diff --git a/scheme/eval.sld b/scheme/eval.sld
index 382960f5..72e0e206 100644
--- a/scheme/eval.sld
+++ b/scheme/eval.sld
@@ -882,7 +882,11 @@
   (cond
     ((const? exp)      exp)
     ((prim? exp)       exp)
-    ((ref? exp)        exp)
+    ((ref? exp)        
+     (let ((renamed (assoc exp local-renamed)))
+       (if renamed
+           (cdr renamed) ;; Extract renamed symbol
+           exp)))
     ((quote? exp)      exp)
 ;; TODO: rename all lambda formals and update rename-env accordingly.
 ;; will also require renaming refs later on here in expand...
@@ -898,10 +902,7 @@
                  (map cdr a-lookup)
                  ltype))
             )
-        `(lambda ,(lambda->formals exp)
-        ;; TODO: want this line instead of the above, but need to solve a crash
-        ;;       when compiling unit tests first (!!!)
-        ;`(lambda ,new-formals ;,(lambda->formals exp)
+        `(lambda ,new-formals ;,(lambda->formals exp)
                  ,@(_expand-body 
                      '() 
                      (lambda->exp exp) 
diff --git a/tests/let-syntax.scm b/tests/let-syntax.scm
index f5b02837..d55c0cf5 100644
--- a/tests/let-syntax.scm
+++ b/tests/let-syntax.scm
@@ -4,7 +4,7 @@
 (let ((x 'outer))
   ;(let-syntax ((m (syntax-rules () ((m) x))))
     (let ((x 'inner))
-      (list)))) ;; Should be outer
+      (x)))) ;; Should be outer
    ;   )
 ;;;; Just testing, may want to remove this one once the recursive macro expansion works
 ;;;  (define-syntax my-or2 (syntax-rules ()