diff --git a/compiler/fir/analysis-tests/testData/resolve/covariantArrayAsReceiver.kt b/compiler/fir/analysis-tests/testData/resolve/covariantArrayAsReceiver.kt
index 15af25df94b..214c087e801 100644
--- a/compiler/fir/analysis-tests/testData/resolve/covariantArrayAsReceiver.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/covariantArrayAsReceiver.kt
@@ -11,7 +11,7 @@ interface KtLightMethod : PsiElement
 // With covariant array here we do not visit lambda (it.usage is KtLightMethod) below
 // Problem disappears if 'out' is removed
 fun <T> Array<out T>.filterNot(f: (T) -> Boolean): List<T> {
-    return this
+    return <!RETURN_TYPE_MISMATCH!>this<!>
 }
 
 fun <T> Array<T>.toList(): List<T>? = null
diff --git a/compiler/fir/analysis-tests/testData/resolve/diagnostics/returnTypeMismatchOnOverride.kt b/compiler/fir/analysis-tests/testData/resolve/diagnostics/returnTypeMismatchOnOverride.kt
index 5e9975af944..4c5ae15c767 100644
--- a/compiler/fir/analysis-tests/testData/resolve/diagnostics/returnTypeMismatchOnOverride.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/diagnostics/returnTypeMismatchOnOverride.kt
@@ -57,7 +57,7 @@ open class J() : S() {
 }
 
 open class Base<T : X, Z : T> {
-    open fun kek(): Z = Z()
+    open fun kek(): Z = <!RETURN_TYPE_MISMATCH!>Z()<!>
 }
 
 open class GoodDerrived : Base<Y, W>() {
diff --git a/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/explicitReceiver2.kt b/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/explicitReceiver2.kt
index 501707e377a..92ae0ce7704 100644
--- a/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/explicitReceiver2.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/explicitReceiver2.kt
@@ -1,6 +1,6 @@
 
 class Bar {
-    operator fun invoke(): Foo { return this } // (1)
+    operator fun invoke(): Foo { return <!RETURN_TYPE_MISMATCH!>this<!> } // (1)
 
 }
 
@@ -11,7 +11,7 @@ fun x() {
 class Foo {
 
 
-    operator fun Bar.invoke(): Foo { return this } // (2)
+    operator fun Bar.invoke(): Foo { return <!RETURN_TYPE_MISMATCH!>this<!> } // (2)
 
     val x: Bar = Bar()
 
diff --git a/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/threeReceivers.kt b/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/threeReceivers.kt
index e5081adbb98..d5cde4eebb1 100644
--- a/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/threeReceivers.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/expresssions/invoke/threeReceivers.kt
@@ -1,7 +1,7 @@
 
 
 class Bar {
-    fun FooBar.invoke(): Bar = this
+    fun FooBar.invoke(): Bar = <!RETURN_TYPE_MISMATCH!>this<!>
 }
 
 class Buz
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/callableReferences/beyoundCalls.kt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/callableReferences/beyoundCalls.kt
index a024636d858..755616f109a 100644
--- a/compiler/fir/analysis-tests/testData/resolveWithStdlib/callableReferences/beyoundCalls.kt
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/callableReferences/beyoundCalls.kt
@@ -1,5 +1,5 @@
 <!CONFLICTING_OVERLOADS!>fun bar(x: String): Int<!> = 1
-<!CONFLICTING_OVERLOADS!>fun bar(x: String): Double<!> = 1
+<!CONFLICTING_OVERLOADS!>fun bar(x: String): Double<!> = <!RETURN_TYPE_MISMATCH!>1<!>
 
 fun baz(x: String): Int = 1
 fun <T, R> foobaz(x: T): R = TODO()
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/eqNotEq.kt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/eqNotEq.kt
index e0aa879b4a3..2e81aa6712d 100644
--- a/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/eqNotEq.kt
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/eqNotEq.kt
@@ -5,7 +5,7 @@ fun checkNotNull(x: Any?) {
         returns(true) implies (x != null)
         returns(false) implies (x == null)
     }
-    return x != null
+    return <!RETURN_TYPE_MISMATCH!>x != null<!>
 }
 
 fun trickyRequireNotNull(x: Any?) {
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/typePredicate.kt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/typePredicate.kt
index 817489339b2..ae92d5b2f23 100644
--- a/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/typePredicate.kt
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/contracts/fromSource/good/returnsImplies/typePredicate.kt
@@ -5,7 +5,7 @@ fun checkIsString(x: Any) {
         returns(true) implies (x is String)
         returns(false) implies (x !is String)
     }
-    return x is String
+    return <!RETURN_TYPE_MISMATCH!>x is String<!>
 }
 
 fun test(x: Any) {
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.fir.txt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.fir.txt
new file mode 100644
index 00000000000..438b5ffeca3
--- /dev/null
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.fir.txt
@@ -0,0 +1,77 @@
+FILE: basic.kt
+    public final fun illegalReturnIf(): R|kotlin/Char| {
+        ^illegalReturnIf when () {
+            CMP(<, Int(1).R|kotlin/Int.compareTo|(Int(2))) ->  {
+                Char(a)
+            }
+            else ->  {
+                Int(1)
+            }
+        }
+
+    }
+    public final fun foo(): R|kotlin/String| {
+        ^foo Int(1)
+    }
+    public final fun ok(): R|kotlin/Int| {
+        ^ok Int(1)
+    }
+    public final fun okOneLineFunction(): R|kotlin/Int| {
+        ^okOneLineFunction Int(10).R|kotlin/Int.plus|(Int(1))
+    }
+    public final fun errorOneLineFunction(): R|kotlin/String| {
+        ^errorOneLineFunction Int(10).R|kotlin/Int.plus|(Int(1))
+    }
+    public final class A : R|kotlin/Any| {
+        public constructor(): R|A| {
+            super<R|kotlin/Any|>()
+        }
+
+        public final fun bar(): R|kotlin/Unit| {
+        }
+
+    }
+    public final infix fun R|() -> kotlin/Unit|.foo(x: R|A.() -> kotlin/Unit|): R|kotlin/Unit| {
+    }
+    public final fun okWithLambda(): R|kotlin/String| {
+        foo@fun <anonymous>(): R|kotlin/Unit| <inline=Unknown>  {
+            ^@foo Unit
+        }
+        .R|/foo|(foo@fun R|A|.<anonymous>(): R|kotlin/Unit| <inline=NoInline>  {
+            this@R|special/anonymous|.R|/A.bar|()
+            ^@foo Unit
+        }
+        )
+        ^okWithLambda String()
+    }
+    public final fun errorWithLambda(): R|kotlin/String| {
+        foo@fun <anonymous>(): R|kotlin/Unit| <inline=Unknown>  {
+            ^@foo Unit
+        }
+        .R|/foo|(foo@fun R|A|.<anonymous>(): R|kotlin/Unit| <inline=NoInline>  {
+            this@R|special/anonymous|.R|/A.bar|()
+            ^@foo Int(10)
+        }
+        )
+        ^errorWithLambda String()
+    }
+    public final fun blockReturnValueTypeMatch1(): R|kotlin/Int| {
+        when () {
+            CMP(>, Int(1).R|kotlin/Int.compareTo|(Int(2))) ->  {
+                ^blockReturnValueTypeMatch1 Double(1.0)
+            }
+        }
+
+        ^blockReturnValueTypeMatch1 Double(2.0)
+    }
+    public final fun blockReturnValueTypeMatch2(): R|kotlin/Int| {
+        when () {
+            CMP(>, Int(1).R|kotlin/Int.compareTo|(Int(2))) ->  {
+            }
+            else ->  {
+                ^blockReturnValueTypeMatch2 Double(1.0)
+            }
+        }
+
+        ^blockReturnValueTypeMatch2 Double(2.0)
+    }
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.kt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.kt
new file mode 100644
index 00000000000..112c3a321d2
--- /dev/null
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.kt
@@ -0,0 +1,55 @@
+// bug: type of the expression in return statement is Char
+fun illegalReturnIf(): Char {
+    return if (1 < 2) 'a' else { 1 }
+}
+
+fun foo(): String {
+    return <!RETURN_TYPE_MISMATCH!>1<!>
+}
+
+fun ok(): Int {
+    return 1
+}
+
+fun okOneLineFunction(): Int = 10 + 1
+fun errorOneLineFunction(): String = <!RETURN_TYPE_MISMATCH!>10 + 1<!>
+
+class A {
+    fun bar() {}
+}
+
+infix fun (() -> Unit).foo(x: A.() -> Unit) {}
+
+fun okWithLambda(): String {
+    {
+        return@foo
+    } foo {
+        bar()
+        return@foo
+    }
+
+    return ""
+}
+
+// no report due bad returns in lambda
+fun errorWithLambda(): String {
+    {
+        return@foo
+    } foo {
+        bar()
+        return@foo 10
+    }
+
+    return ""
+}
+
+fun blockReturnValueTypeMatch1() : Int {
+    if (1 > 2)
+        return <!RETURN_TYPE_MISMATCH!>1.0<!>
+    return <!RETURN_TYPE_MISMATCH!>2.0<!>
+}
+fun blockReturnValueTypeMatch2() : Int {
+    if (1 > 2)
+    else return <!RETURN_TYPE_MISMATCH!>1.0<!>
+    return <!RETURN_TYPE_MISMATCH!>2.0<!>
+}
\ No newline at end of file
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticTestGenerated.java
index 412c427ff92..c930247617f 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticTestGenerated.java
@@ -4781,6 +4781,22 @@ public class FirDiagnosticTestGenerated extends AbstractFirDiagnosticTest {
                 KtTestUtil.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics"), Pattern.compile("^([^.]+)\\.kt$"), null, true);
             }
 
