diff --git a/src/compiler/factory.ts b/src/compiler/factory.ts
index 321fee7e6a8..af1da33ac92 100644
--- a/src/compiler/factory.ts
+++ b/src/compiler/factory.ts
@@ -2974,7 +2974,10 @@ namespace ts {
                     (texts || (texts = [])).push(prependNode);
                     break;
                 case BundleFileSectionKind.Internal:
-                    if (stripInternal) break;
+                    if (stripInternal) {
+                        if (!texts) texts = [];
+                        break;
+                    }
                     // falls through
 
                 case BundleFileSectionKind.Text:
diff --git a/src/testRunner/unittests/tsbuild/helpers.ts b/src/testRunner/unittests/tsbuild/helpers.ts
index b21c60a8617..456bf0e2c2b 100644
--- a/src/testRunner/unittests/tsbuild/helpers.ts
+++ b/src/testRunner/unittests/tsbuild/helpers.ts
@@ -228,7 +228,7 @@ interface Symbol {
             if (section.kind !== BundleFileSectionKind.Prepend) {
                 writeTextOfSection(section.pos, section.end);
             }
-            else {
+            else if (section.texts.length > 0) {
                 Debug.assert(section.pos === first(section.texts).pos);
                 Debug.assert(section.end === last(section.texts).end);
                 for (const text of section.texts) {
@@ -237,6 +237,9 @@ interface Symbol {
                     writeTextOfSection(text.pos, text.end);
                 }
             }
+            else {
+                Debug.assert(section.pos === section.end);
+            }
         }
         baselineRecorder.WriteLine("======================================================================");
 
diff --git a/src/testRunner/unittests/tsbuild/outFile.ts b/src/testRunner/unittests/tsbuild/outFile.ts
index 20cbe05a3c1..36aa7eba60c 100644
--- a/src/testRunner/unittests/tsbuild/outFile.ts
+++ b/src/testRunner/unittests/tsbuild/outFile.ts
@@ -682,6 +682,40 @@ ${internal} enum internalEnum { a, b, c }`);
                     ignoreDtsUnchanged: true,
                     baselineOnly: true
                 });
+
+                verifyOutFileScenario({
+                    subScenario: "stripInternal when prepend is completely internal",
+                    baselineOnly: true,
+                    ignoreDtsChanged: true,
+                    ignoreDtsUnchanged: true,
+                    modifyFs: fs => {
+                        fs.writeFileSync(sources[project.first][source.ts][part.one], "/* @internal */ const A = 1;");
+                        fs.writeFileSync(sources[project.third][source.ts][part.one], "const B = 2;");
+                        fs.writeFileSync(sources[project.first][source.config], JSON.stringify({
+                            compilerOptions: {
+                                composite: true,
+                                declaration: true,
+                                declarationMap: true,
+                                skipDefaultLibCheck: true,
+                                sourceMap: true,
+                                outFile: "./bin/first-output.js"
+                            },
+                            files: [sources[project.first][source.ts][part.one]]
+                        }));
+                        fs.writeFileSync(sources[project.third][source.config], JSON.stringify({
+                            compilerOptions: {
+                                composite: true,
+                                declaration: true,
+                                declarationMap: false,
+                                stripInternal: true,
+                                sourceMap: true,
+                                outFile: "./thirdjs/output/third-output.js"
+                            },
+                            references: [{ path: "../first", prepend: true }],
+                            files: [sources[project.third][source.ts][part.one]]
+                        }));
+                    }
+                });
             });
 
             describe("empty source files", () => {
diff --git a/tests/baselines/reference/tsbuild/outfile-concat/initial-build/stripInternal-when-prepend-is-completely-internal.js b/tests/baselines/reference/tsbuild/outfile-concat/initial-build/stripInternal-when-prepend-is-completely-internal.js
new file mode 100644
index 00000000000..a20e6dadee5
--- /dev/null
+++ b/tests/baselines/reference/tsbuild/outfile-concat/initial-build/stripInternal-when-prepend-is-completely-internal.js
@@ -0,0 +1,310 @@
+//// [/lib/initial-buildOutput.txt]
+/lib/tsc --b /src/third --verbose
+12:00:00 AM - Projects in this build: 
+    * src/first/tsconfig.json
+    * src/third/tsconfig.json
+
+12:00:00 AM - Project 'src/first/tsconfig.json' is out of date because output file 'src/first/bin/first-output.js' does not exist
+
+12:00:00 AM - Building project '/src/first/tsconfig.json'...
