diff --git a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDataClassConverters.kt b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDataClassConverters.kt
index adbbf059864..d37e934e2fc 100644
--- a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDataClassConverters.kt
+++ b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDataClassConverters.kt
@@ -951,6 +951,12 @@ internal val KT_DIAGNOSTIC_CONVERTER = KtDiagnosticConverterBuilder.buildConvert
             token,
         )
     }
+    add(FirErrors.WRONG_EXTENSION_FUNCTION_TYPE_WARNING) { firDiagnostic ->
+        WrongExtensionFunctionTypeWarningImpl(
+            firDiagnostic as KtPsiDiagnostic,
+            token,
+        )
+    }
     add(FirErrors.OPT_IN_USAGE) { firDiagnostic ->
         OptInUsageImpl(
             firDiagnostic.a,
diff --git a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnostics.kt b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnostics.kt
index ae9a3fe5295..fd4b2fd5428 100644
--- a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnostics.kt
+++ b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnostics.kt
@@ -684,6 +684,10 @@ sealed class KtFirDiagnostic<PSI : PsiElement> : KtDiagnosticWithPsi<PSI> {
         override val diagnosticClass get() = WrongExtensionFunctionType::class
     }
 
+    abstract class WrongExtensionFunctionTypeWarning : KtFirDiagnostic<KtAnnotationEntry>() {
+        override val diagnosticClass get() = WrongExtensionFunctionTypeWarning::class
+    }
+
     abstract class OptInUsage : KtFirDiagnostic<PsiElement>() {
         override val diagnosticClass get() = OptInUsage::class
         abstract val optInMarkerFqName: FqName
diff --git a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnosticsImpl.kt b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
index f9f84e6b27c..77e4b6847cb 100644
--- a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
+++ b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
@@ -821,6 +821,11 @@ internal class WrongExtensionFunctionTypeImpl(
     override val token: ValidityToken,
 ) : KtFirDiagnostic.WrongExtensionFunctionType(), KtAbstractFirDiagnostic<KtAnnotationEntry>
 
+internal class WrongExtensionFunctionTypeWarningImpl(
+    override val firDiagnostic: KtPsiDiagnostic,
+    override val token: ValidityToken,
+) : KtFirDiagnostic.WrongExtensionFunctionTypeWarning(), KtAbstractFirDiagnostic<KtAnnotationEntry>
+
 internal class OptInUsageImpl(
     override val optInMarkerFqName: FqName,
     override val message: String,
diff --git a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
index 2ee92bb19b7..4d0aeb9c067 100644
--- a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
+++ b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
@@ -288,6 +288,7 @@ object DIAGNOSTICS_LIST : DiagnosticList("FirErrors") {
         val REPEATED_ANNOTATION_WARNING by warning<KtAnnotationEntry>()
         val NOT_A_CLASS by error<PsiElement>()
         val WRONG_EXTENSION_FUNCTION_TYPE by error<KtAnnotationEntry>()
+        val WRONG_EXTENSION_FUNCTION_TYPE_WARNING by warning<KtAnnotationEntry>()
     }
 
     val OPT_IN by object : DiagnosticGroup("OptIn") {
diff --git a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
index 8f0c35f874c..4389b7a4cf5 100644
--- a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
+++ b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
@@ -254,6 +254,7 @@ object FirErrors {
     val REPEATED_ANNOTATION_WARNING by warning0<KtAnnotationEntry>()
     val NOT_A_CLASS by error0<PsiElement>()
     val WRONG_EXTENSION_FUNCTION_TYPE by error0<KtAnnotationEntry>()
+    val WRONG_EXTENSION_FUNCTION_TYPE_WARNING by warning0<KtAnnotationEntry>()
 
