diff --git a/lib/scope.js b/lib/scope.js
index 7b8d38a0..11adbbfd 100644
--- a/lib/scope.js
+++ b/lib/scope.js
@@ -119,6 +119,11 @@ AST_Toplevel.DEFMETHOD("figure_out_scope", function(options){
             scope.init_scope_vars(nesting);
             scope.parent_scope = save_scope;
             scope.is_block_scope = true;
+            if (!(node instanceof AST_Scope)) {
+                scope.uses_with = save_scope.uses_with;
+                scope.uses_eval = save_scope.uses_eval;
+                scope.directives = save_scope.directives;
+            }
             descend();
             scope = save_scope;
             return true;
diff --git a/test/mocha/with.js b/test/mocha/with.js
index 2e758d1e..d1bfcc80 100644
--- a/test/mocha/with.js
+++ b/test/mocha/with.js
@@ -13,4 +13,11 @@ describe("With", function() {
         }
         assert.throws(test, error);
     });
-});
\ No newline at end of file
+    it("Should set uses_with for scopes involving With statements", function() {
+        var ast = uglify.parse("with(e) {f(1, 2)}");
+        ast.figure_out_scope();
+        assert.equal(ast.uses_with, true);
+        assert.equal(ast.body[0].expression.scope.uses_with, true);
+        assert.equal(ast.body[0].body.body[0].body.expression.scope.uses_with, true);
+    });
+});