diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
index d12a952a6b9..2806df1b5fd 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
@@ -2345,6 +2345,12 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirDiagnosti
                 runTest("compiler/testData/diagnostics/tests/callableReference/noExceptionOnRedCodeWithArrayLikeCall.kt");
             }
 
+            @Test
+            @TestMetadata("overloadResolutionWithDefaults.kt")
+            public void testOverloadResolutionWithDefaults() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt");
+            }
+
             @Test
             @TestMetadata("packageInLhs.kt")
             public void testPackageInLhs() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
index d4d98d8ab9a..f0f302fe2cb 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
@@ -2345,6 +2345,12 @@ public class FirOldFrontendDiagnosticsWithLightTreeTestGenerated extends Abstrac
                 runTest("compiler/testData/diagnostics/tests/callableReference/noExceptionOnRedCodeWithArrayLikeCall.kt");
             }
 
+            @Test
+            @TestMetadata("overloadResolutionWithDefaults.kt")
+            public void testOverloadResolutionWithDefaults() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt");
+            }
+
             @Test
             @TestMetadata("packageInLhs.kt")
             public void testPackageInLhs() throws Exception {
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Candidate.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Candidate.kt
index 32d103cce1b..d267eaefdba 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Candidate.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Candidate.kt
@@ -105,6 +105,9 @@ class Candidate(
         set(value) {
             field = value
             usesSuspendConversion = value?.suspendConversionStrategy == SuspendConversionStrategy.SUSPEND_CONVERSION
+            if (value != null) {
+                numDefaults = value.defaults
+            }
         }
 
     var usesSuspendConversion: Boolean = false
diff --git a/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt b/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt
new file mode 100644
index 00000000000..944a5187c72
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt
@@ -0,0 +1,29 @@
+// FIR_IDENTICAL
+class ShortenReferences {
+    companion object {
+        val DEFAULT = ShortenReferences()
+    }
+
+    fun process(
+        element: String,
+        elementFilter: (String) -> Int = { 10 },
+        actionRunningMode: String = ""
+    ): String {
+        return "hello"
+    }
+
+    fun process(
+        element: String,
+        elementFilter: (String) -> Int = { 10 },
+    ): String {
+        return "hello"
+    }
+}
+
+
+
+fun takeReference(block: (String) -> Unit) {}
+
+fun test() {
+    takeReference(ShortenReferences.DEFAULT::process)
+}
diff --git a/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.txt b/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.txt
new file mode 100644
index 00000000000..6129dde0786
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.txt
@@ -0,0 +1,21 @@
+package
+
+public fun takeReference(/*0*/ block: (kotlin.String) -> kotlin.Unit): kotlin.Unit
+public fun test(): kotlin.Unit
+
+public final class ShortenReferences {
+    public constructor ShortenReferences()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public final fun process(/*0*/ element: kotlin.String, /*1*/ elementFilter: (kotlin.String) -> kotlin.Int = ...): kotlin.String
+    public final fun process(/*0*/ element: kotlin.String, /*1*/ elementFilter: (kotlin.String) -> kotlin.Int = ..., /*2*/ actionRunningMode: kotlin.String = ...): kotlin.String
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public companion object Companion {
+        private constructor Companion()
+        public final val DEFAULT: ShortenReferences
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
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 b40ad5d601d..0000e1fde81 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
@@ -2351,6 +2351,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/callableReference/noExceptionOnRedCodeWithArrayLikeCall.kt");
             }
 
+            @Test
+            @TestMetadata("overloadResolutionWithDefaults.kt")
+            public void testOverloadResolutionWithDefaults() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt");
+            }
+
             @Test
             @TestMetadata("packageInLhs.kt")
             public void testPackageInLhs() throws Exception {
diff --git a/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/OverridesCompletion.kt b/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/OverridesCompletion.kt
index dc9cd01cd7c..85316aa31fc 100644
--- a/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/OverridesCompletion.kt
+++ b/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/OverridesCompletion.kt
@@ -110,4 +110,4 @@ class OverridesCompletion(
             else -> return false
         }
     }
-}
\ No newline at end of file
+}
diff --git a/idea/idea-frontend-fir/idea-fir-low-level-api/tests/org/jetbrains/kotlin/idea/fir/low/level/api/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java b/idea/idea-frontend-fir/idea-fir-low-level-api/tests/org/jetbrains/kotlin/idea/fir/low/level/api/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
index 67dcb1679ca..70affd5242c 100644
--- a/idea/idea-frontend-fir/idea-fir-low-level-api/tests/org/jetbrains/kotlin/idea/fir/low/level/api/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
+++ b/idea/idea-frontend-fir/idea-fir-low-level-api/tests/org/jetbrains/kotlin/idea/fir/low/level/api/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
@@ -2010,6 +2010,11 @@ public class DiagnosisCompilerTestFE10TestdataTestGenerated extends AbstractDiag
                 runTest("compiler/testData/diagnostics/tests/callableReference/noExceptionOnRedCodeWithArrayLikeCall.kt");
             }
 
+            @TestMetadata("overloadResolutionWithDefaults.kt")
+            public void testOverloadResolutionWithDefaults() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/callableReference/overloadResolutionWithDefaults.kt");
+            }
+
             @TestMetadata("packageInLhs.kt")
             public void testPackageInLhs() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/callableReference/packageInLhs.kt");