diff --git a/demo/vite-project/src/components/tanstack-form-test.tsx b/demo/vite-project/src/components/tanstack-form-test.tsx
new file mode 100644
index 000000000..247060b8b
--- /dev/null
+++ b/demo/vite-project/src/components/tanstack-form-test.tsx
@@ -0,0 +1,123 @@
+import React from 'react';
+
+// Simulating Tanstack Forms pattern
+function useForm() {
+  return {
+    AppForm: ({ children }: { children: React.ReactNode }) => (
+      <form style={{ padding: '20px', border: '2px solid blue' }}>{children}</form>
+    ),
+    CancelButton: ({ children, onClick }: { children: React.ReactNode; onClick?: () => void }) => (
+      <button
+        type="button"
+        onClick={onClick}
+        style={{
+          padding: '10px 20px',
+          backgroundColor: 'red',
+          color: 'white',
+          marginRight: '10px',
+          border: 'none',
+          borderRadius: '4px',
+          cursor: 'pointer'
+        }}
+      >
+        {children}
+      </button>
+    ),
+    SubmitButton: ({ children }: { children: React.ReactNode }) => (
+      <button
+        type="submit"
+        style={{
+          padding: '10px 20px',
+          backgroundColor: 'green',
+          color: 'white',
+          border: 'none',
+          borderRadius: '4px',
+          cursor: 'pointer'
+        }}
+      >
+        {children}
+      </button>
+    ),
+  };
+}
+
+// Simulating uppercase workaround
+function useFormUppercase() {
+  return {
+    AppForm: ({ children }: { children: React.ReactNode }) => (
+      <form style={{ padding: '20px', border: '2px solid green' }}>{children}</form>
+    ),
+    CancelButton: ({ children, onClick }: { children: React.ReactNode; onClick?: () => void }) => (
+      <button
+        type="button"
+        onClick={onClick}
+        style={{
+          padding: '10px 20px',
+          backgroundColor: 'red',
+          color: 'white',
+          marginRight: '10px',
+          border: 'none',
+          borderRadius: '4px',
+          cursor: 'pointer'
+        }}
+      >
+        {children}
+      </button>
+    ),
+    SubmitButton: ({ children }: { children: React.ReactNode }) => (
+      <button
+        type="submit"
+        style={{
+          padding: '10px 20px',
+          backgroundColor: 'green',
+          color: 'white',
+          border: 'none',
+          borderRadius: '4px',
+          cursor: 'pointer'
+        }}
+      >
+        {children}
+      </button>
+    ),
+  };
+}
+
+export default function TanstackFormTest() {
+  const form = useForm();
+  const FormContent = useFormUppercase();
+
+  const handleCancel = () => {
+    alert('Cancel clicked!');
+  };
+
+  return (
+    <div style={{ padding: '20px' }}>
+      <h2>Tanstack Forms + Lingo.dev Compiler Issue #1165</h2>
+
+      <div style={{ marginBottom: '40px' }}>
+        <h3>✅ Previously broken: Lowercase variable name (form) - now fixed</h3>
+        <p>Using: <code>const form = useForm()</code></p>
+        <p>Expected: Blue border, styled buttons with click functionality</p>
+        <form.AppForm>
+          <div>
+            <form.CancelButton onClick={handleCancel}>Cancel</form.CancelButton>
+            <form.SubmitButton>Submit</form.SubmitButton>
+          </div>
+        </form.AppForm>
+      </div>
+
+      <div>
+        <h3>Working: Uppercase variable name (FormContent)</h3>
+        <p>Using: <code>const FormContent = useFormUppercase()</code></p>
+        <p>Expected: Green border, styled buttons with click functionality</p>
+        <FormContent.AppForm>
+          <div>
+            <FormContent.CancelButton onClick={handleCancel}>Cancel</FormContent.CancelButton>
+            <FormContent.SubmitButton>Submit</FormContent.SubmitButton>
+          </div>
+        </FormContent.AppForm>
+      </div>
+    </div>
+  );
+}
+
diff --git a/packages/compiler/src/jsx-scope-inject.ts b/packages/compiler/src/jsx-scope-inject.ts
index d1003a68a..a69c8c689 100644
--- a/packages/compiler/src/jsx-scope-inject.ts
+++ b/packages/compiler/src/jsx-scope-inject.ts
@@ -14,6 +14,25 @@ import { getJsxExpressions } from "./utils/jsx-expressions";
 import { collectJsxScopes, getJsxScopeAttribute } from "./utils/jsx-scope";
 import { setJsxAttributeValue } from "./utils/jsx-attribute";
 
+/**
+ * Creates a proper AST node from a string that may contain dots (member expressions).
+ * For example, "form.Button" becomes a member expression AST, while "Button" becomes an identifier.
+ * @param str - The string to convert (e.g., "form.Button" or "Button")
+ * @returns A Babel AST Expression node
+ */
+function createMemberExpressionFromString(str: string): t.Expression {
+  const parts = str.split('.');
+  if (parts.length === 1) {
+    return t.identifier(parts[0]);
+  }
+
+  let expr: t.Expression = t.identifier(parts[0]);
+  for (let i = 1; i < parts.length; i++) {
+    expr = t.memberExpression(expr, t.identifier(parts[i]));
+  }
+  return expr;
+}
+
 export const lingoJsxScopeInjectMutation = createCodeMutation((payload) => {
   const mode = getModuleExecutionMode(payload.ast, payload.params.rsc);
   const jsxScopes = collectJsxScopes(payload.ast);
@@ -55,8 +74,13 @@ export const lingoJsxScopeInjectMutation = createCodeMutation((payload) => {
     } as any;
 
     // Add $as prop
-    const as = /^[A-Z]/.test(originalJsxElementName)
-      ? t.identifier(originalJsxElementName)
+    // Check if it's a member expression (contains dot) or starts with uppercase.
+    // Member expressions (e.g., form.Button) and uppercase names (e.g., Button) 
+    // should be treated as component references, not HTML element strings.
+    const isMemberExpression = originalJsxElementName.includes(".");
+    const isComponent = /^[A-Z]/.test(originalJsxElementName);
+    const as = isMemberExpression || isComponent
+      ? createMemberExpressionFromString(originalJsxElementName)
       : originalJsxElementName;
     setJsxAttributeValue(newNodePath, "$as", as);