diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
index 0b9cce330ab..d1d9e4f41b2 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
@@ -20186,6 +20186,12 @@ public class LLFirBlackBoxCodegenBasedTestGenerated extends AbstractLLFirBlackBo
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
index 19c04b1aedb..dfda0e4885d 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
@@ -20186,6 +20186,12 @@ public class LLFirReversedBlackBoxCodegenBasedTestGenerated extends AbstractLLFi
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrTypeConverter.kt b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrTypeConverter.kt
index 79349cd0bfc..02a0d673bea 100644
--- a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrTypeConverter.kt
+++ b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrTypeConverter.kt
@@ -8,7 +8,6 @@ package org.jetbrains.kotlin.fir.backend
 import org.jetbrains.kotlin.fir.declarations.getAnnotationsByClassId
 import org.jetbrains.kotlin.fir.expressions.FirAnnotation
 import org.jetbrains.kotlin.fir.expressions.unexpandedConeClassLikeType
-import org.jetbrains.kotlin.fir.languageVersionSettings
 import org.jetbrains.kotlin.fir.resolve.fullyExpandedType
 import org.jetbrains.kotlin.fir.resolve.substitution.AbstractConeSubstitutor
 import org.jetbrains.kotlin.fir.resolve.toSymbol
@@ -78,17 +77,6 @@ class Fir2IrTypeConverter(
     private val capturedTypeCache = mutableMapOf<ConeCapturedType, IrType>()
     private val errorTypeForCapturedTypeStub by lazy { createErrorType() }
 
-    private val typeApproximator = ConeTypeApproximator(session.typeContext, session.languageVersionSettings)
-
-    private val typeApproximatorConfiguration =
-        object : TypeApproximatorConfiguration.AllFlexibleSameValue() {
-            override val allFlexible: Boolean get() = true
-            override val errorType: Boolean get() = true
-            override val integerLiteralConstantType: Boolean get() = true
-            override val integerConstantOperatorType: Boolean get() = true
-            override val intersectionTypesInContravariantPositions: Boolean get() = true
-        }
-
     fun FirTypeRef.toIrType(typeOrigin: ConversionTypeOrigin = ConversionTypeOrigin.DEFAULT): IrType {
         capturedTypeCache.clear()
         return when (this) {
@@ -216,11 +204,13 @@ class Fir2IrTypeConverter(
                 val cached = capturedTypeCache[this]
                 if (cached == null) {
                     capturedTypeCache[this] = errorTypeForCapturedTypeStub
-                    val supertypes = constructor.supertypes!!
-                    val approximation = supertypes.find {
-                        it == (constructor.projection as? ConeKotlinTypeProjection)?.type
-                    } ?: supertypes.first()
-                    val irType = approximation.toIrType(typeOrigin)
+                    val irType = this.approximateForIrOrSelf().toIrType(
+                        typeOrigin,
+                        annotations,
+                        hasFlexibleNullability = hasFlexibleNullability,
+                        hasFlexibleMutability = hasFlexibleMutability,
+                        addRawTypeAnnotation = addRawTypeAnnotation
+                    )
                     capturedTypeCache[this] = irType
                     irType
                 } else {
@@ -322,9 +312,7 @@ class Fir2IrTypeConverter(
                 } else null
             }
         }
-        return substitutor.substituteOrSelf(type).let {
-            typeApproximator.approximateToSuperType(it, typeApproximatorConfiguration) ?: it
-        }
+        return substitutor.substituteOrSelf(type).approximateForIrOrSelf()
     }
 }
 
