diff --git a/lib/compress.js b/lib/compress.js
index 0fea284d93..1bfdd75e22 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -2143,12 +2143,16 @@ Compressor.prototype.compress = function(node) {
                 if (sequencesize_2(statements, compressor)) changed = 7;
                 if (!changed && last_changed == 7) break;
             }
-            if (compressor.option("join_vars")) {
-                if (join_consecutive_vars(statements)) changed = 8;
+            if (compressor.option("arrows") && compressor.option("module")) {
+                if (arrowify(statements)) changed = 8;
                 if (!changed && last_changed == 8) break;
             }
+            if (compressor.option("join_vars")) {
+                if (join_consecutive_vars(statements)) changed = 9;
+                if (!changed && last_changed == 9) break;
+            }
             if (compressor.option("collapse_vars")) {
-                if (collapse(statements, compressor)) changed = 9;
+                if (collapse(statements, compressor)) changed = 10;
             }
         } while (changed && max_iter-- > 0);
         return statements;
@@ -4252,6 +4256,48 @@ Compressor.prototype.compress = function(node) {
             }
         }
 
+        function arrowify(statements) {
+            var changed = false, defns = [], len = 0;
+            statements.forEach(function(stat) {
+                var def;
+                if ((stat instanceof AST_AsyncDefun || stat instanceof AST_Defun)
+                    && !stat.uses_arguments
+                    && !stat.pinned()
+                    && (def = stat.name.definition()).escaped
+                    && def.escaped.depth != 1
+                    && !compressor.exposed(def)
+                    && !stat.contains_this()) {
+                    var name = make_node(AST_SymbolVar, stat.name);
+                    var arrow = make_node(is_async(stat) ? AST_AsyncArrow : AST_Arrow, stat);
+                    arrow.init_vars(stat.parent_scope, stat);
+                    arrow.variables.del("arguments");
+                    var defn = make_node(AST_VarDef, stat, {
+                        name: name,
+                        value: arrow,
+                    });
+                    defns.push(defn);
+                    def.orig.push(name);
+                    def.eliminated++;
+                    if (def.fixed) {
+                        var fixed = function() {
+                            return defn.value;
+                        };
+                        fixed.assigns = [ defn ];
+                        if (def.fixed === stat) def.fixed = fixed;
+                        def.references.forEach(function(node) {
+                            if (node.fixed === stat) node.fixed = fixed;
+                        });
+                    }
+                    changed = true;
+                } else {
+                    statements[len++] = stat;
+                }
+            });
+            statements.length = len;
+            if (defns.length > 0) statements.unshift(make_node(AST_Var, compressor.self(), { definitions: defns }));
+            return changed;
+        }
+
         function extract_exprs(body) {
             if (body instanceof AST_Assign) return [ body ];
             if (body instanceof AST_Sequence) return body.expressions.slice();
@@ -11138,7 +11184,7 @@ Compressor.prototype.compress = function(node) {
             && !exp.uses_arguments
             && !exp.pinned()
             && !exp.contains_this()) {
-            var arrow = make_node(is_async(exp) ? AST_AsyncArrow : AST_Arrow, exp, exp);
+            var arrow = make_node(is_async(exp) ? AST_AsyncArrow : AST_Arrow, exp);
             arrow.init_vars(exp.parent_scope, exp);
             arrow.variables.del("arguments");
             self.expression = arrow.transform(compressor);
@@ -12807,8 +12853,7 @@ Compressor.prototype.compress = function(node) {
                 var value;
                 if (def.recursive_refs > 0) {
                     value = fixed.clone(true);
-                    var defun_def = value.name.definition();
-                    var lambda_def = value.variables.get(value.name.name);
+                    var lambda_def = value.variables.get(self.name);
                     var name = lambda_def && lambda_def.orig[0];
                     var def_fn_name, symbol_type;
                     if (value instanceof AST_Class) {
@@ -12816,41 +12861,41 @@ Compressor.prototype.compress = function(node) {
                         symbol_type = AST_SymbolClass;
                     } else {
                         def_fn_name = "def_variable";
-                        symbol_type = AST_SymbolLambda;
+                        symbol_type = value.name ? AST_SymbolLambda : AST_SymbolVar;
                     }
                     if (!(name instanceof symbol_type)) {
                         name = make_node(symbol_type, value.name);
                         name.scope = value;
-                        value.name = name;
+                        if (value.name) value.name = name;
