diff --git a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/VariableReferenceHighlightingVisitor.kt b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/VariableReferenceHighlightingVisitor.kt
index 0f5730e4bec..316079c6e2f 100644
--- a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/VariableReferenceHighlightingVisitor.kt
+++ b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/VariableReferenceHighlightingVisitor.kt
@@ -28,6 +28,7 @@ internal class VariableReferenceHighlightingVisitor(
     override fun visitSimpleNameExpression(expression: KtSimpleNameExpression) {
         if (!NameHighlighter.namesHighlightingEnabled) return
         if (expression.isAssignmentReference()) return
+        if (expression.isByNameArgumentReference()) return
         if (expression.parent is KtInstanceExpressionWithLabel) return
 
         if (expression.isAutoCreatedItParameter()) {
@@ -54,6 +55,9 @@ internal class VariableReferenceHighlightingVisitor(
         }
     }
 
+    private fun KtSimpleNameExpression.isByNameArgumentReference() =
+        parent is KtValueArgumentName
+
 
     private fun KtSimpleNameExpression.isAutoCreatedItParameter(): Boolean {
         return getReferencedName() == "it" // todo