diff --git a/src/interpreter.rs b/src/interpreter.rs
index 5e9ea84..dc990dd 100644
--- a/src/interpreter.rs
+++ b/src/interpreter.rs
@@ -1757,13 +1757,14 @@ impl Interpreter {
 
         match expr.as_ref() {
             Expr::Var { span, .. } => {
-                // A variable that is not currently bound in local scope behaves like
+                // A variable that is not currently bound in any active local scope behaves like
                 // a stable global/package reference for this evaluation.
-                let scope = self
+                let is_bound = self
                     .scopes
-                    .last()
-                    .ok_or_else(|| anyhow!("internal error: no current scope"))?;
-                Ok(!scope.contains_key(&span.source_str()))
+                    .iter()
+                    .rev()
+                    .any(|scope| scope.contains_key(&span.source_str()));
+                Ok(!is_bound)
             }
             Expr::RefDot { refr, .. } => self.is_constant_key_expr(refr),
             Expr::RefBrack { refr, index, .. } => {
diff --git a/src/languages/rego/compiler/program.rs b/src/languages/rego/compiler/program.rs
index 2f4b51f..43c4cb6 100644
--- a/src/languages/rego/compiler/program.rs
+++ b/src/languages/rego/compiler/program.rs
@@ -181,6 +181,10 @@ impl<'a> Compiler<'a> {
     }
 
     fn evaluate_default_rule(&mut self, rule_path: &str) -> Option<u16> {
+        if !self.may_have_default_rule(rule_path) {
+            return None;
+        }
+
         let mut interpreter = Interpreter::new_from_compiled_policy(self.policy.inner.clone());
 
         match interpreter.eval_default_rule_for_compiler(rule_path) {
@@ -196,6 +200,33 @@ impl<'a> Compiler<'a> {
         None
     }
 
+    fn may_have_default_rule(&self, rule_path: &str) -> bool {
+        if self.policy.inner.default_rules.contains_key(rule_path) {
+            return true;
+        }
+
+        let Some((parent_path, index)) = rule_path.rsplit_once('.') else {
+            return false;
+        };
+
+        self.policy
+            .inner
+            .default_rules
+            .get(parent_path)
+            .is_some_and(|rules| {
+                rules
+                    .iter()
+                    .any(|(_, rule_index)| match rule_index.as_deref() {
+                        Some(rule_index) if rule_index == index => true,
+                        Some(rule_index) => rule_index
+                            .strip_prefix('"')
+                            .and_then(|rule_index| rule_index.strip_suffix('"'))
+                            .is_some_and(|rule_index| rule_index == index),
+                        None => false,
+                    })
+            })
+    }
+
     fn extract_destructuring_blocks(&self, rule_index: u16) -> Vec<Option<u32>> {
         self.rule_definition_destructuring_patterns[rule_index as usize].clone()
     }
diff --git a/tests/interpreter/cases/default/basic.yaml b/tests/interpreter/cases/default/basic.yaml
index 325cc33..506d9ce 100644
--- a/tests/interpreter/cases/default/basic.yaml
+++ b/tests/interpreter/cases/default/basic.yaml
@@ -349,7 +349,7 @@ cases:
         package test
         import rego.v1
         default config["timeout"] := 30
-        config["timeout"] := input.val if {
+        config["timeout"] := val if {
           val := input.val
         }
     query: data.test.config.timeout
@@ -364,7 +364,7 @@ cases:
         package test
         import rego.v1
         default config["timeout"] := 30
-        config["timeout"] := input.val if {
+        config["timeout"] := val if {
           val := input.val
         }
     query: data.test.config.timeout
diff --git a/tests/interpreter/cases/rule/partial_object_iteration.yaml b/tests/interpreter/cases/rule/partial_object_iteration.yaml
index ce2e153..d3205a9 100644
--- a/tests/interpreter/cases/rule/partial_object_iteration.yaml
+++ b/tests/interpreter/cases/rule/partial_object_iteration.yaml
@@ -201,6 +201,27 @@ cases:
         BAZ: true
         FOO: true
 
+  - note: partial_object_key_bound_in_outer_scope_v1
+    data: {}
+    input:
+      outer:
+        FOO: [1, 2]
+        BAR: [3]
+        BAZ: []
+    modules:
+      - |
+        package test
+        import rego.v1
+
+        violations[k] if {
+          some k, arr in input.outer
+          some _ in arr
+        }
+    query: data.test.violations
+    want_result:
+      BAR: true
+      FOO: true
+
   - note: complete_rule_same_value_definitions_still_work_v1
     data: {}
     input:
diff --git a/tests/rvm/rego/cases/default_rules.yaml b/tests/rvm/rego/cases/default_rules.yaml
index 4857f0d..4933388 100644
--- a/tests/rvm/rego/cases/default_rules.yaml
+++ b/tests/rvm/rego/cases/default_rules.yaml
@@ -55,7 +55,7 @@ cases:
         package test
         import rego.v1
         default config["timeout"] := 30
-        config["timeout"] := input.val if {
+        config["timeout"] := val if {
           val := input.val
         }
     query: data.test.config.timeout
@@ -70,7 +70,7 @@ cases:
         package test
         import rego.v1
         default config["timeout"] := 30
-        config["timeout"] := input.val if {
+        config["timeout"] := val if {
           val := input.val
         }
     query: data.test.config.timeout
diff --git a/tests/rvm/rego/cases/partial_object_rules.yaml b/tests/rvm/rego/cases/partial_object_rules.yaml
index 0a1f7d2..eb5ad37 100644
--- a/tests/rvm/rego/cases/partial_object_rules.yaml
+++ b/tests/rvm/rego/cases/partial_object_rules.yaml
@@ -186,7 +186,7 @@ cases:
         seen contains k if {
           some k, _ in input.x
         }
-        
+
         main := {
           "seen": seen,
           "violations": violations,
@@ -200,6 +200,27 @@ cases:
         BAZ: true
         FOO: true
 
+  - note: partial_object_key_bound_in_outer_scope_v1
+    data: {}
+    input:
+      outer:
+        FOO: [1, 2]
+        BAR: [3]
+        BAZ: []
+    modules:
+      - |
+        package test
+        import rego.v1
+
+        violations[k] if {
+          some k, arr in input.outer
+          some _ in arr
+        }
+    query: data.test.violations
+    want_result:
+      BAR: true
+      FOO: true
+
   - note: complete_rule_same_value_definitions_still_work_v1
     data: {}
     input: