diff --git a/prism_compile.c b/prism_compile.c
index 0aee358c8b..7e0786c1f5 100644
--- a/prism_compile.c
+++ b/prism_compile.c
@@ -614,8 +614,8 @@ pm_reg_flags(const pm_node_t *node) {
 /**
  * Compile a pattern matching expression.
  */
-static void
-pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const ret, const uint8_t *src, pm_compile_context_t *compile_context, LABEL *matched_label, LABEL *unmatched_label)
+static int
+pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const ret, const uint8_t *src, pm_compile_context_t *compile_context, LABEL *matched_label, LABEL *unmatched_label, bool in_alternation_pattern)
 {
     int lineno = (int) pm_newline_list_line_column(&compile_context->parser->newline_list, node->location.start).line;
     NODE dummy_line_node = generate_dummy_line_node(lineno, lineno);
@@ -630,15 +630,38 @@ pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const re
       case PM_HASH_PATTERN_NODE:
         rb_bug("Hash pattern matching not yet supported.");
         break;
-      case PM_LOCAL_VARIABLE_TARGET_NODE:
-        rb_bug("Local variable target node matching not yet supported.");
-        break;
       case PM_IF_NODE:
         rb_bug("If guards on pattern matching not yet supported.");
         break;
       case PM_UNLESS_NODE:
         rb_bug("Unless guards on pattern matching not yet supported.");
         break;
+      case PM_CAPTURE_PATTERN_NODE:
+        rb_bug("Capture pattern matching not yet supported.");
+        break;
+      case PM_LOCAL_VARIABLE_TARGET_NODE: {
+        // Local variables can be targetted by placing identifiers in the place
+        // of a pattern. For example, foo in bar. This results in the value
+        // being matched being written to that local variable.
+        pm_local_variable_target_node_t *cast = (pm_local_variable_target_node_t *) node;
+        int index = pm_lookup_local_index(iseq, compile_context, cast->name);
+
+        // If this local variable is being written from within an alternation
+        // pattern, then it cannot actually be added to the local table since
+        // it's ambiguous which value should be used. So instead we indicate
+        // this with a compile error.
+        if (in_alternation_pattern) {
+            const char *name = rb_id2name(pm_constant_id_lookup(compile_context, cast->name));
+            if (name && strlen(name) > 0 && name[0] != '_') {
+                COMPILE_ERROR(ERROR_ARGS "illegal variable in alternative pattern (%"PRIsVALUE")", name);
+                return COMPILE_NG;
+            }
+        }
+
+        ADD_SETLOCAL(ret, &dummy_line_node, index, (int) cast->depth);
+        ADD_INSNL(ret, &dummy_line_node, jump, matched_label);
+        break;
+      }
       case PM_ALTERNATION_PATTERN_NODE: {
         // Alternation patterns allow you to specify multiple patterns in a
         // single expression using the | operator.
@@ -650,7 +673,7 @@ pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const re
         // First, we're going to attempt to match against the left pattern. If
         // that pattern matches, then we'll skip matching the right pattern.
         ADD_INSN(ret, &dummy_line_node, dup);
-        pm_compile_pattern(iseq, cast->left, ret, src, compile_context, matched_left_label, unmatched_left_label);
+        pm_compile_pattern(iseq, cast->left, ret, src, compile_context, matched_left_label, unmatched_left_label, true);
 
         // If we get here, then we matched on the left pattern. In this case we
         // should pop out the duplicate value that we preemptively added to
@@ -663,12 +686,9 @@ pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const re
         // If we get here, then we didn't match on the left pattern. In this
         // case we attempt to match against the right pattern.
         ADD_LABEL(ret, unmatched_left_label);
-        pm_compile_pattern(iseq, cast->right, ret, src, compile_context, matched_label, unmatched_label);
+        pm_compile_pattern(iseq, cast->right, ret, src, compile_context, matched_label, unmatched_label, true);
         break;
       }
-      case PM_CAPTURE_PATTERN_NODE:
-        rb_bug("Capture pattern matching not yet supported.");
-        break;
       case PM_ARRAY_NODE:
       case PM_CLASS_VARIABLE_READ_NODE:
       case PM_CONSTANT_PATH_NODE:
@@ -701,12 +721,12 @@ pm_compile_pattern(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const re
         break;
       case PM_PINNED_VARIABLE_NODE: {
         pm_pinned_variable_node_t *cast = (pm_pinned_variable_node_t *) node;
-        pm_compile_pattern(iseq, cast->variable, ret, src, compile_context, matched_label, unmatched_label);
+        pm_compile_pattern(iseq, cast->variable, ret, src, compile_context, matched_label, unmatched_label, false);
         break;
       }
       case PM_PINNED_EXPRESSION_NODE: {
         pm_pinned_expression_node_t *cast = (pm_pinned_expression_node_t *) node;
-        pm_compile_pattern(iseq, cast->expression, ret, src, compile_context, matched_label, unmatched_label);
+        pm_compile_pattern(iseq, cast->expression, ret, src, compile_context, matched_label, unmatched_label, false);
         break;
       }
       default:
@@ -1739,7 +1759,7 @@ pm_compile_node(rb_iseq_t *iseq, const pm_node_t *node, LINK_ANCHOR *const ret,
         LABEL *matched_label = NEW_LABEL(lineno);
         LABEL *unmatched_label = NEW_LABEL(lineno);
         LABEL *done_label = NEW_LABEL(lineno);
-        pm_compile_pattern(iseq, cast->pattern, ret, src, compile_context, matched_label, unmatched_label);
+        pm_compile_pattern(iseq, cast->pattern, ret, src, compile_context, matched_label, unmatched_label, false);
 
         // If the pattern did not match, then compile the necessary instructions
         // to handle pushing false onto the stack, then jump to the end.
diff --git a/test/ruby/test_compile_prism.rb b/test/ruby/test_compile_prism.rb
index d3fdfd68f1..f65025b9df 100644
--- a/test/ruby/test_compile_prism.rb
+++ b/test/ruby/test_compile_prism.rb
@@ -373,6 +373,8 @@ module Prism
       test_prism_eval("\"foo1\" in /...\#{1}/")
       test_prism_eval("4 in ->(v) { v.even? }")
 
+      test_prism_eval("5 in foo")
+
       test_prism_eval("1 in 2")
     end