diff --git a/crates/oxc_semantic/src/checker/javascript.rs b/crates/oxc_semantic/src/checker/javascript.rs
index da81f41923c9c..7df5ff04a2fda 100644
--- a/crates/oxc_semantic/src/checker/javascript.rs
+++ b/crates/oxc_semantic/src/checker/javascript.rs
@@ -649,7 +649,18 @@ fn label_redeclaration(x0: &str, span1: Span, span2: Span) -> OxcDiagnostic {
 pub fn check_labeled_statement(ctx: &SemanticBuilder) {
     ctx.label_builder.labels.iter().for_each(|labels| {
         let mut defined = FxHashMap::default();
+        //only need to care about the monotone increasing depth of the array
+        let mut increase_depth = vec![];
         for labeled in labels {
+            increase_depth.push(labeled);
+            // have to traverse because HashMap can only delete one by one
+            while increase_depth.len() > 2
+                && increase_depth.iter().rev().nth(1).unwrap().depth
+                    >= increase_depth.iter().next_back().unwrap().depth
+            {
+                defined.remove(increase_depth[increase_depth.len() - 2].name);
+                increase_depth.remove(increase_depth.len() - 2);
+            }
             if let Some(span) = defined.get(labeled.name) {
                 ctx.error(label_redeclaration(labeled.name, *span, labeled.span));
             } else {
diff --git a/crates/oxc_semantic/src/label.rs b/crates/oxc_semantic/src/label.rs
index fb74da22f6ab3..822a2b6a80b9d 100644
--- a/crates/oxc_semantic/src/label.rs
+++ b/crates/oxc_semantic/src/label.rs
@@ -11,7 +11,7 @@ pub struct Label<'a> {
     pub span: Span,
     used: bool,
     /// depth is the number of nested labeled statements
-    depth: usize,
+    pub depth: usize,
     /// is accessible means that the label is accessible from the current position
     is_accessible: bool,
     /// is_inside_function_or_static_block means that the label is inside a function or static block
diff --git a/tasks/coverage/codegen_misc.snap b/tasks/coverage/codegen_misc.snap
index 6f1ab4f301cad..f560e60a4b440 100644
--- a/tasks/coverage/codegen_misc.snap
+++ b/tasks/coverage/codegen_misc.snap
@@ -1,3 +1,3 @@
 codegen_misc Summary:
-AST Parsed     : 25/25 (100.00%)
-Positive Passed: 25/25 (100.00%)
+AST Parsed     : 26/26 (100.00%)
+Positive Passed: 26/26 (100.00%)
diff --git a/tasks/coverage/misc/fail/oxc-5036.js b/tasks/coverage/misc/fail/oxc-5036.js
new file mode 100644
index 0000000000000..483d9ad196bc9
--- /dev/null
+++ b/tasks/coverage/misc/fail/oxc-5036.js
@@ -0,0 +1,3 @@
+Test: {
+    Test: console.log('Test');
+}
\ No newline at end of file
diff --git a/tasks/coverage/misc/pass/oxc-5036.js b/tasks/coverage/misc/pass/oxc-5036.js
new file mode 100644
index 0000000000000..a2ca864a89ef0
--- /dev/null
+++ b/tasks/coverage/misc/pass/oxc-5036.js
@@ -0,0 +1,41 @@
+Parent: {
+    Child1: {
+        Child2: console.log("Child1");
+        Child2: console.log("Child2");
+    }
+    Child1: {
+        Child2: console.log("Child3");
+        Child2: console.log("Child4");
+    }
+    Child2: {
+        Child1: console.log("Child5");
+        Child1: console.log("Child6");
+    }
+}
+
+Parent: {
+    Child1: {
+        Child2: console.log("Child7");
+        Child2: console.log("Child8");
+    }
+}
+
+Parent: {
+    Child1: {
+        Child12: {
+            Child3: {
+                Child4: {
+                    Child5: console.log("Child9");
+                }
+            }
+        }
+    }
+    Child1: console.log("Child10");
+    Child2: console.log("Child11");
+    Child1: {
+        Child2: {
+            Child3: console.log("Child12");
+        }
+    }
+    Child3: console.log("Child13");
+}
diff --git a/tasks/coverage/parser_misc.snap b/tasks/coverage/parser_misc.snap
index 13d3adfb1e70a..cd01bf1e4823c 100644
--- a/tasks/coverage/parser_misc.snap
+++ b/tasks/coverage/parser_misc.snap
@@ -1,7 +1,7 @@
 parser_misc Summary:
-AST Parsed     : 25/25 (100.00%)
-Positive Passed: 25/25 (100.00%)
-Negative Passed: 14/14 (100.00%)
+AST Parsed     : 26/26 (100.00%)
+Positive Passed: 26/26 (100.00%)
+Negative Passed: 15/15 (100.00%)
 
   × Unexpected token
    ╭─[misc/fail/oxc-169.js:2:1]
@@ -219,6 +219,17 @@ Negative Passed: 14/14 (100.00%)
    ·           ─────────────
    ╰────
 
+  × Label `Test` has already been declared
+   ╭─[misc/fail/oxc-5036.js:1:1]
+ 1 │ Test: {
+   · ──┬─
+   ·   ╰── `Test` has already been declared here
+ 2 │     Test: console.log('Test');
+   ·     ──┬─
+   ·       ╰── It can not be redeclared here
+ 3 │ }
+   ╰────
+
   × The keyword 'let' is reserved
    ╭─[misc/fail/oxc.js:1:1]
  1 │ let.a = 1;
diff --git a/tasks/coverage/semantic_misc.snap b/tasks/coverage/semantic_misc.snap
index bf90e26b52f92..ba72a88e04984 100644
--- a/tasks/coverage/semantic_misc.snap
+++ b/tasks/coverage/semantic_misc.snap
@@ -1,6 +1,6 @@
 semantic_misc Summary:
-AST Parsed     : 25/25 (100.00%)
-Positive Passed: 16/25 (64.00%)
+AST Parsed     : 26/26 (100.00%)
+Positive Passed: 17/26 (65.38%)
 tasks/coverage/misc/pass/oxc-1288.ts
 semantic error: Bindings mismatch:
 after transform: ScopeId(0): ["from"]
diff --git a/tasks/coverage/transformer_misc.snap b/tasks/coverage/transformer_misc.snap
index 30570bb25636a..f605ae970bcb9 100644
--- a/tasks/coverage/transformer_misc.snap
+++ b/tasks/coverage/transformer_misc.snap
@@ -1,3 +1,3 @@
 transformer_misc Summary:
-AST Parsed     : 25/25 (100.00%)
-Positive Passed: 25/25 (100.00%)
+AST Parsed     : 26/26 (100.00%)
+Positive Passed: 26/26 (100.00%)