diff --git a/CHANGELOG.md b/CHANGELOG.md
index b1e7a3ac94..640f5dc67d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -20,6 +20,8 @@
 
 #### :bug: Bug fix
 
+- Fix reanalyze optional-argument diagnostics for functions passed or returned as first-class values. https://github.com/rescript-lang/rescript/pull/8321
+
 #### :memo: Documentation
 
 #### :nail_care: Polish
diff --git a/analysis/reanalyze/src/cross_file_items.ml b/analysis/reanalyze/src/cross_file_items.ml
index 81ccc95111..6d0554a12d 100644
--- a/analysis/reanalyze/src/cross_file_items.ml
+++ b/analysis/reanalyze/src/cross_file_items.ml
@@ -16,24 +16,36 @@ type optional_arg_call = {
 
 type function_ref = {pos_from: Lexing.position; pos_to: Lexing.position}
 
+type optional_arg_value_escape = {
+  pos_from: Lexing.position;
+  pos_to: Lexing.position;
+}
+
 (** {2 Types} *)
 
 type t = {
   exception_refs: exception_ref list;
   optional_arg_calls: optional_arg_call list;
   function_refs: function_ref list;
+  optional_arg_value_escapes: optional_arg_value_escape list;
 }
 
 type builder = {
   mutable exception_refs: exception_ref list;
   mutable optional_arg_calls: optional_arg_call list;
   mutable function_refs: function_ref list;
+  mutable optional_arg_value_escapes: optional_arg_value_escape list;
 }
 
 (** {2 Builder API} *)
 
 let create_builder () : builder =
-  {exception_refs = []; optional_arg_calls = []; function_refs = []}
+  {
+    exception_refs = [];
+    optional_arg_calls = [];
+    function_refs = [];
+    optional_arg_value_escapes = [];
+  }
 
 let add_exception_ref (b : builder) ~exception_path ~loc_from =
   b.exception_refs <- {exception_path; loc_from} :: b.exception_refs
@@ -46,6 +58,10 @@ let add_optional_arg_call (b : builder) ~pos_from ~pos_to ~arg_names
 let add_function_reference (b : builder) ~pos_from ~pos_to =
   b.function_refs <- {pos_from; pos_to} :: b.function_refs
 
+let add_optional_arg_value_escape (b : builder) ~pos_from ~pos_to =
+  b.optional_arg_value_escapes <-
+    {pos_from; pos_to} :: b.optional_arg_value_escapes
+
 (** {2 Merge API} *)
 
 let merge_all (builders : builder list) : t =
@@ -56,7 +72,15 @@ let merge_all (builders : builder list) : t =
     builders |> List.concat_map (fun b -> b.optional_arg_calls)
   in
   let function_refs = builders |> List.concat_map (fun b -> b.function_refs) in
-  {exception_refs; optional_arg_calls; function_refs}
+  let optional_arg_value_escapes =
+    builders |> List.concat_map (fun b -> b.optional_arg_value_escapes)
+  in
+  {
+    exception_refs;
+    optional_arg_calls;
+    function_refs;
+    optional_arg_value_escapes;
+  }
 
 (** {2 Builder extraction for reactive merge} *)
 
@@ -65,6 +89,7 @@ let builder_to_t (builder : builder) : t =
     exception_refs = builder.exception_refs;
     optional_arg_calls = builder.optional_arg_calls;
     function_refs = builder.function_refs;
+    optional_arg_value_escapes = builder.optional_arg_value_escapes;
   }
 
 (** {2 Processing API} *)
diff --git a/analysis/reanalyze/src/cross_file_items.mli b/analysis/reanalyze/src/cross_file_items.mli
index 1fb9b92cbf..4863b92e73 100644
--- a/analysis/reanalyze/src/cross_file_items.mli
+++ b/analysis/reanalyze/src/cross_file_items.mli
@@ -18,12 +18,18 @@ type optional_arg_call = {
 
 type function_ref = {pos_from: Lexing.position; pos_to: Lexing.position}
 
+type optional_arg_value_escape = {
+  pos_from: Lexing.position;
+  pos_to: Lexing.position;
+}
+
 (** {2 Types} *)
 
 type t = {
   exception_refs: exception_ref list;
   optional_arg_calls: optional_arg_call list;
   function_refs: function_ref list;
+  optional_arg_value_escapes: optional_arg_value_escape list;
 }
 (** Immutable cross-file items - for processing after merge *)
 
@@ -49,7 +55,10 @@ val add_optional_arg_call :
 
 val add_function_reference :
   builder -> pos_from:Lexing.position -> pos_to:Lexing.position -> unit
-(** Add a cross-file function reference (for optional args combining). *)
+
+val add_optional_arg_value_escape :
+  builder -> pos_from:Lexing.position -> pos_to:Lexing.position -> unit
+(** Record an optional-arg function used as a first-class value. *)
 
 (** {2 Merge API} *)
 
diff --git a/analysis/reanalyze/src/cross_file_items_store.ml b/analysis/reanalyze/src/cross_file_items_store.ml
index 3a07beb11d..ec316d6b26 100644
--- a/analysis/reanalyze/src/cross_file_items_store.ml
+++ b/analysis/reanalyze/src/cross_file_items_store.ml
@@ -28,6 +28,15 @@ let iter_function_refs t f =
       (fun _path items -> List.iter f items.Cross_file_items.function_refs)
       r
 
+let iter_optional_arg_value_escapes t f =
+  match t with
+  | Frozen cfi -> List.iter f cfi.Cross_file_items.optional_arg_value_escapes
+  | Reactive r ->
+    Reactive.iter
+      (fun _path items ->
+        List.iter f items.Cross_file_items.optional_arg_value_escapes)
+      r
+
 (** Compute optional args state from calls and function references.
     Returns a map from position to final OptionalArgs.t state.
     Pure function - does not mutate declarations. *)
@@ -65,3 +74,27 @@ let compute_optional_args_state (store : t) ~find_decl ~is_live :
           set_state pos_from updated_from;
           set_state pos_to updated_to));
   state
+
+let compute_live_optional_arg_value_escapes (store : t) ~is_live : Pos_set.t =
+  let escapes = ref Pos_set.empty in
+  iter_optional_arg_value_escapes store
+    (fun {Cross_file_items.pos_from; pos_to} ->
+      if is_live pos_from then escapes := Pos_set.add pos_to !escapes);
+  let function_refs = ref [] in
+  iter_function_refs store (fun {Cross_file_items.pos_from; pos_to} ->
+      if is_live pos_from then
+        function_refs := (pos_from, pos_to) :: !function_refs);
+  (* A function reference aliases both declaration positions. Close escapes over
+     the undirected links so aliases and interface/implementation pairs agree. *)
+  let rec propagate escapes =
+    let propagated =
+      List.fold_left
+        (fun escapes (pos_from, pos_to) ->
+          if Pos_set.mem pos_from escapes then Pos_set.add pos_to escapes
+          else if Pos_set.mem pos_to escapes then Pos_set.add pos_from escapes
+          else escapes)
+        escapes !function_refs
+    in
+    if Pos_set.equal propagated escapes then escapes else propagate propagated
+  in
+  propagate !escapes
diff --git a/analysis/reanalyze/src/cross_file_items_store.mli b/analysis/reanalyze/src/cross_file_items_store.mli
index f8da5db43c..d3729d6339 100644
--- a/analysis/reanalyze/src/cross_file_items_store.mli
+++ b/analysis/reanalyze/src/cross_file_items_store.mli
@@ -22,9 +22,17 @@ val iter_optional_arg_calls :
 val iter_function_refs : t -> (Cross_file_items.function_ref -> unit) -> unit
 (** Iterate over all function refs *)
 
+val iter_optional_arg_value_escapes :
+  t -> (Cross_file_items.optional_arg_value_escape -> unit) -> unit
+(** Iterate over optional-arg functions used as first-class values *)
+
 val compute_optional_args_state :
   t ->
   find_decl:(Lexing.position -> Decl.t option) ->
   is_live:(Lexing.position -> bool) ->
   Optional_args_state.t
 (** Compute optional args state from calls and function references *)
+
+val compute_live_optional_arg_value_escapes :
+  t -> is_live:(Lexing.position -> bool) -> Pos_set.t
+(** Compute optional-arg declarations with live first-class value escapes *)
diff --git a/analysis/reanalyze/src/dead_common.ml b/analysis/reanalyze/src/dead_common.ml
index a843d68606..a3f39096f8 100644
--- a/analysis/reanalyze/src/dead_common.ml
+++ b/analysis/reanalyze/src/dead_common.ml
@@ -124,11 +124,13 @@ let addDeclaration_ ~config ~decls ~(file : File_context.t) ?pos_end ?pos_start
     Declarations.add decls pos decl)
 
 let add_value_declaration ~config ~decls ~file ?(is_toplevel = true)
-    ~(loc : Location.t) ~module_loc ?(optional_args = Optional_args.empty) ~path
-    ~side_effects name =
+    ?(reports_optional_args = false) ~(loc : Location.t) ~module_loc
+    ?(optional_args = Optional_args.empty) ~path ~side_effects name =
   name
   |> addDeclaration_ ~config ~decls ~file
-       ~decl_kind:(Value {is_toplevel; optional_args; side_effects})
+       ~decl_kind:
+         (Value
+            {is_toplevel; reports_optional_args; optional_args; side_effects})
        ~loc ~module_loc ~path
 
