diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/InferenceUtils.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/InferenceUtils.kt
index 51eac6a7ef4..bff94a0be79 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/InferenceUtils.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/InferenceUtils.kt
@@ -252,7 +252,6 @@ fun extractLambdaInfoFromFunctionalType(
     }
     if (!expectedType.isBuiltinFunctionalType(session)) return null
 
-    val receiverType = argument.receiverType ?: expectedType.receiverType(session)
     val lastStatement = argument.body?.statements?.singleOrNull()
     val returnType =
         // Simply { }, i.e., function literals without body. Raw FIR added an implicit return with an implicit unit type ref.
@@ -262,14 +261,16 @@ fun extractLambdaInfoFromFunctionalType(
             session.builtinTypes.unitType.type
         else
             argument.returnType ?: expectedType.returnType(session)
+    // `fun (x: T) = ...` and `fun T.() = ...` are both instances of `T.() -> V`; `fun () = ...` is not.
+    // For lambdas, the existence of the receiver is always implied by the expected type, and a value parameter
+    // can never fill its role.
+    val receiverType = if (argument.isLambda) expectedType.receiverType(session) else argument.receiverType
     val expectedParameters = expectedType.valueParameterTypesIncludingReceiver(session).let {
-        if (expectedType.isExtensionFunctionType(session)) it.drop(1) else it
+        if (receiverType != null && expectedType.isExtensionFunctionType(session)) it.drop(1) else it
     }
-    val parameters = if (argument.valueParameters.isEmpty()) {
-        expectedParameters
+    val parameters = if (argument.isLambda && argument.valueParameters.isEmpty() && expectedParameters.size < 2) {
+        expectedParameters // Infer existence of a parameter named `it` of an appropriate type.
     } else {
-        // TODO: `(A) -> B` is permitted as `A.() -> B` if it's an anonymous function, not a lambda;
-        //   e.g. `fun (x: Any?) = x` can be used as `Any?.() -> Any?`, but `{ it -> it }` cannot.
         argument.valueParameters.mapIndexed { index, parameter ->
             parameter.returnTypeRef.coneTypeSafe() ?: expectedParameters.getOrNull(index) ?: session.builtinTypes.nothingType.type
         }
diff --git a/compiler/testData/diagnostics/tests/AutoCreatedIt.fir.kt b/compiler/testData/diagnostics/tests/AutoCreatedIt.fir.kt
index 4dd88964faa..b171ef0b6ea 100644
--- a/compiler/testData/diagnostics/tests/AutoCreatedIt.fir.kt
+++ b/compiler/testData/diagnostics/tests/AutoCreatedIt.fir.kt
@@ -3,8 +3,8 @@ fun text() {
     "direct:a" to "mock:a"
     "direct:a" on {it.body == "<hello/>"} to "mock:a"
     "direct:a" on {it -> it.body == "<hello/>"} to "mock:a"
-    bar {1}
-    bar {<!UNRESOLVED_REFERENCE!>it<!> + 1}
+    bar {<!ARGUMENT_TYPE_MISMATCH!>1<!>}
+    bar {<!ARGUMENT_TYPE_MISMATCH!><!UNRESOLVED_REFERENCE!>it<!> + 1<!>}
     bar {it, it1 -> it}
 
     bar1 {1}
diff --git a/compiler/testData/diagnostics/tests/functionAsExpression/ReceiverByExpectedType.fir.kt b/compiler/testData/diagnostics/tests/functionAsExpression/ReceiverByExpectedType.fir.kt
index a4249156f1e..ed8693f6b60 100644
--- a/compiler/testData/diagnostics/tests/functionAsExpression/ReceiverByExpectedType.fir.kt
+++ b/compiler/testData/diagnostics/tests/functionAsExpression/ReceiverByExpectedType.fir.kt
@@ -1,3 +1,3 @@
 // !WITH_NEW_INFERENCE
 fun foo(f: String.() -> Int) {}
-val test = foo(fun () = <!UNRESOLVED_REFERENCE!>length<!>)
+val test = foo(fun () = <!ARGUMENT_TYPE_MISMATCH, UNRESOLVED_REFERENCE!>length<!>)
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.fir.kt b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.fir.kt
index f026618df0f..c9ef4f81daf 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.fir.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.fir.kt
@@ -31,7 +31,7 @@ fun test1() {
 
