diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.query.sqlpp
new file mode 100644
index 0000000..1e7c329
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.query.sqlpp
@@ -0,0 +1,35 @@
+/*
+ * 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  : Test when statement parameter is used in a case expression inside an aggregate function
+ * Expected Res : Success
+ * Date         : Feb 2023
+ */
+
+// requesttype=application/json
+
+// param args:json=[1]
+
+select value sum(case when t.y > $1 then t.x else 0 end)
+from [
+ { "x": 10, "y": 1 },
+ { "x": 20, "y": 2 },
+ { "x": 15, "y": 3 }
+] t
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.query.sqlpp
new file mode 100644
index 0000000..93b4281
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.query.sqlpp
@@ -0,0 +1,36 @@
+/*
+ * 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  : Test when statement parameter is used in a case expression inside an aggregate function
+ * Expected Res : Success
+ * Date         : Feb 2023
+ */
+
+// requesttype=application/json
+
+// param $y1:json=1
+// param $x1:json=5
+
+select value sum(case when t.y > $y1 then t.x else $x1 end)
+from [
+ { "x": 10, "y": 1 },
+ { "x": 20, "y": 2 },
+ { "x": 15, "y": 3 }
+] t
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.adm
new file mode 100644
index 0000000..597975b
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.1.adm
@@ -0,0 +1 @@
+35
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.adm
new file mode 100644
index 0000000..86ee83a
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/statement-params/query-ASTERIXDB-3116/query-ASTERIXDB-3116.2.adm
@@ -0,0 +1 @@
+40
\ 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 54b4ffc..304520b 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
@@ -10411,6 +10411,11 @@
         <output-dir compare="Text">query-ASTERIXDB-2413</output-dir>
       </compilation-unit>
     </test-case>
+    <test-case FilePath="statement-params">
+      <compilation-unit name="query-ASTERIXDB-3116">
+        <output-dir compare="Text">query-ASTERIXDB-3116</output-dir>
+      </compilation-unit>
+    </test-case>
   </test-group>
   <test-group name="string">
     <test-case FilePath="string">
diff --git a/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/visitor/Sql92AggregateFunctionVisitor.java b/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/visitor/Sql92AggregateFunctionVisitor.java
index f93e843..73f1202 100644
--- a/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/visitor/Sql92AggregateFunctionVisitor.java
+++ b/asterixdb/asterix-lang-sqlpp/src/main/java/org/apache/asterix/lang/sqlpp/rewrites/visitor/Sql92AggregateFunctionVisitor.java
@@ -187,7 +187,8 @@
                         new FieldAccessor(groupItemVar, new VarIdentifier(groupVarFieldMap.get(usedVar).getValue()));
                 fa.setSourceLocation(usedVar.getSourceLocation());
                 varExprMap.put(usedVar, fa);
-            } else if (outerVars.contains(usedVar)) {
+            } else if (outerVars.contains(usedVar)
+                    || SqlppVariableUtil.isExternalVariableIdentifier(usedVar.getVar())) {
                 // Do nothing
             } else if (preGroupUnmappedVars != null && preGroupUnmappedVars.contains(usedVar)) {
                 throw new CompilationException(ErrorCode.COMPILATION_ILLEGAL_USE_OF_IDENTIFIER,