diff --git a/scripts/test/fuzzing.py b/scripts/test/fuzzing.py
index a9f450e5055..0f4a1befa74 100644
--- a/scripts/test/fuzzing.py
+++ b/scripts/test/fuzzing.py
@@ -104,6 +104,7 @@
     # TODO: fuzzer support for exact references
     'exact-references.wast',
     'optimize-instructions-exact.wast',
+    'local-subtyping-exact.wast',
 ]
 
 
diff --git a/src/passes/LocalSubtyping.cpp b/src/passes/LocalSubtyping.cpp
index 7b30e35387f..38f93b19435 100644
--- a/src/passes/LocalSubtyping.cpp
+++ b/src/passes/LocalSubtyping.cpp
@@ -152,7 +152,8 @@ struct LocalSubtyping : public WalkerPass<PostWalker<LocalSubtyping>> {
         // Remove non-nullability if we disallow that in locals.
         if (newType.isNonNullable()) {
           if (cannotBeNonNullable.count(i)) {
-            newType = Type(newType.getHeapType(), Nullable);
+            newType =
+              Type(newType.getHeapType(), Nullable, newType.getExactness());
           }
         } else if (!newType.isDefaultable()) {
           // Aside from the case we just handled of allowed non-nullability, we
diff --git a/test/lit/passes/local-subtyping-exact.wast b/test/lit/passes/local-subtyping-exact.wast
new file mode 100644
index 00000000000..725c7d499fb
--- /dev/null
+++ b/test/lit/passes/local-subtyping-exact.wast
@@ -0,0 +1,39 @@
+;; NOTE: Assertions have been generated by update_lit_checks.py and should not be edited.
+
+;; Check that LocalSubtyping handles exact references properly when it
+;; determines that a local that would otherwise be non-nullable must be nullable
+;; because of control flow dominance constraints.
+
+;; RUN: wasm-opt %s -all --local-subtyping -S -o - | filecheck %s
+
+(module
+ ;; CHECK:      (func $test (type $0) (param $0 (exact nullref)) (result anyref)
+ ;; CHECK-NEXT:  (local $1 (exact nullref))
+ ;; CHECK-NEXT:  (if
+ ;; CHECK-NEXT:   (i32.const 0)
+ ;; CHECK-NEXT:   (then
+ ;; CHECK-NEXT:    (local.set $1
+ ;; CHECK-NEXT:     (ref.as_non_null
+ ;; CHECK-NEXT:      (local.get $0)
+ ;; CHECK-NEXT:     )
+ ;; CHECK-NEXT:    )
+ ;; CHECK-NEXT:   )
+ ;; CHECK-NEXT:  )
+ ;; CHECK-NEXT:  (local.get $1)
+ ;; CHECK-NEXT: )
+ (func $test (param (exact nullref)) (result anyref)
+  (local (exact nullref))
+  (if
+   (i32.const 0)
+   (then
+    (local.set 1
+     ;; This would let the local be (ref exact none) if it dominated the get.
+     (ref.as_non_null
+      (local.get 0)
+     )
+    )
+   )
+  )
+  (local.get 1)
+ )
+)