                         lambda_def = value[def_fn_name](name);
                         lambda_def.recursive_refs = def.recursive_refs;
                     }
                     value.walk(new TreeWalker(function(node) {
                         if (node instanceof AST_SymbolDeclaration) {
                             if (node !== name) {
-                                var def = node.definition();
-                                def.orig.push(node);
-                                def.eliminated++;
+                                var d = node.definition();
+                                d.orig.push(node);
+                                d.eliminated++;
                             }
                             return;
                         }
                         if (!(node instanceof AST_SymbolRef)) return;
-                        var def = node.definition();
-                        if (def === defun_def) {
-                            node.thedef = def = lambda_def;
+                        var d = node.definition();
+                        if (d === def) {
+                            node.thedef = d = lambda_def;
                         } else {
-                            def.single_use = false;
+                            d.single_use = false;
                             var fn = node.fixed_value();
                             if (is_lambda(fn)
                                 && fn.name
-                                && fn.name.definition() === def
-                                && def.scope === fn.name.scope
-                                && fixed.variables.get(fn.name.name) === def) {
+                                && fn.name.definition() === d
+                                && d.scope === fn.name.scope
+                                && fixed.variables.get(fn.name.name) === d) {
                                 fn.name = fn.name.clone();
-                                node.thedef = def = value.variables.get(fn.name.name) || value[def_fn_name](fn.name);
+                                node.thedef = d = value.variables.get(fn.name.name) || value[def_fn_name](fn.name);
                             }
                         }
-                        def.references.push(node);
+                        d.references.push(node);
                     }));
                 } else {
                     if (fixed instanceof AST_Scope) {
diff --git a/test/compress/arrows.js b/test/compress/arrows.js
index 8d778addb9..9b5ab9477f 100644
--- a/test/compress/arrows.js
+++ b/test/compress/arrows.js
@@ -829,6 +829,143 @@ keep_new_var: {
     node_version: ">=4"
 }
 
+arrowify: {
+    options = {
+        arrows: true,
+        module: true,
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function f() {
+            return "foo";
+        }
+        console.log(typeof f());
+    }
+    expect: {
+        console.log(typeof (() => "foo")());
+    }
+    expect_stdout: "string"
+    node_version: ">=4"
+}
+
+no_arrowify: {
+    options = {
+        arrows: true,
+        module: true,
+        reduce_vars: true,
+        toplevel: false,
+        unused: true,
+    }
+    input: {
+        // may be referenced by prepending code
+        function f() {
+            return "foo";
+        }
+        console.log(typeof f());
+    }
+    expect: {
+        function f() {
+            return "foo";
+        }
+        console.log(typeof f());
+    }
+    expect_stdout: "string"
+}
+
+no_arrowify_new: {
+    options = {
+        arrows: true,
+        module: true,
+        reduce_vars: true,
+        toplevel: true,
+    }
+    input: {
+        function f() {}
+        console.log(typeof new f(f));
+    }
+    expect: {
+        function f() {}
+        console.log(typeof new f(f));
+    }
+    expect_stdout: "object"
+}
+
+arrowify_new: {
+    options = {
+        arrows: true,
+        module: true,
+        passes: 2,
+        reduce_vars: true,
+        side_effects: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function f() {
+            console.log("PASS");
+        }
+        new f(f);
+    }
+    expect: {
+        (() => {
+            console.log("PASS");
+        })();
+    }
+    expect_stdout: "PASS"
+}
+
+arrowify_recursive: {
+    options = {
+        arrows: true,
+        inline: true,
+        module: true,
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function f() {
+            return (() => f)();
+        }
+        console.log(typeof f());
+    }
+    expect: {
+        var f = () => f;
+        console.log(typeof f);
+    }
+    expect_stdout: "function"
+    node_version: ">=4"
+}
+
+arrowify_farg: {
+    options = {
+        arrows: true,
+        module: true,
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function f(a) {
+            console.log(a);
+        }
+        f("PASS");
+        function g() {}
+        f;
+    }
+    expect: {
+        var f = a => {
+            console.log(a);
+        };
+        f("PASS");
+        f;
+    }
+    expect_stdout: "PASS"
+    node_version: ">=4"
+}
+
 issue_4388: {
     options = {
         inline: true,