diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
index 1878c359774..d92424a7b17 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
@@ -49,6 +49,7 @@ import org.jetbrains.kotlin.name.ClassId
 import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.name.SpecialNames
+import org.jetbrains.kotlin.utils.addToStdlib.runIf
 
 class DeclarationsConverter(
     session: FirSession,
@@ -1187,7 +1188,7 @@ class DeclarationsConverter(
         val parentNode = functionDeclaration.getParent()
         val isLocal = !(parentNode?.tokenType == KT_FILE || parentNode?.tokenType == CLASS_BODY)
         val target: FirFunctionTarget
-        val functionBuilder = if (identifier == null) {
+        val functionBuilder = if (identifier == null && isLocal) {
             target = FirFunctionTarget(labelName = functionDeclaration.getLabelName(), isLambda = false)
             FirAnonymousFunctionBuilder().apply {
                 source = functionDeclaration.toFirSourceElement()
@@ -1197,7 +1198,8 @@ class DeclarationsConverter(
             }
         } else {
             val functionName = identifier.nameAsSafeName()
-            target = FirFunctionTarget(labelName = functionName.identifier, isLambda = false)
+            val labelName = runIf(!functionName.isSpecial) { functionName.identifier }
+            target = FirFunctionTarget(labelName, isLambda = false)
             FirSimpleFunctionBuilder().apply {
                 source = functionDeclaration.toFirSourceElement()
                 receiverTypeRef = receiverType
diff --git a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
index 7ffecfd5635..08e74664f53 100644
--- a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
+++ b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
@@ -45,6 +45,7 @@ import org.jetbrains.kotlin.types.Variance
 import org.jetbrains.kotlin.types.expressions.OperatorConventions
 import org.jetbrains.kotlin.util.OperatorNameConventions
 import org.jetbrains.kotlin.utils.addToStdlib.firstIsInstanceOrNull
+import org.jetbrains.kotlin.utils.addToStdlib.runIf
 import kotlin.collections.contains
 
 class RawFirBuilder(
@@ -824,8 +825,8 @@ class RawFirBuilder(
             val receiverType = function.receiverTypeReference.convertSafe<FirTypeRef>()
 
             val labelName: String?
-
-            val functionBuilder = if (function.name == null) {
+            val functionIsAnonymousFunction = function.name == null && !function.parent.let { it is KtFile || it is KtClassBody }
+            val functionBuilder = if (functionIsAnonymousFunction) {
                 FirAnonymousFunctionBuilder().apply {
                     receiverTypeRef = receiverType
                     symbol = FirAnonymousFunctionSymbol()
@@ -836,7 +837,7 @@ class RawFirBuilder(
                 FirSimpleFunctionBuilder().apply {
                     receiverTypeRef = receiverType
                     name = function.nameAsSafeName
-                    labelName = name.identifier
+                    labelName = runIf(!name.isSpecial) { name.identifier }
                     symbol = FirNamedFunctionSymbol(callableIdForName(function.nameAsSafeName, function.isLocal))
                     status = FirDeclarationStatusImpl(
                         if (function.isLocal) Visibilities.LOCAL else function.visibility,