 (** Create a dead code issue. Pure - no side effects. *)
diff --git a/analysis/reanalyze/src/dead_optional_args.ml b/analysis/reanalyze/src/dead_optional_args.ml
index 2131181539..f1ff37407f 100644
--- a/analysis/reanalyze/src/dead_optional_args.ml
+++ b/analysis/reanalyze/src/dead_optional_args.ml
@@ -2,25 +2,6 @@ open Dead_common
 
 let active () = true
 
-let add_function_reference ~config ~decls ~cross_file ~(loc_from : Location.t)
-    ~(loc_to : Location.t) =
-  if active () then
-    let pos_to = loc_to.loc_start in
-    let pos_from = loc_from.loc_start in
-    (* Check if target has optional args - for filtering and debug logging *)
-    let should_add =
-      match Declarations.find_opt_builder decls pos_to with
-      | Some {decl_kind = Value {optional_args}} ->
-        not (Optional_args.is_empty optional_args)
-      | _ -> false
-    in
-    if should_add then (
-      if config.Dce_config.cli.debug then
-        Log_.item "OptionalArgs.addFunctionReference %s %s@."
-          (pos_from |> Pos.to_string)
-          (pos_to |> Pos.to_string);
-      Cross_file_items.add_function_reference cross_file ~pos_from ~pos_to)
-
 let rec has_optional_args (texpr : Types.type_expr) =
   match texpr.desc with
   | _ when not (active ()) -> false
@@ -30,6 +11,17 @@ let rec has_optional_args (texpr : Types.type_expr) =
   | Tsubst t -> has_optional_args t
   | _ -> false
 
+let add_function_reference ~config ~cross_file ~(loc_from : Location.t)
+    ~(loc_to : Location.t) ~type_from ~type_to =
+  if has_optional_args type_from && has_optional_args type_to then (
+    let pos_to = loc_to.loc_start in
+    let pos_from = loc_from.loc_start in
+    if config.Dce_config.cli.debug then
+      Log_.item "OptionalArgs.addFunctionReference %s %s@."
+        (pos_from |> Pos.to_string)
+        (pos_to |> Pos.to_string);
+    Cross_file_items.add_function_reference cross_file ~pos_from ~pos_to)
+
 let rec from_type_expr (texpr : Types.type_expr) =
   match texpr.desc with
   | _ when not (active ()) -> []
@@ -39,6 +31,18 @@ let rec from_type_expr (texpr : Types.type_expr) =
   | Tsubst t -> from_type_expr t
   | _ -> []
 
+let rec from_type_expr_with_arity (texpr : Types.type_expr) arity =
+  if arity <= 0 then []
+  else
+    match texpr.desc with
+    | _ when not (active ()) -> []
+    | Tarrow ({lbl = Optional {txt = s}}, t_to, _, _) ->
+      s :: from_type_expr_with_arity t_to (arity - 1)
+    | Tarrow (_, t_to, _, _) -> from_type_expr_with_arity t_to (arity - 1)
+    | Tlink t -> from_type_expr_with_arity t arity
+    | Tsubst t -> from_type_expr_with_arity t arity
+    | _ -> []
+
 let add_references ~config ~cross_file ~(loc_from : Location.t)
     ~(loc_to : Location.t) ~(binding : Location.t) ~path
     (arg_names, arg_names_maybe) =
@@ -59,10 +63,12 @@ let add_references ~config ~cross_file ~(loc_from : Location.t)
 
 (** Check for optional args issues. Returns issues instead of logging.
     Uses optional_args_state map for final computed state. *)
-let check ~optional_args_state ~ann_store ~config:_ decl : Issue.t list =
+let check ~optional_args_state ~optional_arg_value_escapes ~ann_store ~config:_
+    decl : Issue.t list =
   match decl with
-  | {Decl.decl_kind = Value {optional_args}}
+  | {Decl.decl_kind = Value {reports_optional_args = true; optional_args}}
     when active ()
+         && (not (Pos_set.mem decl.pos optional_arg_value_escapes))
          && not
               (Annotation_store.is_annotated_gentype_or_live ann_store decl.pos)
     ->
diff --git a/analysis/reanalyze/src/dead_value.ml b/analysis/reanalyze/src/dead_value.ml
index 3fd1c343b7..69c92f09db 100644
--- a/analysis/reanalyze/src/dead_value.ml
+++ b/analysis/reanalyze/src/dead_value.ml
@@ -2,6 +2,14 @@
 
 open Dead_common
 
+(** Identity avoids conflating generated expressions that share source locations. *)
+module Expression_table = Hashtbl.Make (struct
+  type t = Typedtree.expression
+
+  let equal = ( == )
+  let hash (e : t) = Hashtbl.hash e.exp_loc
+end)
+
 let check_any_value_binding_with_no_side_effects ~config ~decls ~file
     ~(module_path : Module_path.t)
     ({vb_pat = {pat_desc}; vb_expr = expr; vb_loc = loc} :
@@ -27,13 +35,27 @@ let collect_value_binding ~config ~decls ~file ~(current_binding : Location.t)
         ({pat_desc = Tpat_any}, id, {loc = {loc_start; loc_ghost} as loc})
       when (not loc_ghost) && not vb.vb_loc.loc_ghost ->
       let name = Ident.name id |> Name.create ~is_interface:false in
-      let optional_args =
-        vb.vb_expr.exp_type |> Dead_optional_args.from_type_expr
-        |> Optional_args.from_list
+      let optional_args, reports_optional_args =
+        match vb.vb_expr.exp_desc with
+        | Texp_function {arity = Some arity; _} ->
+          ( vb.vb_expr.exp_type
+            |> (fun texpr ->
+            Dead_optional_args.from_type_expr_with_arity texpr arity)
+            |> Optional_args.from_list,
+            true )
+        | Texp_function _ ->
+          ( vb.vb_expr.exp_type |> Dead_optional_args.from_type_expr
+            |> Optional_args.from_list,
+            true )
+        | _ ->
+          ( vb.vb_expr.exp_type |> Dead_optional_args.from_type_expr
+            |> Optional_args.from_list,
+            false )
       in
       let exists =
         match Declarations.find_opt_builder decls loc_start with
         | Some {decl_kind = Value r} ->
+          r.reports_optional_args <- reports_optional_args;
           r.optional_args <- optional_args;
           true
         | _ -> false
@@ -50,7 +72,8 @@ let collect_value_binding ~config ~decls ~file ~(current_binding : Location.t)
          let side_effects = Side_effects.check_expr vb.vb_expr in
          name
          |> add_value_declaration ~config ~decls ~file ~is_toplevel ~loc
-              ~module_loc:module_path.loc ~optional_args ~path ~side_effects);
+              ~module_loc:module_path.loc ~reports_optional_args ~optional_args
+              ~path ~side_effects);
       (match Declarations.find_opt_builder decls loc_start with
       | None -> ()
       | Some decl ->
@@ -109,12 +132,19 @@ let process_optional_args ~config ~cross_file ~exp_type ~(loc_from : Location.t)
     |> Dead_optional_args.add_references ~config ~cross_file ~loc_from ~loc_to
          ~binding ~path)
 
-let rec collect_expr ~config ~refs ~file_deps ~cross_file
+let rec collect_expr ~config ~refs ~file_deps ~cross_file ~direct_callees
     ~(last_binding : Location.t) super self (e : Typedtree.expression) =
   let loc_from = e.exp_loc in
   let binding = last_binding in
+  let add_optional_arg_value_escape ~val_type pos_from pos_to =
+    if Dead_optional_args.has_optional_args val_type then
+      Cross_file_items.add_optional_arg_value_escape cross_file ~pos_from
+        ~pos_to
+  in
   (match e.exp_desc with
-  | Texp_ident (_path, _, {Types.val_loc = {loc_ghost = false; _} as loc_to}) ->
+  | Texp_ident
+      (_path, _, {Types.val_loc = {loc_ghost = false; _} as loc_to; val_type})
+    ->
     (* if Path.name _path = "rc" then assert false; *)
     if loc_from = loc_to && _path |> Path.name = "emptyArray" then (
       (* Work around lowercase jsx with no children producing an artifact `emptyArray`
@@ -125,9 +155,15 @@ let rec collect_expr ~config ~refs ~file_deps ~cross_file
           (loc_to.loc_start |> Pos.to_string);
       References.add_value_ref refs ~pos_to:loc_to.loc_start
         ~pos_from:Location.none.loc_start)
-    else
+    else (
       add_value_reference ~config ~refs ~file_deps ~binding
-        ~add_file_reference:true ~loc_from ~loc_to
+        ~add_file_reference:true ~loc_from ~loc_to;
+      if not (Expression_table.mem direct_callees e) then
+        let pos_from =
+          if binding = Location.none then loc_from.loc_start
+          else binding.loc_start
+        in
+        add_optional_arg_value_escape ~val_type pos_from loc_to.loc_start)
   | Texp_apply
       {
         funct =
@@ -136,9 +172,10 @@ let rec collect_expr ~config ~refs ~file_deps ~cross_file
               Texp_ident
                 (path, _, {Types.val_loc = {loc_ghost = false; _} as loc_to});
             exp_type;
-          };
+          } as direct_callee;
         args;
       } ->
+    Expression_table.replace direct_callees direct_callee ();
     args
     |> process_optional_args ~config ~cross_file ~exp_type
          ~loc_from:(loc_from : Location.t)
@@ -155,7 +192,7 @@ let rec collect_expr ~config ~refs ~file_deps ~cross_file
                   Texp_ident
                     (path, _, {Types.val_loc = {loc_ghost = false; _} as loc_to});
                 exp_type;
-              };
+              } as direct_callee;
           };
         ],
         {
@@ -180,6 +217,7 @@ let rec collect_expr ~config ~refs ~file_deps ~cross_file
     when Ident.name id_arg = "arg"
          && Ident.name eta_arg = "eta"
          && Path.name id_arg2 = "arg" ->
+    Expression_table.replace direct_callees direct_callee ();
     args
     |> process_optional_args ~config ~cross_file ~exp_type
          ~loc_from:(loc_from : Location.t)
@@ -213,8 +251,8 @@ let rec collect_expr ~config ~refs ~file_deps ~cross_file
              ->
              (* Punned field in OCaml projects has ghost location in expression *)
              let e = {e with exp_loc = {exp_loc with loc_ghost = false}} in
-             collect_expr ~config ~refs ~file_deps ~cross_file ~last_binding
-               super self e
+             collect_expr ~config ~refs ~file_deps ~cross_file ~direct_callees
+               ~last_binding super self e
              |> ignore
            | _ -> ())
   | _ -> ());
@@ -351,13 +389,16 @@ let rec process_signature_item ~config ~decls ~file ~do_types ~do_values
           val_type |> Dead_optional_args.from_type_expr
           |> Optional_args.from_list
         in
+        let reports_optional_args =
+          not (Optional_args.is_empty optional_args)
+        in
 
