diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
index 16b01567e75..f2d30b176a7 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
@@ -124,6 +124,14 @@ fun Candidate.resolveArgumentExpression(
             isReceiver,
             isDispatch
         )
+        is FirErrorExpression -> {
+            val wrappedExpression = argument.expression
+            if (wrappedExpression != null) {
+                resolveArgumentExpression(csBuilder, wrappedExpression, expectedType, sink, context, isReceiver, isDispatch)
+            } else {
+                resolvePlainExpressionArgument(csBuilder, argument, expectedType, sink, context, isReceiver, isDispatch)
+            }
+        }
         else -> resolvePlainExpressionArgument(csBuilder, argument, expectedType, sink, context, isReceiver, isDispatch)
     }
 }
diff --git a/compiler/testData/diagnostics/tests/labels/multipleLabels.fir.kt b/compiler/testData/diagnostics/tests/labels/multipleLabels.fir.kt
index 957ec9df94e..46cf6b8ea2a 100644
--- a/compiler/testData/diagnostics/tests/labels/multipleLabels.fir.kt
+++ b/compiler/testData/diagnostics/tests/labels/multipleLabels.fir.kt
@@ -35,3 +35,11 @@ fun foo6() {
 fun foo7() {
     <!MULTIPLE_LABELS_ARE_FORBIDDEN!>l3@<!> <!MULTIPLE_LABELS_ARE_FORBIDDEN!>l2@<!> l1@ fun bar() {}
 }
+
+fun func(y: (Unit) -> Unit) {}
+
+fun foo8() {
+    func(l@ {})
+    func(<!MULTIPLE_LABELS_ARE_FORBIDDEN!>l2@<!> l1@ {})
+    func(<!UNDERSCORE_IS_RESERVED!>_<!>@ {})
+}
diff --git a/compiler/testData/diagnostics/tests/labels/multipleLabels.kt b/compiler/testData/diagnostics/tests/labels/multipleLabels.kt
index 7f6a3cb4a47..339e2693148 100644
--- a/compiler/testData/diagnostics/tests/labels/multipleLabels.kt
+++ b/compiler/testData/diagnostics/tests/labels/multipleLabels.kt
@@ -35,3 +35,11 @@ fun foo6() {
 fun foo7() {
     l3@ l2@ l1@ fun bar() {}
 }
+
+fun func(y: (Unit) -> Unit) {}
+
+fun foo8() {
+    func(l@ {})
+    func(l2@ l1@ {})
+    func(<!UNDERSCORE_IS_RESERVED!>_<!>@ {})
+}