 
     foo2 {
-        ""
+        <!ARGUMENT_TYPE_MISMATCH!>""<!>
     }
     foo2 {
         s: String -> <!ARGUMENT_TYPE_MISMATCH!>""<!>
@@ -40,6 +40,6 @@ fun test1() {
         x -> <!ARGUMENT_TYPE_MISMATCH!>""<!>
     }
     foo2 {
-         -> 42
+         -> <!ARGUMENT_TYPE_MISMATCH!>42<!>
     }
 }
diff --git a/compiler/testData/diagnostics/tests/inference/completion/anonymousFunction.fir.kt b/compiler/testData/diagnostics/tests/inference/completion/anonymousFunction.fir.kt
index dc35cde2de0..6eb49eb6ef7 100644
--- a/compiler/testData/diagnostics/tests/inference/completion/anonymousFunction.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/completion/anonymousFunction.fir.kt
@@ -20,5 +20,5 @@ fun testFunctions() {
 fun testNestedCalls() {
     id<String>(inferFromLambda { materialize() })
     id<String>(inferFromLambda(fun() = materialize()))
-    id<String>(inferFromLambda2(fun() = materialize()))
+    id<String>(<!ARGUMENT_TYPE_MISMATCH!>inferFromLambda2(fun() = <!ARGUMENT_TYPE_MISMATCH!>materialize()<!>)<!>)
 }
diff --git a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/basic.fir.kt b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/basic.fir.kt
index 480bdc24d4b..87bdcc67010 100644
--- a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/basic.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/basic.fir.kt
@@ -228,7 +228,7 @@ fun main() {
     val x70: (Int) -> Unit = selectNumber(id(fun (it) { }), id {}, id {})
     val x71: String.() -> Unit = select(<!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Function1<kotlin.String, kotlin.Unit>")!>id(fun String.() { })<!>, <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Function1<kotlin.String, kotlin.Unit>")!>id(fun(x: String) {})<!>)
     val x72: String.() -> Unit = select(fun String.() { }, fun(x: String) {}) // must be error
-    select(id(fun String.(x: String) {}), id(fun(x: String, y: String) { }), fun (x, y) { <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.String")!>x<!>;<!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Nothing")!>y<!> })
+    select(id(fun String.(x: String) {}), id(fun(x: String, y: String) { }), fun (x, y) { <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.String")!>x<!>;<!DEBUG_INFO_EXPRESSION_TYPE("kotlin.String")!>y<!> })
     select(id<Int.(String) -> Unit>(fun (x, y) {}), { x: Int, y: String -> x }) // receiver of anonymous function must be specified explicitly
     select(id<Int.(String) -> Unit>(fun Int.(y) {}), { x: Int, y: String -> x })
     <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Function1<kotlin.Number, java.io.Serializable>")!>select(A3(), fun (x) = "", { a -> <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Number")!>a<!> })<!>
diff --git a/compiler/testData/diagnostics/tests/regressions/kt30245.fir.kt b/compiler/testData/diagnostics/tests/regressions/kt30245.fir.kt
index 7af615291cb..8b844f809cd 100644
--- a/compiler/testData/diagnostics/tests/regressions/kt30245.fir.kt
+++ b/compiler/testData/diagnostics/tests/regressions/kt30245.fir.kt
@@ -111,7 +111,7 @@ fun test3() { // to non-extension lambda 1
 //    val i32: L1 = id { this } // this or it: oi- ni-
 //    val j32 = id<L1> { this } // this or it: oi- ni-
 
-    val w33 = W3(fun Int.(): Int = <!ARGUMENT_TYPE_MISMATCH!>this<!>) // oi- ni+
+    val w33 = W3(fun Int.(): Int = this) // oi- ni+
     val i33: L1 = id(fun Int.(): Int = this) // oi+ ni+
 
     // yet unsupported cases with ambiguity for the lambda conversion (commented constructors in wrappers above)