diff --git a/Changes b/Changes
index e3ceb15cd..18badb1a8 100644
--- a/Changes
+++ b/Changes
@@ -55,6 +55,7 @@ Verilator 5.047 devel
 * Fix enum range constraints missing for rand variables in sub-objects (#7230) (#7235). [Yilou Wang]
 * Fix vpi_put_value release on non-continuous signal (#7231) (#7241). [Christian Hecken]
 * Fix tracing of typedefed 1D packed arrays with --trace-structs (#7237). [Geza Lore, Testorrent USA, Inc.]
+* Fix --hierarchical dropping arguments in -f/-F files (#7240). [Clara Sparks]
 
 
 Verilator 5.046 2026-02-28
diff --git a/src/V3Options.cpp b/src/V3Options.cpp
index 663776c07..c09ca5418 100644
--- a/src/V3Options.cpp
+++ b/src/V3Options.cpp
@@ -431,40 +431,42 @@ string V3Options::allArgsStringForHierBlock(bool forTop) const {
     string out;
     bool stripArg = false;
     bool stripArgIfNum = false;
-    for (const string& arg : m_impp->m_lineArgs) {
-        if (stripArg) {
-            stripArg = false;
-            continue;
-        }
-        if (stripArgIfNum) {
-            stripArgIfNum = false;
-            if (isdigit(arg[0])) continue;
-        }
-        int skip = 0;
-        if (arg.length() >= 2 && arg[0] == '-' && arg[1] == '-') {
-            skip = 2;
-        } else if (arg.length() >= 1 && arg[0] == '-') {
-            skip = 1;
-        }
-        if (skip > 0) {  // arg is an option
-            const string opt = arg.substr(skip);  // Remove '-' in the beginning
-            const int numStrip = stripOptionsForChildRun(opt, forTop);
-            if (numStrip) {
-                UASSERT(0 <= numStrip && numStrip <= 3, "should be one of 0, 1, 2, 3");
-                if (numStrip == 2) stripArg = true;
-                if (numStrip == 3) stripArgIfNum = true;
+    for (const auto& pair : m_impp->m_allArgs) {
+        for (const string& arg : pair.first) {
+            if (stripArg) {
+                stripArg = false;
                 continue;
             }
-        } else {  // Not an option
-            if (vFiles.find(arg) != vFiles.end()  // Remove HDL
-                || m_cppFiles.find(arg) != m_cppFiles.end()) {  // Remove C++
-                continue;
+            if (stripArgIfNum) {
+                stripArgIfNum = false;
+                if (isdigit(arg[0])) continue;
             }
+            int skip = 0;
+            if (arg.length() >= 2 && arg[0] == '-' && arg[1] == '-') {
+                skip = 2;
+            } else if (arg.length() >= 1 && arg[0] == '-') {
+                skip = 1;
+            }
+            if (skip > 0) {  // arg is an option
+                const string opt = arg.substr(skip);  // Remove '-' in the beginning
+                const int numStrip = stripOptionsForChildRun(opt, forTop);
+                if (numStrip) {
+                    UASSERT(0 <= numStrip && numStrip <= 3, "should be one of 0, 1, 2, 3");
+                    if (numStrip == 2) stripArg = true;
+                    if (numStrip == 3) stripArgIfNum = true;
+                    continue;
+                }
+            } else {  // Not an option
+                if (vFiles.find(arg) != vFiles.end()  // Remove HDL
+                    || m_cppFiles.find(arg) != m_cppFiles.end()) {  // Remove C++
+                    continue;
+                }
+            }
+            if (out != "") out += " ";
+            // Don't use opt here because '-' is removed in arg
+            // Use double quote because arg may contain whitespaces
+            out += '"' + VString::quoteAny(arg, '"', '\\') + '"';
         }
-        if (out != "") out += " ";
-        // Don't use opt here because '-' is removed in arg
-        // Use double quote because arg may contain whitespaces
-        out += '"' + VString::quoteAny(arg, '"', '\\') + '"';
     }
     return out;
 }
diff --git a/test_regress/t/t_hier_block.py b/test_regress/t/t_hier_block.py
index 1eea403ac..294b5139a 100755
--- a/test_regress/t/t_hier_block.py
+++ b/test_regress/t/t_hier_block.py
@@ -29,7 +29,7 @@ test.compile(
         '-pvalue+PARAM_B=200',
         '-DPARAM_OVERRIDE',  #
         '--CFLAGS',
-        '"-pipe -DCPP_MACRO=cplusplus"'
+        '"-O0 -pipe -DCPP_MACRO=cplusplus"'
     ],
     threads=(6 if test.vltmt else 1))
 
diff --git a/test_regress/t/t_hier_trace_sub/sub.vc b/test_regress/t/t_hier_trace_sub/sub.vc
index 59df44421..6702fa493 100644
--- a/test_regress/t/t_hier_trace_sub/sub.vc
+++ b/test_regress/t/t_hier_trace_sub/sub.vc
@@ -4,4 +4,6 @@
 # SPDX-FileCopyrightText: 2024 Wilson Snyder
 # SPDX-License-Identifier: LGPL-3.0-only OR Artistic-2.0
 
++define+T_HIER_TRACE_SUB_VC_DEFINE
+
 t_hier_trace_sub.v
diff --git a/test_regress/t/t_hier_trace_sub/t_hier_trace_sub.v b/test_regress/t/t_hier_trace_sub/t_hier_trace_sub.v
index a73317bcc..9ee9037ea 100644
--- a/test_regress/t/t_hier_trace_sub/t_hier_trace_sub.v
+++ b/test_regress/t/t_hier_trace_sub/t_hier_trace_sub.v
@@ -4,6 +4,10 @@
 // SPDX-FileCopyrightText: 2024 Wilson Snyder
 // SPDX-License-Identifier: CC0-1.0
 
+`ifndef T_HIER_TRACE_SUB_VC_DEFINE
+`error "Missed T_HIER_TRACE_INC_V from sub.vc file"
+`endif
+
 module detail_code (
     input clk,
     input reset_l