diff --git a/mlir/lib/Dialect/QC/IR/QubitManagement/DeallocOp.cpp b/mlir/lib/Dialect/QC/IR/QubitManagement/DeallocOp.cpp
index 26b6f7b6f6..b8559de464 100644
--- a/mlir/lib/Dialect/QC/IR/QubitManagement/DeallocOp.cpp
+++ b/mlir/lib/Dialect/QC/IR/QubitManagement/DeallocOp.cpp
@@ -53,7 +53,9 @@ struct HoistStaticQubit final : OpRewritePattern<StaticOp> {
   LogicalResult matchAndRewrite(StaticOp op,
                                 PatternRewriter& rewriter) const override {
     auto funcOp = op->getParentOfType<func::FuncOp>();
-    if (!funcOp || op->getBlock() == &funcOp.getBody().front()) {
+    if (!funcOp ||
+        op->getParentWithTrait<OpTrait::IsIsolatedFromAbove>() != funcOp ||
+        op->getBlock() == &funcOp.getBody().front()) {
       return failure();
     }
     rewriter.moveOpBefore(op, &funcOp.getBody().front(),
diff --git a/mlir/unittests/Dialect/QC/IR/test_qc_ir.cpp b/mlir/unittests/Dialect/QC/IR/test_qc_ir.cpp
index daaceed3fa..fa17cf9476 100644
--- a/mlir/unittests/Dialect/QC/IR/test_qc_ir.cpp
+++ b/mlir/unittests/Dialect/QC/IR/test_qc_ir.cpp
@@ -181,6 +181,30 @@ TEST_F(QCTest, CleanupHoistsAndCoalescesStaticQubits) {
   EXPECT_EQ(staticOps, 2U);
 }
 
+TEST_F(QCTest, CleanupDoesNotHoistStaticQubitsAcrossIsolationBoundaries) {
+  auto module = parseSourceString<ModuleOp>(R"mlir(
+    module {
+      func.func @main() {
+        "builtin.module"() ({
+          %q = qc.static 0 : !qc.qubit
+          qc.x %q : !qc.qubit
+        }) : () -> ()
+        return
+      }
+    }
+  )mlir",
+                                            context.get());
+  ASSERT_TRUE(module);
+  ASSERT_TRUE(succeeded(verify(*module)));
+  ASSERT_TRUE(succeeded(runQCCleanupPipeline(*module)));
+  ASSERT_TRUE(succeeded(verify(*module)));
+
+  StaticOp staticOp;
+  module->walk([&](StaticOp op) { staticOp = op; });
+  ASSERT_TRUE(staticOp);
+  EXPECT_TRUE(isa<ModuleOp>(staticOp->getParentOp()));
+}
+
 TEST_F(QCTest, BuilderRejectsMixedStaticAndDynamicQubitAllocationModes) {
   EXPECT_DEATH(
       {