diff --git a/crates/oxc_linter/src/rules/eslint/require_yield.rs b/crates/oxc_linter/src/rules/eslint/require_yield.rs
index de67d957df801..7e6c33f94cfe7 100644
--- a/crates/oxc_linter/src/rules/eslint/require_yield.rs
+++ b/crates/oxc_linter/src/rules/eslint/require_yield.rs
@@ -60,6 +60,7 @@ fn test() {
     let pass = vec![
         ("function foo() { return 0; }", None),
         ("function* foo() { yield 0; }", None),
+        ("function* foo() { while (true) { yield 0; } }", None),
         ("function* foo() { }", None),
         ("(function* foo() { yield 0; })();", None),
         ("(function* foo() { })();", None),
diff --git a/crates/oxc_semantic/src/builder.rs b/crates/oxc_semantic/src/builder.rs
index a3d59af880ef7..032cd261b1a21 100644
--- a/crates/oxc_semantic/src/builder.rs
+++ b/crates/oxc_semantic/src/builder.rs
@@ -226,10 +226,23 @@ impl<'a> SemanticBuilder<'a> {
     }
 
     pub fn set_function_node_flag(&mut self, flag: NodeFlags) {
+        if let Some(node_id) = self.get_function_node_id() {
+            *self.nodes.get_node_mut(node_id).flags_mut() |= flag;
+        }
+    }
+
+    fn get_function_node_id(&self) -> Option<AstNodeId> {
         if self.current_scope_flags().is_function() {
-            *self.nodes.get_node_mut(self.scope.get_node_id(self.current_scope_id)).flags_mut() |=
-                flag;
+            return Some(self.scope.get_node_id(self.current_scope_id));
         }
+
+        for scope_id in self.scope.ancestors(self.current_scope_id) {
+            if self.scope.get_flags(scope_id).is_function() {
+                return Some(self.scope.get_node_id(scope_id));
+            }
+        }
+
+        None
     }
 
     /// Declares a `Symbol` for the node, adds it to symbol table, and binds it to the scope.