diff --git a/packages/compiler-cli/src/ngtsc/partial_evaluator/src/interpreter.ts b/packages/compiler-cli/src/ngtsc/partial_evaluator/src/interpreter.ts
index 28dec13d2d..3d5698c333 100644
--- a/packages/compiler-cli/src/ngtsc/partial_evaluator/src/interpreter.ts
+++ b/packages/compiler-cli/src/ngtsc/partial_evaluator/src/interpreter.ts
@@ -427,20 +427,20 @@ export class StaticInterpreter {
 
     const args = this.evaluateFunctionArguments(node, context);
     const newScope: Scope = new Map<ts.ParameterDeclaration, ResolvedValue>();
+    const calleeContext = {...context, scope: newScope};
     fn.parameters.forEach((param, index) => {
       let arg = args[index];
       if (param.node.dotDotDotToken !== undefined) {
         arg = args.slice(index);
       }
       if (arg === undefined && param.initializer !== null) {
-        arg = this.visitExpression(param.initializer, context);
+        arg = this.visitExpression(param.initializer, calleeContext);
       }
       newScope.set(param.node, arg);
     });
 
-    return ret.expression !== undefined ?
-        this.visitExpression(ret.expression, {...context, scope: newScope}) :
-        undefined;
+    return ret.expression !== undefined ? this.visitExpression(ret.expression, calleeContext) :
+                                          undefined;
   }
 
   private visitConditionalExpression(node: ts.ConditionalExpression, context: Context):
diff --git a/packages/compiler-cli/src/ngtsc/partial_evaluator/test/evaluator_spec.ts b/packages/compiler-cli/src/ngtsc/partial_evaluator/test/evaluator_spec.ts
index 2c40004df5..7a48703160 100644
--- a/packages/compiler-cli/src/ngtsc/partial_evaluator/test/evaluator_spec.ts
+++ b/packages/compiler-cli/src/ngtsc/partial_evaluator/test/evaluator_spec.ts
@@ -75,6 +75,12 @@ describe('ngtsc metadata', () => {
     expect(evaluate(`function foo(bar) { return bar; }`, 'foo("test")')).toEqual('test');
   });
 
+  it('function call default value works', () => {
+    expect(evaluate(`function foo(bar = 1) { return bar; }`, 'foo()')).toEqual(1);
+    expect(evaluate(`function foo(bar = 1) { return bar; }`, 'foo(2)')).toEqual(2);
+    expect(evaluate(`function foo(a, c = a) { return c; }; const a = 1;`, 'foo(2)')).toEqual(2);
+  });
+
   it('function call spread works', () => {
     expect(evaluate(`function foo(a, ...b) { return [a, b]; }`, 'foo(1, ...[2, 3])')).toEqual([
       1, [2, 3]