diff --git a/lib/rules/template-no-obsolete-elements.js b/lib/rules/template-no-obsolete-elements.js
index af82f4e007..31f97a07e3 100644
--- a/lib/rules/template-no-obsolete-elements.js
+++ b/lib/rules/template-no-obsolete-elements.js
@@ -29,6 +29,16 @@ const OBSOLETE = [
   'tt',
   'xmp',
 ];
+
+function hasBindingInScopeChain(scope, name) {
+  for (let s = scope; s; s = s.upper) {
+    if (s.set && s.set.has(name)) {
+      return true;
+    }
+  }
+  return false;
+}
+
 /** @type {import('eslint').Rule.RuleModule} */
 module.exports = {
   meta: {
@@ -50,26 +60,21 @@ module.exports = {
   },
   create(context) {
     const obsolete = new Set(OBSOLETE);
-    const blockParamsInScope = [];
+    const sourceCode = context.sourceCode;
 
     return {
-      GlimmerBlockStatement(node) {
-        const params = node.program?.blockParams || [];
-        blockParamsInScope.push(...params);
-      },
-      'GlimmerBlockStatement:exit'(node) {
-        const params = node.program?.blockParams || [];
-        for (let i = 0; i < params.length; i++) {
-          blockParamsInScope.pop();
-        }
-      },
       GlimmerElementNode(node) {
-        if (blockParamsInScope.includes(node.tag)) {
+        if (!obsolete.has(node.tag)) {
           return;
         }
-        if (obsolete.has(node.tag)) {
-          context.report({ node, messageId: 'obsolete', data: { element: node.tag } });
+        // Use the parent's scope so that the element's own `as |x|` params
+        // (which attach a block scope to this node) don't shadow its own tag
+        // name. e.g. `<marquee as |marquee|>` must still flag the outer tag.
+        const scope = sourceCode.getScope(node.parent);
+        if (hasBindingInScopeChain(scope, node.tag)) {
+          return;
         }
+        context.report({ node, messageId: 'obsolete', data: { element: node.tag } });
       },
     };
   },
diff --git a/tests/lib/rules/template-no-obsolete-elements.js b/tests/lib/rules/template-no-obsolete-elements.js
index 5c995da69b..16221c7ee6 100644
--- a/tests/lib/rules/template-no-obsolete-elements.js
+++ b/tests/lib/rules/template-no-obsolete-elements.js
@@ -11,6 +11,9 @@ ruleTester.run('template-no-obsolete-elements', rule, {
     `<template>{{#let (component 'whatever-here') as |plaintext|}}
       <plaintext />
     {{/let}}</template>`,
+    // Element-level block params (<Comp as |...|>) are now tracked
+    '<template><Comp as |plaintext|><plaintext /></Comp></template>',
+    '<template><Outer as |marquee|><marquee /></Outer></template>',
   ],
   invalid: [
     {
@@ -18,6 +21,12 @@ ruleTester.run('template-no-obsolete-elements', rule, {
       output: null,
       errors: [{ messageId: 'obsolete' }],
     },
+    // Element's own block params must not shadow its own tag name.
+    {
+      code: '<template><marquee as |marquee|></marquee></template>',
+      output: null,
+      errors: [{ messageId: 'obsolete', data: { element: 'marquee' } }],
+    },
   ],
 });