+
+12:00:00 AM - Project 'src/third/tsconfig.json' is out of date because output file 'src/third/thirdjs/output/third-output.js' does not exist
+
+12:00:00 AM - Building project '/src/third/tsconfig.json'...
+
+exitCode:: 0
+
+
+//// [/src/first/bin/first-output.d.ts]
+declare const A = 1;
+//# sourceMappingURL=first-output.d.ts.map
+
+//// [/src/first/bin/first-output.d.ts.map]
+{"version":3,"file":"first-output.d.ts","sourceRoot":"","sources":["../first_PART1.ts"],"names":[],"mappings":"AAAgB,QAAA,MAAM,CAAC,IAAI,CAAC"}
+
+//// [/src/first/bin/first-output.d.ts.map.baseline.txt]
+===================================================================
+JsFile: first-output.d.ts
+mapUrl: first-output.d.ts.map
+sourceRoot: 
+sources: ../first_PART1.ts
+===================================================================
+-------------------------------------------------------------------
+emittedFile:/src/first/bin/first-output.d.ts
+sourceFile:../first_PART1.ts
+-------------------------------------------------------------------
+>>>declare const A = 1;
+1 >
+2 >^^^^^^^^
+3 >        ^^^^^^
+4 >              ^
+5 >               ^^^^
+6 >                   ^
+7 >                    ^^^^^^^^^^^^^^^^^^^^^->
+1 >/* @internal */ 
+2 >
+3 >        const 
+4 >              A
+5 >                = 1
+6 >                   ;
+1 >Emitted(1, 1) Source(1, 17) + SourceIndex(0)
+2 >Emitted(1, 9) Source(1, 17) + SourceIndex(0)
+3 >Emitted(1, 15) Source(1, 23) + SourceIndex(0)
+4 >Emitted(1, 16) Source(1, 24) + SourceIndex(0)
+5 >Emitted(1, 20) Source(1, 28) + SourceIndex(0)
+6 >Emitted(1, 21) Source(1, 29) + SourceIndex(0)
+---
+>>>//# sourceMappingURL=first-output.d.ts.map
+
+//// [/src/first/bin/first-output.js]
+/* @internal */ var A = 1;
+//# sourceMappingURL=first-output.js.map
+
+//// [/src/first/bin/first-output.js.map]
+{"version":3,"file":"first-output.js","sourceRoot":"","sources":["../first_PART1.ts"],"names":[],"mappings":"AAAA,eAAe,CAAC,IAAM,CAAC,GAAG,CAAC,CAAC"}
+
+//// [/src/first/bin/first-output.js.map.baseline.txt]
+===================================================================
+JsFile: first-output.js
+mapUrl: first-output.js.map
+sourceRoot: 
+sources: ../first_PART1.ts
+===================================================================
+-------------------------------------------------------------------
+emittedFile:/src/first/bin/first-output.js
+sourceFile:../first_PART1.ts
+-------------------------------------------------------------------
+>>>/* @internal */ var A = 1;
+1 >
+2 >^^^^^^^^^^^^^^^
+3 >               ^
+4 >                ^^^^
+5 >                    ^
+6 >                     ^^^
+7 >                        ^
+8 >                         ^
+9 >                          ^^^^^^^^^^^^^->
+1 >
+2 >/* @internal */
+3 >                
+4 >                const 
+5 >                    A
+6 >                      = 
+7 >                        1
+8 >                         ;
+1 >Emitted(1, 1) Source(1, 1) + SourceIndex(0)
+2 >Emitted(1, 16) Source(1, 16) + SourceIndex(0)
+3 >Emitted(1, 17) Source(1, 17) + SourceIndex(0)
+4 >Emitted(1, 21) Source(1, 23) + SourceIndex(0)
+5 >Emitted(1, 22) Source(1, 24) + SourceIndex(0)
+6 >Emitted(1, 25) Source(1, 27) + SourceIndex(0)
+7 >Emitted(1, 26) Source(1, 28) + SourceIndex(0)