         (* if Ident.name id = "someValue" then
            Printf.printf "XXX %s\n" (Ident.name id); *)
         Ident.name id
         |> Name.create ~is_interface:false
         |> add_value_declaration ~config ~decls ~file ~loc ~module_loc
-             ~optional_args ~path ~side_effects:false
+             ~reports_optional_args ~optional_args ~path ~side_effects:false
   | Sig_module (id, {Types.md_type = module_type; md_loc = module_loc}, _)
   | Sig_modtype (id, {Types.mtd_type = Some module_type; mtd_loc = module_loc})
     ->
@@ -382,6 +423,7 @@ let rec process_signature_item ~config ~decls ~file ~do_types ~do_values
 (* Traverse the AST *)
 let traverse_structure ~config ~decls ~refs ~file_deps ~cross_file ~file
     ~do_types ~do_externals (structure : Typedtree.structure) : unit =
+  let direct_callees = Expression_table.create 16 in
   let rec create_mapper (last_binding : Location.t)
       (module_path : Module_path.t) =
     let super = Tast_mapper.default in
@@ -391,8 +433,8 @@ let traverse_structure ~config ~decls ~refs ~file_deps ~cross_file ~file
         expr =
           (fun _self e ->
             e
-            |> collect_expr ~config ~refs ~file_deps ~cross_file ~last_binding
-                 super mapper);
+            |> collect_expr ~config ~refs ~file_deps ~cross_file ~direct_callees
+                 ~last_binding super mapper);
         pat =
           (fun _self p ->
             p
@@ -530,25 +572,27 @@ let traverse_structure ~config ~decls ~refs ~file_deps ~cross_file ~file
   mapper.structure mapper structure |> ignore
 
 (* Merge a location's references to another one's *)
-let process_value_dependency ~config ~decls ~refs ~file_deps ~cross_file
+let process_value_dependency ~config ~refs ~file_deps ~cross_file
     ( ({
          val_loc =
            {loc_start = {pos_fname = fn_to} as pos_to; loc_ghost = ghost1} as
            loc_to;
+         val_type = type_to;
        } :
         Types.value_description),
       ({
          val_loc =
            {loc_start = {pos_fname = fn_from} as pos_from; loc_ghost = ghost2}
            as loc_from;
+         val_type = type_from;
        } :
         Types.value_description) ) =
   if (not ghost1) && (not ghost2) && pos_to <> pos_from then (
     let add_file_reference = file_is_implementation_of fn_to fn_from in
     add_value_reference ~config ~refs ~file_deps ~binding:Location.none
       ~add_file_reference ~loc_from ~loc_to;
-    Dead_optional_args.add_function_reference ~config ~decls ~cross_file
-      ~loc_from ~loc_to)
+    Dead_optional_args.add_function_reference ~config ~cross_file ~loc_from
+      ~loc_to ~type_from ~type_to)
 
 let process_structure ~config ~decls ~refs ~file_deps ~cross_file ~file
     ~cmt_value_dependencies ~do_types ~do_externals
@@ -557,5 +601,4 @@ let process_structure ~config ~decls ~refs ~file_deps ~cross_file ~file
     ~do_externals structure;
   let value_dependencies = cmt_value_dependencies |> List.rev in
   value_dependencies
-  |> List.iter
-       (process_value_dependency ~config ~decls ~refs ~file_deps ~cross_file)
+  |> List.iter (process_value_dependency ~config ~refs ~file_deps ~cross_file)
diff --git a/analysis/reanalyze/src/decl.ml b/analysis/reanalyze/src/decl.ml
index aa457b3f5b..9ddaad60ac 100644
--- a/analysis/reanalyze/src/decl.ml
+++ b/analysis/reanalyze/src/decl.ml
@@ -7,6 +7,7 @@ module Kind = struct
     | VariantCase
     | Value of {
         is_toplevel: bool;
+        mutable reports_optional_args: bool;
         mutable optional_args: Optional_args.t;
         side_effects: bool;
       }
diff --git a/analysis/reanalyze/src/reactive_merge.ml b/analysis/reanalyze/src/reactive_merge.ml
index 6c376e0efa..14dc222d71 100644
--- a/analysis/reanalyze/src/reactive_merge.ml
+++ b/analysis/reanalyze/src/reactive_merge.ml
@@ -88,6 +88,8 @@ let create (source : (string, Dce_file_processing.file_data option) Reactive.t)
             exception_refs = a.exception_refs @ b.exception_refs;
             optional_arg_calls = a.optional_arg_calls @ b.optional_arg_calls;
             function_refs = a.function_refs @ b.function_refs;
+            optional_arg_value_escapes =
+              a.optional_arg_value_escapes @ b.optional_arg_value_escapes;
           })
       ()
   in
@@ -225,17 +227,22 @@ let collect_cross_file_items (t : t) : Cross_file_items.t =
   let exception_refs = ref [] in
   let optional_arg_calls = ref [] in
   let function_refs = ref [] in
+  let optional_arg_value_escapes = ref [] in
   Reactive.iter
     (fun _path items ->
       exception_refs := items.Cross_file_items.exception_refs @ !exception_refs;
       optional_arg_calls :=
         items.Cross_file_items.optional_arg_calls @ !optional_arg_calls;
-      function_refs := items.Cross_file_items.function_refs @ !function_refs)
+      function_refs := items.Cross_file_items.function_refs @ !function_refs;
+      optional_arg_value_escapes :=
+        items.Cross_file_items.optional_arg_value_escapes
+        @ !optional_arg_value_escapes)
     t.cross_file_items;
   {
     Cross_file_items.exception_refs = !exception_refs;
     optional_arg_calls = !optional_arg_calls;
     function_refs = !function_refs;
+    optional_arg_value_escapes = !optional_arg_value_escapes;
   }
 
