diff --git a/CHANGELOG.md b/CHANGELOG.md
index 07615aa2ef..66b7fda9a8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,7 @@
 - Fix leftover assert false in code for `null != undefined`. https://github.com/rescript-lang/rescript/pull/7232
 - Editor: Fix issue where completions would not show up inside of object bodies. https://github.com/rescript-lang/rescript/pull/7230
 - Fix issue with pattern matching empty list which interferes with boolean optimisations. https://github.com/rescript-lang/rescript/pull/7237
+- Fix Cannot combine @react.component and @directive. https://github.com/rescript-lang/rescript/pull/7260
 
 #### :house: Internal
 
diff --git a/compiler/syntax/src/jsx_v4.ml b/compiler/syntax/src/jsx_v4.ml
index d2a2307508..cb5fc27470 100644
--- a/compiler/syntax/src/jsx_v4.ml
+++ b/compiler/syntax/src/jsx_v4.ml
@@ -1003,6 +1003,7 @@ let map_binding ~config ~empty_loc ~pstr_loc ~file_name ~rec_flag binding =
              (Pat.var @@ Location.mknoloc "ref")
              inner_expression
          else inner_expression)
+        ~attrs:binding.pvb_expr.pexp_attributes
     in
     let full_expression =
       full_expression
diff --git a/tests/tests/src/alias_default_value_test.mjs b/tests/tests/src/alias_default_value_test.mjs
index ba7e994132..434e2b9763 100644
--- a/tests/tests/src/alias_default_value_test.mjs
+++ b/tests/tests/src/alias_default_value_test.mjs
@@ -67,6 +67,21 @@ let C6 = {
   make: Alias_default_value_test$C6
 };
 
+function Alias_default_value_test$C7(props) {
+  'use memo';
+  let username = props.username;
+  let count = props.count;
+  let times = count !== 1 ? (
+      count !== 2 ? String(count) + " times" : "twice"
+    ) : "once";
+  let name = username !== undefined && username !== "" ? username : "Anonymous";
+  return "Hello " + name + ", you clicked me " + times;
+}
+
+let C7 = {
+  make: Alias_default_value_test$C7
+};
+
 export {
   C0,
   C1,
@@ -74,5 +89,6 @@ export {
   C3,
   C4,
   C6,
+  C7,
 }
 /* No side effect */
diff --git a/tests/tests/src/alias_default_value_test.res b/tests/tests/src/alias_default_value_test.res
index 6d8fce486b..1ebe9f00fa 100644
--- a/tests/tests/src/alias_default_value_test.res
+++ b/tests/tests/src/alias_default_value_test.res
@@ -43,3 +43,24 @@ module C6 = {
   @react.component
   let make = (~comp as module(Comp: Comp), ~x as (a, b)) => Comp.xx
 }
+
+module C7 = {
+  @react.component
+  let make =
+    @directive("'use memo'")
+    (~count, ~username=?) => {
+      let times = switch count {
+      | 1 => "once"
+      | 2 => "twice"
+      | n => Belt.Int.toString(n) ++ " times"
+      }
+
+      let name = switch username {
+      | Some("") => "Anonymous"
+      | Some(name) => name
+      | None => "Anonymous"
+      }
+
+      React.string(`Hello ${name}, you clicked me ` ++ times)
+    }
+}