diff --git a/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts b/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
index 52a5a8b8c769..de85dfeabd24 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Optimization/ConstantPropagation.ts
@@ -58,12 +58,58 @@ import {eliminateRedundantPhi} from '../SSA';
  */
 export function constantPropagation(fn: HIRFunction): void {
   const constants: Constants = new Map();
-  constantPropagationImpl(fn, constants);
+  const jsxSimpleTagPlaces = collectJsxSimpleTagPlaces(fn);
+  constantPropagationImpl(fn, constants, jsxSimpleTagPlaces);
 }
 
-function constantPropagationImpl(fn: HIRFunction, constants: Constants): void {
+/*
+ * Collect the `IdentifierId` of every Place that is used as a JSX element's
+ * tag (i.e. simple `<X />`, not `<x.Y />` / `<x:y />`). These places may not
+ * be rewritten through a LoadGlobal whose binding name has different JSX
+ * component-vs-intrinsic casing, because doing so changes runtime semantics
+ * (JSX treats lowercase tags as string intrinsics and uppercase ones as
+ * component references).
+ */
+function collectJsxSimpleTagPlaces(fn: HIRFunction): Set<IdentifierId> {
+  const set = new Set<IdentifierId>();
+  const visit = (f: HIRFunction): void => {
+    for (const [, block] of f.body.blocks) {
+      for (const instr of block.instructions) {
+        const v = instr.value;
+        if (v.kind === 'JsxExpression' && v.tag.kind === 'Identifier') {
+          set.add(v.tag.identifier.id);
+        }
+        if (v.kind === 'FunctionExpression' || v.kind === 'ObjectMethod') {
+          visit(v.loweredFunc.func);
+        }
+      }
+    }
+  };
+  visit(fn);
+  return set;
+}
+
+/*
+ * Heuristic: identifiers whose first alphabetic character is uppercase are
+ * conventionally React components in JSX, while lowercase ones are intrinsic
+ * (HTML) element tags.
+ */
+function isLikelyComponentName(name: string): boolean {
+  const first = name.match(/[A-Za-z]/);
+  return first !== null && first[0] === first[0].toUpperCase();
+}
+
+function constantPropagationImpl(
+  fn: HIRFunction,
+  constants: Constants,
+  jsxSimpleTagPlaces: Set<IdentifierId> = new Set(),
+): void {
   while (true) {
-    const haveTerminalsChanged = applyConstantPropagation(fn, constants);
+    const haveTerminalsChanged = applyConstantPropagation(
+      fn,
+      constants,
+      jsxSimpleTagPlaces,
+    );
     if (!haveTerminalsChanged) {
       break;
     }
@@ -107,6 +153,7 @@ function constantPropagationImpl(fn: HIRFunction, constants: Constants): void {
 function applyConstantPropagation(
   fn: HIRFunction,
   constants: Constants,
+  jsxSimpleTagPlaces: Set<IdentifierId>,
 ): boolean {
   let hasChanges = false;
   for (const [, block] of fn.body.blocks) {
@@ -131,7 +178,7 @@ function applyConstantPropagation(
         continue;
       }
       const instr = block.instructions[i]!;
-      const value = evaluateInstruction(constants, instr);
+      const value = evaluateInstruction(constants, instr, jsxSimpleTagPlaces);
       if (value !== null) {
         constants.set(instr.lvalue.identifier.id, value);
       }
@@ -224,6 +271,7 @@ function evaluatePhi(phi: Phi, constants: Constants): Constant | null {
 function evaluateInstruction(
   constants: Constants,
   instr: Instruction,
+  jsxSimpleTagPlaces: Set<IdentifierId>,
 ): Constant | null {
   const value = instr.value;
   switch (value.kind) {
@@ -578,6 +626,30 @@ function evaluateInstruction(
     case 'LoadLocal': {
       const placeValue = read(constants, value.place);
       if (placeValue !== null) {
+        /*
+         * Skip rewriting when the lvalue is used as a simple JSX tag and the
+         * candidate constant is a LoadGlobal whose binding name has different
+         * JSX component-vs-intrinsic casing than the local. Propagating would
+         * flip `<Comp />` (component reference) into `<base />` (intrinsic
+         * HTML tag) or vice versa, changing runtime semantics.
+         */
+        if (
+          placeValue.kind === 'LoadGlobal' &&
+          jsxSimpleTagPlaces.has(instr.lvalue.identifier.id)
+        ) {
+          const localName =
+            value.place.identifier.name?.kind === 'named'
+              ? value.place.identifier.name.value
+              : null;
+          const globalName = placeValue.binding.name;
+          if (
+            localName !== null &&
+            isLikelyComponentName(localName) !==
+              isLikelyComponentName(globalName)
+          ) {
+            return placeValue;
+          }
+        }
         instr.value = placeValue;
       }
       return placeValue;
@@ -591,7 +663,11 @@ function evaluateInstruction(
     }
     case 'ObjectMethod':
     case 'FunctionExpression': {
-      constantPropagationImpl(value.loweredFunc.func, constants);
+      constantPropagationImpl(
+        value.loweredFunc.func,
+        constants,
+        jsxSimpleTagPlaces,
+      );
       return null;
     }
     case 'StartMemoize': {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.expect.md
new file mode 100644
index 000000000000..86b02ebccfd9
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.expect.md
@@ -0,0 +1,55 @@
+
+## Input
+
+```javascript
+// Regression test for https://github.com/facebook/react/issues/35268
+// When a component-named local alias points to a lowercase global, the
+// local must not be rewritten through constant propagation — doing so
+// turns `<Comp />` (component reference) into `<base />` (HTML element).
+
+const base = 'div';
+
+function Component() {
+  const Comp = base;
+  return <Comp />;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // Regression test for https://github.com/facebook/react/issues/35268
+// When a component-named local alias points to a lowercase global, the
+// local must not be rewritten through constant propagation — doing so
+// turns `<Comp />` (component reference) into `<base />` (HTML element).
+
+const base = "div";
+
+function Component() {
+  const $ = _c(1);
+  const Comp = base;
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <Comp />;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [],
+};
+
+```
+      
+### Eval output
+(kind: ok) <div></div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.js
new file mode 100644
index 000000000000..3ae2a441e066
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/jsx-component-local-aliasing-lowercase-global.js
@@ -0,0 +1,16 @@
+// Regression test for https://github.com/facebook/react/issues/35268
+// When a component-named local alias points to a lowercase global, the
+// local must not be rewritten through constant propagation — doing so
+// turns `<Comp />` (component reference) into `<base />` (HTML element).
+
+const base = 'div';
+
+function Component() {
+  const Comp = base;
+  return <Comp />;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [],
+};