+            @Nested
+            @TestMetadata("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker")
+            @TestDataPath("$PROJECT_ROOT")
+            public class FunctionReturnTypeMismatchChecker {
+                @Test
+                public void testAllFilesPresentInFunctionReturnTypeMismatchChecker() throws Exception {
+                    KtTestUtil.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker"), Pattern.compile("^([^.]+)\\.kt$"), null, true);
+                }
+
+                @Test
+                @TestMetadata("basic.kt")
+                public void testBasic() throws Exception {
+                    runTest("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.kt");
+                }
+            }
+
             @Nested
             @TestMetadata("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/initializerTypeMismatchChecker")
             @TestDataPath("$PROJECT_ROOT")
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticsWithLightTreeTestGenerated.java
index efbac27d9e4..0169f69bb4b 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirDiagnosticsWithLightTreeTestGenerated.java
@@ -4851,6 +4851,23 @@ public class FirDiagnosticsWithLightTreeTestGenerated extends AbstractFirDiagnos
                 KtTestUtil.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics"), Pattern.compile("^([^.]+)\\.kt$"), null, true);
             }
 
+            @Nested
+            @TestMetadata("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker")
+            @TestDataPath("$PROJECT_ROOT")
+            @Execution(ExecutionMode.SAME_THREAD)
+            public class FunctionReturnTypeMismatchChecker {
+                @Test
+                public void testAllFilesPresentInFunctionReturnTypeMismatchChecker() throws Exception {
+                    KtTestUtil.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker"), Pattern.compile("^([^.]+)\\.kt$"), null, true);
+                }
+
+                @Test
+                @TestMetadata("basic.kt")
+                public void testBasic() throws Exception {
+                    runTest("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/functionReturnTypeMismatchChecker/basic.kt");
+                }
+            }
+
             @Nested
             @TestMetadata("compiler/fir/analysis-tests/testData/resolveWithStdlib/diagnostics/initializerTypeMismatchChecker")
             @TestDataPath("$PROJECT_ROOT")
diff --git a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/DiagnosticData.kt b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/DiagnosticData.kt
index aabaafccb25..b2d10a309a6 100644
--- a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/DiagnosticData.kt
+++ b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/DiagnosticData.kt
@@ -57,6 +57,7 @@ enum class PositioningStrategy(private val strategy: String? = null) {
     SUPERTYPES_LIST,
     RETURN_WITH_LABEL,
     ASSIGNMENT_VALUE,
+    WHOLE_ELEMENT,
     INT_LITERAL_OUT_OF_RANGE,
     FLOAT_LITERAL_OUT_OF_RANGE,
     LONG_LITERAL_SUFFIX,
diff --git a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
index 837a57352d5..29fbda69899 100644
--- a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
+++ b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
@@ -317,6 +317,11 @@ object DIAGNOSTICS_LIST : DiagnosticList() {
             parameter<Name>("typeParameterName")
             parameter<FirDeclaration>("typeParametersOwner")
         }
+
+        val RETURN_TYPE_MISMATCH by error<FirSourceElement, KtExpression>(PositioningStrategy.WHOLE_ELEMENT) {
+            parameter<ConeKotlinType>("expected")
+            parameter<ConeKotlinType>("actual")
+        }
     }
 
     val REFLECTION by object : DiagnosticGroup("Reflection") {
diff --git a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
index 15a0d5e33eb..a31d87df42a 100644
--- a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
+++ b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
@@ -235,6 +235,7 @@ object FirErrors {
     val REPEATED_BOUND by error0<FirSourceElement, KtTypeReference>()
     val CONFLICTING_UPPER_BOUNDS by error1<FirSourceElement, KtNamedDeclaration, FirTypeParameterSymbol>()
     val NAME_IN_CONSTRAINT_IS_NOT_A_TYPE_PARAMETER by error2<FirSourceElement, KtSimpleNameExpression, Name, FirDeclaration>()
+    val RETURN_TYPE_MISMATCH by error2<FirSourceElement, KtExpression, ConeKotlinType, ConeKotlinType>(SourceElementPositioningStrategies.WHOLE_ELEMENT)
 
     // Reflection
     val EXTENSION_IN_CLASS_REFERENCE_NOT_ALLOWED by error1<FirSourceElement, KtExpression, FirCallableDeclaration<*>>(SourceElementPositioningStrategies.REFERENCE_BY_QUALIFIED)
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirHelpers.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirHelpers.kt
index 18be2c6c75e..f8b62d00539 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirHelpers.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirHelpers.kt
@@ -16,11 +16,14 @@ import org.jetbrains.kotlin.fir.analysis.diagnostics.overrideModifier
 import org.jetbrains.kotlin.fir.analysis.diagnostics.visibilityModifier
 import org.jetbrains.kotlin.fir.analysis.getChild
 import org.jetbrains.kotlin.fir.declarations.*
+import org.jetbrains.kotlin.fir.expressions.FirComponentCall
+import org.jetbrains.kotlin.fir.expressions.FirExpression
 import org.jetbrains.kotlin.fir.expressions.FirFunctionCall
 import org.jetbrains.kotlin.fir.expressions.FirQualifiedAccessExpression
 import org.jetbrains.kotlin.fir.expressions.impl.FirEmptyExpressionBlock
 import org.jetbrains.kotlin.fir.references.FirResolvedNamedReference
 import org.jetbrains.kotlin.fir.resolve.fullyExpandedType
+import org.jetbrains.kotlin.fir.resolve.inference.isBuiltinFunctionalType
 import org.jetbrains.kotlin.fir.resolve.symbolProvider
 import org.jetbrains.kotlin.fir.resolve.toSymbol
 import org.jetbrains.kotlin.fir.resolve.transformers.firClassLike
@@ -416,3 +419,38 @@ private fun lowerThanBound(context: ConeInferenceContext, argument: ConeKotlinTy
 }
 
 fun FirMemberDeclaration.isInlineOnly(): Boolean = isInline && hasAnnotation(INLINE_ONLY_ANNOTATION_CLASS_ID)
+
+val FirProperty.isDestructuringDeclaration
+    get() = name.asString() == "<destruct>"
+
+val FirExpression.isComponentCall
+    get() = this is FirComponentCall
+
+fun isSubtypeForTypeMismatch(context: ConeInferenceContext, subtype: ConeKotlinType, supertype: ConeKotlinType): Boolean {
+    return AbstractTypeChecker.isSubtypeOf(context, subtype, supertype)
+            || isSubtypeOfForFunctionalTypeReturningUnit(context.session.typeContext, subtype, supertype)
+}
+
+fun isSubtypeOfForFunctionalTypeReturningUnit(context: ConeInferenceContext, subtype: ConeKotlinType, supertype: ConeKotlinType): Boolean {
+    if (!supertype.isBuiltinFunctionalType(context.session)) return false
+    val functionalTypeReturnType = supertype.typeArguments.lastOrNull()
+    if ((functionalTypeReturnType as? ConeClassLikeType)?.isUnit == true) {
+        // We don't try to match return type for this case
+        // Dropping the return type (getting only the lambda args)
+        val superTypeArgs = supertype.typeArguments.dropLast(1)
+        val subTypeArgs = subtype.typeArguments.dropLast(1)
+        if (superTypeArgs.size != subTypeArgs.size) return false
+
+        for (i in superTypeArgs.indices) {
+            val subTypeArg = subTypeArgs[i].type ?: return false
+            val superTypeArg = superTypeArgs[i].type ?: return false
+
+            if (!AbstractTypeChecker.isSubtypeOf(context.session.typeContext, subTypeArg, superTypeArg)) {
+                return false
+            }
+        }
+
+        return true
+    }
+    return false
+}
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInitializerTypeMismatchChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInitializerTypeMismatchChecker.kt
index 73b5a1ccee0..5b3ce2835a4 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInitializerTypeMismatchChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInitializerTypeMismatchChecker.kt
@@ -6,67 +6,28 @@
 package org.jetbrains.kotlin.fir.analysis.checkers.declaration
 
 import org.jetbrains.kotlin.fir.analysis.checkers.context.CheckerContext
+import org.jetbrains.kotlin.fir.analysis.checkers.isComponentCall
+import org.jetbrains.kotlin.fir.analysis.checkers.isDestructuringDeclaration
+import org.jetbrains.kotlin.fir.analysis.checkers.isSubtypeForTypeMismatch
 import org.jetbrains.kotlin.fir.analysis.diagnostics.DiagnosticReporter
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.INITIALIZER_TYPE_MISMATCH
 import org.jetbrains.kotlin.fir.declarations.FirProperty
-import org.jetbrains.kotlin.fir.expressions.FirComponentCall
-import org.jetbrains.kotlin.fir.expressions.FirExpression
-import org.jetbrains.kotlin.fir.resolve.inference.isFunctionalType
 import org.jetbrains.kotlin.fir.typeContext
-import org.jetbrains.kotlin.fir.types.*
-import org.jetbrains.kotlin.types.AbstractTypeChecker
+import org.jetbrains.kotlin.fir.types.ConeKotlinType
+import org.jetbrains.kotlin.fir.types.coneTypeSafe
 
 object FirInitializerTypeMismatchChecker : FirPropertyChecker() {
     override fun check(declaration: FirProperty, context: CheckerContext, reporter: DiagnosticReporter) {
         val initializer = declaration.initializer ?: return
         if (declaration.isDestructuringDeclaration) return
-        if (initializer.isComponent) return
+        if (initializer.isComponentCall) return
         val propertyType = declaration.returnTypeRef.coneTypeSafe<ConeKotlinType>() ?: return
         val expressionType = initializer.typeRef.coneTypeSafe<ConeKotlinType>() ?: return
         val typeContext = context.session.typeContext
 
