diff --git a/src/passes/2-simplify/pascaligo.ml b/src/passes/2-simplify/pascaligo.ml
index 54b2c2207..4dee47dec 100644
--- a/src/passes/2-simplify/pascaligo.ml
+++ b/src/passes/2-simplify/pascaligo.ml
@@ -1068,7 +1068,11 @@ and simpl_for_collect : Raw.for_collect -> (_ -> expression result) result = fun
   let%bind captured_name_list = Self_ast_simplified.fold_expression
     (fun (prev : type_name list) (ass_exp : expression) ->
       match ass_exp.expression with
-      | E_assign ( name , _ , _ ) -> ok (name::prev)
+      | E_assign ( name , _ , _ ) ->
+        if (String.contains name '#') then
+          ok prev
+        else
+          ok (name::prev)
       | _ -> ok prev )
     []
     for_body in
diff --git a/src/test/contracts/loop.ligo b/src/test/contracts/loop.ligo
index b873853b7..2f250cf18 100644
--- a/src/test/contracts/loop.ligo
+++ b/src/test/contracts/loop.ligo
@@ -136,6 +136,21 @@ function for_collection_map_k (var nee : unit) : string is block {
   end
 } with st
 
+// function nested_for_collection (var nee : unit) : (int*string) is block {
+//   var myint : int := 0;
+//   var myst : string := "";
+//   var mylist : list(int) := list 1 ; 2 ; 3 end ;
+//   for i : int in list mylist
+//   begin
+//     myint := myint + i ;
+//     var myset : set(string) := set "1" ; "2" ; "3" end ;
+//     for st : string in set myset
+//     begin
+//       myst := myst ^ st ;
+//     end 
+//   end
+// } with (myint,myst)
+
 function dummy (const n : nat) : nat is block {
   while (False) block { skip }
 } with n
diff --git a/src/test/integration_tests.ml b/src/test/integration_tests.ml
index 8a644d1b2..10f4d4d06 100644
--- a/src/test/integration_tests.ml
+++ b/src/test/integration_tests.ml
@@ -688,6 +688,9 @@ let loop () : unit result =
   let%bind () =
     let expected = (e_int 20) in
     expect_eq program "for_collection_comp_with_acc" input expected in
+  (* let%bind () =
+    let expected = e_pair (e_int 6) (e_string "123123123") in
+    expect_eq program "nested_for_collection" input expected in *)
   let%bind () =
     let ez lst =
       let open Ast_simplified.Combinators in