diff --git a/src/systems/abstractsystem.jl b/src/systems/abstractsystem.jl
index 59d1f23406..36a3d1a124 100644
--- a/src/systems/abstractsystem.jl
+++ b/src/systems/abstractsystem.jl
@@ -964,7 +964,7 @@ function _named(name, call, runtime = false)
     if length(call.args) >= 2 && call.args[2] isa Expr
         # canonicalize to use `:parameters`
         if call.args[2].head === :kw
-            call.args[2] = Expr(:parameters, Expr(:kw, call.args[2].args...))
+            call = Expr(call.head, call.args[1], Expr(:parameters, call.args[2:end]...))
             has_kw = true
         elseif call.args[2].head === :parameters
             has_kw = true
diff --git a/test/direct.jl b/test/direct.jl
index fde52fb2b4..ec1ef23980 100644
--- a/test/direct.jl
+++ b/test/direct.jl
@@ -2,6 +2,8 @@ using ModelingToolkit, StaticArrays, LinearAlgebra, SparseArrays
 using DiffEqBase
 using Test
 
+using ModelingToolkit: getdefault, getmetadata, SymScope
+
 canonequal(a, b) = isequal(simplify(a), simplify(b))
 
 # Calculus
@@ -271,3 +273,35 @@ end
 @parameters x [misc = "wow"]
 @test SymbolicUtils.getmetadata(Symbolics.unwrap(x), ModelingToolkit.VariableMisc,
     nothing) == "wow"
+
+# Scope of defaults in the systems generated by @named
+@mtkmodel LevelThree begin
+    @variables begin
+        x(t)
+        y(t)
+        z(t)
+    end
+end
+
+@mtkmodel LevelTwo begin
+    @parameters begin
+        l
+        m
+        n
+    end
+    @components begin
+        three = LevelThree(x = l, y = m, z = n)
+    end
+end
+
+@mtkmodel LevelOne begin
+    @components begin
+        two = LevelTwo()
+    end
+end
+
+@named one = LevelOne()
+
+@test getmetadata(getdefault(one.two.three.x), SymScope) == ParentScope(LocalScope())
+@test getmetadata(getdefault(one.two.three.y), SymScope) == ParentScope(LocalScope())
+@test getmetadata(getdefault(one.two.three.z), SymScope) == ParentScope(LocalScope())