diff --git a/pkg/_js_interop_checks/lib/src/transformations/static_interop_class_eraser.dart b/pkg/_js_interop_checks/lib/src/transformations/static_interop_class_eraser.dart
index c98694ee831..163fe49d662 100644
--- a/pkg/_js_interop_checks/lib/src/transformations/static_interop_class_eraser.dart
+++ b/pkg/_js_interop_checks/lib/src/transformations/static_interop_class_eraser.dart
@@ -28,7 +28,7 @@ class StaticInteropClassEraser extends Transformer {
   final Class _javaScriptObject;
   final CloneVisitorNotMembers _cloner = CloneVisitorNotMembers();
   late final _TypeSubstitutor _typeSubstitutor;
-  late Library currLibrary;
+  Component? currentComponent;
 
   StaticInteropClassEraser(CoreTypes coreTypes,
       {String libraryForJavaScriptObject = 'dart:_interceptors',
@@ -54,21 +54,27 @@ class StaticInteropClassEraser extends Transformer {
     var stubs = factoryClass.procedures
         .where((procedure) => procedure.name.text == stubName);
     if (stubs.isEmpty) {
-      // We should only create the stub if we're processing the library in which
-      // the stub should exist. Any static invocation of the factory that
-      // doesn't exist in the same library as the factory should be processed
-      // after the library in which the factory exists. In modular compilation,
-      // the outline of that library should already contain the needed stub.
-      assert(factoryClass.enclosingLibrary == currLibrary);
-      // Note that the return type of the cloned function is transformed.
-      var functionNode = super
-              .visitFunctionNode(_cloner.cloneInContext(factoryTarget.function))
-          as FunctionNode;
+      // We should only create the stub if we're processing the component in
+      // which the stub should exist. Any static invocation of the factory that
+      // doesn't exist in the same component as the factory should be processed
+      // after the component in which the factory exists. In modular
+      // compilation, the outline of that component should already contain the
+      // needed stub.
+      if (currentComponent != null) {
+        assert(factoryTarget.enclosingComponent == currentComponent);
+      }
       var staticMethod = Procedure(
-          Name(stubName), ProcedureKind.Method, functionNode,
+          Name(stubName), ProcedureKind.Method, FunctionNode(null),
           isStatic: true, fileUri: factoryTarget.fileUri)
         ..fileOffset = factoryTarget.fileOffset;
       factoryClass.addProcedure(staticMethod);
+      // Clone function node after processing the stub in case of mutually
+      // recursive factories. Note that the return type of the cloned function
+      // is transformed.
+      var functionNode = super
+              .visitFunctionNode(_cloner.cloneInContext(factoryTarget.function))
+          as FunctionNode;
+      staticMethod.function = functionNode;
       return staticMethod;
     } else {
       assert(stubs.length == 1);
@@ -78,7 +84,7 @@ class StaticInteropClassEraser extends Transformer {
 
   @override
   TreeNode visitLibrary(Library node) {
-    currLibrary = node;
+    currentComponent = node.enclosingComponent;
     return super.visitLibrary(node);
   }
 
@@ -208,7 +214,7 @@ class StaticInteropStubCreator extends RecursiveVisitor {
 
   @override
   void visitLibrary(Library node) {
-    _eraser.currLibrary = node;
+    _eraser.currentComponent = node.enclosingComponent;
     super.visitLibrary(node);
   }
 
diff --git a/tests/web/native/static_interop_erasure/factory_stub_lib.dart b/tests/web/native/static_interop_erasure/factory_stub_lib.dart
new file mode 100644
index 00000000000..e7e3b85b6e0
--- /dev/null
+++ b/tests/web/native/static_interop_erasure/factory_stub_lib.dart
@@ -0,0 +1,20 @@
+// Copyright (c) 2022, the Dart project authors.  Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+@JS()
+library factory_stub_lib;
+
+import 'package:js/js.dart';
+
+import 'factory_stub_test.dart';
+
+@JS('NativeClass')
+@staticInterop
+class StaticNativeClassCopy {
+  external StaticNativeClassCopy();
+  factory StaticNativeClassCopy.nestedFactory() {
+    StaticNativeClass.nestedFactory();
+    return StaticNativeClassCopy();
+  }
+}
diff --git a/tests/web/native/static_interop_erasure/factory_stub_test.dart b/tests/web/native/static_interop_erasure/factory_stub_test.dart
index 71fe51681dc..b71ef8e1e38 100644
--- a/tests/web/native/static_interop_erasure/factory_stub_test.dart
+++ b/tests/web/native/static_interop_erasure/factory_stub_test.dart
@@ -14,6 +14,7 @@ import 'package:js/js.dart';
 
 import '../native_testing.dart';
 import '../native_testing.dart' as native_testing;
+import 'factory_stub_lib.dart';
 
 NativeClass makeNativeClass() native;
 
@@ -34,23 +35,15 @@ class StaticNativeClass {
   // This and `StaticNativeClassCopy.nestedFactory` exist to ensure that we
   // cover the case where invocations on factories are visible before their
   // declarations in the AST. This will test whether we correctly create the
-  // stub even if we haven't visited the declaration yet.
-  factory StaticNativeClass.nestedFactory() {
-    StaticNativeClassCopy.nestedFactory();
+  // stub even if we haven't visited the declaration yet. It will also test the
+  // case where stubs need to be added before function bodies are visited so
+  // that mutually recursive factories can resolve.
+  factory StaticNativeClass.nestedFactory({bool callCopyFactory = false}) {
+    if (callCopyFactory) StaticNativeClassCopy.nestedFactory();
     return StaticNativeClass();
   }
 }
 
-@JS('NativeClass')
-@staticInterop
-class StaticNativeClassCopy {
-  external StaticNativeClassCopy();
-  factory StaticNativeClassCopy.nestedFactory() {
-    StaticNativeClass.simpleFactory();
-    return StaticNativeClassCopy();
-  }
-}
-
 void main() {
   nativeTesting();
   native_testing.JS('', r'''
@@ -69,5 +62,5 @@ void main() {
   StaticNativeClass staticNativeClass = StaticNativeClass.redirectingFactory();
   staticNativeClass = StaticNativeClass.simpleFactory();
   staticNativeClass = StaticNativeClass.factoryWithParam(staticNativeClass);
-  staticNativeClass = StaticNativeClass.nestedFactory();
+  staticNativeClass = StaticNativeClass.nestedFactory(callCopyFactory: true);
 }