diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.expect.md
new file mode 100644
index 0000000000000..6b244323a304d
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.expect.md
@@ -0,0 +1,58 @@
+
+## Input
+
+```javascript
+// @validateNoFreezingKnownMutableFunctions
+
+import {useCallback, useEffect, useRef} from 'react';
+import {useHook} from 'shared-runtime';
+
+function Component() {
+  const params = useHook();
+  const update = useCallback(
+    partialParams => {
+      const nextParams = {
+        ...params,
+        ...partialParams,
+      };
+      nextParams.param = 'value';
+      console.log(nextParams);
+    },
+    [params]
+  );
+  const ref = useRef(null);
+  useEffect(() => {
+    if (ref.current === null) {
+      update();
+    }
+  }, [update]);
+
+  return 'ok';
+}
+
+```
+
+
+## Error
+
+```
+  18 |   );
+  19 |   const ref = useRef(null);
+> 20 |   useEffect(() => {
+     |             ^^^^^^^
+> 21 |     if (ref.current === null) {
+     | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+> 22 |       update();
+     | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+> 23 |     }
+     | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+> 24 |   }, [update]);
+     | ^^^^ InvalidReact: This argument is a function which modifies local variables when called, which can bypass memoization and cause the UI not to update. Functions that are returned from hooks, passed as arguments to hooks, or passed as props to components may not mutate local variables (20:24)
+
+InvalidReact: The function modifies a local variable here (14:14)
+  25 |
+  26 |   return 'ok';
+  27 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.js
new file mode 100644
index 0000000000000..2e8b7827d09d9
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-use-effect-function-mutates-ref.js
@@ -0,0 +1,27 @@
+// @validateNoFreezingKnownMutableFunctions
+
+import {useCallback, useEffect, useRef} from 'react';
+import {useHook} from 'shared-runtime';
+
+function Component() {
+  const params = useHook();
+  const update = useCallback(
+    partialParams => {
+      const nextParams = {
+        ...params,
+        ...partialParams,
+      };
+      nextParams.param = 'value';
+      console.log(nextParams);
+    },
+    [params]
+  );
+  const ref = useRef(null);
+  useEffect(() => {
+    if (ref.current === null) {
+      update();
+    }
+  }, [update]);
+
+  return 'ok';
+}