     // OptIn
     val OPT_IN_USAGE by warning2<PsiElement, FqName, String>(SourceElementPositioningStrategies.REFERENCE_BY_QUALIFIED)
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/type/FirTypeAnnotationChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/type/FirTypeAnnotationChecker.kt
index c0b64a08c9f..801bb649bd6 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/type/FirTypeAnnotationChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/type/FirTypeAnnotationChecker.kt
@@ -5,6 +5,7 @@
 
 package org.jetbrains.kotlin.fir.analysis.checkers.type
 
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.descriptors.annotations.KotlinTarget
 import org.jetbrains.kotlin.fir.analysis.checkers.context.CheckerContext
 import org.jetbrains.kotlin.fir.analysis.checkers.getAllowedAnnotationTargets
@@ -33,7 +34,14 @@ object FirTypeAnnotationChecker : FirTypeRefChecker() {
                 }
             }
             if (annotation.classId == StandardClassIds.Annotations.ExtensionFunctionType) {
-                if (typeRef.type.isBuiltinFunctionalType(context.session) && typeRef.type.typeArguments.size <= 1) {
+                if (!typeRef.type.isBuiltinFunctionalType(context.session)) {
+                    if (context.languageVersionSettings.supportsFeature(LanguageFeature.ForbidExtensionFunctionTypeOnNonFunctionTypes)) {
+                        reporter.reportOn(annotation.source, FirErrors.WRONG_EXTENSION_FUNCTION_TYPE, context)
+                    } else {
+                        reporter.reportOn(annotation.source, FirErrors.WRONG_EXTENSION_FUNCTION_TYPE_WARNING, context)
+                    }
+
+                } else if (typeRef.type.typeArguments.size <= 1) {
                     reporter.reportOn(annotation.source, FirErrors.WRONG_EXTENSION_FUNCTION_TYPE, context)
                 }
             }
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrorsDefaultMessages.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrorsDefaultMessages.kt
index 4f48eba6f37..0b716812949 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrorsDefaultMessages.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrorsDefaultMessages.kt
@@ -562,6 +562,7 @@ import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.VIRTUAL_MEMBER_HI
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_ANNOTATION_TARGET
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_EXTENSION_FUNCTION_TYPE
+import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_EXTENSION_FUNCTION_TYPE_WARNING
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_GETTER_RETURN_TYPE
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_INVOCATION_KIND
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_LONG_SUFFIX
@@ -854,7 +855,14 @@ object FirErrorsDefaultMessages : BaseDiagnosticRendererFactory() {
             "Opt-in requirement marker annotation on override makes no sense without the same marker on base declaration"
         )
         map.put(NOT_A_CLASS, "Not a class")
-        map.put(WRONG_EXTENSION_FUNCTION_TYPE, "ExtensionFunctionType is forbidden on a function type without parameters")
+        map.put(
+            WRONG_EXTENSION_FUNCTION_TYPE,
+            "ExtensionFunctionType is forbidden on a function type without parameters or on a non-function type"
+        )
+        map.put(
+            WRONG_EXTENSION_FUNCTION_TYPE_WARNING,
+            "ExtensionFunctionType makes no sense on a non-function type. It will be an error in a future release."
+        )
 
         // Exposed visibility group // #
         map.put(
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index 363f99f51d2..2cd96cc9761 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -279,6 +279,7 @@ public interface Errors {
     DiagnosticFactory0<KtAnnotationEntry> REPEATED_ANNOTATION_WARNING = DiagnosticFactory0.create(WARNING);
     DiagnosticFactory0<KtAnnotationEntry> NON_SOURCE_ANNOTATION_ON_INLINED_LAMBDA_EXPRESSION = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<KtAnnotationEntry> WRONG_EXTENSION_FUNCTION_TYPE = DiagnosticFactory0.create(ERROR);
+    DiagnosticFactory0<KtAnnotationEntry> WRONG_EXTENSION_FUNCTION_TYPE_WARNING = DiagnosticFactory0.create(WARNING);
 