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
index 8bbfa19e231..d7f9e506786 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
@@ -19861,6 +19861,12 @@ public class FirLightTreeBlackBoxCodegenTestGenerated extends AbstractFirLightTr
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
index 9354d5ee416..1dcaaf9dc9e 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
@@ -19861,6 +19861,12 @@ public class FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
index 60ba0ec5d13..d5ad0920487 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
@@ -19861,6 +19861,12 @@ public class FirPsiBlackBoxCodegenTestGenerated extends AbstractFirPsiBlackBoxCo
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/types/TypeApproximatorConfiguration.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/types/TypeApproximatorConfiguration.kt
index 72451d66a6c..8bea6625a4c 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/types/TypeApproximatorConfiguration.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/types/TypeApproximatorConfiguration.kt
@@ -138,6 +138,7 @@ open class TypeApproximatorConfiguration {
         override val allFlexible: Boolean get() = true
         override val errorType: Boolean get() = true
         override val integerLiteralConstantType: Boolean get() = true
+        override val integerConstantOperatorType: Boolean get() = true
         override val intersectionTypesInContravariantPositions: Boolean get() = true
     }
 }
diff --git a/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.fir.ir.txt b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.fir.ir.txt
new file mode 100644
index 00000000000..4fbdd0005a6
--- /dev/null
+++ b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.fir.ir.txt
@@ -0,0 +1,68 @@
+FILE fqName:<root> fileName:/starProjectionLambdaNullReturn.kt
+  CLASS INTERFACE name:I modality:ABSTRACT visibility:public superTypes:[kotlin.Any]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.I<T of <root>.I>
+    TYPE_PARAMETER name:T index:0 variance: superTypes:[kotlin.Any] reified:false
+    FUN name:foo visibility:public modality:ABSTRACT <> ($this:<root>.I<T of <root>.I>, func:kotlin.Function0<T of <root>.I?>) returnType:kotlin.Unit
+      $this: VALUE_PARAMETER name:<this> type:<root>.I<T of <root>.I>
+      VALUE_PARAMETER name:func index:0 type:kotlin.Function0<T of <root>.I?>
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS CLASS name:Impl modality:FINAL visibility:public superTypes:[<root>.I<T of <root>.Impl>]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Impl<T of <root>.Impl>
+    TYPE_PARAMETER name:T index:0 variance: superTypes:[kotlin.Any] reified:false
+    CONSTRUCTOR visibility:public <> () returnType:<root>.Impl<T of <root>.Impl> [primary]
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Impl modality:FINAL visibility:public superTypes:[<root>.I<T of <root>.Impl>]'
+    FUN name:foo visibility:public modality:OPEN <> ($this:<root>.Impl<T of <root>.Impl>, func:kotlin.Function0<T of <root>.Impl?>) returnType:kotlin.Unit
+      overridden:
+        public abstract fun foo (func: kotlin.Function0<T of <root>.I?>): kotlin.Unit declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:<root>.Impl<T of <root>.Impl>
+      VALUE_PARAMETER name:func index:0 type:kotlin.Function0<T of <root>.Impl?>
+      BLOCK_BODY
+        TYPE_OP type=kotlin.Unit origin=IMPLICIT_COERCION_TO_UNIT typeOperand=kotlin.Unit
+          CALL 'public abstract fun invoke (): R of kotlin.Function0 declared in kotlin.Function0' type=T of <root>.Impl? origin=INVOKE
+            $this: GET_VAR 'func: kotlin.Function0<T of <root>.Impl?> declared in <root>.Impl.foo' type=kotlin.Function0<T of <root>.Impl?> origin=VARIABLE_AS_FUNCTION
