diff --git a/packages/core/src/render3/i18n.ts b/packages/core/src/render3/i18n.ts
index 3df1f9b71d5e8..09c8a5f745a8f 100644
--- a/packages/core/src/render3/i18n.ts
+++ b/packages/core/src/render3/i18n.ts
@@ -683,10 +683,21 @@ function i18nEndFirstPass(lView: LView, tView: TView) {
   const visitedNodes = readCreateOpCodes(rootIndex, tI18n.create, lView);
 
   // Remove deleted nodes
-  for (let i = rootIndex + 1; i <= lastCreatedNode.index - HEADER_OFFSET; i++) {
-    if (visitedNodes.indexOf(i) === -1) {
-      removeNode(i, lView, /* markAsDetached */ true);
+  let index = rootIndex + 1;
+  while (index <= lastCreatedNode.index - HEADER_OFFSET) {
+    if (visitedNodes.indexOf(index) === -1) {
+      removeNode(index, lView, /* markAsDetached */ true);
     }
+    // Check if an element has any local refs and skip them
+    const tNode = getTNode(index, lView);
+    if (tNode && (tNode.type === TNodeType.Element || tNode.type === TNodeType.ElementContainer) &&
+        tNode.localNames !== null) {
+      // Divide by 2 to get the number of local refs,
+      // since they are stored as an array that also includes directive indexes,
+      // i.e. ["localRef", directiveIndex, ...]
+      index += tNode.localNames.length >> 1;
+    }
+    index++;
   }
 }
 
diff --git a/packages/core/test/acceptance/i18n_spec.ts b/packages/core/test/acceptance/i18n_spec.ts
index 16fd89ffd5f29..99b184896a2f9 100644
--- a/packages/core/test/acceptance/i18n_spec.ts
+++ b/packages/core/test/acceptance/i18n_spec.ts
@@ -287,6 +287,43 @@ onlyInIvy('Ivy i18n logic').describe('runtime i18n', () => {
     expect(instance.clicks).toBe(1);
   });
 
+  it('should support local refs inside i18n block', () => {
+    loadTranslations({
+      [computeMsgId(
+          '{$START_TAG_NG_CONTAINER} One {$CLOSE_TAG_NG_CONTAINER}' +
+          '{$START_TAG_DIV} Two {$CLOSE_TAG_DIV}' +
+          '{$START_TAG_SPAN} Three {$CLOSE_TAG_SPAN}')]:
+          '{$START_TAG_NG_CONTAINER} Une {$CLOSE_TAG_NG_CONTAINER}' +
+          '{$START_TAG_DIV} Deux {$CLOSE_TAG_DIV}' +
+          '{$START_TAG_SPAN} Trois {$CLOSE_TAG_SPAN}'
+    });
+    const fixture = initWithTemplate(AppComp, `
+      <div i18n>
+        <ng-container #localRefA> One </ng-container>
+        <div #localRefB> Two </div>
+        <span #localRefC> Three </span>
+      </div>
+    `);
+    expect(fixture.nativeElement.textContent).toBe(' Une  Deux  Trois ');
+  });
+
+  it('should handle local refs correctly in case an element is removed in translation', () => {
+    loadTranslations({
+      [computeMsgId(
+          '{$START_TAG_NG_CONTAINER} One {$CLOSE_TAG_NG_CONTAINER}' +
+          '{$START_TAG_DIV} Two {$CLOSE_TAG_DIV}' +
+          '{$START_TAG_SPAN} Three {$CLOSE_TAG_SPAN}')]: '{$START_TAG_DIV} Deux {$CLOSE_TAG_DIV}'
+    });
+    const fixture = initWithTemplate(AppComp, `
+      <div i18n>
+        <ng-container #localRefA> One </ng-container>
+        <div #localRefB> Two </div>
+        <span #localRefC> Three </span>
+      </div>
+    `);
+    expect(fixture.nativeElement.textContent).toBe(' Deux ');
+  });
+
   describe('ng-container and ng-template support', () => {
     it('should support ng-container', () => {
       loadTranslations({[computeMsgId('text')]: 'texte'});