diff --git a/CHANGELOG.md b/CHANGELOG.md
index a26e9d35..026e2767 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -33,6 +33,7 @@
 - Fix parsing (hence pretty printing) of expressions with underscore `_` and comments.
 - Fix printing of comments inside JSX tag https://github.com/rescript-lang/syntax/pull/664
 - Fix issue where formatter erases tail comments inside JSX tag https://github.com/rescript-lang/syntax/issues/663
+- Fix issue where the JSX prop has type annotation of the first class module https://github.com/rescript-lang/syntax/pull/666
 
 ## ReScript 10.0
 
diff --git a/cli/reactjs_jsx_v4.ml b/cli/reactjs_jsx_v4.ml
index a7a016d7..dd77662c 100644
--- a/cli/reactjs_jsx_v4.ml
+++ b/cli/reactjs_jsx_v4.ml
@@ -1005,9 +1005,13 @@ let transformStructureItem ~config mapper item =
                 ]
                 (Exp.ident ~loc:pstr_loc {loc = emptyLoc; txt = Lident txt})
           in
-          let stripConstraint pattern =
+          let rec stripConstraintUnpack ~label pattern =
             match pattern with
-            | {ppat_desc = Ppat_constraint (pattern, _)} -> pattern
+            | {ppat_desc = Ppat_constraint (pattern, _)} ->
+              stripConstraintUnpack ~label pattern
+            | {ppat_desc = Ppat_unpack _; ppat_loc} ->
+              (* remove unpack e.g. model: module(T) *)
+              Pat.var ~loc:ppat_loc {txt = label; loc = ppat_loc}
             | _ -> pattern
           in
           let rec returnedExpression patternsWithLabel patternsWithNolabel
@@ -1029,7 +1033,9 @@ let transformStructureItem ~config mapper item =
             | Pexp_fun
                 (arg_label, _default, ({ppat_loc; ppat_desc} as pattern), expr)
               -> (
-              let patternWithoutConstraint = stripConstraint pattern in
+              let patternWithoutConstraint =
+                stripConstraintUnpack ~label:(getLabel arg_label) pattern
+              in
               if isLabelled arg_label || isOptional arg_label then
                 returnedExpression
                   (( {loc = ppat_loc; txt = Lident (getLabel arg_label)},
diff --git a/tests/ppx/react/expected/firstClassModules.res.txt b/tests/ppx/react/expected/firstClassModules.res.txt
new file mode 100644
index 00000000..c55d9e8b
--- /dev/null
+++ b/tests/ppx/react/expected/firstClassModules.res.txt
@@ -0,0 +1,108 @@
+@@jsxConfig({version: 3})
+
+module Select = {
+  module type T = {
+    type key
+    type t
+  }
+  @obj
+  external makeProps: (
+    ~model: module(T with type t = '\"type-a" and type key = '\"type-key"),
+    ~selected: option<'\"type-key">,
+    ~onChange: option<'\"type-key"> => unit,
+    ~items: array<'\"type-a">,
+    ~key: string=?,
+    unit,
+  ) => {
+    "model": module(T with type t = '\"type-a" and type key = '\"type-key"),
+    "selected": option<'\"type-key">,
+    "onChange": option<'\"type-key"> => unit,
+    "items": array<'\"type-a">,
+  } = ""
+
+  @react.component
+  let make = (
+    type a key,
+    ~model as module(T: T with type t = a and type key = key),
+    ~selected: option<key>,
+    ~onChange: option<key> => unit,
+    ~items: array<a>,
+  ) => {
+    let _ = (model, selected, onChange, items)
+    ReactDOMRe.createDOMElementVariadic("div", [])
+  }
+  let make = {
+    let \"FirstClassModules$Select" = (
+      \"Props": {
+        "model": module(T with type t = '\"type-a" and type key = '\"type-key"),
+        "selected": option<'\"type-key">,
+        "onChange": option<'\"type-key"> => unit,
+        "items": array<'\"type-a">,
+      },
+    ) =>
+      make(
+        ~items=\"Props"["items"],
+        ~onChange=\"Props"["onChange"],
+        ~selected=\"Props"["selected"],
+        ~model=\"Props"["model"],
+      )
+    \"FirstClassModules$Select"
+  }
+}
+
+@@jsxConfig({version: 4, mode: "classic"})
+
+module Select = {
+  module type T = {
+    type key
+    type t
+  }
+  type props<'model, 'selected, 'onChange, 'items> = {
+    model: 'model,
+    selected: 'selected,
+    onChange: 'onChange,
+    items: 'items,
+  }
+
+  @react.component
+  let make = (
+    {model, selected, onChange, items, _}: props<
+      module(T with type t = '\"type-a" and type key = '\"type-key"),
+      option<'\"type-key">,
+      option<'\"type-key"> => unit,
+      array<'\"type-a">,
+    >,
+  ) => {
