diff --git a/README.md b/README.md
index ed30225..498f0c6 100644
--- a/README.md
+++ b/README.md
@@ -1299,6 +1299,20 @@ captured.
 → [0 1 3 6 10]
 ```
 
+One pit-fall is that, as Insitux only captures data just as a closure is being
+created, nested closures can be tricky due to the change in scope.  
+This example will cause a reference error as `x` technically goes out-of-scope
+before `(fn x)` is materialised:
+
+```clj
+(let x 1 f (fn (fn x)))
+(f) ;Reference Error: "x" did not exist
+
+(let x 1 f (fn (fn x)))
+(var x 1)
+(f) ;1 - this is fine as calling f captures x, which exists even within f itself
+```
+
 **Destructuring**
 
 Destructuring is a syntax available as part of named function signatures,
diff --git a/package.json b/package.json
index 773506c..9e24ec4 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "insitux",
-  "version": "23.11.3",
+  "version": "23.11.16",
   "description": "Extensible scripting language written in portable TypeScript.",
   "main": "dist/invoker.js",
   "types": "dist/invoker.d.ts",
diff --git a/src/index.ts b/src/index.ts
index 8c87752..525ea27 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1,4 +1,4 @@
-export const insituxVersion = 231103;
+export const insituxVersion = 231116;
 import { asBoo } from "./checks";
 import { arityCheck, keyOpErr, numOpErr, typeCheck, typeErr } from "./checks";
 import { isLetter, isDigit, isSpace, isPunc } from "./checks";
diff --git a/src/parse.ts b/src/parse.ts
index 9c1cfac..6f1f14a 100644
--- a/src/parse.ts
+++ b/src/parse.ts
@@ -522,22 +522,33 @@ function parseForm(
     } else if (op === "#" || op === "@" || op === "fn") {
       const pins: ParserIns[] = [];
       const name = node2str([firstNode, ...nodes]);
+      /** Used to exclude from capturing in makeClosure. */
       const cloParams: string[] = [];
+      /** Used within the closure, with shadowing of formParams as needed. */
+      const cloFormParams: ParamsShape = [];
+      /** Informs capturing of child-closure references to parent params. */
       const outerParams = formParams.map(p => p.name);
+      /** E.g. `(fn x)` */
       let monoFnBody = false;
       if (op === "fn") {
-        const parsedParams = parseParams(nodes, false);
-        push(
-          cloParams,
-          parsedParams.shape.map(p => p.name),
-        );
-        push(formParams, parsedParams.shape);
-        push(pins, parsedParams.errors);
+        const { shape, errors } = parseParams(nodes, false);
+        const paramNames = shape.map(p => p.name);
+        push(cloParams, paramNames);
+        push(pins, errors);
+        //Closures are allowed to see both parent parameters and their own as
+        //  they then pick from them to capture appropriately. However, we need
+        //  to shadow parent parameters with the same name as child parameters.
+        const shadowed = outerParams.filter(p => has(paramNames, p));
+        push(cloFormParams, formParams.filter(p => !has(shadowed, p.name)));
+        push(cloFormParams, shape);
+
         if (!len(nodes)) {
           return err("provide a body");
         }
         monoFnBody = len(nodes) === 1;
         nodes.unshift({ typ: "sym", text: "do", errCtx });
+      } else {
+        push(cloFormParams, formParams);
       }
       //Rewrite partial closure to #(... [body] args)
       if (op === "@") {
@@ -555,7 +566,7 @@ function parseForm(
           { typ: "sym", text: "args", errCtx },
         ];
       }
-      push(pins, parseForm(nodes, formParams, op !== "@"));
+      push(pins, parseForm(nodes, cloFormParams, op !== "@"));
       const cins = <Ins[]>pins.filter(i => i.typ !== "err");
       const errors = pins.filter(i => i.typ === "err");
       if (len(errors)) {
diff --git a/src/test.ts b/src/test.ts
index 519ed3b..fa78576 100644
--- a/src/test.ts
+++ b/src/test.ts
@@ -386,6 +386,11 @@ const tests: {
     code: `(function f x (fn y (fn z [x y z]))) (((f :a) :b) :c)`,
     out: `[:a :b :c]`,
   },
+  {
+    name: "Clojure w/ shadow param",
+    code: `(function f y ((fn x y [x y]) 1 y)) (f 5)`,
+    out: `[1 5]`,
+  },
   {
     name: "Destructure var",
     code: `(var [x [y]] [1 [2]]) [y x]`,