diff --git a/transforms/angle-brackets/telemetry/mock-invokables.js b/transforms/angle-brackets/telemetry/mock-invokables.js
index 9715c6ea1..98b1352d7 100644
--- a/transforms/angle-brackets/telemetry/mock-invokables.js
+++ b/transforms/angle-brackets/telemetry/mock-invokables.js
@@ -101,4 +101,7 @@ module.exports = {
   'app/helpers/nested/helper': {
     type: 'Helper',
   },
+  'app/components/power-select': {
+    type: 'Component',
+  },
 };
diff --git a/transforms/angle-brackets/transform.js b/transforms/angle-brackets/transform.js
index 56d7132c3..f271cd44e 100755
--- a/transforms/angle-brackets/transform.js
+++ b/transforms/angle-brackets/transform.js
@@ -12,6 +12,8 @@ const HTML_ATTRIBUTES = ['class', 'placeholder', 'required'];
 const BUILT_IN_COMPONENTS = ['link-to', 'input', 'textarea'];
 
 let inAttr = false;
+let havingBlockParams = false;
+let currentBlockParams = [];
 
 function isAttribute(key) {
   return HTML_ATTRIBUTES.includes(key) || isDataAttribute(key);
@@ -435,16 +437,23 @@ function transformToAngleBracket(fileInfo, config, invokableData) {
         node.loc.source !== '(synthetic)' &&
         !shouldIgnoreMustacheStatement(tagName, config, invokableData);
       const isNestedComponent = isNestedComponentTagName(tagName);
+      const isNotBlockParamValue =
+        !havingBlockParams && !currentBlockParams.includes(node.path.original);
 
       if (
         isValidMustache &&
-        (node.hash.pairs.length > 0 || node.params.length > 0 || isNestedComponent)
+        (node.hash.pairs.length > 0 || node.params.length > 0 || isNestedComponent) &&
+        isNotBlockParamValue
       ) {
         return transformNode(node, fileInfo, config);
       }
     },
     BlockStatement(node) {
       let tagName = `${node.path.original}`;
+      havingBlockParams = node.program.blockParams.length > 0;
+      if (havingBlockParams) {
+        currentBlockParams = node.program.blockParams;
+      }
       if (
         !shouldIgnoreMustacheStatement(node.path.original, config, invokableData) ||
         isWallStreet(tagName)
diff --git a/transforms/angle-brackets/transform.test.js b/transforms/angle-brackets/transform.test.js
index 937cd79d5..32ae98641 100644
--- a/transforms/angle-brackets/transform.test.js
+++ b/transforms/angle-brackets/transform.test.js
@@ -1164,3 +1164,61 @@ test('No telemetry', () => {
       "
   `);
 });
+
+test('contextual-component-variable', () => {
+  let input = `
+  {{#power-select search=(perform searchThings)
+    selected=selectedResult
+    placeholder="Enter the thing..."
+    loadingMessage="Searching..."
+    onchange=(perform selectThing) as |fooResult|}}
+      <span class="select-description">{{fooResult.attributes.thing-desc}}</span>
+  {{/power-select}}
+  `;
+
+  expect(runTest('contextual-component-variable.hbs', input)).toMatchInlineSnapshot(`
+    "
+      <PowerSelect @search={{perform searchThings}} @selected={{selectedResult}} @placeholder=\\"Enter the thing...\\" @loadingMessage=\\"Searching...\\" @onchange={{perform selectThing}} as |fooResult|>
+          <span class=\\"select-description\\">{{fooResult.attributes.thing-desc}}</span>
+      </PowerSelect>
+      "
+  `);
+});
+
+test('nested-block-params', () => {
+  let input = `
+  {{#my-component as |foo myAction hash components|}}
+  {{foo}} {{myAction}}
+  {{hash.property}} {{hash.foo}}
+
+  {{components.foo}}
+
+  {{#components.my-component}}
+
+  {{/components.my-component}}
+
+  {{#components.block as |block|}}
+    {{block}}
+  {{/components.block}}
+  {{/my-component}}
+  `;
+
+  expect(runTest('nested-block-params', input)).toMatchInlineSnapshot(`
+    "
+      <MyComponent as |foo myAction hash components|>
+      {{foo}} {{myAction}}
+      {{hash.property}} {{hash.foo}}
+
+      {{components.foo}}
+
+      <components.my-component>
+
+      </components.my-component>
+
+      <components.block as |block|>
+        {{block}}
+      </components.block>
+      </MyComponent>
+      "
+  `);
+});