diff --git a/src/backend/commands/extension.c b/src/backend/commands/extension.c
index 0eabe18335e..39db7584f33 100644
--- a/src/backend/commands/extension.c
+++ b/src/backend/commands/extension.c
@@ -2750,7 +2750,7 @@ AlterExtensionNamespace(const char *extensionName, const char *newschema, Oid *o
 {
 	Oid			extensionOid;
 	Oid			nspOid;
-	Oid			oldNspOid = InvalidOid;
+	Oid			oldNspOid;
 	AclResult	aclresult;
 	Relation	extRel;
 	ScanKeyData key[2];
@@ -2833,6 +2833,9 @@ AlterExtensionNamespace(const char *extensionName, const char *newschema, Oid *o
 
 	objsMoved = new_object_addresses();
 
+	/* store the OID of the namespace to-be-changed */
+	oldNspOid = extForm->extnamespace;
+
 	/*
 	 * Scan pg_depend to find objects that depend directly on the extension,
 	 * and alter each one's schema.
@@ -2912,12 +2915,6 @@ AlterExtensionNamespace(const char *extensionName, const char *newschema, Oid *o
 												 nspOid,
 												 objsMoved);
 
-		/*
-		 * Remember previous namespace of first object that has one
-		 */
-		if (oldNspOid == InvalidOid && dep_oldNspOid != InvalidOid)
-			oldNspOid = dep_oldNspOid;
-
 		/*
 		 * If not all the objects had the same old namespace (ignoring any
 		 * that are not in namespaces), complain.
diff --git a/src/test/modules/test_extensions/expected/test_extensions.out b/src/test/modules/test_extensions/expected/test_extensions.out
index a31775a2609..254bd938be0 100644
--- a/src/test/modules/test_extensions/expected/test_extensions.out
+++ b/src/test/modules/test_extensions/expected/test_extensions.out
@@ -312,6 +312,49 @@ Objects in extension "test_ext_cine"
  table ext_cine_tab3
 (9 rows)
 
+--
+-- Test extension with objects outside the extension's schema.
+--
+CREATE SCHEMA test_func_dep1;
+CREATE SCHEMA test_func_dep2;
+CREATE SCHEMA test_func_dep3;
+CREATE EXTENSION test_ext_req_schema1 SCHEMA test_func_dep1;
+ALTER FUNCTION test_func_dep1.dep_req1() SET SCHEMA test_func_dep2;
+SELECT pg_describe_object(classid, objid, objsubid) as obj,
+       pg_describe_object(refclassid, refobjid, refobjsubid) as objref,
+       deptype
+  FROM pg_depend
+  WHERE classid = 'pg_extension'::regclass AND
+        objid = (SELECT oid FROM pg_extension WHERE extname = 'test_ext_req_schema1')
+  ORDER BY 1, 2;
+              obj               |        objref         | deptype 
+--------------------------------+-----------------------+---------
+ extension test_ext_req_schema1 | schema test_func_dep1 | n
+(1 row)
+
+-- fails, as function dep_req1 is not in the same schema as the extension.
+ALTER EXTENSION test_ext_req_schema1 SET SCHEMA test_func_dep3;
+ERROR:  extension "test_ext_req_schema1" does not support SET SCHEMA
+DETAIL:  function test_func_dep2.dep_req1() is not in the extension's schema "test_func_dep1"
+-- Move back the function, and the extension can be moved.
+ALTER FUNCTION test_func_dep2.dep_req1() SET SCHEMA test_func_dep1;
+ALTER EXTENSION test_ext_req_schema1 SET SCHEMA test_func_dep3;
+SELECT pg_describe_object(classid, objid, objsubid) as obj,
+       pg_describe_object(refclassid, refobjid, refobjsubid) as objref,
+       deptype
+  FROM pg_depend
+  WHERE classid = 'pg_extension'::regclass AND
+        objid = (SELECT oid FROM pg_extension WHERE extname = 'test_ext_req_schema1')
+  ORDER BY 1, 2;
+              obj               |        objref         | deptype 
+--------------------------------+-----------------------+---------
+ extension test_ext_req_schema1 | schema test_func_dep3 | n
+(1 row)
+
+DROP EXTENSION test_ext_req_schema1 CASCADE;
+DROP SCHEMA test_func_dep1;
+DROP SCHEMA test_func_dep2;
+DROP SCHEMA test_func_dep3;
 --
 -- Test @extschema:extname@ syntax and no_relocate option
 --
diff --git a/src/test/modules/test_extensions/sql/test_extensions.sql b/src/test/modules/test_extensions/sql/test_extensions.sql
index f4947e7da6f..50110861835 100644
--- a/src/test/modules/test_extensions/sql/test_extensions.sql
+++ b/src/test/modules/test_extensions/sql/test_extensions.sql
@@ -210,6 +210,38 @@ ALTER EXTENSION test_ext_cine UPDATE TO '1.1';
 
 \dx+ test_ext_cine
 
+--
+-- Test extension with objects outside the extension's schema.
+--
+CREATE SCHEMA test_func_dep1;
+CREATE SCHEMA test_func_dep2;
+CREATE SCHEMA test_func_dep3;
+CREATE EXTENSION test_ext_req_schema1 SCHEMA test_func_dep1;
+ALTER FUNCTION test_func_dep1.dep_req1() SET SCHEMA test_func_dep2;
+SELECT pg_describe_object(classid, objid, objsubid) as obj,
+       pg_describe_object(refclassid, refobjid, refobjsubid) as objref,
+       deptype
+  FROM pg_depend
+  WHERE classid = 'pg_extension'::regclass AND
+        objid = (SELECT oid FROM pg_extension WHERE extname = 'test_ext_req_schema1')
+  ORDER BY 1, 2;
+-- fails, as function dep_req1 is not in the same schema as the extension.
+ALTER EXTENSION test_ext_req_schema1 SET SCHEMA test_func_dep3;
+-- Move back the function, and the extension can be moved.
+ALTER FUNCTION test_func_dep2.dep_req1() SET SCHEMA test_func_dep1;
+ALTER EXTENSION test_ext_req_schema1 SET SCHEMA test_func_dep3;
+SELECT pg_describe_object(classid, objid, objsubid) as obj,
+       pg_describe_object(refclassid, refobjid, refobjsubid) as objref,
+       deptype
+  FROM pg_depend
+  WHERE classid = 'pg_extension'::regclass AND
+        objid = (SELECT oid FROM pg_extension WHERE extname = 'test_ext_req_schema1')
+  ORDER BY 1, 2;
+DROP EXTENSION test_ext_req_schema1 CASCADE;
+DROP SCHEMA test_func_dep1;
+DROP SCHEMA test_func_dep2;
+DROP SCHEMA test_func_dep3;
+
 --
 -- Test @extschema:extname@ syntax and no_relocate option
 --