diff --git a/libs/openant-core/parsers/php/call_graph_builder.py b/libs/openant-core/parsers/php/call_graph_builder.py
index 566e79c1..8349fa62 100644
--- a/libs/openant-core/parsers/php/call_graph_builder.py
+++ b/libs/openant-core/parsers/php/call_graph_builder.py
@@ -206,6 +206,15 @@ def _extract_calls_from_code(self, code: str, caller_id: str) -> Set[str]:
                                                    caller_class, caller_namespace, root)
                 if resolved:
                     calls.add(resolved)
+                    if node.type == 'function_call_expression':
+                        # A bare call that resolved to a same-file global may be one
+                        # of several same-name globals in the file (e.g. two method-
+                        # nested `function g(){}` re-keyed to file-scope globals).
+                        # Emit an edge to EVERY same-name, same-namespace same-file
+                        # global, not just the first _resolve_simple_call picked —
+                        # dropping the others hides their reachable subtrees.
+                        calls.update(self._same_file_global_siblings(
+                            resolved, caller_file, caller_namespace))
             stack.extend(reversed(node.children))
 
         return calls
@@ -493,6 +502,33 @@ def norm(ns):
             return (ns or '').strip('\\')
         return norm(candidate_ns) == norm(caller_ns)
 
+    def _same_file_global_siblings(self, resolved_id: str, caller_file: str,
+                                   caller_namespace: Optional[str] = None) -> List[str]:
+        """Same-name, same-namespace global functions in ``caller_file`` other than
+        the one already resolved.
+
+        Over-approximates a bare call when several same-name globals collide in one
+        file (e.g. two method-nested ``function g(){}`` re-keyed to file-scope
+        globals get de-collided ids ``file:g`` / ``file:g#L13``, but
+        ``_resolve_simple_call`` returns only the first). Returns [] unless the
+        resolved target is itself a same-file global — a self-call (class_name set),
+        import, or cross-file-unique resolution is left as its single edge. Purely
+        additive: never drops the primary edge."""
+        data = self.functions.get(resolved_id, {})
+        if data.get('class_name') or resolved_id.split(':')[0] != caller_file:
+            return []
+        name = data.get('name')
+        siblings = []
+        for fid in self.functions_by_file.get(caller_file, []):
+            if fid == resolved_id:
+                continue
+            fd = self.functions.get(fid, {})
+            if (fd.get('name') == name and not fd.get('class_name')
+                    and self._namespace_compatible(
+                        fd.get('namespace_name'), caller_namespace)):
+                siblings.append(fid)
+        return siblings
+
     def _resolve_self_call(self, method_name: str, caller_file: str,
                            caller_class: str) -> Optional[str]:
         """Resolve a $this->method() or self::method() call within a class."""
@@ -567,6 +603,7 @@ def _extract_calls_regex(self, code: str, caller_id: str) -> Set[str]:
         """Fallback regex-based call extraction for unparseable code."""
         calls = set()
         caller_file = caller_id.split(':')[0]
+        caller_namespace = self.functions.get(caller_id, {}).get('namespace_name')
 
         # Match function calls: name(
         pattern = r'\b([a-zA-Z_][a-zA-Z0-9_]*)\s*[\(]'
@@ -579,6 +616,10 @@ def _extract_calls_regex(self, code: str, caller_id: str) -> Set[str]:
                 resolved = self._resolve_simple_call(func_name, caller_file, None)
                 if resolved:
                     calls.add(resolved)
+                    # Mirror the tree-walk path: widen a same-file-global resolution
+                    # to every same-name same-namespace global in the file.
+                    calls.update(self._same_file_global_siblings(
+                        resolved, caller_file, caller_namespace))
 
         return calls
 
diff --git a/libs/openant-core/parsers/php/function_extractor.py b/libs/openant-core/parsers/php/function_extractor.py
index d68b1b72..6021facd 100644
--- a/libs/openant-core/parsers/php/function_extractor.py
+++ b/libs/openant-core/parsers/php/function_extractor.py
@@ -259,16 +259,19 @@ def _extract_functions_from_tree(self, tree, source: bytes, file_path: Path,
             node, class_name, namespace_name = stack.pop()
 
             if node.type == 'function_definition':
+                # A named `function foo(){}` is ALWAYS a GLOBAL function in PHP,
+                # even when it lexically appears inside a method/function body:
+                # it is registered in the global function table when the
+                # enclosing code runs, not attached to the class. Emit it with
+                # class_name=None so it is not keyed as a phantom Class.foo, and
+                # recurse with class_name=None so anything nested in its body is
+                # likewise not attributed to the enclosing class.
                 self._process_function_node(
-                    node, source, relative_path, class_name, namespace_name,
+                    node, source, relative_path, None, namespace_name,
                     is_static=False
                 )
-                # Recurse into the body so nested closures/arrow functions are
-                # reached; named definitions cannot lexically nest other named
-                # functions/classes in PHP, so this only surfaces
-                # anonymous_function / arrow_function units.
                 for child in reversed(node.children):
-                    stack.append((child, class_name, namespace_name))
+                    stack.append((child, None, namespace_name))
                 continue
 