-        // hack: if property's type is (args) -> Unit, and lambda returns non-Unit value, the type of the lambda
-        // will be non-unit, but it's OK
-        if (propertyType.isFunctionalType(context.session)) {
-            // getting property's expected return type
-            val expectedType = propertyType.typeArguments.lastOrNull()
-            if ((expectedType as? ConeClassLikeType)?.isUnit == true) {
-                // dropping the return type (getting only the lambda args)
-                val expectedArgs = propertyType.typeArguments.dropLast(1)
-                val actualArgs = expressionType.typeArguments.dropLast(1)
-                if (compareTypesList(actualArgs, expectedArgs, typeContext)) {
-                    return
-                }
-            }
-        }
-
-        if (!AbstractTypeChecker.isSubtypeOf(typeContext, expressionType, propertyType)) {
+        if (!isSubtypeForTypeMismatch(typeContext, subtype = expressionType, supertype = propertyType)) {
             val source = declaration.source ?: return
             reporter.report(INITIALIZER_TYPE_MISMATCH.on(source, propertyType, expressionType), context)
         }
     }
-
-    private val FirProperty.isDestructuringDeclaration
-        get() = name.asString() == "<destruct>"
-    private val FirExpression.isComponent
-        get() = this is FirComponentCall
-
-    private fun compareTypesList(
-        expressionTypes: List<ConeTypeProjection>,
-        propertyTypes: List<ConeTypeProjection>,
-        context: ConeInferenceContext
-    ): Boolean {
-        if (expressionTypes.size != propertyTypes.size) return false
-
-        for (i in expressionTypes.indices) {
-            val expressionType = expressionTypes[i].type ?: return false
-            val propertyType = propertyTypes[i].type ?: return false
-
-            if (!AbstractTypeChecker.isSubtypeOf(context.session.typeContext, expressionType, propertyType)) {
-                return false
-            }
-        }
-
-        return true
-    }
 }
\ No newline at end of file
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirFunctionReturnTypeMismatchChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirFunctionReturnTypeMismatchChecker.kt
new file mode 100644
index 00000000000..71a705ec373
--- /dev/null
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirFunctionReturnTypeMismatchChecker.kt
@@ -0,0 +1,37 @@
+/*
+ * Copyright 2010-2021 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.fir.analysis.checkers.expression
+
+import org.jetbrains.kotlin.fir.analysis.checkers.context.CheckerContext
+import org.jetbrains.kotlin.fir.analysis.checkers.isSubtypeForTypeMismatch
+import org.jetbrains.kotlin.fir.analysis.diagnostics.DiagnosticReporter
+import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RETURN_TYPE_MISMATCH
+import org.jetbrains.kotlin.fir.declarations.FirSimpleFunction
+import org.jetbrains.kotlin.fir.expressions.FirReturnExpression
+import org.jetbrains.kotlin.fir.expressions.FirWhenExpression
+import org.jetbrains.kotlin.fir.expressions.isExhaustive
+import org.jetbrains.kotlin.fir.typeContext
+import org.jetbrains.kotlin.fir.types.ConeKotlinType
+import org.jetbrains.kotlin.fir.types.coneTypeSafe
+
+object FirFunctionReturnTypeMismatchChecker : FirReturnExpressionChecker() {
+    override fun check(expression: FirReturnExpression, context: CheckerContext, reporter: DiagnosticReporter) {
+        if (expression.source == null) return
+        val targetElement = expression.target.labeledElement
+        if (targetElement !is FirSimpleFunction) return
+        val resultExpression = expression.result
+        if (resultExpression is FirWhenExpression && !resultExpression.isExhaustive) return
+
+        val functionReturnType = targetElement.returnTypeRef.coneTypeSafe<ConeKotlinType>() ?: return
+        val typeContext = context.session.typeContext
+        val returnExpressionType = resultExpression.typeRef.coneTypeSafe<ConeKotlinType>() ?: return
+
+        if (!isSubtypeForTypeMismatch(typeContext, subtype = returnExpressionType, supertype = functionReturnType)) {
+            val returnExpressionSource = resultExpression.source ?: return
+            reporter.report(RETURN_TYPE_MISMATCH.on(returnExpressionSource, functionReturnType, returnExpressionType), context)
+        }
+    }
+}
\ No newline at end of file
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ExpressionCheckersDiagnosticComponent.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ExpressionCheckersDiagnosticComponent.kt
index 1c2e9dd43f5..abb0101571a 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ExpressionCheckersDiagnosticComponent.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ExpressionCheckersDiagnosticComponent.kt
@@ -102,7 +102,7 @@ class ExpressionCheckersDiagnosticComponent(
     }
 
     override fun visitReturnExpression(returnExpression: FirReturnExpression, data: CheckerContext) {
-        checkers.returnExpressionCheckers.check(returnExpression, data, reporter)
+        checkers.allReturnExpressionCheckers.check(returnExpression, data, reporter)
     }
 
     private fun <E : FirStatement> Collection<FirExpressionChecker<E>>.check(
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
index e4c7fb88aa8..19af32f4bc0 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
@@ -196,6 +196,7 @@ import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.REPEATED_MODIFIER
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RESERVED_MEMBER_INSIDE_INLINE_CLASS
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RETURN_IN_FUNCTION_WITH_EXPRESSION_BODY
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RETURN_NOT_ALLOWED
+import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RETURN_TYPE_MISMATCH
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.RETURN_TYPE_MISMATCH_ON_OVERRIDE
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.SEALED_CLASS_CONSTRUCTOR_CALL
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.SEALED_SUPERTYPE
@@ -488,6 +489,8 @@ class FirDefaultErrorMessages : DefaultErrorMessages.Extension {
                 NAME
             )
 
+            map.put(RETURN_TYPE_MISMATCH, "Return type mismatch: expected {0}, actual {1}", RENDER_TYPE, RENDER_TYPE)
+
             // Reflection
             map.put(
                 EXTENSION_IN_CLASS_REFERENCE_NOT_ALLOWED,
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/LightTreePositioningStrategies.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/LightTreePositioningStrategies.kt
index 18610c9cf75..a04d3e543d9 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/LightTreePositioningStrategies.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/LightTreePositioningStrategies.kt
@@ -12,6 +12,7 @@ import com.intellij.psi.impl.source.tree.ElementType
 import com.intellij.psi.tree.IElementType
 import com.intellij.psi.tree.TokenSet
 import com.intellij.util.diff.FlyweightCapableTreeStructure
+import org.jetbrains.kotlin.KtNodeType
 import org.jetbrains.kotlin.KtNodeTypes
 import org.jetbrains.kotlin.fir.FirSourceElement
 import org.jetbrains.kotlin.fir.analysis.checkers.getChildren
@@ -242,7 +243,7 @@ object LightTreePositioningStrategies {
             }
     }
 
-    val ASSIGNMENT_VALUE: LightTreePositioningStrategy = object : LightTreePositioningStrategy() {
+    val LAST_CHILD: LightTreePositioningStrategy = object : LightTreePositioningStrategy() {
         override fun mark(
             node: LighterASTNode,
             startOffset: Int,
@@ -537,6 +538,8 @@ object LightTreePositioningStrategies {
         }
     }
 
+    val WHOLE_ELEMENT = object : LightTreePositioningStrategy() { }
+
     val LONG_LITERAL_SUFFIX = object : LightTreePositioningStrategy() {
     }
 }
@@ -739,5 +742,5 @@ private fun FlyweightCapableTreeStructure<LighterASTNode>.firstChild(node: Light
 private fun FlyweightCapableTreeStructure<LighterASTNode>.lastChild(node: LighterASTNode): LighterASTNode? {
     val childrenRef = Ref<Array<LighterASTNode>>()
     getChildren(node, childrenRef)
-    return childrenRef.get()?.lastOrNull()
+    return childrenRef.get().lastOrNull()
 }
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/SourceElementPositioningStrategies.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/SourceElementPositioningStrategies.kt
index 5e35811c92a..16369d20bb0 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/SourceElementPositioningStrategies.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/SourceElementPositioningStrategies.kt
@@ -179,10 +179,15 @@ object SourceElementPositioningStrategies {
     )
 
     val ASSIGNMENT_VALUE = SourceElementPositioningStrategy(
-        LightTreePositioningStrategies.ASSIGNMENT_VALUE,
+        LightTreePositioningStrategies.LAST_CHILD,
         PositioningStrategies.ASSIGNMENT_VALUE
     )
 
+    val WHOLE_ELEMENT = SourceElementPositioningStrategy(
+        LightTreePositioningStrategies.WHOLE_ELEMENT,
+        PositioningStrategies.WHOLE_ELEMENT
+    )
+
     val LONG_LITERAL_SUFFIX = SourceElementPositioningStrategy(
         LightTreePositioningStrategies.LONG_LITERAL_SUFFIX,
         PositioningStrategies.LONG_LITERAL_SUFFIX
diff --git a/compiler/fir/entrypoint/src/org/jetbrains/kotlin/fir/checkers/CommonExpressionCheckers.kt b/compiler/fir/entrypoint/src/org/jetbrains/kotlin/fir/checkers/CommonExpressionCheckers.kt
index a8fc29a2f63..f6b5fbff93e 100644
--- a/compiler/fir/entrypoint/src/org/jetbrains/kotlin/fir/checkers/CommonExpressionCheckers.kt
+++ b/compiler/fir/entrypoint/src/org/jetbrains/kotlin/fir/checkers/CommonExpressionCheckers.kt
@@ -48,6 +48,7 @@ object CommonExpressionCheckers : ExpressionCheckers() {
     )
 
     override val returnExpressionCheckers: Set<FirReturnExpressionChecker> = setOf(
-        FirReturnAllowedChecker
+        FirReturnAllowedChecker,
+        FirFunctionReturnTypeMismatchChecker
     )
 }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
index f8d059c0915..4e920d6b5d0 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
@@ -782,23 +782,12 @@ object PositioningStrategies {
 
     val ASSIGNMENT_VALUE: PositioningStrategy<KtProperty> = object : PositioningStrategy<PsiElement>() {
         override fun mark(element: PsiElement): List<TextRange> {
-            return if (element is KtProperty) {
-                mark(element.initializer ?: element)
-            } else {
-                super.mark(element)
-            }
+            return markElement(if (element is KtProperty) element.initializer ?: element else element)
         }
     }
 
-    val RETURN_EXPRESSION: PositioningStrategy<KtReturnExpression> = object : PositioningStrategy<PsiElement>() {
-        override fun mark(element: PsiElement): List<TextRange> {
-            return if (element is KtReturnExpression) {
-                markElement(element.returnedExpression ?: element)
-            } else {
-                markElement(element)
-            }
-        }
-    }
+    val WHOLE_ELEMENT: PositioningStrategy<KtElement> = object : PositioningStrategy<KtElement>() {}
+
 