 (** Convert reactive file deps to FileDeps.t for solver.
diff --git a/analysis/reanalyze/src/reanalyze.ml b/analysis/reanalyze/src/reanalyze.ml
index 062df5c6ee..b96ad7a793 100644
--- a/analysis/reanalyze/src/reanalyze.ml
+++ b/analysis/reanalyze/src/reanalyze.ml
@@ -347,11 +347,16 @@ let run_analysis ~dce_config ~cmt_root ~reactive_collection ~reactive_merge
                   Cross_file_items_store.compute_optional_args_state
                     cross_file_store ~find_decl ~is_live
                 in
+                let optional_arg_value_escapes =
+                  Cross_file_items_store.compute_live_optional_arg_value_escapes
+                    cross_file_store ~is_live
+                in
                 (* Iterate live declarations and check for optional args issues *)
                 let issues = ref [] in
                 Reactive_solver.iter_live_decls ~t:solver (fun decl ->
                     let decl_issues =
-                      Dead_optional_args.check ~optional_args_state ~ann_store
+                      Dead_optional_args.check ~optional_args_state
+                        ~optional_arg_value_escapes ~ann_store
                         ~config:dce_config decl
                     in
                     issues := List.rev_append decl_issues !issues);
@@ -399,13 +404,18 @@ let run_analysis ~dce_config ~cmt_root ~reactive_collection ~reactive_merge
                 ~find_decl:(Declaration_store.find_opt decl_store)
                 ~is_live
             in
+            let optional_arg_value_escapes =
+              Cross_file_items_store.compute_live_optional_arg_value_escapes
+                cross_file_store ~is_live
+            in
             (* Collect optional args issues only for live declarations *)
             let optional_args_issues =
               Declaration_store.fold
                 (fun _pos decl acc ->
                   if Decl.is_live decl then
                     let issues =
-                      Dead_optional_args.check ~optional_args_state ~ann_store
+                      Dead_optional_args.check ~optional_args_state
+                        ~optional_arg_value_escapes ~ann_store
                         ~config:dce_config decl
                     in
                     List.rev_append issues acc
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/expected/deadcode.txt b/tests/analysis_tests/tests-reanalyze/deadcode/expected/deadcode.txt
index 10c70d7cd1..8588578ef6 100644
--- a/tests/analysis_tests/tests-reanalyze/deadcode/expected/deadcode.txt
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/expected/deadcode.txt
@@ -32,6 +32,52 @@
   addTypeReference _none_:1:-1 --> ComponentAsProp.res:6:20
   addTypeReference _none_:1:-1 --> ComponentAsProp.res:6:34
   addValueReference ComponentAsProp.res:6:4 --> React.res:16:0
+  Scanning ContextOptionalArgs.cmt Source:ContextOptionalArgs.res
+  addValueDeclaration +dispatchNotificationContext ContextOptionalArgs.res:2:6 path:+ContextOptionalArgs.NotificationProvider
+  addValueDeclaration +make ContextOptionalArgs.res:8:8 path:+ContextOptionalArgs.NotificationProvider.Provider
+  addValueDeclaration +make ContextOptionalArgs.res:12:6 path:+ContextOptionalArgs.NotificationProvider
+  addValueDeclaration +useNotification ContextOptionalArgs.res:22:6 path:+ContextOptionalArgs.NotificationProvider
+  addValueDeclaration +make ContextOptionalArgs.res:27:6 path:+ContextOptionalArgs.ComponentUsingAction
+  addValueDeclaration +make ContextOptionalArgs.res:41:6 path:+ContextOptionalArgs.ComponentNotUsingAction
+  addValueDeclaration +make ContextOptionalArgs.res:55:4 path:+ContextOptionalArgs
+  addRecordLabelDeclaration children ContextOptionalArgs.res:12:14 path:+ContextOptionalArgs.NotificationProvider.props
+  addValueReference ContextOptionalArgs.res:2:6 --> React.res:81:0
+  addValueReference ContextOptionalArgs.res:8:8 --> ContextOptionalArgs.res:2:6
+  addValueReference ContextOptionalArgs.res:8:8 --> React.res:77:2
+  addRecordLabelDeclaration children ContextOptionalArgs.res:12:14 path:+ContextOptionalArgs.NotificationProvider.props
+  addValueDeclaration +dispatchNotification ContextOptionalArgs.res:13:8 path:+ContextOptionalArgs.NotificationProvider
+  addValueReference ContextOptionalArgs.res:13:8 --> ContextOptionalArgs.res:13:43
+  addValueReference ContextOptionalArgs.res:13:8 --> ContextOptionalArgs.res:15:13
+  addValueReference ContextOptionalArgs.res:13:8 --> ContextOptionalArgs.res:13:43
+  addValueReference ContextOptionalArgs.res:13:8 --> ContextOptionalArgs.res:13:32
+  addValueReference ContextOptionalArgs.res:19:5 --> ContextOptionalArgs.res:8:8
+  addValueReference ContextOptionalArgs.res:19:20 --> ContextOptionalArgs.res:13:8
+  addValueReference ContextOptionalArgs.res:19:43 --> ContextOptionalArgs.res:12:14
+  addTypeReference _none_:1:-1 --> ContextOptionalArgs.res:12:14
+  addValueReference ContextOptionalArgs.res:12:6 --> React.res:16:0
+  DeadOptionalArgs.addReferences React.useContext called with optional argNames: argNamesMaybe: ContextOptionalArgs.res:22:30
+  addValueReference ContextOptionalArgs.res:22:6 --> ContextOptionalArgs.res:2:6
+  addValueReference ContextOptionalArgs.res:22:6 --> React.res:250:0
+  addValueDeclaration +dispatchNotification ContextOptionalArgs.res:28:8 path:+ContextOptionalArgs.ComponentUsingAction
+  DeadOptionalArgs.addReferences NotificationProvider.useNotification called with optional argNames: argNamesMaybe: ContextOptionalArgs.res:28:31
+  addValueReference ContextOptionalArgs.res:28:8 --> ContextOptionalArgs.res:22:6
+  addValueReference ContextOptionalArgs.res:35:4 --> React.res:3:0
+  DeadOptionalArgs.addReferences dispatchNotification called with optional argNames:action argNamesMaybe: ContextOptionalArgs.res:31:6
+  addValueReference ContextOptionalArgs.res:31:6 --> ContextOptionalArgs.res:28:8
+  addValueReference ContextOptionalArgs.res:30:4 --> React.res:150:0
+  addValueReference ContextOptionalArgs.res:27:6 --> React.res:16:0
+  addValueDeclaration +dispatchNotification ContextOptionalArgs.res:42:8 path:+ContextOptionalArgs.ComponentNotUsingAction
+  DeadOptionalArgs.addReferences NotificationProvider.useNotification called with optional argNames: argNamesMaybe: ContextOptionalArgs.res:42:31
+  addValueReference ContextOptionalArgs.res:42:8 --> ContextOptionalArgs.res:22:6
+  addValueReference ContextOptionalArgs.res:49:4 --> React.res:3:0
+  DeadOptionalArgs.addReferences dispatchNotification called with optional argNames: argNamesMaybe: ContextOptionalArgs.res:45:6
+  addValueReference ContextOptionalArgs.res:45:6 --> ContextOptionalArgs.res:42:8
+  addValueReference ContextOptionalArgs.res:44:4 --> React.res:150:0
+  addValueReference ContextOptionalArgs.res:41:6 --> React.res:16:0
+  addValueReference ContextOptionalArgs.res:56:3 --> ContextOptionalArgs.res:12:6
+  addValueReference ContextOptionalArgs.res:57:5 --> ContextOptionalArgs.res:27:6
+  addValueReference ContextOptionalArgs.res:58:5 --> ContextOptionalArgs.res:41:6
+  addValueReference ContextOptionalArgs.res:55:4 --> React.res:16:0
   Scanning CreateErrorHandler1.cmt Source:CreateErrorHandler1.res
   addValueDeclaration +notification CreateErrorHandler1.res:3:6 path:+CreateErrorHandler1.Error1
   addValueReference CreateErrorHandler1.res:3:6 --> CreateErrorHandler1.res:3:21
@@ -42,6 +88,14 @@
   addValueDeclaration +notification CreateErrorHandler2.res:3:6 path:+CreateErrorHandler2.Error2
   addValueReference CreateErrorHandler2.res:3:6 --> CreateErrorHandler2.res:3:21
   addValueReference ErrorHandler.resi:3:2 --> CreateErrorHandler2.res:3:6
+  Scanning CrossFileOptionalArgProvider.cmt Source:CrossFileOptionalArgProvider.res
+  addValueDeclaration +formatDate CrossFileOptionalArgProvider.res:1:4 path:+CrossFileOptionalArgProvider
+  addValueReference CrossFileOptionalArgProvider.res:1:4 --> CrossFileOptionalArgProvider.res:1:26
+  Scanning CrossFileOptionalArgValueUse.cmt Source:CrossFileOptionalArgValueUse.res
+  addValueDeclaration +liveReturnCaller CrossFileOptionalArgValueUse.res:1:4 path:+CrossFileOptionalArgValueUse
+  addValueReference CrossFileOptionalArgValueUse.res:1:4 --> CrossFileOptionalArgProvider.res:1:4
+  DeadOptionalArgs.addReferences liveReturnCaller called with optional argNames: argNamesMaybe: CrossFileOptionalArgValueUse.res:5:8
+  addValueReference CrossFileOptionalArgValueUse.res:5:8 --> CrossFileOptionalArgValueUse.res:1:4
   Scanning DeadCodeImplementation.cmt Source:DeadCodeImplementation.res
   addValueDeclaration +x DeadCodeImplementation.res:2:6 path:+DeadCodeImplementation.M
   addValueReference DeadCodeInterface.res:2:2 --> DeadCodeImplementation.res:2:6
@@ -962,6 +1016,21 @@
   addVariantCaseDeclaration Foo InnerModuleTypes.res:2:11 path:+InnerModuleTypes.I.t
   Scanning InnerModuleTypes.cmti Source:InnerModuleTypes.resi
