src/jdk.scripting.nashorn/share/classes/jdk/nashorn/internal/runtime/ScriptRuntime.java

@@ -371,13 +371,18 @@
      *
      * @param scope Scope to merge.
      * @return prototype object after merge
      */
     public static ScriptObject mergeScope(final ScriptObject scope) {
-        final ScriptObject global = scope.getProto();
-        global.addBoundProperties(scope);
-        return global;
+        final ScriptObject proto = scope.getProto();
+        // Variable declarations go into the first parent scope that is not a with-statement
+        ScriptObject parentScope = proto;
+        while (parentScope instanceof WithObject) {
+            parentScope = parentScope.getProto();
+        }
+        parentScope.addBoundProperties(scope);
+        return proto;
     }
 
     /**
      * Call a function given self and args. If the number of the arguments is known in advance, you can likely achieve
      * better performance by {@link Bootstrap#createDynamicInvoker(String, Class, Class...) creating a dynamic invoker}