diff --git a/docs/release-notes/.FSharp.Compiler.Service/9.0.300.md b/docs/release-notes/.FSharp.Compiler.Service/9.0.300.md
index 5c444bd4fd3..e3beae168a3 100644
--- a/docs/release-notes/.FSharp.Compiler.Service/9.0.300.md
+++ b/docs/release-notes/.FSharp.Compiler.Service/9.0.300.md
@@ -1,5 +1,6 @@
 ### Fixed
 * Fix Realsig+ generates nested closures with incorrect Generic  ([Issue #17797](https://github.com/dotnet/fsharp/issues/17797), [PR #17877](https://github.com/dotnet/fsharp/pull/17877))
+* Fix optimizer internal error for records with static fields  ([Issue #18165](https://github.com/dotnet/fsharp/issues/18165), [PR #18280](https://github.com/dotnet/fsharp/pull/18280))
 * Fix internal error when missing measure attribute in an unsolved measure typar. ([Issue #7491](https://github.com/dotnet/fsharp/issues/7491), [PR #18234](https://github.com/dotnet/fsharp/pull/18234)==
 * Set `Cancellable.token` from async computation ([Issue #18235](https://github.com/dotnet/fsharp/issues/18235), [PR #18238](https://github.com/dotnet/fsharp/pull/18238))
 * Cancellable: only cancel on OCE with own token ([PR #18277](https://github.com/dotnet/fsharp/pull/18277))
diff --git a/src/Compiler/TypedTree/TypedTree.fs b/src/Compiler/TypedTree/TypedTree.fs
index d2af320b8de..27e80d396be 100644
--- a/src/Compiler/TypedTree/TypedTree.fs
+++ b/src/Compiler/TypedTree/TypedTree.fs
@@ -4273,6 +4273,19 @@ type UnionCaseRef =
 
     override x.ToString() = x.CaseName
 
+let findLogicalFieldIndexOfRecordField (tcref:TyconRef) (id:string) =
+    let arr = tcref.AllFieldsArray
+
+    // We are skipping compiler generated fields such as "init@5" from index calculation
+    let rec go originalIdx skippedItems =
+        if originalIdx >= arr.Length then error(InternalError(sprintf "field %s not found in type %s" id tcref.LogicalName, tcref.Range))
+        else
+            let currentItem = arr[originalIdx]
+            if currentItem.LogicalName = id then (originalIdx-skippedItems)
+            else go (originalIdx + 1) (skippedItems + (if currentItem.IsCompilerGenerated && currentItem.IsStatic then 1 else 0))
+
+    go 0 0
+
 /// Represents a reference to a field in a record, class or struct
 [<NoEquality; NoComparison; StructuredFormatDisplay("{DebugText}")>]
 type RecdFieldRef = 
@@ -4316,11 +4329,8 @@ type RecdFieldRef =
 
     member x.Index =
         let (RecdFieldRef(tcref, id)) = x
-        try 
-            // REVIEW: this could be faster, e.g. by storing the index in the NameMap 
-            tcref.AllFieldsArray |> Array.findIndex (fun rfspec -> rfspec.LogicalName = id)  
-        with :? KeyNotFoundException -> 
-            error(InternalError(sprintf "field %s not found in type %s" id tcref.LogicalName, tcref.Range))
+        findLogicalFieldIndexOfRecordField tcref id
+            
 
     [<DebuggerBrowsable(DebuggerBrowsableState.Never)>]
     member x.DebugText = x.ToString()
diff --git a/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/RecordOptimizerRegression.fs b/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/RecordOptimizerRegression.fs
new file mode 100644
index 00000000000..1ecbe38c6f8
--- /dev/null
+++ b/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/RecordOptimizerRegression.fs
@@ -0,0 +1,14 @@
+module Test
+
+// https://github.com/dotnet/fsharp/issues/18165
+
+type FooBar =
+    { xyz : string }
+    static let staticLet = 1
+
+let doThing (foo : FooBar) =
+    let bar = { foo with xyz = foo.xyz }
+    let baz = { bar with xyz = bar.xyz }
+    printf "%O" baz
+
+doThing { xyz = "" }
\ No newline at end of file
diff --git a/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/StaticLetInUnionsAndRecords.fs b/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/StaticLetInUnionsAndRecords.fs
index 17c7c03c808..5ce43b8db72 100644
--- a/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/StaticLetInUnionsAndRecords.fs
+++ b/tests/FSharp.Compiler.ComponentTests/Conformance/BasicGrammarElements/StaticLet/StaticLetInUnionsAndRecords.fs
@@ -95,6 +95,16 @@ init R 2
 1
 2"""
 
+[<Theory; Directory(__SOURCE_DIRECTORY__, Includes=[|"RecordOptimizerRegression.fs"|])>]
+let ``Static let - record optimizer regression`` compilation =
+    compilation
+    |> withOptimize
+    |> verifyCompileAndRun
+    |> shouldSucceed
+    |> withStdOutContains """{ xyz = "" }"""
+
+
+
 [<Theory; Directory(__SOURCE_DIRECTORY__, Includes=[|"LowercaseDuTest.fs"|])>]
 let ``Static let - lowercase DU`` compilation =
     compilation