   addVariantCaseDeclaration Foo InnerModuleTypes.resi:2:11 path:InnerModuleTypes.I.t
+  Scanning InterfaceOptionalArgEscape.cmt Source:InterfaceOptionalArgEscape.res
+  addValueDeclaration +escaped InterfaceOptionalArgEscape.res:1:4 path:+InterfaceOptionalArgEscape
+  addValueDeclaration +takesFn InterfaceOptionalArgEscape.res:3:4 path:+InterfaceOptionalArgEscape
+  addValueReference InterfaceOptionalArgEscape.res:1:4 --> InterfaceOptionalArgEscape.res:1:23
+  addValueReference InterfaceOptionalArgEscape.res:5:8 --> InterfaceOptionalArgEscape.res:1:4
+  addValueReference InterfaceOptionalArgEscape.res:5:0 --> InterfaceOptionalArgEscape.res:3:4
+  addValueReference InterfaceOptionalArgEscape.resi:1:0 --> InterfaceOptionalArgEscape.res:1:4
+  OptionalArgs.addFunctionReference InterfaceOptionalArgEscape.resi:1:0 InterfaceOptionalArgEscape.res:1:4
+  Scanning InterfaceOptionalArgEscape.cmti Source:InterfaceOptionalArgEscape.resi
+  addValueDeclaration +escaped InterfaceOptionalArgEscape.resi:1:0 path:InterfaceOptionalArgEscape
+  Scanning InterfaceOptionalArgEscapeUse.cmt Source:InterfaceOptionalArgEscapeUse.res
+  addValueDeclaration +use InterfaceOptionalArgEscapeUse.res:1:4 path:+InterfaceOptionalArgEscapeUse
+  DeadOptionalArgs.addReferences InterfaceOptionalArgEscape.escaped called with optional argNames: argNamesMaybe: InterfaceOptionalArgEscapeUse.res:1:16
+  addValueReference InterfaceOptionalArgEscapeUse.res:1:4 --> InterfaceOptionalArgEscape.resi:1:0
+  addValueReference InterfaceOptionalArgEscapeUse.res:3:8 --> InterfaceOptionalArgEscapeUse.res:1:4
   Scanning JSResource.cmt Source:JSResource.res
   Scanning JsxV4.cmt Source:JsxV4.res
   addValueDeclaration +make JsxV4.res:4:23 path:+JsxV4.C
@@ -1455,6 +1524,71 @@
   addTypeReference TestPromise.res:14:32 --> TestPromise.res:7:2
   Scanning ToSuppress.cmt Source:ToSuppress.res
   addValueDeclaration +toSuppress ToSuppress.res:1:4 path:+ToSuppress
+  Scanning TopLevelOptionalArgValueUse.cmt Source:TopLevelOptionalArgValueUse.res
+  addValueDeclaration +formatDate TopLevelOptionalArgValueUse.res:4:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateEscapes TopLevelOptionalArgValueUse.res:5:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateReturn TopLevelOptionalArgValueUse.res:6:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateTuple TopLevelOptionalArgValueUse.res:7:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateForwarded TopLevelOptionalArgValueUse.res:8:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateTopLevelEscape TopLevelOptionalArgValueUse.res:9:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateAlias TopLevelOptionalArgValueUse.res:10:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +takesFn TopLevelOptionalArgValueUse.res:12:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +deadEscape TopLevelOptionalArgValueUse.res:16:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveCaller TopLevelOptionalArgValueUse.res:18:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveEscapeCaller TopLevelOptionalArgValueUse.res:20:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveReturnCaller TopLevelOptionalArgValueUse.res:25:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveTupleCaller TopLevelOptionalArgValueUse.res:29:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveForwardingCaller TopLevelOptionalArgValueUse.res:33:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +formatDateAlias2 TopLevelOptionalArgValueUse.res:37:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveAliasCaller TopLevelOptionalArgValueUse.res:38:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +mutuallyRecursiveCaller TopLevelOptionalArgValueUse.res:40:8 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +mutuallyRecursiveTarget TopLevelOptionalArgValueUse.res:41:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +returnsFunction TopLevelOptionalArgValueUse.res:43:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +returnedFunction TopLevelOptionalArgValueUse.res:44:4 path:+TopLevelOptionalArgValueUse
+  addValueDeclaration +liveReturnedFunctionCaller TopLevelOptionalArgValueUse.res:45:4 path:+TopLevelOptionalArgValueUse
+  addValueReference TopLevelOptionalArgValueUse.res:4:4 --> TopLevelOptionalArgValueUse.res:4:26
+  addValueReference TopLevelOptionalArgValueUse.res:5:4 --> TopLevelOptionalArgValueUse.res:5:33
+  addValueReference TopLevelOptionalArgValueUse.res:6:4 --> TopLevelOptionalArgValueUse.res:6:32
+  addValueReference TopLevelOptionalArgValueUse.res:7:4 --> TopLevelOptionalArgValueUse.res:7:31
+  addValueReference TopLevelOptionalArgValueUse.res:8:4 --> TopLevelOptionalArgValueUse.res:8:35
+  addValueReference TopLevelOptionalArgValueUse.res:9:4 --> TopLevelOptionalArgValueUse.res:9:40
+  addValueReference TopLevelOptionalArgValueUse.res:10:4 --> TopLevelOptionalArgValueUse.res:10:31
+  addValueReference TopLevelOptionalArgValueUse.res:14:8 --> TopLevelOptionalArgValueUse.res:9:4
+  addValueReference TopLevelOptionalArgValueUse.res:14:0 --> TopLevelOptionalArgValueUse.res:12:4
+  addValueReference TopLevelOptionalArgValueUse.res:16:4 --> TopLevelOptionalArgValueUse.res:4:4
+  addValueReference TopLevelOptionalArgValueUse.res:16:4 --> TopLevelOptionalArgValueUse.res:12:4
+  DeadOptionalArgs.addReferences formatDate called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:18:23
+  addValueReference TopLevelOptionalArgValueUse.res:18:4 --> TopLevelOptionalArgValueUse.res:4:4
+  DeadOptionalArgs.addReferences formatDateEscapes called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:22:2
+  addValueReference TopLevelOptionalArgValueUse.res:20:4 --> TopLevelOptionalArgValueUse.res:5:4
+  addValueReference TopLevelOptionalArgValueUse.res:20:4 --> TopLevelOptionalArgValueUse.res:5:4
+  addValueReference TopLevelOptionalArgValueUse.res:20:4 --> TopLevelOptionalArgValueUse.res:12:4
+  addValueReference TopLevelOptionalArgValueUse.res:25:4 --> TopLevelOptionalArgValueUse.res:6:4
+  addValueReference TopLevelOptionalArgValueUse.res:29:4 --> TopLevelOptionalArgValueUse.res:7:4
+  DeadOptionalArgs.addReferences formatDateForwarded called with optional argNames:fmt argNamesMaybe:fmt TopLevelOptionalArgValueUse.res:34:2
+  addValueReference TopLevelOptionalArgValueUse.res:33:4 --> TopLevelOptionalArgValueUse.res:33:28
+  addValueReference TopLevelOptionalArgValueUse.res:33:4 --> TopLevelOptionalArgValueUse.res:8:4
+  addValueReference TopLevelOptionalArgValueUse.res:37:4 --> TopLevelOptionalArgValueUse.res:10:4
+  DeadOptionalArgs.addReferences formatDateAlias2 called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:38:28
+  addValueReference TopLevelOptionalArgValueUse.res:38:4 --> TopLevelOptionalArgValueUse.res:37:4
+  DeadOptionalArgs.addReferences mutuallyRecursiveTarget called with optional argNames:fmt argNamesMaybe: TopLevelOptionalArgValueUse.res:40:40
+  addValueReference TopLevelOptionalArgValueUse.res:40:8 --> TopLevelOptionalArgValueUse.res:41:4
+  addValueReference TopLevelOptionalArgValueUse.res:41:4 --> TopLevelOptionalArgValueUse.res:41:39
+  addValueReference TopLevelOptionalArgValueUse.res:43:4 --> TopLevelOptionalArgValueUse.res:43:22
+  DeadOptionalArgs.addReferences returnsFunction called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:44:23
+  addValueReference TopLevelOptionalArgValueUse.res:44:4 --> TopLevelOptionalArgValueUse.res:43:4
+  DeadOptionalArgs.addReferences returnedFunction called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:45:39
+  addValueReference TopLevelOptionalArgValueUse.res:45:4 --> TopLevelOptionalArgValueUse.res:44:4
+  addValueReference TopLevelOptionalArgValueUse.res:47:8 --> TopLevelOptionalArgValueUse.res:18:4
+  addValueReference TopLevelOptionalArgValueUse.res:48:8 --> TopLevelOptionalArgValueUse.res:20:4
+  DeadOptionalArgs.addReferences liveReturnCaller called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:49:8
+  addValueReference TopLevelOptionalArgValueUse.res:49:8 --> TopLevelOptionalArgValueUse.res:25:4
+  addValueReference TopLevelOptionalArgValueUse.res:50:8 --> TopLevelOptionalArgValueUse.res:29:4
+  DeadOptionalArgs.addReferences liveForwardingCaller called with optional argNames: argNamesMaybe: TopLevelOptionalArgValueUse.res:51:8
+  addValueReference TopLevelOptionalArgValueUse.res:51:8 --> TopLevelOptionalArgValueUse.res:33:4
+  addValueReference TopLevelOptionalArgValueUse.res:52:8 --> TopLevelOptionalArgValueUse.res:38:4
+  addValueReference TopLevelOptionalArgValueUse.res:53:8 --> TopLevelOptionalArgValueUse.res:40:8
+  addValueReference TopLevelOptionalArgValueUse.res:54:8 --> TopLevelOptionalArgValueUse.res:45:4
   Scanning TransitiveType1.cmt Source:TransitiveType1.res
   addValueDeclaration +convert TransitiveType1.res:2:4 path:+TransitiveType1
   addValueDeclaration +convertAlias TransitiveType1.res:5:4 path:+TransitiveType1
@@ -1958,9 +2092,9 @@
   
