diff --git a/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Fixture/skip_property_self_referenced_in_arrow_function.php.inc b/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Fixture/skip_property_self_referenced_in_arrow_function.php.inc
new file mode 100644
index 000000000..fbf2281ac
--- /dev/null
+++ b/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Fixture/skip_property_self_referenced_in_arrow_function.php.inc
@@ -0,0 +1,23 @@
+<?php
+
+namespace Rector\PHPUnit\Tests\CodeQuality\Rector\Class_\NarrowUnusedSetUpDefinedPropertyRector\Fixture;
+
+use PHPUnit\Framework\TestCase;
+use Rector\PHPUnit\Tests\CodeQuality\Rector\Class_\NarrowUnusedSetUpDefinedPropertyRector\Source\LazyContainer;
+
+final class SkipPropertySelfReferencedInArrowFunction extends TestCase
+{
+    private LazyContainer $container;
+
+    protected function setUp(): void
+    {
+        $this->container = new LazyContainer([
+            'self' => fn (): LazyContainer => $this->container,
+        ]);
+    }
+
+    public function test()
+    {
+        $this->assertTrue(true);
+    }
+}
diff --git a/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Source/LazyContainer.php b/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Source/LazyContainer.php
new file mode 100644
index 000000000..4bbcfc68c
--- /dev/null
+++ b/rules-tests/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector/Source/LazyContainer.php
@@ -0,0 +1,14 @@
+<?php
+
+namespace Rector\PHPUnit\Tests\CodeQuality\Rector\Class_\NarrowUnusedSetUpDefinedPropertyRector\Source;
+
+final class LazyContainer
+{
+    /**
+     * @param array<string, callable> $factories
+     */
+    public function __construct(
+        private array $factories
+    ) {
+    }
+}
diff --git a/rules/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector.php b/rules/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector.php
index d077cfba5..da392e12b 100644
--- a/rules/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector.php
+++ b/rules/CodeQuality/Rector/Class_/NarrowUnusedSetUpDefinedPropertyRector.php
@@ -6,6 +6,8 @@
 
 use PhpParser\Node;
 use PhpParser\Node\Expr;
+use PhpParser\Node\Expr\ArrowFunction;
+use PhpParser\Node\Expr\Assign;
 use PhpParser\Node\Expr\Closure;
 use PhpParser\Node\Expr\PropertyFetch;
 use PhpParser\Node\Expr\Variable;
@@ -124,7 +126,7 @@ public function refactor(Node $node): ?Node
 
             // referenced inside a nested closure that may run after setUp() - turning it into a local
             // variable would leave it out of the closure scope, as there is no "use" binding to add it
-            if ($this->isPropertyUsedInNestedClosure($setUpClassMethod, $propertyName)) {
+            if ($this->isPropertyUsedInUnsafeNestedFunction($setUpClassMethod, $propertyName)) {
                 continue;
             }
 
@@ -196,28 +198,26 @@ private function isPropertyUsedOutsideSetUpClassMethod(
         return $isPropertyUsed;
     }
 
-    private function isPropertyUsedInNestedClosure(ClassMethod $setUpClassMethod, string $propertyName): bool
+    private function isPropertyUsedInUnsafeNestedFunction(ClassMethod $setUpClassMethod, string $propertyName): bool
     {
-        // only regular closures are unsafe: they do not capture outer variables without an
-        // explicit "use" binding. Arrow functions auto-capture by value, so narrowing is safe there.
-        $closures = $this->nodeFinder->findInstanceOf($setUpClassMethod, Closure::class);
-
-        foreach ($closures as $closure) {
-            $usedPropertyFetch = $this->nodeFinder->findFirst($closure, function (Node $node) use (
-                $propertyName
-            ): bool {
-                if (! $node instanceof PropertyFetch) {
-                    return false;
-                }
-
-                if (! $this->isName($node->var, 'this')) {
-                    return false;
-                }
+        // a regular closure does not capture outer variables without an explicit "use" binding,
+        // so turning the property into a local variable always leaves it undefined inside the closure
+        foreach ($this->nodeFinder->findInstanceOf($setUpClassMethod, Closure::class) as $closure) {
+            if ($this->refersToThisProperty($closure, $propertyName)) {
+                return true;
+            }
+        }
 
-                return $this->isName($node->name, $propertyName);
-            });
+        // an arrow function auto-captures by value at definition time; that only matches the original
+        // lazy "$this->property" read when the property assignment is already complete before the arrow
+        // function is defined. A later or wrapping assignment (e.g. a self-referencing type definition)
+        // would capture a not-yet-assigned variable
+        foreach ($this->nodeFinder->findInstanceOf($setUpClassMethod, ArrowFunction::class) as $arrowFunction) {
+            if (! $this->refersToThisProperty($arrowFunction, $propertyName)) {
+                continue;
+            }
 
-            if ($usedPropertyFetch instanceof PropertyFetch) {
+            if (! $this->isPropertyAssignedBefore($setUpClassMethod, $propertyName, $arrowFunction)) {
                 return true;
             }
         }
@@ -225,6 +225,57 @@ private function isPropertyUsedInNestedClosure(ClassMethod $setUpClassMethod, st
         return false;
     }
 
+    private function refersToThisProperty(Node $node, string $propertyName): bool
+    {
+        $propertyFetch = $this->nodeFinder->findFirst($node, function (Node $subNode) use ($propertyName): bool {
+            if (! $subNode instanceof PropertyFetch) {
+                return false;
+            }
+
+            if (! $this->isName($subNode->var, 'this')) {
+                return false;
+            }
+
+            return $this->isName($subNode->name, $propertyName);
+        });
+
+        return $propertyFetch instanceof PropertyFetch;
+    }
+
+    private function isPropertyAssignedBefore(
+        ClassMethod $setUpClassMethod,
+        string $propertyName,
+        ArrowFunction $arrowFunction
+    ): bool {
+        $arrowFunctionStartTokenPos = $arrowFunction->getStartTokenPos();
+
+        $assignBefore = $this->nodeFinder->findFirst($setUpClassMethod, function (Node $node) use (
+            $propertyName,
+            $arrowFunctionStartTokenPos
+        ): bool {
+            if (! $node instanceof Assign) {
+                return false;
+            }
+
+            if (! $node->var instanceof PropertyFetch) {
+                return false;
+            }
+
+            if (! $this->isName($node->var->var, 'this')) {
+                return false;
+            }
+
+            if (! $this->isName($node->var->name, $propertyName)) {
+                return false;
+            }
+
+            // assignment fully completes before the arrow function starts
+            return $node->getEndTokenPos() < $arrowFunctionStartTokenPos;
+        });
+
+        return $assignBefore instanceof Assign;
+    }
+
     private function shouldSkipProperty(
         bool $isFinalClass,
         Property $property,