diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index f5eb12a419..a8b6557e3c 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8920,6 +8920,7 @@ namespace ts {
             const isParameter = getRootDeclaration(declaration).kind === SyntaxKind.Parameter;
             const declarationContainer = getControlFlowContainer(declaration);
             let flowContainer = getControlFlowContainer(node);
+            const isOuterVariable = flowContainer !== declarationContainer;
             // When the control flow originates in a function expression or arrow function and we are referencing
             // a const variable or parameter from an outer function, we extend the origin of the control flow
             // analysis to include the immediately enclosing function.
@@ -8932,7 +8933,7 @@ namespace ts {
             // the entire control flow graph from the variable's declaration (i.e. when the flow container and
             // declaration container are the same).
             const assumeInitialized = !strictNullChecks || (type.flags & TypeFlags.Any) !== 0 || isParameter ||
-                flowContainer !== declarationContainer || isInAmbientContext(declaration);
+                isOuterVariable || isInAmbientContext(declaration);
             const flowType = getFlowTypeOfReference(node, type, assumeInitialized, flowContainer);
             // A variable is considered uninitialized when it is possible to analyze the entire control flow graph
             // from declaration to use, and when the variable's declared type doesn't include undefined but the
diff --git a/tests/baselines/reference/controlFlowOuterVariable.js b/tests/baselines/reference/controlFlowOuterVariable.js
new file mode 100644
index 0000000000..1925d75eb3
--- /dev/null
+++ b/tests/baselines/reference/controlFlowOuterVariable.js
@@ -0,0 +1,26 @@
+//// [controlFlowOuterVariable.ts]
+
+// Repros from #10641
+
+const CONFIG = {
+    foo: '',
+    setFoo: function(foo: string) {
+        CONFIG.foo = foo;
+    }
+};
+
+const helper = function<T>(t: T[]) {
+    helper(t.slice(1));
+}
+
+//// [controlFlowOuterVariable.js]
+// Repros from #10641
+var CONFIG = {
+    foo: '',
+    setFoo: function (foo) {
+        CONFIG.foo = foo;
+    }
+};
+var helper = function (t) {
+    helper(t.slice(1));
+};
diff --git a/tests/baselines/reference/controlFlowOuterVariable.symbols b/tests/baselines/reference/controlFlowOuterVariable.symbols
new file mode 100644
index 0000000000..35974f28a8
--- /dev/null
+++ b/tests/baselines/reference/controlFlowOuterVariable.symbols
@@ -0,0 +1,34 @@
+=== tests/cases/compiler/controlFlowOuterVariable.ts ===
+
+// Repros from #10641
+
+const CONFIG = {
+>CONFIG : Symbol(CONFIG, Decl(controlFlowOuterVariable.ts, 3, 5))
+
+    foo: '',
+>foo : Symbol(foo, Decl(controlFlowOuterVariable.ts, 3, 16))
+
+    setFoo: function(foo: string) {
+>setFoo : Symbol(setFoo, Decl(controlFlowOuterVariable.ts, 4, 12))
+>foo : Symbol(foo, Decl(controlFlowOuterVariable.ts, 5, 21))
+
+        CONFIG.foo = foo;
+>CONFIG.foo : Symbol(foo, Decl(controlFlowOuterVariable.ts, 3, 16))
+>CONFIG : Symbol(CONFIG, Decl(controlFlowOuterVariable.ts, 3, 5))
+>foo : Symbol(foo, Decl(controlFlowOuterVariable.ts, 3, 16))
+>foo : Symbol(foo, Decl(controlFlowOuterVariable.ts, 5, 21))
+    }
+};
+
+const helper = function<T>(t: T[]) {
+>helper : Symbol(helper, Decl(controlFlowOuterVariable.ts, 10, 5))
+>T : Symbol(T, Decl(controlFlowOuterVariable.ts, 10, 24))
+>t : Symbol(t, Decl(controlFlowOuterVariable.ts, 10, 27))
+>T : Symbol(T, Decl(controlFlowOuterVariable.ts, 10, 24))
+
+    helper(t.slice(1));
+>helper : Symbol(helper, Decl(controlFlowOuterVariable.ts, 10, 5))
+>t.slice : Symbol(Array.slice, Decl(lib.d.ts, --, --))
+>t : Symbol(t, Decl(controlFlowOuterVariable.ts, 10, 27))
+>slice : Symbol(Array.slice, Decl(lib.d.ts, --, --))
+}
diff --git a/tests/baselines/reference/controlFlowOuterVariable.types b/tests/baselines/reference/controlFlowOuterVariable.types
new file mode 100644
index 0000000000..602776dd54
--- /dev/null
+++ b/tests/baselines/reference/controlFlowOuterVariable.types
@@ -0,0 +1,42 @@
+=== tests/cases/compiler/controlFlowOuterVariable.ts ===
+
+// Repros from #10641
+
+const CONFIG = {
+>CONFIG : { foo: string; setFoo: (foo: string) => void; }
+>{    foo: '',    setFoo: function(foo: string) {        CONFIG.foo = foo;    }} : { foo: string; setFoo: (foo: string) => void; }
+
+    foo: '',
+>foo : string
+>'' : string
+
+    setFoo: function(foo: string) {
+>setFoo : (foo: string) => void
+>function(foo: string) {        CONFIG.foo = foo;    } : (foo: string) => void
+>foo : string
+
+        CONFIG.foo = foo;
+>CONFIG.foo = foo : string
+>CONFIG.foo : string
+>CONFIG : { foo: string; setFoo: (foo: string) => void; }
+>foo : string
+>foo : string
+    }
+};
+
+const helper = function<T>(t: T[]) {
+>helper : <T>(t: T[]) => void
+>function<T>(t: T[]) {    helper(t.slice(1));} : <T>(t: T[]) => void
+>T : T
+>t : T[]
+>T : T
+
+    helper(t.slice(1));
+>helper(t.slice(1)) : void
+>helper : <T>(t: T[]) => void
+>t.slice(1) : T[]
+>t.slice : (start?: number | undefined, end?: number | undefined) => T[]
+>t : T[]
+>slice : (start?: number | undefined, end?: number | undefined) => T[]
+>1 : number
+}
diff --git a/tests/cases/compiler/controlFlowOuterVariable.ts b/tests/cases/compiler/controlFlowOuterVariable.ts
new file mode 100644
index 0000000000..3a33f3b25e
--- /dev/null
+++ b/tests/cases/compiler/controlFlowOuterVariable.ts
@@ -0,0 +1,14 @@
+// @strictNullChecks: true
+
+// Repros from #10641
+
+const CONFIG = {
+    foo: '',
+    setFoo: function(foo: string) {
+        CONFIG.foo = foo;
+    }
+};
+
+const helper = function<T>(t: T[]) {
+    helper(t.slice(1));
+}
\ No newline at end of file