+8 >Emitted(1, 27) Source(1, 29) + SourceIndex(0)
+---
+>>>//# sourceMappingURL=first-output.js.map
+
+//// [/src/first/bin/first-output.tsbuildinfo]
+{
+  "bundle": {
+    "commonSourceDirectory": "..",
+    "sourceFiles": [
+      "../first_PART1.ts"
+    ],
+    "js": {
+      "sections": [
+        {
+          "pos": 0,
+          "end": 28,
+          "kind": "text"
+        }
+      ]
+    },
+    "dts": {
+      "sections": [
+        {
+          "pos": 0,
+          "end": 20,
+          "kind": "internal"
+        }
+      ]
+    }
+  },
+  "version": "FakeTSVersion"
+}
+
+//// [/src/first/bin/first-output.tsbuildinfo.baseline.txt]
+======================================================================
+File:: /src/first/bin/first-output.js
+----------------------------------------------------------------------
+text: (0-28)
+/* @internal */ var A = 1;
+
+======================================================================
+======================================================================
+File:: /src/first/bin/first-output.d.ts
+----------------------------------------------------------------------
+internal: (0-20)
+declare const A = 1;
+======================================================================
+
+//// [/src/first/first_PART1.ts]
+/* @internal */ const A = 1;
+
+//// [/src/first/tsconfig.json]
+{"compilerOptions":{"composite":true,"declaration":true,"declarationMap":true,"skipDefaultLibCheck":true,"sourceMap":true,"outFile":"./bin/first-output.js"},"files":["/src/first/first_PART1.ts"]}
+
+//// [/src/third/thirdjs/output/third-output.d.ts]
+declare const B = 2;
+
+
+//// [/src/third/thirdjs/output/third-output.js]
+/* @internal */ var A = 1;
+var B = 2;
+//# sourceMappingURL=third-output.js.map
+
+//// [/src/third/thirdjs/output/third-output.js.map]
+{"version":3,"file":"third-output.js","sourceRoot":"","sources":["../../../first/first_PART1.ts","../../third_part1.ts"],"names":[],"mappings":"AAAA,eAAe,CAAC,IAAM,CAAC,GAAG,CAAC,CAAC;ACA5B,IAAM,CAAC,GAAG,CAAC,CAAC"}
+
+//// [/src/third/thirdjs/output/third-output.js.map.baseline.txt]
+===================================================================
+JsFile: third-output.js
+mapUrl: third-output.js.map
+sourceRoot: 
+sources: ../../../first/first_PART1.ts,../../third_part1.ts
+===================================================================
+-------------------------------------------------------------------
+emittedFile:/src/third/thirdjs/output/third-output.js
+sourceFile:../../../first/first_PART1.ts
+-------------------------------------------------------------------
+>>>/* @internal */ var A = 1;
+1 >
+2 >^^^^^^^^^^^^^^^
+3 >               ^
+4 >                ^^^^
+5 >                    ^
+6 >                     ^^^
+7 >                        ^
+8 >                         ^
+1 >
+2 >/* @internal */
+3 >                
+4 >                const 
+5 >                    A
+6 >                      = 
+7 >                        1
+8 >                         ;
+1 >Emitted(1, 1) Source(1, 1) + SourceIndex(0)
+2 >Emitted(1, 16) Source(1, 16) + SourceIndex(0)
+3 >Emitted(1, 17) Source(1, 17) + SourceIndex(0)
+4 >Emitted(1, 21) Source(1, 23) + SourceIndex(0)
+5 >Emitted(1, 22) Source(1, 24) + SourceIndex(0)
+6 >Emitted(1, 25) Source(1, 27) + SourceIndex(0)
