diff --git a/CHANGELOG.md b/CHANGELOG.md
index ed031a135650..05de3c37ffc9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,9 @@ Main (unreleased)
 
 - Fix a memory leak which would occur any time `loki.process` had its configuration reloaded. (@ptodev)
 
+- Fix a bug where custom components would not shadow the stdlib. If you have a module whose name conflicts with an stdlib function 
+  and if you use this exact function in your config, then you will need to rename your module. (@wildum)
+
 ### Other changes
 
 - Change the Docker base image for Linux containers to `ubuntu:noble`. (@amontalban)
diff --git a/internal/flow/declare_test.go b/internal/flow/declare_test.go
index d66505c8fb11..ca2849d68d5e 100644
--- a/internal/flow/declare_test.go
+++ b/internal/flow/declare_test.go
@@ -261,6 +261,38 @@ func TestDeclare(t *testing.T) {
 			`,
 			expected: -10,
 		},
+		{
+			name: "ShadowStdlib",
+			config: `
+			declare "constants" {
+				argument "input" {
+					optional = false
+				}
+			
+				testcomponents.passthrough "pt" {
+					input = argument.input.value
+					lag = "1ms"
+				}
+			
+				export "output" {
+					value = testcomponents.passthrough.pt.output
+				}
+			}
+			testcomponents.count "inc" {
+				frequency = "10ms"
+				max = 10
+			}
+		
+			constants "myModule" {
+				input = testcomponents.count.inc.count
+			}
+		
+			testcomponents.summation "sum" {
+				input = constants.myModule.output
+			}
+			`,
+			expected: 10,
+		},
 	}
 
 	for _, tc := range tt {
diff --git a/internal/flow/internal/controller/component_references.go b/internal/flow/internal/controller/component_references.go
index c046895dda4f..13c850628885 100644
--- a/internal/flow/internal/controller/component_references.go
+++ b/internal/flow/internal/controller/component_references.go
@@ -42,19 +42,17 @@ func ComponentReferences(cn dag.Node, g *dag.Graph) ([]Reference, diag.Diagnosti
 
 	refs := make([]Reference, 0, len(traversals))
 	for _, t := range traversals {
-		// We use an empty scope to determine if a reference refers to something in
-		// the stdlib, since vm.Scope.Lookup will search the scope tree + the
-		// stdlib.
-		//
-		// Any call to an stdlib function is ignored.
-		var emptyScope vm.Scope
-		if _, ok := emptyScope.Lookup(t[0].Name); ok {
-			continue
-		}
-
 		ref, resolveDiags := resolveTraversal(t, g)
-		diags = append(diags, resolveDiags...)
 		if resolveDiags.HasErrors() {
+			// We use an empty scope to determine if a reference refers to something in
+			// the stdlib, since vm.Scope.Lookup will search the scope tree + the
+			// stdlib.
+			//
+			// Any call to an stdlib function is ignored.
+			var emptyScope vm.Scope
+			if _, exist := emptyScope.Lookup(t[0].Name); !exist {
+				diags = append(diags, resolveDiags...)
+			}
 			continue
 		}
 		refs = append(refs, ref)