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  FUN name:foo visibility:public modality:FINAL <> ($receiver:<root>.I<*>) returnType:kotlin.Unit
+    $receiver: VALUE_PARAMETER name:<this> type:<root>.I<*>
+    BLOCK_BODY
+      CALL 'public abstract fun foo (func: kotlin.Function0<T of <root>.I?>): kotlin.Unit declared in <root>.I' type=kotlin.Unit origin=null
+        $this: GET_VAR '<this>: <root>.I<*> declared in <root>.foo' type=<root>.I<*> origin=null
+        func: FUN_EXPR type=kotlin.Function0<kotlin.Any?> origin=LAMBDA
+          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Any?
+            BLOCK_BODY
+              RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Any? declared in <root>.foo'
+                CONST Null type=kotlin.Nothing? value=null
+  FUN name:box visibility:public modality:FINAL <> () returnType:kotlin.String
+    BLOCK_BODY
+      VAR name:foo type:<root>.Impl<kotlin.String> [val]
+        CONSTRUCTOR_CALL 'public constructor <init> () declared in <root>.Impl' type=<root>.Impl<kotlin.String> origin=null
+          <class: T>: kotlin.String
+      CALL 'public final fun foo (): kotlin.Unit declared in <root>' type=kotlin.Unit origin=null
+        $receiver: GET_VAR 'val foo: <root>.Impl<kotlin.String> declared in <root>.box' type=<root>.Impl<kotlin.String> origin=null
+      RETURN type=kotlin.Nothing from='public final fun box (): kotlin.String declared in <root>'
+        CONST String type=kotlin.String value="OK"
diff --git a/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.ir.txt b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.ir.txt
new file mode 100644
index 00000000000..9c531d54ad4
--- /dev/null
+++ b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.ir.txt
@@ -0,0 +1,68 @@
+FILE fqName:<root> fileName:/starProjectionLambdaNullReturn.kt
+  CLASS INTERFACE name:I modality:ABSTRACT visibility:public superTypes:[kotlin.Any]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.I<T of <root>.I>
+    TYPE_PARAMETER name:T index:0 variance: superTypes:[kotlin.Any] reified:false
+    FUN name:foo visibility:public modality:ABSTRACT <> ($this:<root>.I<T of <root>.I>, func:kotlin.Function0<T of <root>.I?>) returnType:kotlin.Unit
+      $this: VALUE_PARAMETER name:<this> type:<root>.I<T of <root>.I>
+      VALUE_PARAMETER name:func index:0 type:kotlin.Function0<T of <root>.I?>
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS CLASS name:Impl modality:FINAL visibility:public superTypes:[<root>.I<T of <root>.Impl>]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Impl<T of <root>.Impl>
+    TYPE_PARAMETER name:T index:0 variance: superTypes:[kotlin.Any] reified:false
+    CONSTRUCTOR visibility:public <> () returnType:<root>.Impl<T of <root>.Impl> [primary]
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Impl modality:FINAL visibility:public superTypes:[<root>.I<T of <root>.Impl>]'
+    FUN name:foo visibility:public modality:OPEN <> ($this:<root>.Impl<T of <root>.Impl>, func:kotlin.Function0<T of <root>.Impl?>) returnType:kotlin.Unit
+      overridden:
+        public abstract fun foo (func: kotlin.Function0<T of <root>.I?>): kotlin.Unit declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:<root>.Impl<T of <root>.Impl>
+      VALUE_PARAMETER name:func index:0 type:kotlin.Function0<T of <root>.Impl?>
+      BLOCK_BODY
+        TYPE_OP type=kotlin.Unit origin=IMPLICIT_COERCION_TO_UNIT typeOperand=kotlin.Unit
+          CALL 'public abstract fun invoke (): R of kotlin.Function0 declared in kotlin.Function0' type=T of <root>.Impl? origin=INVOKE
+            $this: GET_VAR 'func: kotlin.Function0<T of <root>.Impl?> declared in <root>.Impl.foo' type=kotlin.Function0<T of <root>.Impl?> origin=VARIABLE_AS_FUNCTION
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in <root>.I