 Forward Liveness Analysis
 
-    decls: 702
-    roots(external targets): 137
-    decl-deps: decls_with_out=411 edges_to_decls=289
+    decls: 740
+    roots(external targets): 160
+    decl-deps: decls_with_out=446 edges_to_decls=319
 
     Root (external ref): Value +FirstClassModules.M.InnerModule2.+k
     Root (external ref): VariantCase DeadRT.moduleAccessPath.Root
@@ -1975,6 +2109,7 @@ Forward Liveness Analysis
     Root (annotated): Value +NestedModules.Universe.Nested2.+nested2Function
     Root (annotated): Value +Tuples.+marry
     Root (annotated): Value +Docstrings.+unitArgWithoutConversionU
+    Root (external ref): Value +InterfaceOptionalArgEscape.+escaped
     Root (annotated): Value +Types.+i64Const
     Root (external ref): VariantCase +DeadTypeTest.deadType.OnlyInImplementation
     Root (annotated): Value +TestImport.+valueStartingWithUpperCaseLetter
@@ -1985,6 +2120,7 @@ Forward Liveness Analysis
     Root (annotated): Value +TypeParams3.+test
     Root (annotated): Value +Variants.+sunday
     Root (annotated): Value +NestedModules.Universe.Nested2.Nested3.+nested3Value
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveReturnCaller
     Root (external ref): RecordLabel +Unison.t.doc
     Root (annotated): Value +Tuples.+computeAreaWithIdent
     Root (annotated): Value +LetPrivate.+y
@@ -1997,7 +2133,9 @@ Forward Liveness Analysis
     Root (external ref): Value +Newton.+f
     Root (external ref): RecordLabel +Records.record.v
     Root (external ref): VariantCase +DeadTest.VariantUsedOnlyInImplementation.t.A
+    Root (external ref): Value +ContextOptionalArgs.ComponentUsingAction.+make
     Root (external ref): RecordLabel +Records.person.address
+    Root (external ref): RecordLabel +ContextOptionalArgs.NotificationProvider.props.children
     Root (annotated): Value +Variants.+testConvert2
     Root (annotated): Value +Tuples.+coord2d
     Root (external ref): Value +CreateErrorHandler1.Error1.+notification
@@ -2030,10 +2168,12 @@ Forward Liveness Analysis
     Root (external ref): Value +OptArg.+foo
     Root (annotated): Value +Variants.+fortytwoOK
     Root (external ref): Value OptArg.+bar
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveAliasCaller
     Root (annotated): Value +Records.+payloadValue
     Root (external ref): RecordLabel +DeadTest.props.s
     Root (annotated): Value +Hooks.+default
     Root (external ref): VariantCase +Unison.break_.Never
+    Root (external ref): Value +ContextOptionalArgs.NotificationProvider.+make
     Root (annotated): Value +TestEmitInnerModules.Inner.+y
     Root (external ref): VariantCase InnerModuleTypes.I.t.Foo
     Root (annotated): Value +Types.+selfRecursiveConverter
@@ -2047,6 +2187,7 @@ Forward Liveness Analysis
     Root (annotated): Value +Variants.+restResult3
     Root (external ref): RecordLabel +Tuples.person.name
     Root (external ref): Value +FirstClassModules.M.InnerModule3.+k3
+    Root (external ref): Value +ContextOptionalArgs.ComponentNotUsingAction.+dispatchNotification
     Root (external ref): RecordLabel +Records.coord.x
     Root (annotated): RecordLabel +DeadTypeTest.record.y
     Root (annotated): Value +TestImport.+defaultValue
@@ -2062,6 +2203,7 @@ Forward Liveness Analysis
     Root (annotated): Value +TestImport.+innerStuffContents
     Root (external ref): Value +ModuleExceptionBug.+ddjdj
     Root (annotated): Value +TransitiveType1.+convert
+    Root (external ref): Value +CrossFileOptionalArgValueUse.+liveReturnCaller
     Root (annotated): Value +ImportHooks.+make
     Root (external ref): VariantCase +Unison.break_.IfNeed
     Root (external ref): Value +DeadTest.+make
@@ -2082,6 +2224,7 @@ Forward Liveness Analysis
     Root (annotated): Value +Hooks.Inner.Inner2.+make
     Root (annotated): Value +ImportJsValue.+area
     Root (annotated): Value +Records.+testMyRec
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+mutuallyRecursiveCaller
     Root (annotated): Value +DeadTest.GloobLive.+globallyLive3
     Root (external ref): RecordLabel +Uncurried.auth.login
     Root (annotated): Value +ImportJsValue.+roundedNumber
@@ -2106,7 +2249,9 @@ Forward Liveness Analysis
     Root (external ref): Value +OptArg.+twoArgs
     Root (annotated): Value +OcamlWarningSuppressToplevel.+suppressed1
     Root (external ref): RecordLabel +Records.business2.address2
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveCaller
     Root (annotated): Value +Tuples.+testTuple
+    Root (external ref): Value +ContextOptionalArgs.NotificationProvider.+dispatchNotification
     Root (annotated): Value +Records.+testMyObj2
     Root (annotated): Value +Uncurried.+callback2
     Root (external ref): Value +DeadTest.VariantUsedOnlyInImplementation.+a
@@ -2117,14 +2262,17 @@ Forward Liveness Analysis
     Root (annotated): Value +TestEmitInnerModules.Inner.+x
     Root (external ref): Value +OptArg.+wrapOneArg
     Root (external ref): RecordLabel +ComponentAsProp.props.title
+    Root (external ref): Value +ContextOptionalArgs.ComponentUsingAction.+dispatchNotification
     Root (annotated): Value +Records.+findAddress
     Root (annotated): Value +Uncurried.+callback
     Root (annotated): Value +VariantsWithPayload.+printVariantWithPayload
     Root (annotated): Value +TestImmutableArray.+testImmutableArrayGet
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+formatDateTopLevelEscape
     Root (external ref): Value +TypeReexport.UseOriginal.+value
     Root (annotated): Value +Docstrings.+unnamed2
     Root (annotated): Value +LetPrivate.local_1.+x
     Root (annotated): Value +TestImport.+make
+    Root (external ref): Value +ContextOptionalArgs.NotificationProvider.Provider.+make
     Root (annotated): Value +DeadTest.GloobLive.+globallyLive1
     Root (annotated): Value +Docstrings.+grouped
     Root (annotated): Value +OcamlWarningSuppressToplevel.M.+suppressed4
@@ -2166,13 +2314,18 @@ Forward Liveness Analysis
     Root (annotated): RecordLabel +DeadTypeTest.record.x
     Root (external ref): RecordLabel +Records.myRec.type_
     Root (annotated): Value +TestOptArg.+liveSuppressesOptArgs
+    Root (external ref): Value +ContextOptionalArgs.ComponentNotUsingAction.+make
     Root (annotated): Value NestedModulesInSignature.Universe.+theAnswer
     Root (annotated): Value +Docstrings.+unitArgWithoutConversion
+    Root (annotated): Value +ContextOptionalArgs.+make
     Root (annotated): Value +References.+create
     Root (annotated): Value +Types.+currentTime
+    Root (external ref): Value +InterfaceOptionalArgEscapeUse.+use
     Root (annotated): Value +Records.+someBusiness2
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveEscapeCaller
     Root (external ref): Value +DeadTest.+ira
     Root (annotated): Value +FirstClassModules.+testConvert
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveTupleCaller
     Root (external ref): RecordLabel +Records.coord.z
     Root (annotated): Value +Types.+someIntList
     Root (annotated): Value +Types.+jsString2T
@@ -2218,6 +2371,7 @@ Forward Liveness Analysis
     Root (annotated): Value +Variants.+restResult2
     Root (annotated): Value +Docstrings.+useParam
     Root (annotated): Value +Records.+getPayload
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveReturnedFunctionCaller
     Root (annotated): Value +ScopedAnnotationsOverride.M.NestedInLive.+nestedLive
     Root (external ref): Value +FirstClassModules.M.+y
     Root (external ref): RecordLabel +Uncurried.authU.loginU
@@ -2235,6 +2389,7 @@ Forward Liveness Analysis
     Root (external ref): VariantCase +Unison.stack.Cons
     Root (external ref): Exception +DeadExn.Inside.Einside
     Root (annotated): Value +TestImport.+defaultValue2
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+liveForwardingCaller
     Root (external ref): Exception +DeadExn.Etoplevel
     Root (annotated): Value +Variants.+monday
     Root (annotated): Value +VariantsWithPayload.+printVariantWithPayloads
@@ -2253,6 +2408,7 @@ Forward Liveness Analysis
     Root (external ref): Value +FirstClassModules.M.+x
     Root (external ref): Value +TypeReexportCrossFileB.+recordValue
     Root (annotated): Value +Records.+computeArea4
+    Root (external ref): Value +InterfaceOptionalArgEscape.+takesFn
     Root (annotated): Value +TestModuleAliases.+testInner1Expanded
     Root (external ref): Value +TypeReexport.OnlyReexportedDead.+value
     Root (annotated): Value +ImportIndex.+make
@@ -2271,6 +2427,7 @@ Forward Liveness Analysis
     Root (annotated): Value +DeadTest.GloobLive.+globallyLive2
     Root (external ref): RecordLabel +TypeReexport.OnlyReexportedDead.reexportedType.usedField
     Root (annotated): Value +Docstrings.+unitArgWithConversion
+    Root (external ref): Value +TopLevelOptionalArgValueUse.+takesFn
     Root (external ref): RecordLabel +Records.business.owner
     Root (external ref): VariantCase +DeadTest.WithInclude.t.A
     Root (external ref): VariantCase +DeadTypeTest.deadType.InBoth
@@ -2288,23 +2445,28 @@ Forward Liveness Analysis
     Root (annotated): Value +UseImportJsValue.+useGetProp
     Root (annotated): Value +Hooks.+functionWithRenamedArgs
   
