diff --git a/src/Lean/Compiler/IR.lean b/src/Lean/Compiler/IR.lean
index 7c4a0e21d7..0c2fb41768 100644
--- a/src/Lean/Compiler/IR.lean
+++ b/src/Lean/Compiler/IR.lean
@@ -11,7 +11,6 @@ public import Lean.Compiler.IR.Basic
 public import Lean.Compiler.IR.Format
 public import Lean.Compiler.IR.CompilerM
 public import Lean.Compiler.IR.PushProj
-public import Lean.Compiler.IR.ElimDeadVars
 public import Lean.Compiler.IR.SimpCase
 public import Lean.Compiler.IR.NormIds
 public import Lean.Compiler.IR.Checker
@@ -41,8 +40,6 @@ def compile (decls : Array Decl) : CompilerM (Array Decl) := do
   logDecls `init decls
   checkDecls decls
   let mut decls := decls
-  decls := decls.map Decl.elimDead
-  logDecls `elim_dead decls
   decls := decls.map Decl.simpCase
   logDecls `simp_case decls
   decls := decls.map Decl.normalizeIds
diff --git a/src/Lean/Compiler/LCNF/ElimDead.lean b/src/Lean/Compiler/LCNF/ElimDead.lean
index 393293de4c..ff44cdba84 100644
--- a/src/Lean/Compiler/LCNF/ElimDead.lean
+++ b/src/Lean/Compiler/LCNF/ElimDead.lean
@@ -6,67 +6,82 @@ Authors: Leonardo de Moura
 module
 
 prelude
-public import Lean.Compiler.LCNF.CompilerM
+public import Lean.Compiler.LCNF.PassManager
 
-public section
+/-!
+This module implements a pass that does a syntactic use-def check for all let/fun/jp bindings and
+removes them if they are unused. Note that in impure mode not all unused let bindings can be removed safely
+so we opt for a safe subset.
+-/
 
 namespace Lean.Compiler.LCNF
 
-abbrev UsedLocalDecls := FVarIdHashSet
+public abbrev UsedLocalDecls := FVarIdHashSet
 
 /--
 Collect set of (let) free variables in a LCNF value.
 This code exploits the LCNF property that local declarations do not occur in types.
 -/
-
-def collectLocalDeclsArg (s : UsedLocalDecls) (arg : Arg .pure) : UsedLocalDecls :=
+def collectLocalDeclsArg (s : UsedLocalDecls) (arg : Arg pu) : UsedLocalDecls :=
   match arg with
   | .fvar fvarId => s.insert fvarId
   -- Locally declared variables do not occur in types.
-  | .type _ | .erased => s
+  | .type _ _ | .erased => s
 
-def collectLocalDeclsArgs (s : UsedLocalDecls) (args : Array (Arg .pure)) : UsedLocalDecls :=
+def collectLocalDeclsArgs (s : UsedLocalDecls) (args : Array (Arg pu)) : UsedLocalDecls :=
   args.foldl (init := s) collectLocalDeclsArg
 
-def collectLocalDeclsLetValue (s : UsedLocalDecls) (e : LetValue .pure) : UsedLocalDecls :=
+def collectLocalDeclsLetValue (s : UsedLocalDecls) (e : LetValue pu) : UsedLocalDecls :=
   match e with
   | .erased  | .lit .. => s
-  | .proj _ _ fvarId => s.insert fvarId
-  | .const _ _ args => collectLocalDeclsArgs s args
-  | .fvar fvarId args => collectLocalDeclsArgs (s.insert fvarId) args
-
-namespace ElimDead
+  | .proj _ _ fvarId _ | .reset _ fvarId _ | .sproj _ _ fvarId _ | .uproj _ fvarId _
+  | .oproj _ fvarId _ => s.insert fvarId
+  | .const _ _ args _ => collectLocalDeclsArgs s args
+  | .fvar fvarId args | .reuse fvarId _ _ args _   => collectLocalDeclsArgs (s.insert fvarId) args
+  | .fap _ args _ | .pap _ args _ | .ctor _ args _ => collectLocalDeclsArgs s args
 
 abbrev M := StateRefT UsedLocalDecls CompilerM
 
-private abbrev collectArgM (arg : Arg .pure) : M Unit :=
+abbrev collectArgM (arg : Arg pu) : M Unit :=
   modify (collectLocalDeclsArg · arg)
 
-private abbrev collectLetValueM (e : LetValue .pure) : M Unit :=
+abbrev collectLetValueM (e : LetValue pu) : M Unit :=
   modify (collectLocalDeclsLetValue · e)
 
