diff --git a/test/core/fixtures/transformation/misc/regression-1168/actual.js b/test/core/fixtures/transformation/misc/regression-1168/actual.js
new file mode 100644
index 0000000000..8d0ecb47a3
--- /dev/null
+++ b/test/core/fixtures/transformation/misc/regression-1168/actual.js
@@ -0,0 +1,3 @@
+function test(x: string = "hi"): string {
+  return x;
+}
diff --git a/test/core/fixtures/transformation/misc/regression-1168/expected.js b/test/core/fixtures/transformation/misc/regression-1168/expected.js
new file mode 100644
index 0000000000..9ac2b1d6f1
--- /dev/null
+++ b/test/core/fixtures/transformation/misc/regression-1168/expected.js
@@ -0,0 +1,7 @@
+"use strict";
+
+function test() {
+  var x = arguments[0] === undefined ? "hi" : arguments[0];
+
+  return x;
+}