     /**
      * @param locateReferencedName whether to remove any nested parentheses while locating the reference element. This is useful for
diff --git a/compiler/testData/diagnostics/tests/FunctionReturnTypes.fir.kt b/compiler/testData/diagnostics/tests/FunctionReturnTypes.fir.kt
index 9005fd18d90..f93d087d8af 100644
--- a/compiler/testData/diagnostics/tests/FunctionReturnTypes.fir.kt
+++ b/compiler/testData/diagnostics/tests/FunctionReturnTypes.fir.kt
@@ -6,7 +6,7 @@ fun none() {}
 fun unitEmptyInfer() {}
 fun unitEmpty() : Unit {}
 fun unitEmptyReturn() : Unit {return}
-fun unitIntReturn() : Unit {return 1}
+fun unitIntReturn() : Unit {return <!RETURN_TYPE_MISMATCH!>1<!>}
 fun unitUnitReturn() : Unit {return Unit}
 fun test1() : Any = {<!RETURN_NOT_ALLOWED!>return<!>}
 fun test2() : Any = a@ {return@a 1}
@@ -16,7 +16,7 @@ fun test5(): Any = l@{ return@l }
 fun test6(): Any = {<!RETURN_NOT_ALLOWED!>return<!> 1}
 
 fun bbb() {
-    return 1
+    return <!RETURN_TYPE_MISMATCH!>1<!>
 }
 
 fun foo(expr: StringBuilder): Int {
@@ -29,8 +29,8 @@ fun foo(expr: StringBuilder): Int {
 
 
 fun unitShort() : Unit = Unit
-fun unitShortConv() : Unit = 1
-fun unitShortNull() : Unit = null
+fun unitShortConv() : Unit = <!RETURN_TYPE_MISMATCH!>1<!>
+fun unitShortNull() : Unit = <!RETURN_TYPE_MISMATCH!>null<!>
 
 fun intEmpty() : Int {}
 fun intShortInfer() = 1
@@ -39,56 +39,56 @@ fun intShort() : Int = 1
 fun intBlock() : Int {return 1}
 fun intBlock1() : Int {1}
 
-fun intString(): Int = "s"
-fun intFunctionLiteral(): Int = { 10 }
+fun intString(): Int = <!RETURN_TYPE_MISMATCH!>"s"<!>
+fun intFunctionLiteral(): Int = <!RETURN_TYPE_MISMATCH!>{ 10 }<!>
 
-fun blockReturnUnitMismatch() : Int {return}
-fun blockReturnValueTypeMismatch() : Int {return 3.4}
+fun blockReturnUnitMismatch() : Int {<!RETURN_TYPE_MISMATCH!>return<!>}
+fun blockReturnValueTypeMismatch() : Int {return <!RETURN_TYPE_MISMATCH!>3.4<!>}
 fun blockReturnValueTypeMatch() : Int {return 1}
-fun blockReturnValueTypeMismatchUnit() : Int {return Unit}
+fun blockReturnValueTypeMismatchUnit() : Int {return <!RETURN_TYPE_MISMATCH!>Unit<!>}
 
 fun blockAndAndMismatch() : Int {
     true && false
     }
 fun blockAndAndMismatch1() : Int {
-    return true && false
+    return <!RETURN_TYPE_MISMATCH!>true && false<!>
 }
 fun blockAndAndMismatch2() : Int {
-    (return true) && (return false)
+    (return <!RETURN_TYPE_MISMATCH!>true<!>) && (return <!RETURN_TYPE_MISMATCH!>false<!>)
 }
 
 fun blockAndAndMismatch3() : Int {
     true || false
     }
 fun blockAndAndMismatch4() : Int {
-    return true || false
+    return <!RETURN_TYPE_MISMATCH!>true || false<!>
 }
 fun blockAndAndMismatch5() : Int {
-    (return true) || (return false)
+    (return <!RETURN_TYPE_MISMATCH!>true<!>) || (return <!RETURN_TYPE_MISMATCH!>false<!>)
 }
 fun blockReturnValueTypeMatch1() : Int {
-    return if (1 > 2) 1.0 else 2.0
+    return <!RETURN_TYPE_MISMATCH!>if (1 > 2) 1.0 else 2.0<!>
 }
 fun blockReturnValueTypeMatch2() : Int {
     return <!INVALID_IF_AS_EXPRESSION!>if<!> (1 > 2) 1
 }
 fun blockReturnValueTypeMatch3() : Int {
-    return if (1 > 2) else 1
+    return <!RETURN_TYPE_MISMATCH!>if (1 > 2) else 1<!>
 }
 fun blockReturnValueTypeMatch4() : Int {
     if (1 > 2)
-        return 1.0
-    else return 2.0
+        return <!RETURN_TYPE_MISMATCH!>1.0<!>
+    else return <!RETURN_TYPE_MISMATCH!>2.0<!>
 }
 fun blockReturnValueTypeMatch5() : Int {
     if (1 > 2)
-        return 1.0
-    return 2.0
+        return <!RETURN_TYPE_MISMATCH!>1.0<!>
+    return <!RETURN_TYPE_MISMATCH!>2.0<!>
 }
 fun blockReturnValueTypeMatch6() : Int {
     if (1 > 2)
-    else return 1.0
-    return 2.0
+    else return <!RETURN_TYPE_MISMATCH!>1.0<!>
+    return <!RETURN_TYPE_MISMATCH!>2.0<!>
 }
 fun blockReturnValueTypeMatch7() : Int {
     if (1 > 2)
@@ -116,7 +116,7 @@ fun blockReturnValueTypeMatch11() : Int {
 fun blockReturnValueTypeMatch12() : Int {
     if (1 > 2)
         return 1
-    else return 1.0
+    else return <!RETURN_TYPE_MISMATCH!>1.0<!>
 }
 fun blockNoReturnIfValDeclaration(): Int {
     val x = 1
@@ -134,23 +134,23 @@ fun blockNoReturnIfUnitInOneBranch(): Int {
         }
     }
     }
-fun nonBlockReturnIfEmptyIf(): Int = if (1 < 2) {} else {}
-fun nonBlockNoReturnIfUnitInOneBranch(): Int = if (1 < 2) {} else 2
+fun nonBlockReturnIfEmptyIf(): Int = <!RETURN_TYPE_MISMATCH!>if (1 < 2) {} else {}<!>
+fun nonBlockNoReturnIfUnitInOneBranch(): Int = <!RETURN_TYPE_MISMATCH!>if (1 < 2) {} else 2<!>
 
 val a = <!RETURN_NOT_ALLOWED!>return<!> 1
 
 class A() {
 }
-fun illegalConstantBody(): Int = "s"
+fun illegalConstantBody(): Int = <!RETURN_TYPE_MISMATCH!>"s"<!>
 fun illegalConstantBlock(): String {
-    return 1
+    return <!RETURN_TYPE_MISMATCH!>1<!>
 }
 fun illegalIfBody(): Int =
-        if (1 < 2) 'a' else { 1.0 }
+        <!RETURN_TYPE_MISMATCH!>if (1 < 2) 'a' else { 1.0 }<!>
 fun illegalIfBlock(): Boolean {
     if (1 < 2)
         return false
-    else { return 1 }
+    else { return <!RETURN_TYPE_MISMATCH!>1<!> }
 }
 fun illegalReturnIf(): Char {
     return if (1 < 2) 'a' else { 1 }
diff --git a/compiler/testData/diagnostics/tests/callableReference/generic/expectedFunctionType.fir.kt b/compiler/testData/diagnostics/tests/callableReference/generic/expectedFunctionType.fir.kt
index f4b473683e0..e75ef5af6fa 100644
--- a/compiler/testData/diagnostics/tests/callableReference/generic/expectedFunctionType.fir.kt
+++ b/compiler/testData/diagnostics/tests/callableReference/generic/expectedFunctionType.fir.kt
@@ -19,6 +19,6 @@ class A3<T> {
     fun test2(): (T) -> Unit = A3<T>()::a3
     fun test3(): (Int) -> String = A3<Int>()::a3
 
-    fun <R> test4(): (R) -> Unit = this::a3
+    fun <R> test4(): (R) -> Unit = <!RETURN_TYPE_MISMATCH!>this::a3<!>
     fun <R> test5(): (T) -> R = this::a3
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/callableReference/unitAdaptationForReferenceCompatibility.fir.kt b/compiler/testData/diagnostics/tests/callableReference/unitAdaptationForReferenceCompatibility.fir.kt
index 4f96216a149..1e441058319 100644
--- a/compiler/testData/diagnostics/tests/callableReference/unitAdaptationForReferenceCompatibility.fir.kt
+++ b/compiler/testData/diagnostics/tests/callableReference/unitAdaptationForReferenceCompatibility.fir.kt
@@ -20,6 +20,6 @@ public interface Executor {
 fun f(): String = "test"
 
 class A {
-    fun schedule1(e: Executor): Future<String> = e.submit(::f)
-    fun schedule2(e: Executor): Future<String> = e.submit { f() }
+    fun schedule1(e: Executor): Future<String> = <!RETURN_TYPE_MISMATCH!>e.submit(::f)<!>
+    fun schedule2(e: Executor): Future<String> = <!RETURN_TYPE_MISMATCH!>e.submit { f() }<!>
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/cast/AsInBinaryUnary.fir.kt b/compiler/testData/diagnostics/tests/cast/AsInBinaryUnary.fir.kt
index 87afc9c3581..c0d39d65d21 100644
--- a/compiler/testData/diagnostics/tests/cast/AsInBinaryUnary.fir.kt
+++ b/compiler/testData/diagnostics/tests/cast/AsInBinaryUnary.fir.kt
@@ -20,12 +20,12 @@ operator fun Impl2.unaryMinus() = Impl2()
 // See also KT-10384: in non-error functions, as is necessary!
 fun add1(x: Impl2, y: Base): Impl1 = x as Base + y
 
-fun error1(x: Impl2, y: Base): Impl1 = x + y
+fun error1(x: Impl2, y: Base): Impl1 = <!RETURN_TYPE_MISMATCH!>x + y<!>
 
 fun add2(x: Base, y: Impl2): Impl1 = x + y as Base
 
-fun error2(x: Base, y: Impl2): Impl1 = x + y
+fun error2(x: Base, y: Impl2): Impl1 = <!RETURN_TYPE_MISMATCH!>x + y<!>
 
 fun minus3(x: Impl2): Impl1 = -(x as Base)
 