-  325 roots found
+  348 roots found
 
     Propagate: DeadRT.moduleAccessPath.Root -> +DeadRT.moduleAccessPath.Root
     Propagate: +TypeReexportCrossFileB.reexportedRecord.usedField -> +TypeReexportCrossFileA.originalRecord.usedField
     Propagate: +DeadTypeTest.deadType.OnlyInImplementation -> DeadTypeTest.deadType.OnlyInImplementation
     Propagate: +OptionalArgsLiveDead.+liveCaller -> +OptionalArgsLiveDead.+formatDate
+    Propagate: +TopLevelOptionalArgValueUse.+liveReturnCaller -> +TopLevelOptionalArgValueUse.+formatDateReturn
     Propagate: +Newton.+f -> +Newton.+-
     Propagate: +Newton.+f -> +Newton.++
     Propagate: +Newton.+f -> +Newton.+*
     Propagate: +DeadTest.VariantUsedOnlyInImplementation.t.A -> +DeadTest.VariantUsedOnlyInImplementation.t.A
+    Propagate: +ContextOptionalArgs.ComponentUsingAction.+make -> +ContextOptionalArgs.NotificationProvider.+useNotification
     Propagate: +DeadTest.+thisIsMarkedLive -> +DeadTest.+thisIsKeptAlive
     Propagate: +TypeReexport.UseOriginal.reexportedType.directlyUsed -> +TypeReexport.UseOriginal.originalType.directlyUsed
+    Propagate: +TopLevelOptionalArgValueUse.+liveAliasCaller -> +TopLevelOptionalArgValueUse.+formatDateAlias2
     Propagate: +Hooks.+default -> +Hooks.+make
     Propagate: InnerModuleTypes.I.t.Foo -> +InnerModuleTypes.I.t.Foo
     Propagate: DeadTypeTest.deadType.OnlyInInterface -> +DeadTypeTest.deadType.OnlyInInterface
     Propagate: +TypeReexport.UseReexported.reexportedType.usedField -> +TypeReexport.UseReexported.originalType.usedField
+    Propagate: +CrossFileOptionalArgValueUse.+liveReturnCaller -> +CrossFileOptionalArgProvider.+formatDate
     Propagate: +References.+get -> +References.R.+get
+    Propagate: +TopLevelOptionalArgValueUse.+mutuallyRecursiveCaller -> +TopLevelOptionalArgValueUse.+mutuallyRecursiveTarget
     Propagate: ErrorHandler.Make.+notify -> +ErrorHandler.Make.+notify
     Propagate: +References.+make -> +References.R.+make
     Propagate: +ScopedAnnotationsLiveVsDead.LiveScope.+root -> +ScopedAnnotationsLiveVsDead.+middleLive
@@ -2312,23 +2474,31 @@ Forward Liveness Analysis
     Propagate: +Newton.+result -> +Newton.+fPrimed
     Propagate: +Records.+findAllAddresses -> +Records.+getOpt
     Propagate: +TestOptArg.+bar -> +TestOptArg.+foo
+    Propagate: +TopLevelOptionalArgValueUse.+liveCaller -> +TopLevelOptionalArgValueUse.+formatDate
     Propagate: +DeadTest.VariantUsedOnlyInImplementation.+a -> +DeadTest.VariantUsedOnlyInImplementation.+a
     Propagate: +OptArg.+wrapOneArg -> +OptArg.+oneArg
     Propagate: +TestImmutableArray.+testImmutableArrayGet -> ImmutableArray.Array.+get
+    Propagate: +ContextOptionalArgs.NotificationProvider.Provider.+make -> +ContextOptionalArgs.NotificationProvider.+dispatchNotificationContext
     Propagate: +TypeReexport.VariantUseReexported.reexportedType.A -> +TypeReexport.VariantUseReexported.originalType.A
     Propagate: +Unison.+toString -> +Unison.+fits
     Propagate: +References.+set -> +References.R.+set
     Propagate: +DeadTest.MM.+x -> +DeadTest.MM.+x
     Propagate: NestedModulesInSignature.Universe.+theAnswer -> +NestedModulesInSignature.Universe.+theAnswer
+    Propagate: +InterfaceOptionalArgEscapeUse.+use -> InterfaceOptionalArgEscape.+escaped
+    Propagate: +TopLevelOptionalArgValueUse.+liveEscapeCaller -> +TopLevelOptionalArgValueUse.+formatDateEscapes
+    Propagate: +TopLevelOptionalArgValueUse.+liveTupleCaller -> +TopLevelOptionalArgValueUse.+formatDateTuple
     Propagate: +DeadTypeTest.t.A -> DeadTypeTest.t.A
     Propagate: ImmutableArray.+fromArray -> +ImmutableArray.+fromArray
     Propagate: +OptArg.+wrapfourArgs -> +OptArg.+fourArgs
     Propagate: +DeadRT.moduleAccessPath.Kaboom -> DeadRT.moduleAccessPath.Kaboom
+    Propagate: +TopLevelOptionalArgValueUse.+liveReturnedFunctionCaller -> +TopLevelOptionalArgValueUse.+returnedFunction
     Propagate: DeadValueTest.+valueAlive -> +DeadValueTest.+valueAlive
+    Propagate: +TopLevelOptionalArgValueUse.+liveForwardingCaller -> +TopLevelOptionalArgValueUse.+formatDateForwarded
     Propagate: +ImportJsValue.+useGetAbs -> +ImportJsValue.AbsoluteValue.+getAbs
     Propagate: +TypeReexport.VariantUseOriginal.reexportedType.A -> +TypeReexport.VariantUseOriginal.originalType.A
     Propagate: +TypeReexport.OnlyReexportedDead.reexportedType.usedField -> +TypeReexport.OnlyReexportedDead.originalType.usedField
     Propagate: +DeadTest.WithInclude.t.A -> +DeadTest.WithInclude.t.A
+    Propagate: +TopLevelOptionalArgValueUse.+formatDateAlias2 -> +TopLevelOptionalArgValueUse.+formatDateAlias
     Propagate: +References.R.+get -> +References.R.+get
     Propagate: +References.R.+make -> +References.R.+make
     Propagate: +ScopedAnnotationsLiveVsDead.+middleLive -> +ScopedAnnotationsLiveVsDead.+leafLive
@@ -2342,9 +2512,10 @@ Forward Liveness Analysis
     Propagate: ImmutableArray.Array.+get -> +ImmutableArray.+get
     Propagate: +References.R.+set -> +References.R.+set
     Propagate: +DeadTest.MM.+x -> +DeadTest.MM.+y
+    Propagate: +TopLevelOptionalArgValueUse.+returnedFunction -> +TopLevelOptionalArgValueUse.+returnsFunction
     Propagate: +ImportJsValue.AbsoluteValue.+getAbs -> +ImportJsValue.AbsoluteValue.+getAbs
   
-  53 declarations marked live via propagation
+  67 declarations marked live via propagation
 
   Dead VariantCase +AutoAnnotate.variant.R
   Dead RecordLabel +AutoAnnotate.record.variant
@@ -2373,8 +2544,64 @@ Forward Liveness Analysis
   Live (external ref) RecordLabel +ComponentAsProp.props.button
       deps: in=1 (live=1 dead=0) out=0
         <- +ComponentAsProp.+make (live)
+  Live (propagated) Value +ContextOptionalArgs.NotificationProvider.+dispatchNotificationContext
+      deps: in=2 (live=2 dead=0) out=0
+        <- +ContextOptionalArgs.NotificationProvider.Provider.+make (live)
+        <- +ContextOptionalArgs.NotificationProvider.+useNotification (live)
+  Live (external ref) Value +ContextOptionalArgs.NotificationProvider.Provider.+make
+      deps: in=1 (live=1 dead=0) out=1
+        <- +ContextOptionalArgs.NotificationProvider.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.+dispatchNotificationContext
+  Live (external ref) Value +ContextOptionalArgs.NotificationProvider.+make
+      deps: in=1 (live=1 dead=0) out=3
+        <- +ContextOptionalArgs.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.Provider.+make
+        -> +ContextOptionalArgs.NotificationProvider.props.children
+        -> +ContextOptionalArgs.NotificationProvider.+dispatchNotification
+  Live (external ref) RecordLabel +ContextOptionalArgs.NotificationProvider.props.children
+      deps: in=1 (live=1 dead=0) out=0
+        <- +ContextOptionalArgs.NotificationProvider.+make (live)
+  Live (external ref) Value +ContextOptionalArgs.NotificationProvider.+dispatchNotification
+      deps: in=1 (live=1 dead=0) out=0
+        <- +ContextOptionalArgs.NotificationProvider.+make (live)
+  Live (propagated) Value +ContextOptionalArgs.NotificationProvider.+useNotification
+      deps: in=4 (live=4 dead=0) out=1
+        <- +ContextOptionalArgs.ComponentUsingAction.+make (live)
+        <- +ContextOptionalArgs.ComponentUsingAction.+dispatchNotification (live)
+        <- +ContextOptionalArgs.ComponentNotUsingAction.+make (live)
+        <- ... (1 more)
+        -> +ContextOptionalArgs.NotificationProvider.+dispatchNotificationContext
+  Live (external ref) Value +ContextOptionalArgs.ComponentUsingAction.+make
+      deps: in=1 (live=1 dead=0) out=2
+        <- +ContextOptionalArgs.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.+useNotification
+        -> +ContextOptionalArgs.ComponentUsingAction.+dispatchNotification
+  Live (external ref) Value +ContextOptionalArgs.ComponentUsingAction.+dispatchNotification
+      deps: in=1 (live=1 dead=0) out=1
+        <- +ContextOptionalArgs.ComponentUsingAction.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.+useNotification
+  Live (external ref) Value +ContextOptionalArgs.ComponentNotUsingAction.+make
+      deps: in=1 (live=1 dead=0) out=2
+        <- +ContextOptionalArgs.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.+useNotification
+        -> +ContextOptionalArgs.ComponentNotUsingAction.+dispatchNotification
+  Live (external ref) Value +ContextOptionalArgs.ComponentNotUsingAction.+dispatchNotification
+      deps: in=1 (live=1 dead=0) out=1
+        <- +ContextOptionalArgs.ComponentNotUsingAction.+make (live)
+        -> +ContextOptionalArgs.NotificationProvider.+useNotification
+  Live (annotated) Value +ContextOptionalArgs.+make
+      deps: in=0 (live=0 dead=0) out=3
+        -> +ContextOptionalArgs.NotificationProvider.+make
+        -> +ContextOptionalArgs.ComponentUsingAction.+make
+        -> +ContextOptionalArgs.ComponentNotUsingAction.+make
   Live (external ref) Value +CreateErrorHandler1.Error1.+notification
   Live (external ref) Value +CreateErrorHandler2.Error2.+notification
+  Live (propagated) Value +CrossFileOptionalArgProvider.+formatDate
+      deps: in=1 (live=1 dead=0) out=0
+        <- +CrossFileOptionalArgValueUse.+liveReturnCaller (live)
+  Live (external ref) Value +CrossFileOptionalArgValueUse.+liveReturnCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +CrossFileOptionalArgProvider.+formatDate
   Live (external ref) Value +DeadCodeImplementation.M.+x
   Live (external ref) Exception +DeadExn.Etoplevel
       deps: in=1 (live=0 dead=1) out=0
@@ -3251,6 +3478,17 @@ Forward Liveness Analysis
         <- +InnerModuleTypes.I.t.Foo (live)
         <- +TestInnedModuleTypes.+_ (dead)
         -> +InnerModuleTypes.I.t.Foo
+  Live (external ref) Value +InterfaceOptionalArgEscape.+escaped
+      deps: in=1 (live=1 dead=0) out=0
+        <- InterfaceOptionalArgEscape.+escaped (live)
+  Live (external ref) Value +InterfaceOptionalArgEscape.+takesFn
+  Live (propagated) Value InterfaceOptionalArgEscape.+escaped
+      deps: in=1 (live=1 dead=0) out=1
+        <- +InterfaceOptionalArgEscapeUse.+use (live)
+        -> +InterfaceOptionalArgEscape.+escaped
+  Live (external ref) Value +InterfaceOptionalArgEscapeUse.+use
+      deps: in=0 (live=0 dead=0) out=1
+        -> InterfaceOptionalArgEscape.+escaped
   Live (external ref) Value +JsxV4.C.+make
   Live (annotated) Value +LetPrivate.local_1.+x
       deps: in=1 (live=1 dead=0) out=0
@@ -3669,6 +3907,73 @@ Forward Liveness Analysis
       deps: in=0 (live=0 dead=0) out=1
         -> +TestPromise.fromPayload.s
   Dead Value +ToSuppress.+toSuppress
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDate
+      deps: in=2 (live=1 dead=1) out=0
+        <- +TopLevelOptionalArgValueUse.+deadEscape (dead)
+        <- +TopLevelOptionalArgValueUse.+liveCaller (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateEscapes
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+liveEscapeCaller (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateReturn
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+liveReturnCaller (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateTuple
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+liveTupleCaller (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateForwarded
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+liveForwardingCaller (live)
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+formatDateTopLevelEscape
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateAlias
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+formatDateAlias2 (live)
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+takesFn
+      deps: in=2 (live=1 dead=1) out=0
+        <- +TopLevelOptionalArgValueUse.+deadEscape (dead)
+        <- +TopLevelOptionalArgValueUse.+liveEscapeCaller (live)
+  Dead Value +TopLevelOptionalArgValueUse.+deadEscape
+      deps: in=0 (live=0 dead=0) out=2
+        -> +TopLevelOptionalArgValueUse.+formatDate
+        -> +TopLevelOptionalArgValueUse.+takesFn
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+formatDate
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveEscapeCaller
+      deps: in=0 (live=0 dead=0) out=2
+        -> +TopLevelOptionalArgValueUse.+formatDateEscapes
+        -> +TopLevelOptionalArgValueUse.+takesFn
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveReturnCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+formatDateReturn
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveTupleCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+formatDateTuple
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveForwardingCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+formatDateForwarded
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+formatDateAlias2
+      deps: in=1 (live=1 dead=0) out=1
+        <- +TopLevelOptionalArgValueUse.+liveAliasCaller (live)
+        -> +TopLevelOptionalArgValueUse.+formatDateAlias
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveAliasCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+formatDateAlias2
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+mutuallyRecursiveCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+mutuallyRecursiveTarget
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+mutuallyRecursiveTarget
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+mutuallyRecursiveCaller (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+returnsFunction
+      deps: in=1 (live=1 dead=0) out=0
+        <- +TopLevelOptionalArgValueUse.+returnedFunction (live)
+  Live (propagated) Value +TopLevelOptionalArgValueUse.+returnedFunction
+      deps: in=1 (live=1 dead=0) out=1
+        <- +TopLevelOptionalArgValueUse.+liveReturnedFunctionCaller (live)
+        -> +TopLevelOptionalArgValueUse.+returnsFunction
+  Live (external ref) Value +TopLevelOptionalArgValueUse.+liveReturnedFunctionCaller
+      deps: in=0 (live=0 dead=0) out=1
+        -> +TopLevelOptionalArgValueUse.+returnedFunction
   Live (annotated) Value +TransitiveType1.+convert
   Live (annotated) Value +TransitiveType1.+convertAlias
   Dead Value +TransitiveType2.+convertT2
@@ -5029,6 +5334,10 @@ Forward Liveness Analysis
   TestPromise.res:11:19-32
   toPayload.result is a record label never used to read a value
 
