diff --git a/servers/rendering/renderer_rd/shader_compiler_rd.cpp b/servers/rendering/renderer_rd/shader_compiler_rd.cpp
index 9c1068ea2ec..8aa03b6426a 100644
--- a/servers/rendering/renderer_rd/shader_compiler_rd.cpp
+++ b/servers/rendering/renderer_rd/shader_compiler_rd.cpp
@@ -887,7 +887,7 @@ String ShaderCompilerRD::_dump_node_code(const SL::Node *p_node, int p_level, Ge
 			SL::VariableNode *vnode = (SL::VariableNode *)p_node;
 			bool use_fragment_varying = false;
 
-			if (!(p_actions.entry_point_stages.has(current_func_name) && p_actions.entry_point_stages[current_func_name] == STAGE_VERTEX)) {
+			if (!vnode->is_local && !(p_actions.entry_point_stages.has(current_func_name) && p_actions.entry_point_stages[current_func_name] == STAGE_VERTEX)) {
 				if (p_assigning) {
 					if (shader->varyings.has(vnode->name)) {
 						use_fragment_varying = true;
@@ -1037,7 +1037,7 @@ String ShaderCompilerRD::_dump_node_code(const SL::Node *p_node, int p_level, Ge
 			SL::ArrayNode *anode = (SL::ArrayNode *)p_node;
 			bool use_fragment_varying = false;
 
-			if (!(p_actions.entry_point_stages.has(current_func_name) && p_actions.entry_point_stages[current_func_name] == STAGE_VERTEX)) {
+			if (!anode->is_local && !(p_actions.entry_point_stages.has(current_func_name) && p_actions.entry_point_stages[current_func_name] == STAGE_VERTEX)) {
 				if (anode->assign_expression != nullptr && shader->varyings.has(anode->name)) {
 					use_fragment_varying = true;
 				} else {
diff --git a/servers/rendering/shader_language.cpp b/servers/rendering/shader_language.cpp
index 47c6317962f..20fcb1396d1 100644
--- a/servers/rendering/shader_language.cpp
+++ b/servers/rendering/shader_language.cpp
@@ -4228,6 +4228,7 @@ ShaderLanguage::Node *ShaderLanguage::_parse_expression(BlockNode *p_block, cons
 				IdentifierType ident_type;
 				int array_size = 0;
 				StringName struct_name;
+				bool is_local = false;
 
 				if (p_block && p_block->block_tag != SubClassTag::TAG_GLOBAL) {
 					int idx = 0;
@@ -4284,6 +4285,8 @@ ShaderLanguage::Node *ShaderLanguage::_parse_expression(BlockNode *p_block, cons
 					} else {
 						last_type = ident_type;
 					}
+
+					is_local = ident_type == IDENTIFIER_LOCAL_VAR || ident_type == IDENTIFIER_FUNCTION_ARGUMENT;
 				}
 
 				Node *index_expression = nullptr;
@@ -4358,6 +4361,7 @@ ShaderLanguage::Node *ShaderLanguage::_parse_expression(BlockNode *p_block, cons
 					arrname->assign_expression = assign_expression;
 					arrname->is_const = is_const;
 					arrname->array_size = array_size;
+					arrname->is_local = is_local;
 					expr = arrname;
 				} else {
 					VariableNode *varname = alloc_node<VariableNode>();
@@ -4365,6 +4369,7 @@ ShaderLanguage::Node *ShaderLanguage::_parse_expression(BlockNode *p_block, cons
 					varname->datatype_cache = data_type;
 					varname->is_const = is_const;
 					varname->struct_name = struct_name;
+					varname->is_local = is_local;
 					expr = varname;
 				}
 #ifdef DEBUG_ENABLED
diff --git a/servers/rendering/shader_language.h b/servers/rendering/shader_language.h
index fae7fa54aae..9e0a63f0f7a 100644
--- a/servers/rendering/shader_language.h
+++ b/servers/rendering/shader_language.h
@@ -409,6 +409,7 @@ public:
 		StringName name;
 		StringName struct_name;
 		bool is_const = false;
+		bool is_local = false;
 
 		virtual DataType get_datatype() const override { return datatype_cache; }
 		virtual String get_datatype_name() const override { return String(struct_name); }
@@ -444,6 +445,7 @@ public:
 		Node *assign_expression = nullptr;
 		bool is_const = false;
 		int array_size = 0;
+		bool is_local = false;
 
 		virtual DataType get_datatype() const override { return datatype_cache; }
 		virtual String get_datatype_name() const override { return String(struct_name); }