-fun error3(x: Impl2): Impl1 = -x
+fun error3(x: Impl2): Impl1 = <!RETURN_TYPE_MISMATCH!>-x<!>
diff --git a/compiler/testData/diagnostics/tests/classLiteral/genericArrays.fir.kt b/compiler/testData/diagnostics/tests/classLiteral/genericArrays.fir.kt
index 2a1e83866cc..5d1d7303176 100644
--- a/compiler/testData/diagnostics/tests/classLiteral/genericArrays.fir.kt
+++ b/compiler/testData/diagnostics/tests/classLiteral/genericArrays.fir.kt
@@ -4,7 +4,7 @@ fun <T> f1(): KClass<Array<T>> = <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<T>::clas
 fun <T> f2(): KClass<Array<Array<T>>> = <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<Array<T>>::class<!>
 inline fun <reified T> f3() = Array<T>::class
 inline fun <reified T> f4() = Array<Array<T>>::class
-fun f5(): KClass<Array<Any>> = <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<*>::class<!>
+fun f5(): KClass<Array<Any>> = <!CLASS_LITERAL_LHS_NOT_A_CLASS, RETURN_TYPE_MISMATCH!>Array<*>::class<!>
 fun f6(): KClass<Array<Int?>> = Array<Int?>::class
 fun f7() = <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<List<String>>::class<!>
 fun f8() = <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<List<String>?>::class<!>
diff --git a/compiler/testData/diagnostics/tests/classLiteral/smartCast.fir.kt b/compiler/testData/diagnostics/tests/classLiteral/smartCast.fir.kt
new file mode 100644
index 00000000000..7ab9924cefa
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/classLiteral/smartCast.fir.kt
@@ -0,0 +1,23 @@
+// KT-16291 Smart cast doesn't work when getting class of instance
+
+import kotlin.reflect.KClass
+
+class Foo {
+    override fun equals(other: Any?): Boolean {
+        if (this === other) return true
+        if (other === null || other::class != this::class) return false
+
+        return true
+    }
+}
+
+fun test(f: Foo?): KClass<out Foo>? = if (f != null) f::class else null
+
+fun test2(): KClass<out Foo>? {
+    var f: Foo? = null
+    if (f != null) {
+        run { f = null }
+        return <!RETURN_TYPE_MISMATCH!><!EXPRESSION_OF_NULLABLE_TYPE_IN_CLASS_LITERAL_LHS!>f<!>::class<!>
+    }
+    return null
+}
diff --git a/compiler/testData/diagnostics/tests/classLiteral/smartCast.kt b/compiler/testData/diagnostics/tests/classLiteral/smartCast.kt
index dd50fd47ea5..0bae9c28f6d 100644
--- a/compiler/testData/diagnostics/tests/classLiteral/smartCast.kt
+++ b/compiler/testData/diagnostics/tests/classLiteral/smartCast.kt
@@ -1,4 +1,3 @@
-// FIR_IDENTICAL
 // KT-16291 Smart cast doesn't work when getting class of instance
 
 import kotlin.reflect.KClass
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.fir.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.fir.kt
index 5d076cdc2e1..6cae426de24 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.fir.kt
@@ -6,7 +6,7 @@ fun t1() : Int{
 }
 
 fun t1a() : Int {
-  return
+  <!RETURN_TYPE_MISMATCH!>return<!>
   return 1
   1
 }
@@ -19,7 +19,7 @@ fun t1b() : Int {
 
 fun t1c() : Int {
   return 1
-  return
+  <!RETURN_TYPE_MISMATCH!>return<!>
   1
 }
 
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/elvisNotProcessed.fir.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/elvisNotProcessed.fir.kt
index 3709119f6f3..9ff535e2ed0 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/elvisNotProcessed.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/elvisNotProcessed.fir.kt
@@ -35,5 +35,5 @@ val bbbb = ( l() ?: null) ?: ( l() ?: null)
 
 fun f(x : Long?): Long {
     var a = x ?: (fun() {} ?: fun() {})
-    return a
+    return <!RETURN_TYPE_MISMATCH!>a<!>
 }
diff --git a/compiler/testData/diagnostics/tests/controlStructures/ifToAnyDiscriminatingUsages.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/ifToAnyDiscriminatingUsages.fir.kt
index 83926c282f8..d5d7466d071 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/ifToAnyDiscriminatingUsages.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/ifToAnyDiscriminatingUsages.fir.kt
@@ -33,15 +33,15 @@ fun testReturnFromAnonFun() =
 
 fun testReturn1() =
         run {
-            return if (true) 42
-                   else println()
+            return <!RETURN_TYPE_MISMATCH!>if (true) 42
+                   else println()<!>
         }
 
 fun testReturn2() =
         run {
-            return if (true) 42
+            return <!RETURN_TYPE_MISMATCH!>if (true) 42
                    else if (true) 42
-                   else println()
+                   else println()<!>
         }
 
 fun testUsage1() =
diff --git a/compiler/testData/diagnostics/tests/controlStructures/kt10717.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/kt10717.fir.kt
index 1389d9e036d..ad95a36e687 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/kt10717.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/kt10717.fir.kt
@@ -1,21 +1,21 @@
 // !DIAGNOSTICS: -UNUSED_EXPRESSION -UNREACHABLE_CODE -UNUSED_PARAMETER -RETURN_NOT_ALLOWED
 
 fun test1() = run {
-    return "OK"
+    return <!RETURN_TYPE_MISMATCH!>"OK"<!>
 }
 
 fun test2() = run {
     fun local(): String {
         return ""
     }
-    return ""
+    return <!RETURN_TYPE_MISMATCH!>""<!>
 }
 
 inline fun <T, R> Iterable<T>.map(transform: (T) -> R): List<R> = null!!
 fun test3(a: List<String>, b: List<Int>) = a.map {
-    if (it.length == 3) return null
-    if (it.length == 4) return ""
-    if (it.length == 4) return 5
+    if (it.length == 3) return <!RETURN_TYPE_MISMATCH!>null<!>
+    if (it.length == 4) return <!RETURN_TYPE_MISMATCH!>""<!>
+    if (it.length == 4) return <!RETURN_TYPE_MISMATCH!>5<!>
     if (it.length == 4) return b
     1
 }
@@ -24,14 +24,14 @@ fun test4() = run {
     fun test5() {
         return
 
-        return@test4
+        <!RETURN_TYPE_MISMATCH!>return@test4<!>
 
-        return return@test4
+        return <!RETURN_TYPE_MISMATCH!>return@test4<!>
 
-        return fun() { return; return@test4 "" }
+        return <!RETURN_TYPE_MISMATCH!>fun() { return; return@test4 <!RETURN_TYPE_MISMATCH!>""<!> }<!>
     }
 
-    return
+    <!RETURN_TYPE_MISMATCH!>return<!>
     3
 }
 
@@ -43,5 +43,5 @@ val foo: Int
     }
 
 fun test(): Int = run {
-    return ""
+    return <!RETURN_TYPE_MISMATCH!>""<!>
 }
diff --git a/compiler/testData/diagnostics/tests/controlStructures/kt4310.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/kt4310.fir.kt
index 257f5363802..e2818f7c57a 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/kt4310.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/kt4310.fir.kt
@@ -2,11 +2,11 @@
 package f
 
 fun test(a: Boolean, b: Boolean): Int {
-    return if(a) {
+    return <!RETURN_TYPE_MISMATCH!>if(a) {
         1
     } else {
         if (b) {
             3
         }
-    }
+    }<!>
 }
diff --git a/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.fir.kt
index 5e7e19ac22c..0feead4f920 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.fir.kt
@@ -10,7 +10,7 @@ fun f() = object : ClassData {
 fun g() = object : ClassData {
     init {
         if (true) {
-            <!RETURN_NOT_ALLOWED!>return<!> 0
+            <!RETURN_NOT_ALLOWED!>return<!> <!RETURN_TYPE_MISMATCH!>0<!>
         }
     }
 
diff --git a/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.kt b/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.kt
index ce50695c506..a7f685798ed 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/localReturnInsidePropertyAccessor.kt
@@ -17,4 +17,4 @@ fun g() = object : ClassData {
     fun some(): Int {
         return 6
     }
-}
\ No newline at end of file
+}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.fir.kt
index 77b157a446e..0b61cce53ab 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.fir.kt
@@ -6,15 +6,15 @@ fun foo() : Int {
         doSmth()
     }
     catch (e: Exception) {
-        return ""
+        return <!RETURN_TYPE_MISMATCH!>""<!>
     }
     finally {
-        return ""
+        return <!RETURN_TYPE_MISMATCH!>""<!>
     }
 }
 
 fun bar() : Int =
-    try {
+    <!RETURN_TYPE_MISMATCH!>try {
         doSmth()
     }
     catch (e: Exception) {
@@ -22,7 +22,7 @@ fun bar() : Int =
     }
     finally {
         ""
-    }
+    }<!>
 
 
 fun doSmth() {}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/whenToAnyDiscriminatingUsages.fir.kt b/compiler/testData/diagnostics/tests/controlStructures/whenToAnyDiscriminatingUsages.fir.kt
index 96c68ac62d8..3f15aab9809 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/whenToAnyDiscriminatingUsages.fir.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/whenToAnyDiscriminatingUsages.fir.kt
@@ -26,22 +26,22 @@ fun testResultOfLambda2() =
 
 fun testReturn1() =
         run {
-            return when {
+            return <!RETURN_TYPE_MISMATCH!>when {
                 true -> 42
                 else -> println()
-            }
+            }<!>
         }
 
 fun testReturn2() =
         run {
-            return when {
+            return <!RETURN_TYPE_MISMATCH!>when {
                 true -> 42
                 else ->
                     when {
                         true -> 42
                         else -> println()
                     }
-            }
+            }<!>
         }
 
 fun testUsage1() =
diff --git a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/Return.fir.kt b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/Return.fir.kt
index 36b0d153106..636fe46bec9 100644
--- a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/Return.fir.kt
+++ b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/Return.fir.kt
@@ -14,5 +14,5 @@ fun foo(): Int {
     val z: Int? = null
     if (z != null) return if (z == null) z else z
 
