/**
+ * TODO: recognize import namespace
+ */
+function NonReactiveDepInEffect() {
+  const obj = makeObject_Primitives();
+  React.useEffect(() => print(obj));
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @inferEffectDependencies
+import * as React from "react";
+
+/**
+ * TODO: recognize import namespace
+ */
+function NonReactiveDepInEffect() {
+  const $ = _c(2);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = makeObject_Primitives();
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  const obj = t0;
+  let t1;
+  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => print(obj);
+    $[1] = t1;
+  } else {
+    t1 = $[1];
+  }
+  React.useEffect(t1);
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.js
new file mode 100644
index 0000000000000..4c9eec898614f
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/todo-import-namespace-useEffect.js
@@ -0,0 +1,10 @@
+// @inferEffectDependencies
+import * as React from 'react';
+
+/**
+ * TODO: recognize import namespace
+ */
+function NonReactiveDepInEffect() {
+  const obj = makeObject_Primitives();
+  React.useEffect(() => print(obj));
+}
diff --git a/compiler/packages/snap/src/compiler.ts b/compiler/packages/snap/src/compiler.ts
index 95af40d62a880..6942ffb2adc7b 100644
--- a/compiler/packages/snap/src/compiler.ts
+++ b/compiler/packages/snap/src/compiler.ts
@@ -174,6 +174,11 @@ function makePluginOptions(
       .filter(s => s.length > 0);
   }
 
+  let inferEffectDependencies = false;
+  if (firstLine.includes('@inferEffectDependencies')) {
+    inferEffectDependencies = true;
+  }
+
   let logs: Array<{filename: string | null; event: LoggerEvent}> = [];
   let logger: Logger | null = null;
   if (firstLine.includes('@logger')) {
@@ -197,6 +202,7 @@ function makePluginOptions(
       hookPattern,
       validatePreserveExistingMemoizationGuarantees,
       validateBlocklistedImports,
+      inferEffectDependencies,
     },
     compilationMode,
     logger,