diff --git a/src/ast/parseStmt.zig b/src/ast/parseStmt.zig
index b8bce67462..8f946e079b 100644
--- a/src/ast/parseStmt.zig
+++ b/src/ast/parseStmt.zig
@@ -1223,8 +1223,9 @@ pub fn ParseStmt(
                                 // "module Foo {}"
                                 // "declare module 'fs' {}"
                                 // "declare module 'fs';"
-                                if (((opts.is_module_scope or opts.is_namespace_scope) and (p.lexer.token == .t_identifier or
-                                    (p.lexer.token == .t_string_literal and opts.is_typescript_declare))))
+                                if (!p.lexer.has_newline_before and
+                                    (opts.is_module_scope or opts.is_namespace_scope) and
+                                    (p.lexer.token == .t_identifier or (p.lexer.token == .t_string_literal and opts.is_typescript_declare)))
                                 {
                                     return p.parseTypeScriptNamespaceStmt(loc, opts);
                                 }
diff --git a/test/regression/issue/22929-module-extensions-asi.test.ts b/test/regression/issue/22929-module-extensions-asi.test.ts
new file mode 100644
index 0000000000..7c5ecf31d8
--- /dev/null
+++ b/test/regression/issue/22929-module-extensions-asi.test.ts
@@ -0,0 +1,115 @@
+import { expect, test } from "bun:test";
+import { mkdtempSync, writeFileSync } from "fs";
+import { bunEnv, bunExe } from "harness";
+import { tmpdir } from "os";
+import { join } from "path";
+
+test("Module._extensions should not break ASI (automatic semicolon insertion)", async () => {
+  const dir = mkdtempSync(join(tmpdir(), "bun-module-extensions-asi-"));
+
+  // Create a module without semicolons that relies on ASI
+  const moduleWithoutSemi = join(dir, "module-no-semi.js");
+  writeFileSync(
+    moduleWithoutSemi,
+    `function f() {}
+module.exports = f
+f.f = f`,
+  );
+
+  // Create a test file that hooks Module._extensions
+  const testFile = join(dir, "test.js");
+  writeFileSync(
+    testFile,
+    `
+const Module = require("module");
+const orig = Module._extensions[".js"];
+
+// Hook Module._extensions[".js"] - commonly done by transpiler libraries
+Module._extensions[".js"] = (m, f) => {
+  return orig(m, f);
+};
+
+// This should work without parse errors
+const result = require("./module-no-semi.js");
+if (typeof result !== 'function') {
+  throw new Error('Expected function but got ' + typeof result);
+}
+if (result.f !== result) {
+  throw new Error('Expected result.f === result');
+}
+console.log('SUCCESS');
+`,
+  );
+
+  // Run the test
+  const proc = Bun.spawn({
+    cmd: [bunExe(), testFile],
+    cwd: dir,
+    env: bunEnv,
+    stderr: "pipe",
+    stdout: "pipe",
+  });
+
+  const [stdout, stderr, exitCode] = await Promise.all([proc.stdout.text(), proc.stderr.text(), proc.exited]);
+
+  // Should not have parse errors
+  expect(stderr).not.toContain("Expected '{'");
+  expect(stderr).not.toContain("Unexpected end of file");
+  expect(exitCode).toBe(0);
+  expect(stdout.trim()).toBe("SUCCESS");
+});
+
+test("Module._extensions works with modules that have semicolons", async () => {
+  const dir = mkdtempSync(join(tmpdir(), "bun-module-extensions-semi-"));
+
+  // Create a module with semicolons
+  const moduleWithSemi = join(dir, "module-with-semi.js");
+  writeFileSync(
+    moduleWithSemi,
+    `function g() { return 42; }
+module.exports = g;
+g.g = g;`,
+  );
+
+  // Create a test file that hooks Module._extensions
+  const testFile = join(dir, "test.js");
+  writeFileSync(
+    testFile,
+    `
+const Module = require("module");
+const orig = Module._extensions[".js"];
+
+Module._extensions[".js"] = (m, f) => {
+  return orig(m, f);
+};
+
+// This should also work with semicolons
+const result = require("./module-with-semi.js");
+if (typeof result !== 'function') {
+  throw new Error('Expected function but got ' + typeof result);
+}
+if (result() !== 42) {
+  throw new Error('Expected result() === 42');
+}
+if (result.g !== result) {
+  throw new Error('Expected result.g === result');
+}
+console.log('SUCCESS');
+`,
+  );
+
+  // Run the test
+  const proc = Bun.spawn({
+    cmd: [bunExe(), testFile],
+    cwd: dir,
+    env: bunEnv,
+    stderr: "pipe",
+    stdout: "pipe",
+  });
+
+  const [stdout, stderr, exitCode] = await Promise.all([proc.stdout.text(), proc.stderr.text(), proc.exited]);
+
+  // Should work correctly
+  expect(exitCode).toBe(0);
+  expect(stdout.trim()).toBe("SUCCESS");
+});