diff --git a/src/ast/repl_transforms.zig b/src/ast/repl_transforms.zig
index dffac8c849..026036607b 100644
--- a/src/ast/repl_transforms.zig
+++ b/src/ast/repl_transforms.zig
@@ -68,11 +68,10 @@ pub fn ReplTransforms(comptime P: type) type {
             for (all_stmts) |stmt| {
                 switch (stmt.data) {
                     .s_local => |local| {
-                        // Hoist the declaration, convert const to let for REPL mutability
-                        const kind: S.Local.Kind = switch (local.kind) {
-                            .k_const => .k_let,
-                            else => local.kind,
-                        };
+                        // Hoist all declarations as var so they become context properties
+                        // In sloppy mode, var at top level becomes a property of the global/context object
+                        // This is essential for REPL variable persistence across vm.runInContext calls
+                        const kind: S.Local.Kind = .k_var;
 
                         // Extract individual identifiers from binding patterns for hoisting
                         var hoisted_decl_list = ListManaged(G.Decl).init(allocator);
@@ -211,11 +210,9 @@ pub fn ReplTransforms(comptime P: type) type {
             for (all_stmts) |stmt| {
                 switch (stmt.data) {
                     .s_local => |local| {
-                        // Hoist the declaration, convert const to let
-                        const kind: S.Local.Kind = switch (local.kind) {
-                            .k_const => .k_let,
-                            else => local.kind,
-                        };
+                        // Hoist all declarations as var so they become context properties
+                        // In sloppy mode, var at top level becomes a property of the global/context object
+                        const kind: S.Local.Kind = .k_var;
 
                         // Extract individual identifiers from binding patterns for hoisting
                         var hoisted_decl_list = ListManaged(G.Decl).init(allocator);
diff --git a/test/js/bun/transpiler/repl-transform.test.ts b/test/js/bun/transpiler/repl-transform.test.ts
index de7fda4929..2c8c730792 100644
--- a/test/js/bun/transpiler/repl-transform.test.ts
+++ b/test/js/bun/transpiler/repl-transform.test.ts
@@ -19,16 +19,18 @@ describe("Bun.Transpiler replMode", () => {
       expect(result).toContain("async");
     });
 
-    test("const becomes let with await", async () => {
+    test("const becomes var with await", async () => {
       const result = transpiler.transformSync("const x = await 1");
-      // const should become let for REPL persistence
-      expect(result).toContain("let x");
+      // const should become var for REPL persistence (becomes context property)
+      expect(result).toContain("var x");
       expect(result).not.toContain("const x");
     });
 
-    test("let declaration hoisted with await", async () => {
+    test("let becomes var with await", async () => {
       const result = transpiler.transformSync("let x = await 1");
-      expect(result).toContain("let x");
+      // let should become var for REPL persistence (becomes context property)
+      expect(result).toContain("var x");
+      expect(result).not.toContain("let x");
       expect(result).toContain("async");
     });