     // Annotations
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index 0f5d2cc8df3..f942d3ccbd4 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -146,7 +146,8 @@ public class DefaultErrorMessages {
         MAP.put(REPEATED_ANNOTATION, "This annotation is not repeatable");
         MAP.put(REPEATED_ANNOTATION_WARNING, "This annotation is not repeatable");
         MAP.put(NON_SOURCE_ANNOTATION_ON_INLINED_LAMBDA_EXPRESSION, "The lambda expression here is an inlined argument so this annotation cannot be stored anywhere");
-        MAP.put(WRONG_EXTENSION_FUNCTION_TYPE, "ExtensionFunctionType is forbidden on a function type without parameters");
+        MAP.put(WRONG_EXTENSION_FUNCTION_TYPE, "ExtensionFunctionType is forbidden on a function type without parameters or on a non-function type");
+        MAP.put(WRONG_EXTENSION_FUNCTION_TYPE_WARNING, "ExtensionFunctionType makes no sense on a non-function type. It will be an error in a future release.");
 
         MAP.put(INAPPLICABLE_TARGET_ON_PROPERTY, "''@{0}:'' annotations could be applied only to property declarations", TO_STRING);
         MAP.put(INAPPLICABLE_TARGET_PROPERTY_IMMUTABLE, "''@{0}:'' annotations could be applied only to mutable properties", TO_STRING);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
index 346a173ec87..9316cb277c3 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
@@ -185,9 +185,17 @@ class AnnotationChecker(
                 }
             }
             if (descriptor?.annotationClass?.classId == StandardClassIds.Annotations.ExtensionFunctionType) {
-                val type = trace[BindingContext.TYPE, reference]
-                if (type != null && type.isFunctionOrKFunctionTypeWithAnySuspendability && type.arguments.size <= 1) {
-                    trace.report(Errors.WRONG_EXTENSION_FUNCTION_TYPE.on(entry))
+                val type = trace[BindingContext.TYPE, reference] ?: trace[BindingContext.ABBREVIATED_TYPE, reference]
+                if (type != null) {
+                    if (!type.isFunctionOrKFunctionTypeWithAnySuspendability) {
+                        if (languageVersionSettings.supportsFeature(ForbidExtensionFunctionTypeOnNonFunctionTypes)) {
+                            trace.report(Errors.WRONG_EXTENSION_FUNCTION_TYPE.on(entry))
+                        } else {
+                            trace.report(Errors.WRONG_EXTENSION_FUNCTION_TYPE_WARNING.on(entry))
+                        }
+                    } else if (type.arguments.size <= 1) {
+                        trace.report(Errors.WRONG_EXTENSION_FUNCTION_TYPE.on(entry))
+                    }
                 }
             }
         }
diff --git a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.fir.kt b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.fir.kt
index 658970e217d..f048c268769 100644
--- a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.fir.kt
+++ b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.fir.kt
@@ -6,7 +6,7 @@ fun foo(a: (String) -> Unit) {
 
 interface A : (String) -> Unit {}
 
-fun foo(a: @ExtensionFunctionType A) {
+fun foo(a: <!WRONG_EXTENSION_FUNCTION_TYPE_WARNING!>@ExtensionFunctionType<!> A) {
     // @Extension annotation on an unrelated type shouldn't have any effect on this diagnostic.
     // Only kotlin.Function{n} type annotated with @Extension should
     "".a()
diff --git a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
index 22b2715d38f..9d4148c2160 100644
--- a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
+++ b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
@@ -6,7 +6,7 @@ fun foo(a: (String) -> Unit) {
 
 interface A : (String) -> Unit {}
 
-fun foo(a: @ExtensionFunctionType A) {
+fun foo(a: <!WRONG_EXTENSION_FUNCTION_TYPE_WARNING!>@ExtensionFunctionType<!> A) {
     // @Extension annotation on an unrelated type shouldn't have any effect on this diagnostic.
     // Only kotlin.Function{n} type annotated with @Extension should
     "".<!UNRESOLVED_REFERENCE!>a<!>()
diff --git a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.fir.kt b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.fir.kt
index 033af7e4477..51719570dac 100644
--- a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.fir.kt
+++ b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.fir.kt
@@ -1,4 +1,5 @@
 // WITH_STDLIB
+// !LANGUAGE: +ForbidExtensionFunctionTypeOnNonFunctionTypes
 // This test checks that annotations on extension function types are preserved. See the corresponding .txt file
 
