diff --git a/src/transformation/visitors/function.ts b/src/transformation/visitors/function.ts
index f79682223..1c21a0f7c 100644
--- a/src/transformation/visitors/function.ts
+++ b/src/transformation/visitors/function.ts
@@ -24,11 +24,17 @@ import { transformBindingPattern } from "./variable-declaration";
 function transformParameterDefaultValueDeclaration(
     context: TransformationContext,
     parameterName: lua.Identifier,
-    value?: ts.Expression,
+    value: ts.Expression,
     tsOriginal?: ts.Node
-): lua.Statement {
-    const parameterValue = value ? context.transformExpression(value) : undefined;
-    const assignment = lua.createAssignmentStatement(parameterName, parameterValue);
+): lua.Statement | undefined {
+    const { precedingStatements: statements, result: parameterValue } = transformInPrecedingStatementScope(
+        context,
+        () => context.transformExpression(value)
+    );
+    if (!lua.isNilLiteral(parameterValue)) {
+        statements.push(lua.createAssignmentStatement(parameterName, parameterValue));
+    }
+    if (statements.length === 0) return undefined;
 
     const nilCondition = lua.createBinaryExpression(
         parameterName,
@@ -36,7 +42,7 @@ function transformParameterDefaultValueDeclaration(
         lua.SyntaxKind.EqualityOperator
     );
 
-    const ifBlock = lua.createBlock([assignment]);
+    const ifBlock = lua.createBlock(statements, tsOriginal);
 
     return lua.createIfStatement(nilCondition, ifBlock, undefined, tsOriginal);
 }
@@ -106,7 +112,7 @@ export function transformFunctionBodyHeader(
     parameters: ts.NodeArray<ts.ParameterDeclaration>,
     spreadIdentifier?: lua.Identifier
 ): lua.Statement[] {
-    const headerStatements = [];
+    const headerStatements: lua.Statement[] = [];
 
     // Add default parameters and object binding patterns
     const bindingPatternDeclarations: lua.Statement[] = [];
@@ -116,9 +122,12 @@ export function transformFunctionBodyHeader(
             const identifier = lua.createIdentifier(`____bindingPattern${bindPatternIndex++}`);
             if (declaration.initializer !== undefined) {
                 // Default binding parameter
-                headerStatements.push(
-                    transformParameterDefaultValueDeclaration(context, identifier, declaration.initializer)
+                const initializer = transformParameterDefaultValueDeclaration(
+                    context,
+                    identifier,
+                    declaration.initializer
                 );
+                if (initializer) headerStatements.push(initializer);
             }
 
             // Binding pattern
@@ -129,13 +138,12 @@ export function transformFunctionBodyHeader(
             bindingPatternDeclarations.push(...precedingStatements, ...bindings);
         } else if (declaration.initializer !== undefined) {
             // Default parameter
-            headerStatements.push(
-                transformParameterDefaultValueDeclaration(
-                    context,
-                    transformIdentifier(context, declaration.name),
-                    declaration.initializer
-                )
+            const initializer = transformParameterDefaultValueDeclaration(
+                context,
+                transformIdentifier(context, declaration.name),
+                declaration.initializer
             );
+            if (initializer) headerStatements.push(initializer);
         }
     }
 
diff --git a/test/unit/functions/__snapshots__/functions.spec.ts.snap b/test/unit/functions/__snapshots__/functions.spec.ts.snap
index 4e07a4367..83345e13b 100644
--- a/test/unit/functions/__snapshots__/functions.spec.ts.snap
+++ b/test/unit/functions/__snapshots__/functions.spec.ts.snap
@@ -1,5 +1,27 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
+exports[`Function default parameter with value "null" 1`] = `
+"local ____exports = {}
+function ____exports.__main(self)
+    local function foo(self, x)
+        return x
+    end
+    return foo(nil)
+end
+return ____exports"
+`;
+
+exports[`Function default parameter with value "undefined" 1`] = `
+"local ____exports = {}
+function ____exports.__main(self)
+    local function foo(self, x)
+        return x
+    end
+    return foo(nil)
+end
+return ____exports"
+`;
+
 exports[`function.length unsupported ("5.0"): code 1`] = `
 "local ____exports = {}
 function ____exports.__main(self)
diff --git a/test/unit/functions/functions.spec.ts b/test/unit/functions/functions.spec.ts
index 7bd224fba..7bdf6b040 100644
--- a/test/unit/functions/functions.spec.ts
+++ b/test/unit/functions/functions.spec.ts
@@ -107,6 +107,48 @@ test("Function default binding parameter maintains order", () => {
     `.expectToMatchJsResult();
 });
 
+test.each(["undefined", "null"])("Function default parameter with value %p", defaultValue => {
+    util.testFunction`
+        function foo(x = ${defaultValue}) {
+            return x;
+        }
+        return foo();
+    `
+        .expectToMatchJsResult()
+        .tap(builder => {
+            const lua = builder.getMainLuaCodeChunk();
+            expect(lua).not.toMatch("if x == nil then");
+        })
+        .expectLuaToMatchSnapshot();
+});
+
+test("Function default parameter with preceding statements", () => {
+    util.testFunction`
+        let i = 1
+        function foo(x = i++) {
+            return x;
+        }
+        return [i, foo(), i];
+    `.expectToMatchJsResult();
+});
+
+test("Function default parameter with nil value and preceding statements", () => {
+    util.testFunction`
+        const a = new LuaTable()
+        a.set("foo", "bar")
+        function foo(x: any = a.set("foo", "baz")) {
+            return x ?? "nil";
+        }
+        return [a.get("foo"), foo(), a.get("foo")];
+    `
+        .withLanguageExtensions()
+        .tap(builder => {
+            const lua = builder.getMainLuaCodeChunk();
+            expect(lua).not.toMatch("    x = nil");
+        })
+        .expectToEqual(["bar", "nil", "baz"]);
+});
+
 test("Class method call", () => {
     util.testFunction`
         class TestClass {