-    return z
+    return <!RETURN_TYPE_MISMATCH!>z<!>
 }
diff --git a/compiler/testData/diagnostics/tests/declarationChecks/ScalaLikeNamedFun.fir.kt b/compiler/testData/diagnostics/tests/declarationChecks/ScalaLikeNamedFun.fir.kt
index 0ad9f653f61..14967f7b962 100644
--- a/compiler/testData/diagnostics/tests/declarationChecks/ScalaLikeNamedFun.fir.kt
+++ b/compiler/testData/diagnostics/tests/declarationChecks/ScalaLikeNamedFun.fir.kt
@@ -1,36 +1,36 @@
 // !DIAGNOSTICS: -UNUSED_PARAMETER -UNUSED_VARIABLE
 // KT-5068 Add special error for scala-like syntax 'fun foo(): Int = { 1 }'
 
-fun test1(): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }
-fun test2(): Int = { 1 }
+fun test1(): Int = <!RETURN_TYPE_MISMATCH!>{ <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
+fun test2(): Int = <!RETURN_TYPE_MISMATCH!>{ 1 }<!>
 val test3: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
 val test4: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { 1 }<!>
-fun test5(): Int { return { 1 } }
-fun test6(): Int = fun (): Int = 1
+fun test5(): Int { return <!RETURN_TYPE_MISMATCH!>{ 1 }<!> }
+fun test6(): Int = <!RETURN_TYPE_MISMATCH!>fun (): Int = 1<!>
 
 fun outer() {
-    fun test1(): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }
-    fun test2(): Int = { 1 }
+    fun test1(): Int = <!RETURN_TYPE_MISMATCH!>{ <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
+    fun test2(): Int = <!RETURN_TYPE_MISMATCH!>{ 1 }<!>
     val test3: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
     val test4: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { 1 }<!>
-    fun test5(): Int { return { 1 } }
-    fun test6(): Int = fun (): Int = 1
+    fun test5(): Int { return <!RETURN_TYPE_MISMATCH!>{ 1 }<!> }
+    fun test6(): Int = <!RETURN_TYPE_MISMATCH!>fun (): Int = 1<!>
 }
 
 class Outer {
-    fun test1(): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }
-    fun test2(): Int = { 1 }
+    fun test1(): Int = <!RETURN_TYPE_MISMATCH!>{ <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
+    fun test2(): Int = <!RETURN_TYPE_MISMATCH!>{ 1 }<!>
     val test3: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
     val test4: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { 1 }<!>
-    fun test5(): Int { return { 1 } }
-    fun test6(): Int = fun (): Int = 1
+    fun test5(): Int { return <!RETURN_TYPE_MISMATCH!>{ 1 }<!> }
+    fun test6(): Int = <!RETURN_TYPE_MISMATCH!>fun (): Int = 1<!>
 
     class Nested {
-        fun test1(): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }
-        fun test2(): Int = { 1 }
+        fun test1(): Int = <!RETURN_TYPE_MISMATCH!>{ <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
+        fun test2(): Int = <!RETURN_TYPE_MISMATCH!>{ 1 }<!>
         val test3: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { <!RETURN_NOT_ALLOWED!>return<!> 1 }<!>
         val test4: () -> Int = <!INITIALIZER_TYPE_MISMATCH!>fun (): Int = { 1 }<!>
-        fun test5(): Int { return { 1 } }
-        fun test6(): Int = fun (): Int = 1
+        fun test5(): Int { return <!RETURN_TYPE_MISMATCH!>{ 1 }<!> }
+        fun test6(): Int = <!RETURN_TYPE_MISMATCH!>fun (): Int = 1<!>
     }
 }
diff --git a/compiler/testData/diagnostics/tests/generics/nullability/nullToGeneric.fir.kt b/compiler/testData/diagnostics/tests/generics/nullability/nullToGeneric.fir.kt
index a09000b76c9..2eb58cc71eb 100644
--- a/compiler/testData/diagnostics/tests/generics/nullability/nullToGeneric.fir.kt
+++ b/compiler/testData/diagnostics/tests/generics/nullability/nullToGeneric.fir.kt
@@ -9,12 +9,12 @@ fun <T> foo(): T {
     bar<T>(<!ARGUMENT_TYPE_MISMATCH!>null<!>)
     bar<T?>(null)
 
-    return null
+    return <!RETURN_TYPE_MISMATCH!>null<!>
 }
 
 fun <T> baz(): T? = null
 
-fun <T> foobar(): T = null
+fun <T> foobar(): T = <!RETURN_TYPE_MISMATCH!>null<!>
 
 class A<F> {
     fun xyz(x: F) {}
@@ -26,10 +26,10 @@ class A<F> {
         xyz(<!ARGUMENT_TYPE_MISMATCH!>null<!>)
         bar<F?>(null)
 
-        return null
+        return <!RETURN_TYPE_MISMATCH!>null<!>
     }
 
     fun baz(): F? = null
 
-    fun foobar(): F = null
+    fun foobar(): F = <!RETURN_TYPE_MISMATCH!>null<!>
 }
diff --git a/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.fir.kt b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.fir.kt
new file mode 100644
index 00000000000..ca0d9acc14c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.fir.kt
@@ -0,0 +1,11 @@
+class Foo<out T>(val baz: Baz<T>)
+
+class Bar {
+    val foo: Foo<*> = TODO()
+
+    fun <T> bar(): Baz<T> {
+        return <!RETURN_TYPE_MISMATCH!>foo.baz<!>
+    }
+}
+
+typealias Baz<T> = (@UnsafeVariance T) -> Unit
diff --git a/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.kt b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.kt
index 67afde5e957..05ad642e149 100644
--- a/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.kt
+++ b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceInAliasedFunctionalType.kt
@@ -1,5 +1,3 @@
-// FIR_IDENTICAL
-
 class Foo<out T>(val baz: Baz<T>)
 
 class Bar {
@@ -10,4 +8,4 @@ class Bar {
     }
 }
 
-typealias Baz<T> = (@UnsafeVariance T) -> Unit
\ No newline at end of file
+typealias Baz<T> = (@UnsafeVariance T) -> Unit
diff --git a/compiler/testData/diagnostics/tests/implicitNothing.fir.kt b/compiler/testData/diagnostics/tests/implicitNothing.fir.kt
index c11e3e59082..75018f55018 100644
--- a/compiler/testData/diagnostics/tests/implicitNothing.fir.kt
+++ b/compiler/testData/diagnostics/tests/implicitNothing.fir.kt
@@ -17,7 +17,7 @@ fun check() {
     val x = null!!
 }
 
-fun nonLocalReturn() = run { return }
+fun nonLocalReturn() = run { <!RETURN_TYPE_MISMATCH!>return<!> }
 
 class Klass {
     fun bar() = null!!
diff --git a/compiler/testData/diagnostics/tests/inference/coercionToUnit/coercionToUnitForIfAsLastExpressionInLambda.fir.kt b/compiler/testData/diagnostics/tests/inference/coercionToUnit/coercionToUnitForIfAsLastExpressionInLambda.fir.kt
index f911a70bde1..55ca5294eeb 100644
--- a/compiler/testData/diagnostics/tests/inference/coercionToUnit/coercionToUnitForIfAsLastExpressionInLambda.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/coercionToUnit/coercionToUnitForIfAsLastExpressionInLambda.fir.kt
@@ -12,7 +12,7 @@ fun foo(): String? {
     run {
         if (true) return@run
 
-        if (true) return Obj() // correct error, type check against return type of function "foo"
+        if (true) return <!RETURN_TYPE_MISMATCH!>Obj()<!> // correct error, type check against return type of function "foo"
     }
 
     run {
diff --git a/compiler/testData/diagnostics/tests/inference/coercionToUnit/noCoercion.fir.kt b/compiler/testData/diagnostics/tests/inference/coercionToUnit/noCoercion.fir.kt
index 94f1cba028c..789e35678ba 100644
--- a/compiler/testData/diagnostics/tests/inference/coercionToUnit/noCoercion.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/coercionToUnit/noCoercion.fir.kt
@@ -23,4 +23,4 @@ fun noCoercionBlockHasExplicitReturn() {
     }
 }
 
-fun noCoercionInExpressionBody(): Unit = "hello"
\ No newline at end of file
+fun noCoercionInExpressionBody(): Unit = <!RETURN_TYPE_MISMATCH!>"hello"<!>
diff --git a/compiler/testData/diagnostics/tests/inference/kt28654.fir.kt b/compiler/testData/diagnostics/tests/inference/kt28654.fir.kt
index 0aaeeb85abf..b5c63b66f0c 100644
--- a/compiler/testData/diagnostics/tests/inference/kt28654.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/kt28654.fir.kt
@@ -2,7 +2,7 @@
 // !DIAGNOSTICS: -UNUSED_VARIABLE
 // Related issue: KT-28654
 
-fun <K> select(): K = run { }
+fun <K> select(): K = <!RETURN_TYPE_MISMATCH!>run { }<!>
 
 fun test() {
     val x: Int = select()
diff --git a/compiler/testData/diagnostics/tests/infos/SmartCasts.fir.kt b/compiler/testData/diagnostics/tests/infos/SmartCasts.fir.kt
index 1e0631d1dc3..7aeffc88755 100644
--- a/compiler/testData/diagnostics/tests/infos/SmartCasts.fir.kt
+++ b/compiler/testData/diagnostics/tests/infos/SmartCasts.fir.kt
@@ -149,7 +149,7 @@ fun illegalWhenBody(a: Any): Int = <!NO_ELSE_IN_WHEN!>when<!>(a) {
 fun illegalWhenBlock(a: Any): Int {
     when(a) {
         is Int -> return a
-        is String -> return a
+        is String -> return <!RETURN_TYPE_MISMATCH!>a<!>
     }
 }
 fun declarations(a: Any?) {
@@ -222,7 +222,7 @@ fun f(): String {
 fun foo(aa: Any?): Int {
     var a = aa
     if (a is Int?) {
-        return a
+        return <!RETURN_TYPE_MISMATCH!>a<!>
     }
     return 1
 }
diff --git a/compiler/testData/diagnostics/tests/multimodule/duplicateMethod/sinceKotlin.fir.kt b/compiler/testData/diagnostics/tests/multimodule/duplicateMethod/sinceKotlin.fir.kt
index 13d904a5615..073ed8d2ca2 100644
--- a/compiler/testData/diagnostics/tests/multimodule/duplicateMethod/sinceKotlin.fir.kt
+++ b/compiler/testData/diagnostics/tests/multimodule/duplicateMethod/sinceKotlin.fir.kt
@@ -30,5 +30,5 @@ import p2.*
 
 fun test2(): Int {
     val r = foo(42)
-    return r
+    return <!RETURN_TYPE_MISMATCH!>r<!>
 }
diff --git a/compiler/testData/diagnostics/tests/objects/objectLiteralExpressionTypeMismatch.fir.kt b/compiler/testData/diagnostics/tests/objects/objectLiteralExpressionTypeMismatch.fir.kt
index 1c9378ffee8..70c5dab5623 100644
--- a/compiler/testData/diagnostics/tests/objects/objectLiteralExpressionTypeMismatch.fir.kt
+++ b/compiler/testData/diagnostics/tests/objects/objectLiteralExpressionTypeMismatch.fir.kt
@@ -2,8 +2,8 @@ interface A
 
 interface B
 
-fun test1(): B = object : A {
-}
+fun test1(): B = <!RETURN_TYPE_MISMATCH!>object : A {
+}<!>
 
