diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/PrintHIR.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/PrintHIR.ts
index aa6a7b0c65ce..f12dcd6e4318 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/PrintHIR.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/PrintHIR.ts
@@ -892,7 +892,8 @@ export function printType(type: Type): string {
   if (type.kind === 'Object' && type.shapeId != null) {
     return `:T${type.kind}<${type.shapeId}>`;
   } else if (type.kind === 'Function' && type.shapeId != null) {
-    return `:T${type.kind}<${type.shapeId}>`;
+    const returnType = printType(type.return);
+    return `:T${type.kind}<${type.shapeId}>()${returnType !== '' ? `:  ${returnType}` : ''}`;
   } else {
     return `:T${type.kind}`;
   }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Inference/InferMutationAliasingEffects.ts b/compiler/packages/babel-plugin-react-compiler/src/Inference/InferMutationAliasingEffects.ts
index 2adf78fe058e..ac2d0ab32a05 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Inference/InferMutationAliasingEffects.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Inference/InferMutationAliasingEffects.ts
@@ -26,6 +26,7 @@ import {
   InstructionKind,
   InstructionValue,
   isArrayType,
+  isJsxType,
   isMapType,
   isPrimitiveType,
   isRefOrRefValue,
@@ -1841,6 +1842,23 @@ function computeSignatureForInstruction(
             });
           }
         }
+        for (const prop of value.props) {
+          if (
+            prop.kind === 'JsxAttribute' &&
+            prop.place.identifier.type.kind === 'Function' &&
+            (isJsxType(prop.place.identifier.type.return) ||
+              (prop.place.identifier.type.return.kind === 'Phi' &&
+                prop.place.identifier.type.return.operands.some(operand =>
+                  isJsxType(operand),
+                )))
+          ) {
+            // Any props which return jsx are assumed to be called during render
+            effects.push({
+              kind: 'Render',
+              place: prop.place,
+            });
+          }
+        }
       }
       break;
     }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts b/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts
index 488d988b9715..d3a297e2e51c 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts
@@ -777,6 +777,15 @@ class Unifier {
       return {kind: 'Phi', operands: type.operands.map(o => this.get(o))};
     }
 
+    if (type.kind === 'Function') {
+      return {
+        kind: 'Function',
+        isConstructor: type.isConstructor,
+        shapeId: type.shapeId,
+        return: this.get(type.return),
+      };
+    }
+
     return type;
   }
 }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.expect.md
new file mode 100644
index 000000000000..3e3dcab81868
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.expect.md
@@ -0,0 +1,44 @@
+
+## Input
+
+```javascript
+function Component() {
+  const renderItem = item => {
+    // Multiple returns so that the return type is a Phi (union)
+    if (item == null) {
+      return null;
+    }
+    // Normally we assume that it's safe to mutate globals in a function passed
+    // as a prop, because the prop could be used as an event handler or effect.
+    // But if the function returns JSX we can assume it's a render helper, ie
+    // called during render, and thus it's unsafe to mutate globals or call
+    // other impure code.
+    global.property = true;
+    return <Item item={item} value={rand} />;
+  };
+  return <ItemList renderItem={renderItem} />;
+}
+
+```
+
+
+## Error
+
+```
+Found 1 error:
+
+Error: This value cannot be modified
+
+Modifying a variable defined outside a component or hook is not allowed. Consider using an effect.
+
+error.invalid-mutate-global-in-render-helper-phi-return-prop.ts:12:4
+  10 |     // called during render, and thus it's unsafe to mutate globals or call
+  11 |     // other impure code.
+> 12 |     global.property = true;
+     |     ^^^^^^ value cannot be modified
+  13 |     return <Item item={item} value={rand} />;
+  14 |   };
+  15 |   return <ItemList renderItem={renderItem} />;
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.js
new file mode 100644
index 000000000000..b6ca0a04aeea
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-phi-return-prop.js
@@ -0,0 +1,16 @@
+function Component() {
+  const renderItem = item => {
+    // Multiple returns so that the return type is a Phi (union)
+    if (item == null) {
+      return null;
+    }
+    // Normally we assume that it's safe to mutate globals in a function passed
+    // as a prop, because the prop could be used as an event handler or effect.
+    // But if the function returns JSX we can assume it's a render helper, ie
+    // called during render, and thus it's unsafe to mutate globals or call
+    // other impure code.
+    global.property = true;
+    return <Item item={item} value={rand} />;
+  };
+  return <ItemList renderItem={renderItem} />;
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.expect.md
new file mode 100644
index 000000000000..9e995d5124d4
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.expect.md
@@ -0,0 +1,40 @@
+
+## Input
+
+```javascript
+function Component() {
+  const renderItem = item => {
+    // Normally we assume that it's safe to mutate globals in a function passed
+    // as a prop, because the prop could be used as an event handler or effect.
+    // But if the function returns JSX we can assume it's a render helper, ie
+    // called during render, and thus it's unsafe to mutate globals or call
+    // other impure code.
+    global.property = true;
+    return <Item item={item} value={rand} />;
+  };
+  return <ItemList renderItem={renderItem} />;
+}
+
+```
+
+
+## Error
+
+```
+Found 1 error:
+
+Error: This value cannot be modified
+
+Modifying a variable defined outside a component or hook is not allowed. Consider using an effect.
+
+error.invalid-mutate-global-in-render-helper-prop.ts:8:4
+   6 |     // called during render, and thus it's unsafe to mutate globals or call
+   7 |     // other impure code.
+>  8 |     global.property = true;
+     |     ^^^^^^ value cannot be modified
+   9 |     return <Item item={item} value={rand} />;
+  10 |   };
+  11 |   return <ItemList renderItem={renderItem} />;
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.js
new file mode 100644
index 000000000000..9355c482fb61
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-mutate-global-in-render-helper-prop.js
@@ -0,0 +1,12 @@
+function Component() {
+  const renderItem = item => {
+    // Normally we assume that it's safe to mutate globals in a function passed
+    // as a prop, because the prop could be used as an event handler or effect.
+    // But if the function returns JSX we can assume it's a render helper, ie
+    // called during render, and thus it's unsafe to mutate globals or call
+    // other impure code.
+    global.property = true;
+    return <Item item={item} value={rand} />;
+  };
+  return <ItemList renderItem={renderItem} />;
+}