diff --git a/src/main/java/com/hubspot/jinjava/interpret/JinjavaInterpreter.java b/src/main/java/com/hubspot/jinjava/interpret/JinjavaInterpreter.java
index 4034ee43c..0e6f90533 100644
--- a/src/main/java/com/hubspot/jinjava/interpret/JinjavaInterpreter.java
+++ b/src/main/java/com/hubspot/jinjava/interpret/JinjavaInterpreter.java
@@ -513,7 +513,9 @@ private String render(Node root, boolean processExtendRoots, long renderLimit) {
           );
         }
       }
-      if (context.getDeferredTokens().size() > numDeferredTokensBefore) {
+      if (
+        preserveBlocks || context.getDeferredTokens().size() > numDeferredTokensBefore
+      ) {
         pathSetter.setValue(
           EagerReconstructionUtils.buildBlockOrInlineSetTag(
             RelativePathResolver.CURRENT_PATH_CONTEXT_KEY,
diff --git a/src/test/java/com/hubspot/jinjava/lib/tag/eager/EagerExtendsTagTest.java b/src/test/java/com/hubspot/jinjava/lib/tag/eager/EagerExtendsTagTest.java
index 93d6c4916..f9a38ce13 100644
--- a/src/test/java/com/hubspot/jinjava/lib/tag/eager/EagerExtendsTagTest.java
+++ b/src/test/java/com/hubspot/jinjava/lib/tag/eager/EagerExtendsTagTest.java
@@ -124,6 +124,21 @@ public void itReconstructsDeferredOutsideBlockSecondPass() {
     );
   }
 
+  @Test
+  public void itDefersSetInBaseBeforeBlock() {
+    expectedTemplateInterpreter.assertExpectedOutputNonIdempotent(
+      "defers-set-in-base-before-block"
+    );
+  }
+
+  @Test
+  public void itDefersSetInBaseBeforeBlockSecondPass() {
+    context.put("deferred", "Resolved now");
+    expectedTemplateInterpreter.assertExpectedOutput(
+      "defers-set-in-base-before-block.expected"
+    );
+  }
+
   @Test
   public void itThrowsWhenDeferredExtendsTag() {
     interpreter.render(
diff --git a/src/test/resources/tags/eager/extendstag/base-with-deferred-before-block.html b/src/test/resources/tags/eager/extendstag/base-with-deferred-before-block.html
new file mode 100644
index 000000000..a95db89f1
--- /dev/null
+++ b/src/test/resources/tags/eager/extendstag/base-with-deferred-before-block.html
@@ -0,0 +1,4 @@
+{% set foo = deferred %}
+{{ foo }}
+{% block body %}
+{% endblock body %}
diff --git a/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.expected.jinja b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.expected.jinja
new file mode 100644
index 000000000..03c953931
--- /dev/null
+++ b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.expected.jinja
@@ -0,0 +1,4 @@
+
+Resolved now
+
+Hi
diff --git a/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.jinja b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.jinja
new file mode 100644
index 000000000..bb5f90f14
--- /dev/null
+++ b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.expected.jinja
@@ -0,0 +1,6 @@
+{% set current_path = '../eager/extendstag/base-with-deferred-before-block.html' %}\
+{% set foo = deferred %}
+{{ foo }}
+{% block body %}
+Hi
+{% endblock body %}
diff --git a/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.jinja b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.jinja
new file mode 100644
index 000000000..795d43e39
--- /dev/null
+++ b/src/test/resources/tags/eager/extendstag/defers-set-in-base-before-block.jinja
@@ -0,0 +1,4 @@
+{% extends "../eager/extendstag/base-with-deferred-before-block.html" %}
+{% block body %}
+Hi
+{% endblock body %}