+7 >Emitted(1, 26) Source(1, 28) + SourceIndex(0)
+8 >Emitted(1, 27) Source(1, 29) + SourceIndex(0)
+---
+-------------------------------------------------------------------
+emittedFile:/src/third/thirdjs/output/third-output.js
+sourceFile:../../third_part1.ts
+-------------------------------------------------------------------
+>>>var B = 2;
+1 >
+2 >^^^^
+3 >    ^
+4 >     ^^^
+5 >        ^
+6 >         ^
+7 >          ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
+1 >
+2 >const 
+3 >    B
+4 >      = 
+5 >        2
+6 >         ;
+1 >Emitted(2, 1) Source(1, 1) + SourceIndex(1)
+2 >Emitted(2, 5) Source(1, 7) + SourceIndex(1)
+3 >Emitted(2, 6) Source(1, 8) + SourceIndex(1)
+4 >Emitted(2, 9) Source(1, 11) + SourceIndex(1)
+5 >Emitted(2, 10) Source(1, 12) + SourceIndex(1)
+6 >Emitted(2, 11) Source(1, 13) + SourceIndex(1)
+---
+>>>//# sourceMappingURL=third-output.js.map
+
+//// [/src/third/thirdjs/output/third-output.tsbuildinfo]
+{
+  "bundle": {
+    "commonSourceDirectory": "../..",
+    "sourceFiles": [
+      "../../third_part1.ts"
+    ],
+    "js": {
+      "sections": [
+        {
+          "pos": 0,
+          "end": 28,
+          "kind": "prepend",
+          "data": "../../../first/bin/first-output.js",
+          "texts": [
+            {
+              "pos": 0,
+              "end": 28,
+              "kind": "text"
+            }
+          ]
+        },
+        {
+          "pos": 28,
+          "end": 40,
+          "kind": "text"
+        }
+      ]
+    },
+    "dts": {
+      "sections": [
+        {
+          "pos": 0,
+          "end": 0,
+          "kind": "prepend",
+          "data": "../../../first/bin/first-output.d.ts",
+          "texts": []
+        },
+        {
+          "pos": 0,
+          "end": 22,
+          "kind": "text"
+        }
+      ]
+    }
+  },
+  "version": "FakeTSVersion"
+}
+
+//// [/src/third/thirdjs/output/third-output.tsbuildinfo.baseline.txt]
+======================================================================
+File:: /src/third/thirdjs/output/third-output.js
+----------------------------------------------------------------------
+prepend: (0-28):: ../../../first/bin/first-output.js texts:: 1
+>>--------------------------------------------------------------------
+text: (0-28)
+/* @internal */ var A = 1;
+
+----------------------------------------------------------------------
+text: (28-40)
+var B = 2;
+
+======================================================================
+======================================================================
+File:: /src/third/thirdjs/output/third-output.d.ts
+----------------------------------------------------------------------
+prepend: (0-0):: ../../../first/bin/first-output.d.ts texts:: 0
+----------------------------------------------------------------------
+text: (0-22)
+declare const B = 2;
+
+======================================================================
+
+//// [/src/third/third_part1.ts]
+const B = 2;
+
+//// [/src/third/tsconfig.json]
+{"compilerOptions":{"composite":true,"declaration":true,"declarationMap":false,"stripInternal":true,"sourceMap":true,"outFile":"./thirdjs/output/third-output.js"},"references":[{"path":"../first","prepend":true}],"files":["/src/third/third_part1.ts"]}
+