diff --git a/api/internal/target/kusttarget.go b/api/internal/target/kusttarget.go
index 8b71403ac4..d5534cfa54 100644
--- a/api/internal/target/kusttarget.go
+++ b/api/internal/target/kusttarget.go
@@ -158,6 +158,11 @@ func (kt *KustTarget) makeCustomizedResMap() (resmap.ResMap, error) {
 		return nil, err
 	}
 
+	err = kt.IgnoreLocal(ra)
+	if err != nil {
+		return nil, err
+	}
+
 	return ra.ResMap(), nil
 }
 
@@ -238,10 +243,6 @@ func (kt *KustTarget) accumulateTarget(ra *accumulator.ResAccumulator) (
 		return nil, errors.Wrapf(
 			err, "merging vars %v", kt.kustomization.Vars)
 	}
-	err = kt.IgnoreLocal(ra)
-	if err != nil {
-		return nil, err
-	}
 	return ra, nil
 }
 
diff --git a/api/krusty/namereference_test.go b/api/krusty/namereference_test.go
index 2937465719..c39c51715f 100644
--- a/api/krusty/namereference_test.go
+++ b/api/krusty/namereference_test.go
@@ -671,3 +671,118 @@ metadata:
   name: newNs
 `)
 }
+
+func TestIssue4884_UseLocalConfigAsNameRefSource(t *testing.T) {
+	th := kusttest_test.MakeHarness(t)
+	th.WriteK(".", `
+resources:
+  - resources.yaml
+
+namePrefix: prefix-
+
+configurations:
+  - kustomize-nameref.yaml
+`)
+	th.WriteF("kustomize-nameref.yaml", `
+nameReference:
+- kind: IngressHost
+  fieldSpecs:
+  - path: spec/rules/host
+    kind: Ingress
+  - path: spec/tls/hosts
+    kind: Ingress
+  - path: spec/template/spec/containers/env/value
+    kind: Deployment
+- kind: IngressSecret
+  fieldSpecs:
+  - path: spec/tls/secretName
+    kind: Ingress
+namePrefix:
+- path: metadata/name
+  kind: IngressHost
+- path: metadata/name
+  kind: IngressSecret
+
+`)
+	th.WriteF("resources.yaml", `
+apiVersion: local/v1
+kind: IngressHost
+metadata:
+  name: test.fakedomain.com
+  namespace: test
+  annotations:
+    config.kubernetes.io/local-config: "true"
+---
+apiVersion: local/v1
+kind: IngressSecret
+metadata:
+  name: test-secret
+  namespace: test
+  annotations:
+    config.kubernetes.io/local-config: "true"
+---
+apiVersion: v1
+kind: Ingress
+metadata:
+  name: test-ingress
+  namespace: test
+spec:
+  rules:
+  - host: test.fakedomain.com
+  - host: do-not-touch.otherdomain.com
+  tls:
+  - hosts:
+    - test.fakedomain.com
+    secretName: test-secret
+  - hosts:
+    - do-not-touch.otherdomain.com
+    secretname: do-not-touch
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: test-deployment
+  namespace: test
+spec:
+  template:
+    spec:
+      containers:
+      - name: tester
+        env:
+        - name: domain-name
+          value: test.fakedomain.com
+`)
+	m := th.Run(".", th.MakeDefaultOptions())
+	th.AssertActualEqualsExpected(m, `
+apiVersion: v1
+kind: Ingress
+metadata:
+  name: test-ingress
+  namespace: test
+spec:
+  rules:
+  - host: prefix-test.fakedomain.com
+  - host: do-not-touch.otherdomain.com
+  tls:
+  - hosts:
+    - prefix-test.fakedomain.com
+    secretName: prefix-test-secret
+  - hosts:
+    - do-not-touch.otherdomain.com
+    secretname: do-not-touch
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: test-deployment
+  namespace: test
+spec:
+  template:
+    spec:
+      containers:
+      - env:
+        - name: domain-name
+          value: prefix-test.fakedomain.com
+        name: tester
+`)
+}