             elif node.type == 'method_declaration':
diff --git a/libs/openant-core/tests/parsers/php/test_call_graph_builder.py b/libs/openant-core/tests/parsers/php/test_call_graph_builder.py
index f0839fa6..3f62465d 100644
--- a/libs/openant-core/tests/parsers/php/test_call_graph_builder.py
+++ b/libs/openant-core/tests/parsers/php/test_call_graph_builder.py
@@ -75,3 +75,52 @@ def test_bare_call_resolves_within_same_namespace():
     assert b.call_graph.get("consumer.php:caller") == ["utils.php:helper"], (
         f"same-namespace bare call must still resolve: {b.call_graph}"
     )
+
+
+def test_same_file_name_colliding_globals_all_resolved():
+    """Two method-nested `function g(){}` in one file (re-keyed to file-scope
+    globals with de-collided ids `app.php:g` / `app.php:g#L9`) must BOTH receive an
+    edge from a bare `g()` — not just the first.
+
+    `_resolve_simple_call` returns the first same-file global, so both Alpha::run
+    and Beta::run resolved only to `app.php:g`; `app.php:g#L9` (and its sink
+    subtree) was orphaned — a reachability false negative. The resolution must
+    over-approximate to every same-name same-namespace file-scope global.
+    """
+    funcs = {
+        "app.php:Alpha.run": {
+            "name": "run", "file_path": "app.php",
+            "class_name": "Alpha", "namespace_name": None,
+            "code": "<?php function run() { g(); }",
+        },
+        "app.php:Beta.run": {
+            "name": "run", "file_path": "app.php",
+            "class_name": "Beta", "namespace_name": None,
+            "code": "<?php function run() { g(); }",
+        },
+        "app.php:g": {
+            "name": "g", "file_path": "app.php",
+            "class_name": None, "namespace_name": None,
+            "code": "<?php function g() { sinkC(); }",
+        },
+        "app.php:g#L9": {
+            "name": "g", "file_path": "app.php",
+            "class_name": None, "namespace_name": None,
+            "code": "<?php function g() { sinkD(); }",
+        },
+        "app.php:sinkC": {
+            "name": "sinkC", "file_path": "app.php",
+            "class_name": None, "namespace_name": None, "code": "<?php function sinkC() {}",
+        },
+        "app.php:sinkD": {
+            "name": "sinkD", "file_path": "app.php",
+            "class_name": None, "namespace_name": None, "code": "<?php function sinkD() {}",
+        },
+    }
+    b = _build(funcs)
+    assert set(b.call_graph.get("app.php:Alpha.run", [])) == {"app.php:g", "app.php:g#L9"}, (
+        f"Alpha::run must edge to BOTH colliding globals: {b.call_graph.get('app.php:Alpha.run')}"
+    )
+    assert set(b.call_graph.get("app.php:Beta.run", [])) == {"app.php:g", "app.php:g#L9"}, (
+        f"Beta::run must edge to BOTH colliding globals: {b.call_graph.get('app.php:Beta.run')}"
+    )
diff --git a/libs/openant-core/tests/parsers/php/test_php_extractor.py b/libs/openant-core/tests/parsers/php/test_php_extractor.py
index bab16979..0d4e9d71 100644
--- a/libs/openant-core/tests/parsers/php/test_php_extractor.py
+++ b/libs/openant-core/tests/parsers/php/test_php_extractor.py
@@ -261,5 +261,55 @@ def test_closure_units_capture_their_body(tmp_path):
     assert "transform" in bodies  # from the arrow function body
 
 
+# ---------------------------------------------------------------------------
+# A named function nested in a method body is GLOBAL in PHP (bug B7)
+# ---------------------------------------------------------------------------
+
+NESTED_GLOBAL_FUNCTION_SOURCE = """<?php
+class Widget {
+    public function m() {
+        function format_label() {
+            return 1;
+        }
+        return format_label();
+    }
+}
+"""
+
+
+def test_named_function_nested_in_method_is_global_not_phantom_method(tmp_path):
+    """A `function foo(){}` declared inside a method body is a GLOBAL function in
+    PHP, not a method of the enclosing class. It must be keyed with
+    class_name=None (global), never as a phantom Widget.format_label."""
+    result = _extract(tmp_path, "widget.php", NESTED_GLOBAL_FUNCTION_SOURCE)
+    units = result["functions"]
+
+    fmt = [fd for fd in units.values() if fd["name"] == "format_label"]
+    assert len(fmt) == 1, (
+        "expected exactly one format_label unit; got "
+        f"{[fd['qualified_name'] for fd in fmt]}"
+    )
+    assert fmt[0]["class_name"] is None, (
+        "format_label is a GLOBAL PHP function (declared inside a method body); "
+        f"it must have class_name=None, got class_name={fmt[0]['class_name']!r} "
+        f"(qualified_name={fmt[0]['qualified_name']!r})"
+    )
+    assert fmt[0]["qualified_name"] == "format_label", (
+        "global function must not be qualified with the enclosing class; got "
+        f"{fmt[0]['qualified_name']!r}"
+    )
+    # The phantom Class.method key must not exist.
+    assert not any(
+        fd["qualified_name"] == "Widget.format_label" for fd in units.values()
+    ), "format_label must not be keyed as the phantom Widget.format_label"
+
+    # The enclosing method m must remain intact as Widget.m.
+    m_units = [fd for fd in units.values() if fd["name"] == "m"]
+    assert len(m_units) == 1 and m_units[0]["class_name"] == "Widget", (
+        "method m must stay intact as Widget.m; got "
+        f"{[(fd['name'], fd['class_name']) for fd in m_units]}"
+    )
+
+
 if __name__ == "__main__":
     sys.exit(pytest.main([__file__, "-v"]))