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  FUN name:foo visibility:public modality:FINAL <> ($receiver:<root>.I<*>) returnType:kotlin.Unit
+    $receiver: VALUE_PARAMETER name:<this> type:<root>.I<*>
+    BLOCK_BODY
+      CALL 'public abstract fun foo (func: kotlin.Function0<T of <root>.I?>): kotlin.Unit declared in <root>.I' type=kotlin.Unit origin=null
+        $this: GET_VAR '<this>: <root>.I<*> declared in <root>.foo' type=<root>.I<*> origin=null
+        func: FUN_EXPR type=kotlin.Function0<kotlin.Nothing?> origin=LAMBDA
+          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Nothing?
+            BLOCK_BODY
+              RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Nothing? declared in <root>.foo'
+                CONST Null type=kotlin.Nothing? value=null
+  FUN name:box visibility:public modality:FINAL <> () returnType:kotlin.String
+    BLOCK_BODY
+      VAR name:foo type:<root>.Impl<kotlin.String> [val]
+        CONSTRUCTOR_CALL 'public constructor <init> () declared in <root>.Impl' type=<root>.Impl<kotlin.String> origin=null
+          <class: T>: kotlin.String
+      CALL 'public final fun foo (): kotlin.Unit declared in <root>' type=kotlin.Unit origin=null
+        $receiver: GET_VAR 'val foo: <root>.Impl<kotlin.String> declared in <root>.box' type=<root>.Impl<kotlin.String> origin=null
+      RETURN type=kotlin.Nothing from='public final fun box (): kotlin.String declared in <root>'
+        CONST String type=kotlin.String value="OK"
diff --git a/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt
new file mode 100644
index 00000000000..4bc2b4d1308
--- /dev/null
+++ b/compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt
@@ -0,0 +1,21 @@
+// ISSUE: KT-64261
+// DUMP_IR
+interface I<T : Any> {
+    fun foo(func: () -> T?)
+}
+
+class Impl<T : Any> : I<T> {
+    override fun foo(func: () -> T?) {
+        func()
+    }
+}
+
+fun I<*>.foo() {
+    foo { null }
+}
+
+fun box(): String {
+    val foo = Impl<String>()
+    foo.foo()
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/types/genericFunWithStar.fir.ir.txt b/compiler/testData/ir/irText/types/genericFunWithStar.fir.ir.txt
index 7a2fda40acf..ef5f0545c86 100644
--- a/compiler/testData/ir/irText/types/genericFunWithStar.fir.ir.txt
+++ b/compiler/testData/ir/irText/types/genericFunWithStar.fir.ir.txt
@@ -77,7 +77,7 @@ FILE fqName:<root> fileName:/genericFunWithStar.kt
       BLOCK_BODY
         RETURN type=kotlin.Nothing from='public final fun bar (vararg serializers: <root>.I<*>): <root>.I<*> declared in <root>.Box'
           CALL 'public abstract fun foo <F> (tSerializer: <root>.I<F of <root>.Box.foo>): <root>.I<<root>.Box<F of <root>.Box.foo>> declared in <root>.Box' type=<root>.I<out <root>.Box<*>> origin=null
-            <F>: <root>.IFoo
+            <F>: <root>.IBase
             $this: GET_VAR '<this>: <root>.Box<T of <root>.Box> declared in <root>.Box.bar' type=<root>.Box<T of <root>.Box> origin=null
             tSerializer: CALL 'public final fun get (index: kotlin.Int): T of kotlin.Array declared in kotlin.Array' type=<root>.I<*> origin=null
               $this: GET_VAR 'serializers: kotlin.Array<out <root>.I<*>> declared in <root>.Box.bar' type=kotlin.Array<out <root>.I<*>> origin=null
diff --git a/compiler/testData/ir/irText/types/genericFunWithStar.fir.kt.txt b/compiler/testData/ir/irText/types/genericFunWithStar.fir.kt.txt
index 52137c9979c..5bc8a393b34 100644
--- a/compiler/testData/ir/irText/types/genericFunWithStar.fir.kt.txt
+++ b/compiler/testData/ir/irText/types/genericFunWithStar.fir.kt.txt
@@ -20,7 +20,7 @@ abstract class Box<T> : IFoo, IBar where T : IFoo, T : IBar {
   abstract fun <F> foo(tSerializer: I<F>): I<Box<F>> where F : IFoo, F : IBar
 
