diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
index c76fb2f1cad..d7540193dc8 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
@@ -22,6 +22,7 @@ import org.jetbrains.kotlin.codegen.annotation.WrappedAnnotated;
 import org.jetbrains.kotlin.codegen.state.JetTypeMapper;
 import org.jetbrains.kotlin.descriptors.*;
 import org.jetbrains.kotlin.descriptors.annotations.*;
+import org.jetbrains.kotlin.descriptors.impl.AnonymousFunctionDescriptor;
 import org.jetbrains.kotlin.load.java.JvmAnnotationNames;
 import org.jetbrains.kotlin.name.FqName;
 import org.jetbrains.kotlin.resolve.AnnotationChecker;
@@ -105,6 +106,16 @@ public abstract class AnnotationCodegen {
             // Skip if the target is not the same
             if (allowedTarget != null && annotationTarget != null && allowedTarget != annotationTarget) continue;
 
+            Set<KotlinTarget> applicableTargets = AnnotationChecker.applicableTargetSet(annotation);
+            if (annotated instanceof AnonymousFunctionDescriptor
+                && !applicableTargets.contains(KotlinTarget.FUNCTION)
+                && !applicableTargets.contains(KotlinTarget.PROPERTY_GETTER)
+                && !applicableTargets.contains(KotlinTarget.PROPERTY_SETTER)) {
+                assert (applicableTargets.contains(KotlinTarget.EXPRESSION)) :
+                        "Inconsistent target list for lambda annotation: " + applicableTargets + " on " + annotated;
+                continue;
+            }
+
             String descriptor = genAnnotation(annotation);
             if (descriptor != null) {
                 annotationDescriptorsAlreadyPresent.add(descriptor);
diff --git a/compiler/testData/codegen/boxWithJava/annotatedSamLambda/annotatedSamLambda.kt b/compiler/testData/codegen/boxWithJava/annotatedSamLambda/annotatedSamLambda.kt
index 664daa280cf..3ac0b147c86 100644
--- a/compiler/testData/codegen/boxWithJava/annotatedSamLambda/annotatedSamLambda.kt
+++ b/compiler/testData/codegen/boxWithJava/annotatedSamLambda/annotatedSamLambda.kt
@@ -1,7 +1,7 @@
 import java.lang.reflect.Method
 import kotlin.test.assertEquals
 
-@Target(AnnotationTarget.EXPRESSION)
+@Target(AnnotationTarget.FUNCTION)
 @Retention(AnnotationRetention.RUNTIME)
 annotation class Ann(val x: String)
 
diff --git a/compiler/testData/codegen/boxWithStdlib/annotations/annotatedLambda/lambda.kt b/compiler/testData/codegen/boxWithStdlib/annotations/annotatedLambda/lambda.kt
index 6384c03c07e..d6eddf8201b 100644
--- a/compiler/testData/codegen/boxWithStdlib/annotations/annotatedLambda/lambda.kt
+++ b/compiler/testData/codegen/boxWithStdlib/annotations/annotatedLambda/lambda.kt
@@ -1,7 +1,7 @@
 import java.lang.reflect.Method
 import kotlin.test.assertEquals
 
-@Target(AnnotationTarget.EXPRESSION)
+@Target(AnnotationTarget.FUNCTION)
 @Retention(AnnotationRetention.RUNTIME)
 annotation class Ann(val x: String)
 
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/literals.kt b/compiler/testData/codegen/bytecodeListing/annotations/literals.kt
new file mode 100644
index 00000000000..c4947fb49d6
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeListing/annotations/literals.kt
@@ -0,0 +1,20 @@
+@Target(AnnotationTarget.CLASS)
+annotation class ClsAnn
+
+@Target(AnnotationTarget.FUNCTION)
+annotation class FunAnn
+
+@Target(AnnotationTarget.EXPRESSION)
+annotation class ExprAnn
+
+fun bar(arg: () -> Int) = arg()
+
+open class My
+
+fun foo(arg: Int): My {
+    bar @FunAnn { arg }
+    bar @ExprAnn { arg }
+    val x = @FunAnn fun() = arg
+    // TODO: KT-9320: ClsAnn does not appear in bytecode
+    return (@ClsAnn object: My() {})
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/literals.txt b/compiler/testData/codegen/bytecodeListing/annotations/literals.txt
new file mode 100644
index 00000000000..7ceb93edb71
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeListing/annotations/literals.txt
@@ -0,0 +1,59 @@
+@kotlin.annotation.Target @java.lang.annotation.Retention @java.lang.annotation.Target @kotlin.jvm.internal.KotlinClass ClsAnn
+
+@kotlin.annotation.Target @java.lang.annotation.Retention @java.lang.annotation.Target @kotlin.jvm.internal.KotlinClass ExprAnn
+
+@kotlin.annotation.Target @java.lang.annotation.Retention @java.lang.annotation.Target @kotlin.jvm.internal.KotlinClass FunAnn
+
+@kotlin.jvm.internal.KotlinSyntheticClass @kotlin.jvm.internal.KotlinCallable LiteralsKt$foo$1 {
+    inner class LiteralsKt$foo$1
+    field $arg: int
+    method invoke(): java.lang.Object
+    @FunAnn method invoke(): int
+    method <init>(p0: int): void
+}
+
+@kotlin.jvm.internal.KotlinSyntheticClass @kotlin.jvm.internal.KotlinCallable LiteralsKt$foo$2 {
+    inner class LiteralsKt$foo$2
+    field $arg: int
+    method invoke(): java.lang.Object
+    method invoke(): int
+    method <init>(p0: int): void
+}
+
+@kotlin.jvm.internal.KotlinClass LiteralsKt$foo$3 {
+    inner class LiteralsKt$foo$3
+    field $kotlinClass: kotlin.reflect.KClass
+    method <clinit>(): void
+    method <init>(): void
+}
+
+@kotlin.jvm.internal.KotlinSyntheticClass @kotlin.jvm.internal.KotlinCallable LiteralsKt$foo$x$1 {
+    inner class LiteralsKt$foo$x$1
+    field $arg: int
+    method invoke(): java.lang.Object
+    @FunAnn method invoke(): int
+    method <init>(p0: int): void
+}
+
+@kotlin.jvm.internal.KotlinFileFacade LiteralsKt {
+    inner class LiteralsKt$foo$1
+    inner class LiteralsKt$foo$2
+    inner class LiteralsKt$foo$x$1
+    inner class LiteralsKt$foo$3
+    method bar(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function0): int
+    @org.jetbrains.annotations.NotNull method foo(p0: int): My
+}
+
+@kotlin.jvm.internal.KotlinClass My {
+    field $kotlinClass: kotlin.reflect.KClass
+    method <clinit>(): void
+    method <init>(): void
+}
+
+@java.lang.Deprecated @kotlin.jvm.internal.KotlinPackage _DefaultPackage {
+    field $kotlinPackage: kotlin.reflect.KPackage
+    field $moduleName: java.lang.String
+    method <clinit>(): void
+    @kotlin.jvm.internal.KotlinDelegatedMethod method bar(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function0): int
+    @kotlin.jvm.internal.KotlinDelegatedMethod @org.jetbrains.annotations.NotNull method foo(p0: int): My
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
index 5a6164227e7..84a96b266e5 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
@@ -49,6 +49,12 @@ public class BytecodeListingTestGenerated extends AbstractBytecodeListingTest {
             doTest(fileName);
         }
 
+        @TestMetadata("literals.kt")
+        public void testLiterals() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/bytecodeListing/annotations/literals.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("onProperties.kt")
         public void testOnProperties() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/bytecodeListing/annotations/onProperties.kt");