diff --git a/src/vm/wren_compiler.c b/src/vm/wren_compiler.c
index e68d7323..f473a37d 100644
--- a/src/vm/wren_compiler.c
+++ b/src/vm/wren_compiler.c
@@ -1300,9 +1300,13 @@ static int addUpvalue(Compiler* compiler, bool isLocal, int index)
 // not close over local variables.
 static int findUpvalue(Compiler* compiler, const char* name, int length)
 {
-  // If we are at a method boundary or the top level, we didn't find it.
-  if (compiler->parent == NULL || compiler->enclosingClass != NULL) return -1;
-
+  // If we are at the top level, we didn't find it.
+  if (compiler->parent == NULL) return -1;
+  
+  // If we hit the method boundary (and the name isn't a static field), then
+  // stop looking for it. We'll instead treat it as a self send.
+  if (name[0] != '_' && compiler->parent->enclosingClass != NULL) return -1;
+  
   // See if it's a local variable in the immediately enclosing function.
   int local = resolveLocal(compiler->parent, name, length);
   if (local != -1)
diff --git a/test/language/closure/closed_closure_in_method.wren b/test/language/closure/closed_closure_in_method.wren
deleted file mode 100644
index 027e27aa..00000000
--- a/test/language/closure/closed_closure_in_method.wren
+++ /dev/null
@@ -1,17 +0,0 @@
-// TODO: Is this right? Shouldn't it resolve to this.local?
-var foo = null
-
-{
-  var local = "local"
-  class Foo {
-    construct new() {}
-
-    method {
-      System.print(local)
-    }
-  }
-
-  foo = Foo.new()
-}
-
-foo.method // expect: local
diff --git a/test/language/closure/open_closure_in_method.wren b/test/language/closure/open_closure_in_method.wren
deleted file mode 100644
index 32abd318..00000000
--- a/test/language/closure/open_closure_in_method.wren
+++ /dev/null
@@ -1,13 +0,0 @@
-// TODO: Is this right? Shouldn't it resolve to this.local?
-{
-  var local = "local"
-  class Foo {
-    construct new() {}
-
-    method {
-      System.print(local)
-    }
-  }
-
-  Foo.new().method // expect: local
-}
diff --git a/test/language/variable/local_outside_method.wren b/test/language/variable/local_outside_method.wren
new file mode 100644
index 00000000..bfb3662b
--- /dev/null
+++ b/test/language/variable/local_outside_method.wren
@@ -0,0 +1,22 @@
+{
+  var foo = "variable"
+
+  class Foo {
+    construct new() {}
+
+    foo { "method" }
+
+    method {
+      System.print(foo)
+    }
+
+    static foo { "class method" }
+
+    static classMethod {
+      System.print(foo)
+    }
+  }
+
+  Foo.new().method // expect: method
+  Foo.classMethod  // expect: class method
+}