diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnHasTypeNothing.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnHasTypeNothing.kt
new file mode 100644
index 00000000000..58d855b0c29
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnHasTypeNothing.kt
@@ -0,0 +1,7 @@
+fun test() {
+    run1 @f{(): Int ->
+        (return@f 1): Nothing
+    }
+}
+
+fun run1<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 6c60028a515..20e237ce7ad 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -2452,6 +2452,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     doTest("compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelParens.kt");
                 }
                 
+                @TestMetadata("LocalReturnHasTypeNothing.kt")
+                public void testLocalReturnHasTypeNothing() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnHasTypeNothing.kt");
+                }
+                
                 @TestMetadata("LocalReturnInNestedFunction.kt")
                 public void testLocalReturnInNestedFunction() throws Exception {
                     doTest("compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedFunction.kt");