diff --git a/integration_tests/src/main/python/higher_order_functions_test.py b/integration_tests/src/main/python/higher_order_functions_test.py
new file mode 100644
index 00000000000..23d61793b46
--- /dev/null
+++ b/integration_tests/src/main/python/higher_order_functions_test.py
@@ -0,0 +1,31 @@
+# Copyright (c) 2023, NVIDIA CORPORATION.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+from asserts import assert_gpu_and_cpu_are_equal_collect
+from marks import ignore_order
+
+
+@ignore_order(local=True)
+def test_tiered_project_with_complex_transform():
+    confs = {"spark.rapids.sql.tiered.project.enabled": "true"}
+    def do_project(spark):
+        df = spark.createDataFrame(
+            [
+                (1, "a", [(0, "z"), (1, "y")]),
+                (2, "b", [(2, "x")])
+            ],
+            "a int, b string, c array<struct<x: int, y: string>>").repartition(2)
+        return df.selectExpr(
+            "transform(c, (v, i) -> named_struct('x', c[i].x, 'y', c[i].y)) AS t")
+    assert_gpu_and_cpu_are_equal_collect(do_project, conf=confs)
diff --git a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/higherOrderFunctions.scala b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/higherOrderFunctions.scala
index 6b25a09e5a8..dfb4272f23f 100644
--- a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/higherOrderFunctions.scala
+++ b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/higherOrderFunctions.scala
@@ -75,6 +75,8 @@ case class GpuLambdaFunction(
   override def dataType: DataType = function.dataType
   override def nullable: Boolean = function.nullable
 
+  override def disableTieredProjectCombine: Boolean = true
+
   override def columnarEval(batch: ColumnarBatch): GpuColumnVector =
     function.asInstanceOf[GpuExpression].columnarEval(batch)
 }
diff --git a/sql-plugin/src/main/scala/org/apache/spark/sql/rapids/catalyst/expressions/GpuEquivalentExpressions.scala b/sql-plugin/src/main/scala/org/apache/spark/sql/rapids/catalyst/expressions/GpuEquivalentExpressions.scala
index bc1fac5afad..257c82eadd1 100644
--- a/sql-plugin/src/main/scala/org/apache/spark/sql/rapids/catalyst/expressions/GpuEquivalentExpressions.scala
+++ b/sql-plugin/src/main/scala/org/apache/spark/sql/rapids/catalyst/expressions/GpuEquivalentExpressions.scala
@@ -27,7 +27,6 @@ import com.nvidia.spark.rapids.{GpuAlias, GpuCaseWhen, GpuCoalesce, GpuExpressio
 import org.apache.spark.TaskContext
 import org.apache.spark.sql.catalyst.expressions.{Attribute, AttributeReference, AttributeSeq, AttributeSet, CaseWhen, Coalesce, Expression, If, LeafExpression, PlanExpression}
 import org.apache.spark.sql.catalyst.expressions.codegen.CodegenFallback
-import org.apache.spark.sql.catalyst.expressions.objects.LambdaVariable
 
 /**
  * This class is used to compute equality of (sub)expression trees. Expressions can be added
@@ -195,9 +194,6 @@ class GpuEquivalentExpressions {
       expr.isInstanceOf[GpuUnevaluable] ||
       (expr.isInstanceOf[GpuExpression] &&
           expr.asInstanceOf[GpuExpression].disableTieredProjectCombine) ||
-      // `LambdaVariable` is usually used as a loop variable, which can't be evaluated ahead of the
-      // loop. So we can't evaluate sub-expressions containing `LambdaVariable` at the beginning.
-      expr.find(_.isInstanceOf[LambdaVariable]).isDefined ||
       // `PlanExpression` wraps query plan. To compare query plans of `PlanExpression` on executor,
       // can cause error like NPE.
       (expr.find(_.isInstanceOf[PlanExpression[_]]).isDefined && TaskContext.get != null)