diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
index 0ef41866a51c2..57567f325fd9e 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
@@ -621,6 +621,13 @@ export const EnvironmentConfigSchema = z.object({
    */
   enableTreatRefLikeIdentifiersAsRefs: z.boolean().default(true),
 
+  /**
+   * Treat identifiers as SetState type if both
+   * - they are named with a "set-" prefix
+   * - they are called somewhere
+   */
+  enableTreatSetIdentifiersAsStateSetters: z.boolean().default(false),
+
   /*
    * If specified a value, the compiler lowers any calls to `useContext` to use
    * this value as the callee.
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 682195f8df624..1c4443e5a49a0 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/TypeInference/InferTypes.ts
@@ -31,6 +31,7 @@ import {
   BuiltInObjectId,
   BuiltInPropsId,
   BuiltInRefValueId,
+  BuiltInSetStateId,
   BuiltInUseRefId,
 } from '../HIR/ObjectShape';
 import {eachInstructionLValue, eachInstructionOperand} from '../HIR/visitors';
@@ -276,9 +277,16 @@ function* generateInstructionTypes(
        * We should change Hook to a subtype of Function or change unifier logic.
        * (see https://github.com/facebook/react-forget/pull/1427)
        */
+      let shapeId: string | null = null;
+      if (env.config.enableTreatSetIdentifiersAsStateSetters) {
+        const name = getName(names, value.callee.identifier.id);
+        if (name.startsWith('set')) {
+          shapeId = BuiltInSetStateId;
+        }
+      }
       yield equation(value.callee.identifier.type, {
         kind: 'Function',
-        shapeId: null,
+        shapeId,
         return: returnType,
         isConstructor: false,
       });
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.expect.md
new file mode 100644
index 0000000000000..fcd2f7c4569e6
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.expect.md
@@ -0,0 +1,55 @@
+
+## Input
+
+```javascript
+// @validateNoSetStateInRender @enableTreatSetIdentifiersAsStateSetters
+function Component() {
+  const [state, setState] = useCustomState(0);
+  const aliased = setState;
+
+  setState(1);
+  aliased(2);
+
+  return state;
+}
+
+function useCustomState(init) {
+  return useState(init);
+}
+
+```
+
+
+## Error
+
+```
+Found 2 errors:
+
+Error: Calling setState during render may trigger an infinite loop
+
+Calling setState during render will trigger another render, and can lead to infinite loops. (https://react.dev/reference/react/useState).
+
+error.invalid-unconditional-set-state-hook-return-in-render.ts:6:2
+  4 |   const aliased = setState;
+  5 |
+> 6 |   setState(1);
+    |   ^^^^^^^^ Found setState() in render
+  7 |   aliased(2);
+  8 |
+  9 |   return state;
+
+Error: Calling setState during render may trigger an infinite loop
+
+Calling setState during render will trigger another render, and can lead to infinite loops. (https://react.dev/reference/react/useState).
+
+error.invalid-unconditional-set-state-hook-return-in-render.ts:7:2
+   5 |
+   6 |   setState(1);
+>  7 |   aliased(2);
+     |   ^^^^^^^ Found setState() in render
+   8 |
+   9 |   return state;
+  10 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.js
new file mode 100644
index 0000000000000..ed9158ff09681
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-hook-return-in-render.js
@@ -0,0 +1,14 @@
+// @validateNoSetStateInRender @enableTreatSetIdentifiersAsStateSetters
+function Component() {
+  const [state, setState] = useCustomState(0);
+  const aliased = setState;
+
+  setState(1);
+  aliased(2);
+
+  return state;
+}
+
+function useCustomState(init) {
+  return useState(init);
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.expect.md
new file mode 100644
index 0000000000000..1a3eb1b7c6a92
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.expect.md
@@ -0,0 +1,50 @@
+
+## Input
+
+```javascript
+// @validateNoSetStateInRender @enableTreatSetIdentifiersAsStateSetters
+function Component({setX}) {
+  const aliased = setX;
+
+  setX(1);
+  aliased(2);
+
+  return x;
+}
+
+```
+
+
+## Error
+
+```
+Found 2 errors:
+
+Error: Calling setState during render may trigger an infinite loop
+
+Calling setState during render will trigger another render, and can lead to infinite loops. (https://react.dev/reference/react/useState).
+
+error.invalid-unconditional-set-state-prop-in-render.ts:5:2
+  3 |   const aliased = setX;
+  4 |
+> 5 |   setX(1);
+    |   ^^^^ Found setState() in render
+  6 |   aliased(2);
+  7 |
+  8 |   return x;
+
+Error: Calling setState during render may trigger an infinite loop
+
+Calling setState during render will trigger another render, and can lead to infinite loops. (https://react.dev/reference/react/useState).
+
+error.invalid-unconditional-set-state-prop-in-render.ts:6:2
+  4 |
+  5 |   setX(1);
+> 6 |   aliased(2);
+    |   ^^^^^^^ Found setState() in render
+  7 |
+  8 |   return x;
+  9 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.js
new file mode 100644
index 0000000000000..1a14c33fe3807
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/error.invalid-unconditional-set-state-prop-in-render.js
@@ -0,0 +1,9 @@
+// @validateNoSetStateInRender @enableTreatSetIdentifiersAsStateSetters
+function Component({setX}) {
+  const aliased = setX;
+
+  setX(1);
+  aliased(2);
+
+  return x;
+}