-private abbrev collectFVarM (fvarId : FVarId) : M Unit :=
+abbrev collectFVarM (fvarId : FVarId) : M Unit :=
   modify (·.insert fvarId)
 
+def LetValue.safeToElim (val : LetValue pu) : Bool :=
+  match pu with
+  | .pure => true
+  | .impure =>
+    match val with
+    | .ctor .. | .reset .. | .reuse .. | .oproj .. | .uproj .. | .sproj .. | .lit .. | .pap ..
+    -- TODO | .box .. | .unbox .. | .isShared ..
+    | .erased .. => true
+    -- 0-ary full applications are considered constants
+    | .fap _ args => args.isEmpty
+    | .fvar .. => false
+
 mutual
 
-partial def visitFunDecl (funDecl : FunDecl .pure) : M (FunDecl .pure) := do
-  let value ← elimDead funDecl.value
+partial def visitFunDecl (funDecl : FunDecl pu) : M (FunDecl pu) := do
+  let value ← funDecl.value.elimDead
   funDecl.updateValue value
 
-partial def elimDead (code : Code .pure) : M (Code .pure) := do
+partial def Code.elimDead (code : Code pu) : M (Code pu) := do
   match code with
   | .let decl k =>
-    let k ← elimDead k
-    if (← get).contains decl.fvarId then
+    let k ← k.elimDead
+    if (← get).contains decl.fvarId || !decl.value.safeToElim then
       /- Remark: we don't need to collect `decl.type` because LCNF local declarations do not occur in types. -/
       collectLetValueM decl.value
       return code.updateCont! k
     else
       eraseLetDecl decl
       return k
-  | .fun decl k | .jp decl k =>
-    let k ← elimDead k
+  | .fun decl k _ | .jp decl k =>
+    let k ← k.elimDead
     if (← get).contains decl.fvarId then
       let decl ← visitFunDecl decl
       return code.updateFun! decl k
@@ -74,22 +89,26 @@ partial def elimDead (code : Code .pure) : M (Code .pure) := do
       eraseFunDecl decl
       return k
   | .cases c =>
-    let alts ← c.alts.mapMonoM fun alt => return alt.updateCode (← elimDead alt.getCode)
+    let alts ← c.alts.mapMonoM fun alt => return alt.updateCode (← alt.getCode.elimDead)
     collectFVarM c.discr
     return code.updateAlts! alts
   | .return fvarId => collectFVarM fvarId; return code
   | .jmp fvarId args => collectFVarM fvarId; args.forM collectArgM; return code
   | .unreach .. => return code
+  | .uset var _ y k _ | .sset var _ _ y _ k _ =>
+    collectFVarM var
+    collectFVarM y
+    return code.updateCont! (← k.elimDead)
 
 end
 
-end ElimDead
+def Decl.elimDead (decl : Decl pu) : CompilerM (Decl pu) := do
+  return { decl with value := (← decl.value.mapCodeM fun code => code.elimDead.run' {}) }
 
--- TODO: Generalize this to arbitrary phases, keep in mind that in impure elim dead is not as easy though
-def Code.elimDead (code : Code .pure) : CompilerM (Code .pure) :=
-  ElimDead.elimDead code |>.run' {}
+public def elimDeadVars (phase : Phase)  (occurrence : Nat) : Pass :=
+  Pass.mkPerDeclaration `elimDeadVars phase Decl.elimDead occurrence
 
-def Decl.elimDead (decl : Decl .pure) : CompilerM (Decl .pure) := do
-  return { decl with value := (← decl.value.mapCodeM Code.elimDead) }
+builtin_initialize
+  registerTraceClass `Compiler.elimDeadVars (inherited := true)
 