-fun test2(): B = object {
-}
\ No newline at end of file
+fun test2(): B = <!RETURN_TYPE_MISMATCH!>object {
+}<!>
diff --git a/compiler/testData/diagnostics/tests/override/kt12482.fir.kt b/compiler/testData/diagnostics/tests/override/kt12482.fir.kt
index 1ae130d6152..76b8b916fc7 100644
--- a/compiler/testData/diagnostics/tests/override/kt12482.fir.kt
+++ b/compiler/testData/diagnostics/tests/override/kt12482.fir.kt
@@ -3,7 +3,7 @@ interface A {
 }
 
 interface B : A {
-    override fun test(): <!RETURN_TYPE_MISMATCH_ON_OVERRIDE!>Unit<!> = "B"
+    override fun test(): <!RETURN_TYPE_MISMATCH_ON_OVERRIDE!>Unit<!> = <!RETURN_TYPE_MISMATCH!>"B"<!>
 }
 
 open class C : A
diff --git a/compiler/testData/diagnostics/tests/regressions/OutProjections.fir.kt b/compiler/testData/diagnostics/tests/regressions/OutProjections.fir.kt
index 8b50c0fe6b8..1544579fc22 100644
--- a/compiler/testData/diagnostics/tests/regressions/OutProjections.fir.kt
+++ b/compiler/testData/diagnostics/tests/regressions/OutProjections.fir.kt
@@ -9,7 +9,7 @@ fun <T> f(expression : T) : G<out T> = G<T>()
 
 fun foo() : G<Point> {
   val p = Point()
-  return f<Point>(p)
+  return <!RETURN_TYPE_MISMATCH!>f<Point>(p)<!>
 }
 
 class Out<out T>() {}
diff --git a/compiler/testData/diagnostics/tests/regressions/kt411.fir.kt b/compiler/testData/diagnostics/tests/regressions/kt411.fir.kt
index d7a776f7cb5..665fe2c907e 100644
--- a/compiler/testData/diagnostics/tests/regressions/kt411.fir.kt
+++ b/compiler/testData/diagnostics/tests/regressions/kt411.fir.kt
@@ -35,7 +35,7 @@ fun t3() : String {
             <!RETURN_NOT_ALLOWED!>return@t3<!> "1"
         }
         else {
-            <!RETURN_NOT_ALLOWED!>return<!> 2
+            <!RETURN_NOT_ALLOWED!>return<!> <!RETURN_TYPE_MISMATCH!>2<!>
         }
         return@l 0
     }
diff --git a/compiler/testData/diagnostics/tests/resolve/newLineLambda.fir.kt b/compiler/testData/diagnostics/tests/resolve/newLineLambda.fir.kt
index 364d1d77525..ce6a7af112c 100644
--- a/compiler/testData/diagnostics/tests/resolve/newLineLambda.fir.kt
+++ b/compiler/testData/diagnostics/tests/resolve/newLineLambda.fir.kt
@@ -111,8 +111,8 @@ fun testTwoLambdas() {
 }
 
 fun f1(): (() -> Unit) -> (() -> Unit) -> Unit {
-    return { l1 ->
+    return <!RETURN_TYPE_MISMATCH!>{ l1 ->
         l1()
         <!TOO_MANY_ARGUMENTS!>{ l2 -> <!UNRESOLVED_REFERENCE!>l2<!>() }<!>
-    }
+    }<!>
 }
diff --git a/compiler/testData/diagnostics/tests/samConversions/javaMemberAgainstExtension.fir.kt b/compiler/testData/diagnostics/tests/samConversions/javaMemberAgainstExtension.fir.kt
index 9c8e2764d6e..0638f9ccb7b 100644
--- a/compiler/testData/diagnostics/tests/samConversions/javaMemberAgainstExtension.fir.kt
+++ b/compiler/testData/diagnostics/tests/samConversions/javaMemberAgainstExtension.fir.kt
@@ -16,7 +16,7 @@ fun <T> LiveData<T>.observe(a: Any, observer: (T) -> Unit): Observer<T> {
 }
 
 // FILE: test.kt
-fun <T> test1(r: Runnable, l: LiveData<T>): Observer<T> = l.observe(r) {  } // partial conversion
+fun <T> test1(r: Runnable, l: LiveData<T>): Observer<T> = <!RETURN_TYPE_MISMATCH!>l.observe(r) {  }<!> // partial conversion
 
 fun <T> test2(r: Runnable, o: Observer<T>, l: LiveData<T>) {
     val a = l.observe(r, o) // no conversion
diff --git a/compiler/testData/diagnostics/tests/smartCasts/elvisExprNotNull.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/elvisExprNotNull.fir.kt
index 4a86b04553d..be351d4825c 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/elvisExprNotNull.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/elvisExprNotNull.fir.kt
@@ -33,5 +33,5 @@ fun baz(s: String?, r: String?): String {
 fun withNull(s: String?): String {
     val t = s ?: null
     // Error: nullable
-    return t
+    return <!RETURN_TYPE_MISMATCH!>t<!>
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/smartCasts/propertyToNotNull.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/propertyToNotNull.fir.kt
index 7b54582ba92..a7f7a154349 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/propertyToNotNull.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/propertyToNotNull.fir.kt
@@ -8,7 +8,7 @@ class Immutable(val x: String?) {
 
 class Mutable(var y: String?) {
     fun foo(): String {
-        if (y != null) return y
+        if (y != null) return <!RETURN_TYPE_MISMATCH!>y<!>
         return ""
     }
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/smartCasts/safecalls/falseSecondArgument.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/safecalls/falseSecondArgument.fir.kt
index 91ac2daecbd..f86d085ad71 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/safecalls/falseSecondArgument.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/safecalls/falseSecondArgument.fir.kt
@@ -3,5 +3,5 @@
 fun calc(x: List<String>?, y: Int?): Int {
     x?.subList(y!! - 1, y)
     // y!! above should not provide smart cast here
-    return y
+    return <!RETURN_TYPE_MISMATCH!>y<!>
 }
diff --git a/compiler/testData/diagnostics/tests/smartCasts/safecalls/receiverAndChainFalse.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/safecalls/receiverAndChainFalse.fir.kt
index 347cb784791..149459a15ca 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/safecalls/receiverAndChainFalse.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/safecalls/receiverAndChainFalse.fir.kt
@@ -6,5 +6,5 @@ fun calc(x: String?, y: Int?): Int {
     // Smart cast because of x!! in receiver
     foo(x!!)?.subSequence(y!!, x.length)?.length
     // No smart cast possible
-    return y
+    return <!RETURN_TYPE_MISMATCH!>y<!>
 }
diff --git a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEach.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEach.fir.kt
index db4f2975016..e3f6e3cce53 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEach.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEach.fir.kt
@@ -13,5 +13,5 @@ fun list(start: SomeObject): SomeObject {
         e = e<!UNSAFE_CALL!>.<!>next()
     }
     // Smart cast is not possible here due to next()
-    return e
+    return <!RETURN_TYPE_MISMATCH!>e<!>
 }
diff --git a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithBreak.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithBreak.fir.kt
index dd368ad85c8..21b0471ef68 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithBreak.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithBreak.fir.kt
@@ -14,5 +14,5 @@ fun list(start: SomeObject): SomeObject {
         e.doSomething()
         e = e.next()
     }
-    return e
+    return <!RETURN_TYPE_MISMATCH!>e<!>
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithContinue.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithContinue.fir.kt
index 67fec6fb985..81441d3d79c 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithContinue.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/varnotnull/forEachWithContinue.fir.kt
@@ -14,5 +14,5 @@ fun list(start: SomeObject): SomeObject {
         e.doSomething()
         e = e.next()
     }
-    return e
+    return <!RETURN_TYPE_MISMATCH!>e<!>
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/syntheticExtensions/samAdapters/InnerClassInGeneric.fir.kt b/compiler/testData/diagnostics/tests/syntheticExtensions/samAdapters/InnerClassInGeneric.fir.kt
index 4aed075a786..2b796b31498 100644
--- a/compiler/testData/diagnostics/tests/syntheticExtensions/samAdapters/InnerClassInGeneric.fir.kt
+++ b/compiler/testData/diagnostics/tests/syntheticExtensions/samAdapters/InnerClassInGeneric.fir.kt
@@ -2,7 +2,7 @@
 // FILE: KotlinFile.kt
 fun foo(javaClass: JavaClass<Int>): Int {
     val inner = javaClass.createInner<String>()
-    return inner.doSomething(<!ARGUMENT_TYPE_MISMATCH!>1<!>, "") { }
+    return <!RETURN_TYPE_MISMATCH!>inner.doSomething(<!ARGUMENT_TYPE_MISMATCH!>1<!>, "") { }<!>
 }
 
