diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 87addaaa10c..7238e2d09ca 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -21032,6 +21032,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
                 runTest("compiler/testData/diagnostics/tests/labels/labelReferencesInsideObjectExpressions.kt");
             }
 
+            @Test
+            @TestMetadata("labelToOuterLambda.kt")
+            public void testLabelToOuterLambda() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt");
+            }
+
             @Test
             @TestMetadata("labeledFunctionLiteral.kt")
             public void testLabeledFunctionLiteral() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index 65e5b56204c..1e90d730b88 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -21032,6 +21032,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
                 runTest("compiler/testData/diagnostics/tests/labels/labelReferencesInsideObjectExpressions.kt");
             }
 
+            @Test
+            @TestMetadata("labelToOuterLambda.kt")
+            public void testLabelToOuterLambda() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt");
+            }
+
             @Test
             @TestMetadata("labeledFunctionLiteral.kt")
             public void testLabeledFunctionLiteral() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 3cd5b461093..cccb0d8c962 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -21032,6 +21032,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
                 runTest("compiler/testData/diagnostics/tests/labels/labelReferencesInsideObjectExpressions.kt");
             }
 
+            @Test
+            @TestMetadata("labelToOuterLambda.kt")
+            public void testLabelToOuterLambda() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt");
+            }
+
             @Test
             @TestMetadata("labeledFunctionLiteral.kt")
             public void testLabeledFunctionLiteral() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index 432dbd31c86..fe53e4ca0f8 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -21038,6 +21038,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/tests/labels/labelReferencesInsideObjectExpressions.kt");
             }
 
+            @Test
+            @TestMetadata("labelToOuterLambda.kt")
+            public void testLabelToOuterLambda() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt");
+            }
+
             @Test
             @TestMetadata("labeledFunctionLiteral.kt")
             public void testLabeledFunctionLiteral() throws Exception {
diff --git a/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.fir.kt b/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.fir.kt
new file mode 100644
index 00000000000..2d129f322d8
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.fir.kt
@@ -0,0 +1,13 @@
+// ISSUE: KT-57880
+
+fun outerLambda(action: String.() -> Unit) {}
+var lambda: Int.() -> Unit = {}
+fun consume(arg: String) {}
+
+fun main() {
+    outerLambda {
+        lambda = {
+            consume(<!ARGUMENT_TYPE_MISMATCH!>this@outerLambda<!>)
+        }
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt b/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt
new file mode 100644
index 00000000000..2d29bf1935f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt
@@ -0,0 +1,13 @@
+// ISSUE: KT-57880
+
+fun outerLambda(action: String.() -> Unit) {}
+var lambda: Int.() -> Unit = {}
+fun consume(arg: String) {}
+
+fun main() {
+    outerLambda {
+        lambda = {
+            consume(this@outerLambda)
+        }
+    }
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 0352f2c83a6..cc2e8b9bc74 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -21038,6 +21038,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/labels/labelReferencesInsideObjectExpressions.kt");
             }
 
+            @Test
+            @TestMetadata("labelToOuterLambda.kt")
+            public void testLabelToOuterLambda() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/labels/labelToOuterLambda.kt");
+            }
+
             @Test
             @TestMetadata("labeledFunctionLiteral.kt")
             public void testLabeledFunctionLiteral() throws Exception {