 end Lean.Compiler.LCNF
diff --git a/src/Lean/Compiler/LCNF/Passes.lean b/src/Lean/Compiler/LCNF/Passes.lean
index 652d78a914..20dfe94ae5 100644
--- a/src/Lean/Compiler/LCNF/Passes.lean
+++ b/src/Lean/Compiler/LCNF/Passes.lean
@@ -145,6 +145,7 @@ def builtinPassManager : PassManager := {
     saveImpure, -- End of impure phase
     pushProj (occurrence := 0),
     insertResetReuse,
+    elimDeadVars (phase := .impure) (occurrence := 0),
     inferVisibility (phase := .impure),
   ]
 }
diff --git a/tests/lean/run/elim_dead_vars.lean b/tests/lean/run/elim_dead_vars.lean
new file mode 100644
index 0000000000..674481854d
--- /dev/null
+++ b/tests/lean/run/elim_dead_vars.lean
@@ -0,0 +1,44 @@
+prelude
+import Init.Data.Option
+
+/-! This test asserts that the `elimDeadVars` pass is able to eliminate dead projections in the
+  impure phase correctly. -/
+
+/--
+trace: [Compiler.saveMono] size: 5
+    def isNone x : Bool :=
+      cases x : Bool
+      | Option.none =>
+        let _x.1 := true;
+        return _x.1
+      | Option.some val.2 =>
+        let _x.3 := false;
+        return _x.3
+[Compiler.pushProj] size: 6
+    def isNone x : UInt8 :=
+      cases x : UInt8
+      | Option.none =>
+        let _x.1 := 1;
+        return _x.1
+      | Option.some =>
+        let val.2 := proj[0] x;
+        let _x.3 := 0;
+        return _x.3
+[Compiler.elimDeadVars] size: 5
+    def isNone x : UInt8 :=
+      cases x : UInt8
+      | Option.none =>
+        let _x.1 := 1;
+        return _x.1
+      | Option.some =>
+        let _x.2 := 0;
+        return _x.2
+-/
+#guard_msgs in
+set_option trace.Compiler.saveMono true in
+set_option trace.Compiler.pushProj true in
+set_option trace.Compiler.elimDeadVars true in
+def isNone (x : Option Nat) : Bool :=
+  match x with
+  | some _ => false
+  | none => true
diff --git a/tests/lean/updateExprIssue.lean b/tests/lean/updateExprIssue.lean
index ea9cced25c..012f9a0c9b 100644
--- a/tests/lean/updateExprIssue.lean
+++ b/tests/lean/updateExprIssue.lean
@@ -11,7 +11,7 @@ unsafe def tst1 : MetaM Unit := do
 
 #eval tst1
 
-set_option trace.compiler.ir.init true
+set_option trace.Compiler.saveMono true
 def sefFn (e : Expr) (f : Expr) : Expr :=
   match e with
   | .app _ a => e.updateApp! f a
diff --git a/tests/lean/updateExprIssue.lean.expected.out b/tests/lean/updateExprIssue.lean.expected.out
index 6bc808fe89..5a80f1bd0c 100644
--- a/tests/lean/updateExprIssue.lean.expected.out
+++ b/tests/lean/updateExprIssue.lean.expected.out
@@ -1,26 +1,23 @@
-[Compiler.IR] [init]
-    def sefFn (x_1 : obj) (x_2 : obj) : obj :=
-      case x_1 : obj of
-      Lean.Expr.app._impl →
-        let x_3 : u64 := sproj[2, 0] x_1;
-        let x_4 : obj := proj[0] x_1;
-        let x_5 : obj := proj[1] x_1;
-        block_6 (x_7 : u8) :=
-          case x_7 : u8 of
-          Bool.false →
-            let x_8 : obj := Lean.Expr.app._override x_2 x_5;
-            ret x_8
-          Bool.true →
-            ret x_1;
-        let x_9 : usize := ptrAddrUnsafe ◾ x_4;
-        let x_10 : usize := ptrAddrUnsafe ◾ x_2;
-        let x_11 : u8 := USize.decEq x_9 x_10;
-        case x_11 : u8 of
-        Bool.false →
-          jmp block_6 x_11
-        Bool.true →
-          let x_12 : usize := ptrAddrUnsafe ◾ x_5;
-          let x_13 : u8 := USize.decEq x_12 x_12;
-          jmp block_6 x_13
-      default →
-        ret x_1
+[Compiler.saveMono] size: 17
+    def sefFn e f : Expr :=
+      cases e : Expr
+      | Lean.Expr.app._impl data fn.1 arg.2 =>
+        jp _jp.3 _y.4 : Expr :=
+          cases _y.4 : Expr
+          | Bool.false =>
+            let _x.5 := Expr.app._override f arg.2;
+            return _x.5
+          | Bool.true =>
+            return e;
+        let _x.6 := ptrAddrUnsafe ◾ fn.1;
+        let _x.7 := ptrAddrUnsafe ◾ f;
+        let _x.8 := USize.decEq _x.6 _x.7;
+        cases _x.8 : Expr
+        | Bool.false =>
+          goto _jp.3 _x.8
+        | Bool.true =>
+          let _x.9 := ptrAddrUnsafe ◾ arg.2;
+          let _x.10 := USize.decEq _x.9 _x.9;
+          goto _jp.3 _x.10
+      | _ =>
+        return e