diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/input.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/input.js
new file mode 100644
index 000000000000..42903d8904f6
--- /dev/null
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/input.js
@@ -0,0 +1,9 @@
+function fn() {
+  var foo = () => {
+    return arguments;
+  };
+}
+
+var bar = () => arguments;
+
+var baz = () => () => arguments;
diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/output.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/output.js
new file mode 100644
index 000000000000..7b046216524d
--- /dev/null
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-undeclared/output.js
@@ -0,0 +1,19 @@
+var _arguments2 = typeof arguments === "undefined" ? void 0 : arguments;
+
+function fn() {
+  var _arguments = arguments;
+
+  var foo = function () {
+    return _arguments;
+  };
+}
+
+var bar = function () {
+  return _arguments2;
+};
+
+var baz = function () {
+  return function () {
+    return _arguments2;
+  };
+};
diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/input.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/input.js
new file mode 100644
index 000000000000..5f7d9826d3d3
--- /dev/null
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/input.js
@@ -0,0 +1,10 @@
+var arguments = 1;
+function fn() {
+  var foo = () => {
+    return arguments;
+  };
+}
+
+var bar = () => arguments;
+
+var baz = () => () => arguments;
diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/output.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/output.js
new file mode 100644
index 000000000000..f19432c82500
--- /dev/null
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments-global-var/output.js
@@ -0,0 +1,19 @@
+var _arguments2 = 1;
+
+function fn() {
+  var _arguments = _arguments2;
+
+  var foo = function () {
+    return _arguments;
+  };
+}
+
+var bar = function () {
+  return _arguments2;
+};
+
+var baz = function () {
+  return function () {
+    return _arguments2;
+  };
+};
diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/input.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/input.js
index 198ac999f6ae..5d9e7c90913a 100644
--- a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/input.js
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/input.js
@@ -43,3 +43,39 @@ function six(obj) {
   return fn();
 }
 six();
+
+var seven = () => {
+    var arguments = 1;
+    return arguments;
+};
+seven();
+
+var eight = () => {
+    var arguments = 1;
+    return () => arguments;
+};
+eight();
+
+function nine() {
+    var arguments = 1;
+    var foo = () => {
+      return arguments;
+    };
+}
+nine();
+
+var eleven = () => {
+  var arguments = 2;
+  return function () {
+    return () => arguments;
+  }
+};
+eleven()(1,2,3)();
+
+var twelve = () => {
+  var arguments = 2;
+  return class {
+    m() { return () => arguments; }
+  }
+};
+twelve();
diff --git a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/output.js b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/output.js
index 84bbb58be445..9110a69ddc39 100644
--- a/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/output.js
+++ b/packages/babel-plugin-transform-arrow-functions/test/fixtures/arrow-functions/arguments/output.js
@@ -81,3 +81,56 @@ function six(obj) {
 }
 
 six();
+
+var seven = function () {
+  var _arguments6 = 1;
+  return _arguments6;
+};
+
+seven();
+
+var eight = function () {
+  var _arguments7 = 1;
+  return function () {
+    return _arguments7;
+  };
+};
+
+eight();
+
+function nine() {
+  var _arguments8 = 1;
+
+  var foo = function () {
+    return _arguments8;
+  };
+}
+
+nine();
+
+var eleven = function () {
+  var arguments = 2;
+  return function () {
+    var _arguments9 = arguments;
+    return function () {
+      return _arguments9;
+    };
+  };
+};
+
+eleven()(1, 2, 3)();
+
+var twelve = function () {
+  var arguments = 2;
+  return class {
+    m() {
+      var _arguments10 = arguments;
+      return function () {
+        return _arguments10;
+      };
+    }
+
+  };
+};
+
+twelve();
diff --git a/packages/babel-traverse/src/path/conversion.ts b/packages/babel-traverse/src/path/conversion.ts
index d92de9b7e978..484fcbba1de4 100644
--- a/packages/babel-traverse/src/path/conversion.ts
+++ b/packages/babel-traverse/src/path/conversion.ts
@@ -226,9 +226,22 @@ function hoistFunctionEnvironment(
 
   // Convert all "arguments" references in the arrow to point at the alias.
   if (argumentsPaths.length > 0) {
-    const argumentsBinding = getBinding(thisEnvFn, "arguments", () =>
-      t.identifier("arguments"),
-    );
+    const argumentsBinding = getBinding(thisEnvFn, "arguments", () => {
+      const args = () => t.identifier("arguments");
+      if (thisEnvFn.scope.path.isProgram()) {
+        return t.conditionalExpression(
+          t.binaryExpression(
+            "===",
+            t.unaryExpression("typeof", args()),
+            t.stringLiteral("undefined"),
+          ),
+          thisEnvFn.scope.buildUndefinedNode(),
+          args(),
+        );
+      } else {
+        return args();
+      }
+    });
 
     argumentsPaths.forEach(argumentsChild => {
       const argsRef = t.identifier(argumentsBinding);
@@ -583,6 +596,17 @@ function getScopeInformation(fnPath) {
     ReferencedIdentifier(child) {
       if (child.node.name !== "arguments") return;
 
+      let curr = child.scope;
+      do {
+        if (curr.hasOwnBinding("arguments")) {
+          curr.rename("arguments");
+          return;
+        }
+        if (curr.path.isFunction() && !curr.path.isArrowFunctionExpression()) {
+          break;
+        }
+      } while ((curr = curr.parent));
+
       argumentsPaths.push(child);
     },
     MetaProperty(child) {