diff --git a/cue/ast/ast.go b/cue/ast/ast.go
index e564bc4..f2bce9c 100644
--- a/cue/ast/ast.go
+++ b/cue/ast/ast.go
@@ -403,7 +403,6 @@
 	// This LHS path element may be an identifier. Possible forms:
 	//  foo:    a normal identifier
 	//  "foo":  JSON compatible
-	//  <foo>:  a template shorthand
 	Name string
 
 	Scope Node // scope in which node was found or nil if referring directly
diff --git a/cue/ast/astutil/resolve.go b/cue/ast/astutil/resolve.go
index 2db1570..28b112d 100644
--- a/cue/ast/astutil/resolve.go
+++ b/cue/ast/astutil/resolve.go
@@ -64,9 +64,9 @@
 //   X in [X=x]: y        Field          Expr (x)
 //   X in X=[x]: y        Field          Field
 //
-// for k, v in            Field          ForClause
+// for k, v in            ForClause      Ident
+// let x = y              LetClause      Ident
 //
-// Template               Field          Template
 // Fields inside lambda
 //    Label               Field          Expr
 //    Value               Field          Field
@@ -125,21 +125,11 @@
 			if a, ok := x.Label.(*ast.Alias); ok {
 				// TODO(legacy): use name := a.Ident.Name once quoted
 				// identifiers are no longer supported.
-				if name, _, _ := ast.LabelName(a.Ident); name != "" {
-					s.insert(name, x, a)
-				}
 				label, _ = a.Expr.(ast.Label)
-			}
-
-			switch y := label.(type) {
-			// TODO: support *ast.ParenExpr?
-			case *ast.ListLit:
-				// In this case, it really should be scoped like a template.
-				if len(y.Elts) != 1 {
-					break
-				}
-				if a, ok := y.Elts[0].(*ast.Alias); ok {
-					s.insert(a.Ident.Name, x, a)
+				if name, _, _ := ast.LabelName(a.Ident); name != "" {
+					if _, ok := label.(*ast.ListLit); !ok {
+						s.insert(name, x, a)
+					}
 				}
 			}
 
@@ -277,6 +267,8 @@
 
 	case *ast.Comprehension:
 		s = scopeClauses(s, x.Clauses)
+		walk(s, x.Value)
+		return nil
 
 	case *ast.Field:
 		var n ast.Node = x.Label
diff --git a/cue/ast/astutil/resolve_test.go b/cue/ast/astutil/resolve_test.go
new file mode 100644
index 0000000..b280982
--- /dev/null
+++ b/cue/ast/astutil/resolve_test.go
@@ -0,0 +1,73 @@
+// Copyright 2021 CUE Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package astutil_test
+
+import (
+	"fmt"
+	"path/filepath"
+	"testing"
+	"text/tabwriter"
+
+	"cuelang.org/go/cue/ast"
+	"cuelang.org/go/internal/astinternal"
+	"cuelang.org/go/internal/cuetest"
+	"cuelang.org/go/internal/cuetxtar"
+)
+
+func TestResolve(t *testing.T) {
+	test := cuetxtar.TxTarTest{
+		Root:   "./testdata/resolve",
+		Name:   "resolve",
+		Update: cuetest.UpdateGoldenFiles,
+	}
+
+	test.Run(t, func(t *cuetxtar.Test) {
+		a := t.ValidInstances()
+
+		for _, f := range a[0].Files {
+			if filepath.Ext(f.Filename) != ".cue" {
+				continue
+			}
+
+			identMap := map[ast.Node]int{}
+			ast.Walk(f, func(n ast.Node) bool {
+				switch n.(type) {
+				case *ast.File, *ast.StructLit, *ast.Field, *ast.ImportSpec,
+					*ast.Ident, *ast.ForClause, *ast.LetClause, *ast.Alias:
+					identMap[n] = len(identMap) + 1
+				}
+				return true
+			}, nil)
+
+			// Resolve was already called.