+    let _ = (model, selected, onChange, items)
+    ReactDOM.createDOMElementVariadic("div", [])
+  }
+  let make = {
+    let \"FirstClassModules$Select" = (props: props<_>) => make(props)
+
+    \"FirstClassModules$Select"
+  }
+}
+
+module External = {
+  module type T = {
+    type key
+    type t
+  }
+  type props<'model, 'selected, 'onChange, 'items> = {
+    model: 'model,
+    selected: 'selected,
+    onChange: 'onChange,
+    items: 'items,
+  }
+
+  @module("c")
+  external make: React.componentLike<
+    props<
+      module(T with type t = 'a and type key = 'key),
+      option<'key>,
+      (option<'key> => unit),
+      array<'a>,
+    >,
+    React.element,
+  > = "default"
+}
diff --git a/tests/ppx/react/expected/firstClassModules.resi.txt b/tests/ppx/react/expected/firstClassModules.resi.txt
new file mode 100644
index 00000000..e5ec53af
--- /dev/null
+++ b/tests/ppx/react/expected/firstClassModules.resi.txt
@@ -0,0 +1,57 @@
+@@jsxConfig({version: 3})
+
+module Select: {
+  module type T = {
+    type key
+    type t
+  }
+
+  @obj
+  external makeProps: (
+    ~model: module(T with type t = 'a and type key = 'key),
+    ~selected: option<'key>,
+    ~onChange: option<'key> => unit,
+    ~items: array<'a>,
+    ~key: string=?,
+    unit,
+  ) => {
+    "model": module(T with type t = 'a and type key = 'key),
+    "selected": option<'key>,
+    "onChange": (option<'key> => unit),
+    "items": array<'a>,
+  } = ""
+  let make: React.componentLike<
+    {
+      "model": module(T with type t = 'a and type key = 'key),
+      "selected": option<'key>,
+      "onChange": (option<'key> => unit),
+      "items": array<'a>,
+    },
+    React.element,
+  >
+}
+
+@@jsxConfig({version: 4, mode: "classic"})
+
+module Select: {
+  module type T = {
+    type key
+    type t
+  }
+  type props<'model, 'selected, 'onChange, 'items> = {
+    model: 'model,
+    selected: 'selected,
+    onChange: 'onChange,
+    items: 'items,
+  }
+
+  let make: React.componentLike<
+    props<
+      module(T with type t = 'a and type key = 'key),
+      option<'key>,
+      (option<'key> => unit),
+      array<'a>,
+    >,
+    React.element,
+  >
+}
diff --git a/tests/ppx/react/firstClassModules.res b/tests/ppx/react/firstClassModules.res
new file mode 100644
index 00000000..9567f435
--- /dev/null
+++ b/tests/ppx/react/firstClassModules.res
@@ -0,0 +1,56 @@
+@@jsxConfig({version: 3})
+
+module Select = {
+  module type T = {
+    type key
+    type t
+  }
+
+  @react.component
+  let make = (
+    type a key,
+    ~model as module(T: T with type t = a and type key = key),
+    ~selected: option<key>,
+    ~onChange: option<key> => unit,
+    ~items: array<a>,
+  ) => {
+    let _ = (model, selected, onChange, items)
+    <div />
+  }
+}
+
+@@jsxConfig({version: 4, mode: "classic"})
+
+module Select = {
+  module type T = {
+    type key
+    type t
+  }
+
+  @react.component
+  let make = (
+    type a key,
+    ~model as module(T: T with type t = a and type key = key),
+    ~selected: option<key>,
+    ~onChange: option<key> => unit,
+    ~items: array<a>,
+  ) => {
+    let _ = (model, selected, onChange, items)
+    <div />
+  }
+}
+
+module External = {
+  module type T = {
+    type key
+    type t
+  }
+
+  @react.component @module("c")
+  external make: (
+    ~model: module(T with type t = 'a and type key = 'key),
+    ~selected: option<'key>,
+    ~onChange: option<'key> => unit,
+    ~items: array<'a>,
+  ) => React.element = "default"
+}
diff --git a/tests/ppx/react/firstClassModules.resi b/tests/ppx/react/firstClassModules.resi
new file mode 100644
index 00000000..9f601b3a
--- /dev/null
+++ b/tests/ppx/react/firstClassModules.resi
@@ -0,0 +1,33 @@
+@@jsxConfig({version: 3})
+
+module Select: {
+  module type T = {
+    type key
+    type t
+  }
+
+  @react.component
+  let make: (
+    ~model: module(T with type t = 'a and type key = 'key),
+    ~selected: option<'key>,
+    ~onChange: option<'key> => unit,
+    ~items: array<'a>,
+  ) => React.element
+}
+
+@@jsxConfig({version: 4, mode: "classic"})
+
+module Select: {
+  module type T = {
+    type key
+    type t
+  }
+
+  @react.component
+  let make: (
+    ~model: module(T with type t = 'a and type key = 'key),
+    ~selected: option<'key>,
+    ~onChange: option<'key> => unit,
+    ~items: array<'a>,
+  ) => React.element
+}