 @Target(AnnotationTarget.TYPE)
@@ -17,4 +18,6 @@ interface Some {
     }
 
     fun f7(x: <!WRONG_EXTENSION_FUNCTION_TYPE!>@ExtensionFunctionType<!> Function0<Int>)
+
+    fun f8(x: <!WRONG_EXTENSION_FUNCTION_TYPE!>@ExtensionFunctionType<!> Int)
 }
diff --git a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
index ca26db3e682..617734c71a6 100644
--- a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
+++ b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
@@ -1,4 +1,5 @@
 // WITH_STDLIB
+// !LANGUAGE: +ForbidExtensionFunctionTypeOnNonFunctionTypes
 // This test checks that annotations on extension function types are preserved. See the corresponding .txt file
 
 @Target(AnnotationTarget.TYPE)
@@ -17,4 +18,6 @@ interface Some {
     }
 
     fun f7(x: <!WRONG_EXTENSION_FUNCTION_TYPE!>@ExtensionFunctionType<!> Function0<Int>)
+
+    fun f8(x: <!WRONG_EXTENSION_FUNCTION_TYPE!>@ExtensionFunctionType<!> Int)
 }
diff --git a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
index f80fd2e937b..45a7e75d9c6 100644
--- a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
+++ b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
@@ -9,6 +9,7 @@ public interface Some {
     public abstract fun f5(): kotlin.Int.(???) -> kotlin.Int
     public open fun f6(/*0*/ x: kotlin.Int.(???) -> kotlin.Int): kotlin.Unit
     public abstract fun f7(/*0*/ x: kotlin.Int.(???) -> kotlin.Int): kotlin.Unit
+    public abstract fun f8(/*0*/ x: @kotlin.ExtensionFunctionType kotlin.Int): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
diff --git a/compiler/testData/diagnostics/tests/typealias/typealiasRhsAnnotations.kt b/compiler/testData/diagnostics/tests/typealias/typealiasRhsAnnotations.kt
index 1b617caffd1..6c666b59c25 100644
--- a/compiler/testData/diagnostics/tests/typealias/typealiasRhsAnnotations.kt
+++ b/compiler/testData/diagnostics/tests/typealias/typealiasRhsAnnotations.kt
@@ -1,4 +1,5 @@
 // FIR_IDENTICAL
+// !LANGUAGE: -ForbidExtensionFunctionTypeOnNonFunctionTypes
 @Target(AnnotationTarget.TYPE)
 annotation class Ann1
 
@@ -9,8 +10,7 @@ typealias Alias1 = @Ann1 String
 typealias Alias2 = @Ann2 Alias1
 fun test1(a: Alias2) = a
 
-// NB @ExtensionFunctionType on non-functional type is not an error
-typealias Alias3 = @ExtensionFunctionType Alias1
+typealias Alias3 = <!WRONG_EXTENSION_FUNCTION_TYPE_WARNING!>@ExtensionFunctionType<!> Alias1
 fun test2(a: Alias3) = a
 
 typealias LA1 = List<@Ann2 Alias1>
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 409db41e497..f29f1ac637b 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -263,6 +263,7 @@ enum class LanguageFeature(
     ProhibitConstructorCallOnFunctionalSupertype(KOTLIN_1_9, kind = BUG_FIX), // KT-46344
     ProhibitArrayLiteralsInCompanionOfAnnotation(KOTLIN_1_9, kind = BUG_FIX), // KT-39041
     ProhibitCyclesInAnnotations(KOTLIN_1_9, kind = BUG_FIX), // KT-49110
+    ForbidExtensionFunctionTypeOnNonFunctionTypes(KOTLIN_1_9), // related to KT-43527
 
     // Temporarily disabled, see KT-27084/KT-22379
     SoundSmartcastFromLoopConditionForLoopAssignedVariables(sinceVersion = null, kind = BUG_FIX),