+
+			base := filepath.Base(f.Filename)
+			b := t.Writer(base[:len(base)-len(".cue")])
+			w := tabwriter.NewWriter(b, 0, 4, 1, ' ', 0)
+			ast.Walk(f, func(n ast.Node) bool {
+				if x, ok := n.(*ast.Ident); ok {
+					fmt.Fprintf(w, "%d[%s]:\tScope: %d[%T]\tNode: %d[%s]\n",
+						identMap[x], astinternal.DebugStr(x),
+						identMap[x.Scope], x.Scope,
+						identMap[x.Node], astinternal.DebugStr(x.Node))
+				}
+				return true
+			}, nil)
+			w.Flush()
+
+			fmt.Fprintln(b)
+		}
+	})
+}
diff --git a/cue/ast/astutil/testdata/resolve/comprehensions.txtar b/cue/ast/astutil/testdata/resolve/comprehensions.txtar
new file mode 100644
index 0000000..b4b89a5
--- /dev/null
+++ b/cue/ast/astutil/testdata/resolve/comprehensions.txtar
@@ -0,0 +1,36 @@
+-- in.cue --
+src: [{foo: 3}]
+
+for k, v in src
+let y = v.foo
+if y > 3 {
+    x: [k, v, y]
+}
+
+-- out/resolve/in --
+3[src]:  Scope: 0[<nil>]           Node: 0[]
+6[foo]:  Scope: 0[<nil>]           Node: 0[]
+8[k]:    Scope: 0[<nil>]           Node: 0[]
+9[v]:    Scope: 0[<nil>]           Node: 0[]
+10[src]: Scope: 1[*ast.File]       Node: 0[[{foo: 3}]]
+12[y]:   Scope: 0[<nil>]           Node: 0[]
+13[v]:   Scope: 7[*ast.ForClause]  Node: 9[v]
+14[foo]: Scope: 0[<nil>]           Node: 0[]
+15[y]:   Scope: 11[*ast.LetClause] Node: 12[y]
+18[x]:   Scope: 0[<nil>]           Node: 0[]
+19[k]:   Scope: 7[*ast.ForClause]  Node: 8[k]
+20[v]:   Scope: 7[*ast.ForClause]  Node: 9[v]
+21[y]:   Scope: 11[*ast.LetClause] Node: 12[y]
+
+-- issue946.cue --
+x: {for a in a {}}
+y: {for aa in a {}}
+
+-- out/resolve/issue946 --
+3[x]:   Scope: 0[<nil>] Node: 0[]
+6[a]:   Scope: 0[<nil>] Node: 0[]
+7[a]:   Scope: 0[<nil>] Node: 0[]
+10[y]:  Scope: 0[<nil>] Node: 0[]
+13[aa]: Scope: 0[<nil>] Node: 0[]
+14[a]:  Scope: 0[<nil>] Node: 0[]
+
diff --git a/cue/ast/astutil/testdata/resolve/fieldalias.txtar b/cue/ast/astutil/testdata/resolve/fieldalias.txtar
new file mode 100644
index 0000000..cbd7c1c
--- /dev/null
+++ b/cue/ast/astutil/testdata/resolve/fieldalias.txtar
@@ -0,0 +1,31 @@
+-- in.cue --
+X=a: int
+b: a
+c: X
+
+-- out/resolve/in --
+4[X]:   Scope: 0[<nil>]     Node: 0[]
+5[a]:   Scope: 0[<nil>]     Node: 0[]
+6[int]: Scope: 0[<nil>]     Node: 0[]
+8[b]:   Scope: 0[<nil>]     Node: 0[]
+9[a]:   Scope: 1[*ast.File] Node: 6[int]
+11[c]:  Scope: 0[<nil>]     Node: 0[]
+12[X]:  Scope: 1[*ast.File] Node: 2[X=a: int]
+
+-- dynamic.cue --
+X=("foo"):  int
+Y="\(X)":   string
+a: X
+b: Y
+
+-- out/resolve/dynamic --
+4[X]:       Scope: 0[<nil>]     Node: 0[]
+5[int]:     Scope: 0[<nil>]     Node: 0[]
+8[Y]:       Scope: 0[<nil>]     Node: 0[]
+9[X]:       Scope: 1[*ast.File] Node: 2[X=("foo"): int]
+10[string]: Scope: 0[<nil>]     Node: 0[]
+12[a]:      Scope: 0[<nil>]     Node: 0[]
+13[X]:      Scope: 1[*ast.File] Node: 2[X=("foo"): int]
+15[b]:      Scope: 0[<nil>]     Node: 0[]
+16[Y]:      Scope: 1[*ast.File] Node: 6[Y="\(X)": string]
+
diff --git a/cue/ast/astutil/testdata/resolve/labels.txtar b/cue/ast/astutil/testdata/resolve/labels.txtar
new file mode 100644
index 0000000..b0fe12c
--- /dev/null