+  Warning Dead Value
+  TopLevelOptionalArgValueUse.res:16:1-42
+  deadEscape is never used
+
   Warning Dead Module
   TransitiveType2.res:0:1
   TransitiveType2 is a dead module as all its items are dead.
@@ -5269,8 +5578,20 @@ Forward Liveness Analysis
   Unison.res:17:1-55
   optional argument break_ of function group is always supplied (2 calls)
 
+  Warning Redundant Optional Argument
+  TopLevelOptionalArgValueUse.res:41:1-46
+  optional argument fmt of function mutuallyRecursiveTarget is always supplied (1 calls)
+
+  Warning Unused Argument
+  TopLevelOptionalArgValueUse.res:4:1-33
+  optional argument fmt of function formatDate is never used
+
   Warning Redundant Optional Argument
   OptArg.res:26:1-70
   optional argument c of function wrapfourArgs is always supplied (2 calls)
+
+  Warning Unused Argument
+  TopLevelOptionalArgValueUse.res:33:1-85
+  optional argument fmt of function liveForwardingCaller is never used
   
-  Analysis reported 319 issues (Incorrect Dead Annotation:1, Warning Dead Exception:2, Warning Dead Module:22, Warning Dead Type:94, Warning Dead Value:177, Warning Dead Value With Side Effects:5, Warning Redundant Optional Argument:6, Warning Unused Argument:12)
+  Analysis reported 323 issues (Incorrect Dead Annotation:1, Warning Dead Exception:2, Warning Dead Module:22, Warning Dead Type:94, Warning Dead Value:178, Warning Dead Value With Side Effects:5, Warning Redundant Optional Argument:7, Warning Unused Argument:14)
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/ContextOptionalArgs.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/ContextOptionalArgs.res
new file mode 100644
index 0000000000..f9c4075e9d
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/ContextOptionalArgs.res
@@ -0,0 +1,60 @@
+module NotificationProvider = {
+  let dispatchNotificationContext = React.createContext((
+    ~action as _: option<string>=?,
+    _message: string,
+  ) => ())
+
+  module Provider = {
+    let make = React.Context.provider(dispatchNotificationContext)
+  }
+
+  @react.component
+  let make = (~children) => {
+    let dispatchNotification = (~action=?, message) =>
+      switch action {
+      | Some(action) => Console.log2(message, action)
+      | None => Console.log(message)
+      }
+
+    <Provider value=dispatchNotification> {children} </Provider>
+  }
+
+  let useNotification = () => React.useContext(dispatchNotificationContext)
+}
+
+module ComponentUsingAction = {
+  @react.component
+  let make = () => {
+    let dispatchNotification = NotificationProvider.useNotification()
+
+    React.useEffect(() => {
+      dispatchNotification(~action="Some action", "This is a notification message")
+      None
+    }, [])
+
+    React.null
+  }
+}
+
+module ComponentNotUsingAction = {
+  @react.component
+  let make = () => {
+    let dispatchNotification = NotificationProvider.useNotification()
+
+    React.useEffect(() => {
+      dispatchNotification("This is a notification message")
+      None
+    }, [])
+
+    React.null
+  }
+}
+
+@live
+@react.component
+let make = () => {
+  <NotificationProvider>
+    <ComponentUsingAction />
+    <ComponentNotUsingAction />
+  </NotificationProvider>
+}
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgProvider.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgProvider.res
new file mode 100644
index 0000000000..7119d158f0
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgProvider.res
@@ -0,0 +1 @@
+let formatDate = (~fmt=?, s) => s
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgValueUse.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgValueUse.res
new file mode 100644
index 0000000000..ad4d73f0d9
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/CrossFileOptionalArgValueUse.res
@@ -0,0 +1,5 @@
+let liveReturnCaller = () => {
+  CrossFileOptionalArgProvider.formatDate
+}
+
+let _ = liveReturnCaller()
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.res
new file mode 100644
index 0000000000..1505469975
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.res
@@ -0,0 +1,5 @@
+let escaped = (~fmt=?, value) => value
+
+let takesFn = _ => ()
+
+takesFn(escaped)
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.resi b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.resi
new file mode 100644
index 0000000000..de0b5900d0
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscape.resi
@@ -0,0 +1 @@
+let escaped: (~fmt: string=?, string) => string
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscapeUse.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscapeUse.res
new file mode 100644
index 0000000000..8c69690a4d
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/InterfaceOptionalArgEscapeUse.res
@@ -0,0 +1,3 @@
+let use = () => InterfaceOptionalArgEscape.escaped("value")
+
+let _ = use()
diff --git a/tests/analysis_tests/tests-reanalyze/deadcode/src/TopLevelOptionalArgValueUse.res b/tests/analysis_tests/tests-reanalyze/deadcode/src/TopLevelOptionalArgValueUse.res
new file mode 100644
index 0000000000..32aba79370
--- /dev/null
+++ b/tests/analysis_tests/tests-reanalyze/deadcode/src/TopLevelOptionalArgValueUse.res
@@ -0,0 +1,54 @@
+/* Dead first-class escapes should not suppress optional-arg warnings, but live
+   first-class escapes should suppress them even when there is also a direct call. */
+
+let formatDate = (~fmt=?, s) => s
+let formatDateEscapes = (~fmt=?, s) => s
+let formatDateReturn = (~fmt=?, s) => s
+let formatDateTuple = (~fmt=?, s) => s
+let formatDateForwarded = (~fmt=?, s) => s
+let formatDateTopLevelEscape = (~fmt=?, s) => s
+let formatDateAlias = (~fmt=?, s) => s
+
+let takesFn = _ => ()
+
+takesFn(formatDateTopLevelEscape)
+
+let deadEscape = () => takesFn(formatDate)
+
+let liveCaller = () => formatDate("2024-01-01")
+
+let liveEscapeCaller = () => {
+  takesFn(formatDateEscapes)
+  formatDateEscapes("2024-01-01")
+}
+
+let liveReturnCaller = () => {
+  formatDateReturn
+}
+
+let liveTupleCaller = () => {
+  (formatDateTuple, "tuple")
+}
+
+let liveForwardingCaller = (~fmt=?) => {
+  formatDateForwarded(~fmt?, "2024-01-01")
+}
+
+let formatDateAlias2 = formatDateAlias
+let liveAliasCaller = () => formatDateAlias2("2024-01-01")
+
+let rec mutuallyRecursiveCaller = () => mutuallyRecursiveTarget(~fmt="ISO", "2024-01-01")
+and mutuallyRecursiveTarget = (~fmt=?, s) => s
+
+let returnsFunction = value => (~inner: option<string>=?) => value
+let returnedFunction = returnsFunction("value")
+let liveReturnedFunctionCaller = () => returnedFunction()
+
+let _ = liveCaller()
+let _ = liveEscapeCaller()
+let _ = liveReturnCaller()
+let _ = liveTupleCaller()
+let _ = liveForwardingCaller()
+let _ = liveAliasCaller()
+let _ = mutuallyRecursiveCaller()
+let _ = liveReturnedFunctionCaller()