diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.1.ddl.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.1.ddl.sqlpp
new file mode 100644
index 0000000..15d9e57
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.1.ddl.sqlpp
@@ -0,0 +1,27 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+drop  dataverse test if exists;
+create dataverse test;
+
+use test;
+
+create function f1(a) {
+  a * 2
+};
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.2.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.2.query.sqlpp
new file mode 100644
index 0000000..a601afd
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/user-defined-functions/udf36_in_with/udf36_in_with.2.query.sqlpp
@@ -0,0 +1,32 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+/*
+ * Description  : UDF used inside a WITH clause.
+ *                Fix for ASTERIXDB-2794
+ * Expected Res : Success
+ */
+
+use test;
+
+with t1 as (
+  select value f1(t0) from range(1,3) t0
+)
+select value t1
+from t1
+order by t1;
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/user-defined-functions/udf36_in_with/udf36_in_with.2.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/user-defined-functions/udf36_in_with/udf36_in_with.2.adm
new file mode 100644
index 0000000..cfa0b54
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/user-defined-functions/udf36_in_with/udf36_in_with.2.adm
@@ -0,0 +1,3 @@
+2
+4
+6
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
index a99b121..7f002ee 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
@@ -12208,6 +12208,11 @@
       </compilation-unit>
     </test-case>
     <test-case FilePath="user-defined-functions">
+      <compilation-unit name="udf36_in_with">
+        <output-dir compare="Text">udf36_in_with</output-dir>
+      </compilation-unit>
+    </test-case>
+    <test-case FilePath="user-defined-functions">
       <compilation-unit name="f01">
         <output-dir compare="Text">f01</output-dir>
         <expected-error>ASX1081: Cannot find function with name test.tinyint</expected-error>
diff --git a/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/SqlppQueryRewriter.java b/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/SqlppQueryRewriter.java
index 365c42e..ed56443 100644
--- a/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/SqlppQueryRewriter.java
+++ b/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/SqlppQueryRewriter.java
@@ -32,6 +32,7 @@
 import org.apache.asterix.lang.common.base.IParserFactory;
 import org.apache.asterix.lang.common.base.IQueryRewriter;
 import org.apache.asterix.lang.common.base.IReturningStatement;
+import org.apache.asterix.lang.common.clause.LetClause;
 import org.apache.asterix.lang.common.expression.CallExpr;
 import org.apache.asterix.lang.common.expression.ListSliceExpression;
 import org.apache.asterix.lang.common.expression.VariableExpr;
@@ -464,6 +465,11 @@
 
         @Override
         public Void visit(SelectExpression selectStatement, Void arg) throws CompilationException {
+            if (selectStatement.hasLetClauses()) {
+                for (LetClause letClause : selectStatement.getLetList()) {
+                    letClause.accept(this, arg);
+                }
+            }
             selectStatement.getSelectSetOperation().accept(this, arg);
             if (selectStatement.hasOrderby()) {
                 selectStatement.getOrderbyClause().accept(this, arg);