+++ b/cue/ast/astutil/testdata/resolve/labels.txtar
@@ -0,0 +1,24 @@
+-- in.cue --
+[X=string]: name: X
+a: X
+
+Z=[string]: { x: string, y: Z.x }
+c: Z
+
+-- out/resolve/in --
+4[X]:       Scope: 0[<nil>]       Node: 0[]
+5[string]:  Scope: 0[<nil>]       Node: 0[]
+8[name]:    Scope: 0[<nil>]       Node: 0[]
+9[X]:       Scope: 2[*ast.Field]  Node: 5[string]
+11[a]:      Scope: 0[<nil>]       Node: 0[]
+12[X]:      Scope: 0[<nil>]       Node: 0[]
+15[Z]:      Scope: 0[<nil>]       Node: 0[]
+16[string]: Scope: 0[<nil>]       Node: 0[]
+19[x]:      Scope: 0[<nil>]       Node: 0[]
+20[string]: Scope: 0[<nil>]       Node: 0[]
+22[y]:      Scope: 0[<nil>]       Node: 0[]
+23[Z]:      Scope: 13[*ast.Field] Node: 13[Z=[string]: {x: string, y: Z.x}]
+24[x]:      Scope: 0[<nil>]       Node: 0[]
+26[c]:      Scope: 0[<nil>]       Node: 0[]
+27[Z]:      Scope: 0[<nil>]       Node: 0[]
+
diff --git a/cue/ast/astutil/testdata/resolve/let.txtar b/cue/ast/astutil/testdata/resolve/let.txtar
new file mode 100644
index 0000000..b3a5f66
--- /dev/null
+++ b/cue/ast/astutil/testdata/resolve/let.txtar
@@ -0,0 +1,13 @@
+-- let.cue --
+b: X
+let X = int
+a: X
+
+-- out/resolve/let --
+3[b]:   Scope: 0[<nil>]     Node: 0[]
+4[X]:   Scope: 1[*ast.File] Node: 5[let X=int]
+6[X]:   Scope: 0[<nil>]     Node: 0[]
+7[int]: Scope: 0[<nil>]     Node: 0[]
+9[a]:   Scope: 0[<nil>]     Node: 0[]
+10[X]:  Scope: 1[*ast.File] Node: 5[let X=int]
+
diff --git a/cue/ast/astutil/testdata/resolve/value.txtar b/cue/ast/astutil/testdata/resolve/value.txtar
new file mode 100644
index 0000000..3ba1621
--- /dev/null
+++ b/cue/ast/astutil/testdata/resolve/value.txtar
@@ -0,0 +1,12 @@
+-- in.cue --
+b: X={
+    c: X.a
+}
+
+-- out/resolve/in --
+3[b]:  Scope: 0[<nil>]      Node: 0[]
+5[X]:  Scope: 0[<nil>]      Node: 0[]
+8[c]:  Scope: 0[<nil>]      Node: 0[]
+9[X]:  Scope: 2[*ast.Field] Node: 4[X={c: X.a}]
+10[a]: Scope: 0[<nil>]      Node: 0[]
+
diff --git a/cue/testdata/compile/erralias.txtar b/cue/testdata/compile/erralias.txtar
index c30c1a9..07c3c0a 100644
--- a/cue/testdata/compile/erralias.txtar
+++ b/cue/testdata/compile/erralias.txtar
@@ -15,7 +15,7 @@
 -- out/compile --
 unreferenced alias or let clause X:
     ./in.cue:1:1
-a: illegal reference Y:
+a: reference "Y" not found:
     ./in.cue:4:4
 definitions not supported for interpolations:
     ./in.cue:6:1
@@ -24,7 +24,7 @@
 --- in.cue
 {
   ["foo"]: 3
-  a: _|_(illegal reference Y)
+  a: _|_(reference "Y" not found)
   "\(〈0;b〉)": 3
   b: "foo"
   c: {}
diff --git a/cue/testdata/compile/files.txtar b/cue/testdata/compile/files.txtar
new file mode 100644
index 0000000..44414a3
--- /dev/null
+++ b/cue/testdata/compile/files.txtar
@@ -0,0 +1,38 @@
+// Issue #946
+-- in.cue --
+package repro
+
+a: []
+
+-- out.cue --
+package repro
+
+x: {for a in a {}}
+y: {{{for a in a {}}}}
+-- out/compile --
+--- in.cue
+{
+  a: []
+}
+--- out.cue
+{
+  x: {
+    for _, a in 〈1;a〉 {}
+  }
+  y: {
+    {
+      {
+        for _, a in 〈3;a〉 {}
+      }
+    }
+  }
+}
+-- out/eval --
+(struct){
+  a: (#list){
+  }
+  x: (struct){
+  }
+  y: (struct){
+  }
+}