   fun bar(vararg serializers: I<*>): I<*> {
-    return <this>.foo<IFoo>(tSerializer = serializers.get(index = 0))
+    return <this>.foo<IBase>(tSerializer = serializers.get(index = 0))
   }
 
 }
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
index 64ca534f38c..8765a04393c 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
@@ -18841,6 +18841,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
index c26d9c9e8a6..5bf1f757eff 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
@@ -19861,6 +19861,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
index d8dff69281f..7f6d3d93628 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
@@ -19861,6 +19861,12 @@ public class IrBlackBoxCodegenWithIrInlinerTestGenerated extends AbstractIrBlack
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index ff16cc38978..d2ca6d75c3e 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -16567,6 +16567,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/fir/StackOverflowInAnnotationLoader.kt");
         }
 
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @TestMetadata("staticImportFromEnum.kt")
         public void testStaticImportFromEnum() throws Exception {
             runTest("compiler/testData/codegen/box/fir/staticImportFromEnum.kt");
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
index 9e22f06fbf3..45169eda965 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
@@ -14737,6 +14737,12 @@ public class FirJsCodegenBoxTestGenerated extends AbstractFirJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
index 18c3e5f7e9f..6e073f9a3eb 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
@@ -14737,6 +14737,12 @@ public class FirJsES6CodegenBoxTestGenerated extends AbstractFirJsES6CodegenBoxT
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
index e74fb3f1e28..c60dec0b172 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
@@ -14737,6 +14737,12 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
index 8b186254871..a893366702c 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
@@ -14737,6 +14737,12 @@ public class IrJsES6CodegenBoxTestGenerated extends AbstractIrJsES6CodegenBoxTes
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
index d0fc666c06b..40a14d7779c 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
@@ -16251,6 +16251,12 @@ public class FirNativeCodegenBoxTestGenerated extends AbstractNativeCodegenBoxTe
                 runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
             }
 
+            @Test
+            @TestMetadata("starProjectionLambdaNullReturn.kt")
+            public void testStarProjectionLambdaNullReturn() throws Exception {
+                runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+            }
+
             @Test
             @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
             public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
index 5df28a5e815..81d9b64be10 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
@@ -16627,6 +16627,12 @@ public class FirNativeCodegenBoxTestNoPLGenerated extends AbstractNativeCodegenB
                 runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
             }
 
+            @Test
+            @TestMetadata("starProjectionLambdaNullReturn.kt")
+            public void testStarProjectionLambdaNullReturn() throws Exception {
+                runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+            }
+
             @Test
             @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
             public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
index f437a5904b4..709299a8c85 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
@@ -15875,6 +15875,12 @@ public class NativeCodegenBoxTestGenerated extends AbstractNativeCodegenBoxTest
                 runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
             }
 
+            @Test
+            @TestMetadata("starProjectionLambdaNullReturn.kt")
+            public void testStarProjectionLambdaNullReturn() throws Exception {
+                runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+            }
+
             @Test
             @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
             public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
index a1bd74ea4a0..86c23e3d7f7 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
@@ -16252,6 +16252,12 @@ public class NativeCodegenBoxTestNoPLGenerated extends AbstractNativeCodegenBoxT
                 runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
             }
 
+            @Test
+            @TestMetadata("starProjectionLambdaNullReturn.kt")
+            public void testStarProjectionLambdaNullReturn() throws Exception {
+                runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+            }
+
             @Test
             @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
             public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
index a9f9a9ebaa8..96f28d30b08 100644
--- a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
+++ b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
@@ -14713,6 +14713,12 @@ public class FirWasmCodegenBoxTestGenerated extends AbstractFirWasmCodegenBoxTes
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {
diff --git a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
index 15f37d580ce..7c12f10de7e 100644
--- a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
+++ b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
@@ -14713,6 +14713,12 @@ public class K1WasmCodegenBoxTestGenerated extends AbstractK1WasmCodegenBoxTest
             runTest("compiler/testData/codegen/box/fir/smartCastToInvisibleClassMember.kt");
         }
 
+        @Test
+        @TestMetadata("starProjectionLambdaNullReturn.kt")
+        public void testStarProjectionLambdaNullReturn() throws Exception {
+            runTest("compiler/testData/codegen/box/fir/starProjectionLambdaNullReturn.kt");
+        }
+
         @Test
         @TestMetadata("suppressedInvisibleReferenceQualifier.kt")
         public void testSuppressedInvisibleReferenceQualifier() throws Exception {