diff --git a/crates/perry/src/commands/compile/cjs_wrap/mod.rs b/crates/perry/src/commands/compile/cjs_wrap/mod.rs
index f1129ef466..f8be17bb8e 100644
--- a/crates/perry/src/commands/compile/cjs_wrap/mod.rs
+++ b/crates/perry/src/commands/compile/cjs_wrap/mod.rs
@@ -226,6 +226,40 @@ module.exports = inner;
         assert!(wrapped.contains("const _cjs = (function()"));
     }
 
+    #[test]
+    fn wrap_module_and_exports_are_reassignable_vars() {
+        // #3527: a CJS body may rebind `module`/`exports` (iconv-lite's
+        // `for (...) { var module = modules[i]; mergeModules(exports, module); }`).
+        // The wrapper must expose them as reassignable `var`s — not a `const`
+        // the body would silently fail to rebind — while reading the real
+        // exports back from a stable, body-untouchable `__cjs_module`.
+        let src = "exports.foo = 42;";
+        let wrapped = wrap_commonjs(src, &PathBuf::from("/tmp/test.js"));
+        assert!(
+            wrapped.contains("const __cjs_module = { exports: {} };"),
+            "expected stable __cjs_module, got:\n{}",
+            wrapped
+        );
+        assert!(
+            wrapped.contains("var module = __cjs_module;"),
+            "expected reassignable `var module`, got:\n{}",
+            wrapped
+        );
+        assert!(
+            wrapped.contains("var exports = __cjs_module.exports;"),
+            "expected reassignable `var exports`, got:\n{}",
+            wrapped
+        );
+        assert!(
+            wrapped.contains("return __cjs_module.exports;"),
+            "export must be read from the stable ref, got:\n{}",
+            wrapped
+        );
+        // The body must NOT re-collide with a `const module`/`const exports`.
+        assert!(!wrapped.contains("const module = "));
+        assert!(!wrapped.contains("const exports = "));
+    }
+
     #[test]
     fn wrap_hoists_require_as_import() {
         // Issue #665 (third pass): when the CJS source has a unique alias
diff --git a/crates/perry/src/commands/compile/cjs_wrap/wrap.rs b/crates/perry/src/commands/compile/cjs_wrap/wrap.rs
index 6d8c5bc84e..d1c9d78ee4 100644
--- a/crates/perry/src/commands/compile/cjs_wrap/wrap.rs
+++ b/crates/perry/src/commands/compile/cjs_wrap/wrap.rs
@@ -335,8 +335,18 @@ pub(in crate::commands::compile) fn wrap_commonjs(source: &str, source_path: &Pa
 {import_aliases}
 {hoisted_class_block}
 const _cjs = (function() {{
-    const module = {{ exports: {{}} }};
-    const exports = module.exports;
+    // #3527: `module`/`exports` are reassignable `var`s (mirroring Node, where
+    // they are wrapper-function parameters), so CJS bodies that do
+    // `var module = X` / `module = X` / `exports = X` — e.g. iconv-lite's
+    // `for (...) {{ var module = modules[i]; mergeModules(exports, module); }}`
+    // — rebind the local instead of colliding with a `const`. The stable
+    // `__cjs_module` is what the module actually exports, read back at the end;
+    // a body reassigning its local `module` can't clobber it (Node holds the
+    // real module ref the same way), so named/default-export resolution stays
+    // correct regardless of what the body does to its `module` local.
+    const __cjs_module = {{ exports: {{}} }};
+    var module = __cjs_module;
+    var exports = __cjs_module.exports;
     function require(specifier) {{
 {require_cases}
         throw new Error('require() is not supported: ' + specifier);
@@ -344,7 +354,7 @@ const _cjs = (function() {{
 
     {body_for_iife}
 
-    return module.exports;
+    return __cjs_module.exports;
 }})();
 
 {default_export_decl}