 // FILE: JavaClass.java
diff --git a/compiler/testData/diagnostics/tests/typeParameters/implicitNothingInReturnPosition.fir.kt b/compiler/testData/diagnostics/tests/typeParameters/implicitNothingInReturnPosition.fir.kt
index cfe7e786efc..3c98b57eacf 100644
--- a/compiler/testData/diagnostics/tests/typeParameters/implicitNothingInReturnPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/typeParameters/implicitNothingInReturnPosition.fir.kt
@@ -40,7 +40,7 @@ class Context<T>
 fun <T> Any.decodeIn(typeFrom: Context<in T>): T = something()
 
 fun <T> Any?.decodeOut1(typeFrom: Context<out T>): T {
-    return this?.decodeIn(typeFrom) ?: kotlin.Unit
+    return <!RETURN_TYPE_MISMATCH!>this?.decodeIn(typeFrom) ?: kotlin.Unit<!>
 }
 
 fun <T> Any.decodeOut2(typeFrom: Context<out T>): T {
diff --git a/compiler/testData/diagnostics/tests/unsignedTypes/varargTypeToArrayTypeCheck.fir.kt b/compiler/testData/diagnostics/tests/unsignedTypes/varargTypeToArrayTypeCheck.fir.kt
index 9a96a3978f9..ece5be15fb7 100644
--- a/compiler/testData/diagnostics/tests/unsignedTypes/varargTypeToArrayTypeCheck.fir.kt
+++ b/compiler/testData/diagnostics/tests/unsignedTypes/varargTypeToArrayTypeCheck.fir.kt
@@ -4,4 +4,4 @@ fun ushort(vararg a: UShort): UShortArray = a
 fun uint(vararg a: UInt): UIntArray = a
 fun ulong(vararg a: ULong): ULongArray = a
 
-fun rawUInt(vararg a: UInt): IntArray = a
+fun rawUInt(vararg a: UInt): IntArray = <!RETURN_TYPE_MISMATCH!>a<!>
diff --git a/compiler/testData/diagnostics/tests/when/BranchBypassVal.fir.kt b/compiler/testData/diagnostics/tests/when/BranchBypassVal.fir.kt
index cda408221da..a2d147b56da 100644
--- a/compiler/testData/diagnostics/tests/when/BranchBypassVal.fir.kt
+++ b/compiler/testData/diagnostics/tests/when/BranchBypassVal.fir.kt
@@ -18,5 +18,5 @@ fun test(a: Any): String {
         is A -> q!!
     }
     // When is not exhaustive
-    return q
+    return <!RETURN_TYPE_MISMATCH!>q<!>
 }
diff --git a/compiler/testData/diagnostics/tests/when/BranchBypassVar.fir.kt b/compiler/testData/diagnostics/tests/when/BranchBypassVar.fir.kt
index 90053fe80f2..b082ea2311e 100644
--- a/compiler/testData/diagnostics/tests/when/BranchBypassVar.fir.kt
+++ b/compiler/testData/diagnostics/tests/when/BranchBypassVar.fir.kt
@@ -18,5 +18,5 @@ fun test(a: Any) {
         is A -> q = "1"
     }
     // When is not exhaustive
-    return q
+    return <!RETURN_TYPE_MISMATCH!>q<!>
 }
diff --git a/compiler/testData/diagnostics/tests/when/kt4434.fir.kt b/compiler/testData/diagnostics/tests/when/kt4434.fir.kt
index 8a378378379..88b4514dbeb 100644
--- a/compiler/testData/diagnostics/tests/when/kt4434.fir.kt
+++ b/compiler/testData/diagnostics/tests/when/kt4434.fir.kt
@@ -14,14 +14,14 @@ package test
 
 fun foo(): Int {
     val a = "a"
-    return if (a.length > 0) {
+    return <!RETURN_TYPE_MISMATCH!>if (a.length > 0) {
         when (a) {
             "a" -> 1
         }
     }
     else {
         3
-    }
+    }<!>
 }
 
 fun bar(): Int {
diff --git a/compiler/testData/diagnostics/testsWithStdLib/elvisOnJavaList.fir.kt b/compiler/testData/diagnostics/testsWithStdLib/elvisOnJavaList.fir.kt
index 646570072b9..6fb9ad31f41 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/elvisOnJavaList.fir.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/elvisOnJavaList.fir.kt
@@ -15,5 +15,5 @@ public class P {
 
 fun foo(c: P): MutableList<Int> {
     // Error should be here: see KT-8168 Typechecker fails for platform collection type
-    return c.getList() ?: listOf()
+    return <!RETURN_TYPE_MISMATCH!>c.getList() ?: listOf()<!>
 }
diff --git a/compiler/testData/diagnostics/testsWithStdLib/when/kt10807.fir.kt b/compiler/testData/diagnostics/testsWithStdLib/when/kt10807.fir.kt
index 20ea3211028..cc0827a7554 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/when/kt10807.fir.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/when/kt10807.fir.kt
@@ -5,9 +5,9 @@ import kotlin.comparisons.nullsLast
 class Foo(val a: String, val b: Int)
 
 fun getComp(): Comparator<Foo?> =
-        when {
+        <!RETURN_TYPE_MISMATCH!>when {
             else -> nullsLast(compareBy({ it.<!UNRESOLVED_REFERENCE!>a<!> }, { it.<!UNRESOLVED_REFERENCE!>b<!> }))
-        }
+        }<!>
 
 fun getCompInverted(): Comparator<Foo?> =
         nullsLast(
diff --git a/compiler/tests-spec/testData/diagnostics/linked/expressions/jump-expressions/return-expressions/p-4/neg/1.1.fir.kt b/compiler/tests-spec/testData/diagnostics/linked/expressions/jump-expressions/return-expressions/p-4/neg/1.1.fir.kt
index e1d619972eb..0fe93689183 100644
--- a/compiler/tests-spec/testData/diagnostics/linked/expressions/jump-expressions/return-expressions/p-4/neg/1.1.fir.kt
+++ b/compiler/tests-spec/testData/diagnostics/linked/expressions/jump-expressions/return-expressions/p-4/neg/1.1.fir.kt
@@ -5,7 +5,7 @@
 // TESTCASE NUMBER: 1
 // UNEXPECTED BEHAVIOUR
 // ISSUES : KT-35545
-fun case1(a: Boolean) = run { println("d"); return true }
+fun case1(a: Boolean) = run { println("d"); return <!RETURN_TYPE_MISMATCH!>true<!> }
 
 // TESTCASE NUMBER: 2
 val case2
diff --git a/compiler/tests-spec/testData/diagnostics/linked/type-system/introduction-1/p-6/neg/2.2.fir.kt b/compiler/tests-spec/testData/diagnostics/linked/type-system/introduction-1/p-6/neg/2.2.fir.kt
index 942e2cd5b8e..ca21cdde700 100644
--- a/compiler/tests-spec/testData/diagnostics/linked/type-system/introduction-1/p-6/neg/2.2.fir.kt
+++ b/compiler/tests-spec/testData/diagnostics/linked/type-system/introduction-1/p-6/neg/2.2.fir.kt
@@ -43,13 +43,13 @@ class Case8 {
 }
 
 // TESTCASE NUMBER: 9
-fun case_9(): Any = null
+fun case_9(): Any = <!RETURN_TYPE_MISMATCH!>null<!>
 
 // TESTCASE NUMBER: 10
-fun case_10(x: Int, y: Boolean): Any = if (y) x else null
+fun case_10(x: Int, y: Boolean): Any = <!RETURN_TYPE_MISMATCH!>if (y) x else null<!>
 
 // TESTCASE NUMBER: 11
-fun case_11(x: Int, y: Boolean): Any = if (y) x else null
+fun case_11(x: Int, y: Boolean): Any = <!RETURN_TYPE_MISMATCH!>if (y) x else null<!>
 
 // TESTCASE NUMBER: 12
 class Case12 {
diff --git a/compiler/tests-spec/testData/diagnostics/notLinked/dfa/neg/45.fir.kt b/compiler/tests-spec/testData/diagnostics/notLinked/dfa/neg/45.fir.kt
index ab7a6254b79..c2eca5ea7b3 100644
--- a/compiler/tests-spec/testData/diagnostics/notLinked/dfa/neg/45.fir.kt
+++ b/compiler/tests-spec/testData/diagnostics/notLinked/dfa/neg/45.fir.kt
@@ -17,5 +17,5 @@ fun case_1(x: Number?): Long? {
  * ISSUES: KT-22997
  */
 fun case_2(x: Number?): Long? {
-    if (x == null || x is Long) return x else return 0L
+    if (x == null || x is Long) return <!RETURN_TYPE_MISMATCH!>x<!> else return 0L
 }
diff --git a/compiler/tests-spec/testData/diagnostics/notLinked/dfa/pos/64.fir.kt b/compiler/tests-spec/testData/diagnostics/notLinked/dfa/pos/64.fir.kt
index f24a90f7e97..babf675b651 100644
--- a/compiler/tests-spec/testData/diagnostics/notLinked/dfa/pos/64.fir.kt
+++ b/compiler/tests-spec/testData/diagnostics/notLinked/dfa/pos/64.fir.kt
@@ -17,7 +17,7 @@ class Case1<T> {
             x = getT()
         }
         <!DEBUG_INFO_EXPRESSION_TYPE("T?")!>x<!>
-        return x
+        return <!RETURN_TYPE_MISMATCH!>x<!>
     }
 }
 
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
index 4820e812538..1c469a623f3 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
@@ -986,6 +986,14 @@ internal val KT_DIAGNOSTIC_CONVERTER = KtDiagnosticConverterBuilder.buildConvert
             token,
         )
     }
+    add(FirErrors.RETURN_TYPE_MISMATCH) { firDiagnostic ->
+        ReturnTypeMismatchImpl(
+            firSymbolBuilder.typeBuilder.buildKtType(firDiagnostic.a),
+            firSymbolBuilder.typeBuilder.buildKtType(firDiagnostic.b),
+            firDiagnostic as FirPsiDiagnostic<*>,
+            token,
+        )
+    }
     add(FirErrors.EXTENSION_IN_CLASS_REFERENCE_NOT_ALLOWED) { firDiagnostic ->
         ExtensionInClassReferenceNotAllowedImpl(
             firSymbolBuilder.callableBuilder.buildCallableSymbol(firDiagnostic.a as FirCallableDeclaration),
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
index 506e88683c9..d83386cfd87 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
@@ -701,6 +701,12 @@ sealed class KtFirDiagnostic<PSI: PsiElement> : KtDiagnosticWithPsi<PSI> {
         abstract val typeParametersOwner: KtSymbol
     }
 
+    abstract class ReturnTypeMismatch : KtFirDiagnostic<KtExpression>() {
+        override val diagnosticClass get() = ReturnTypeMismatch::class
+        abstract val expected: KtType
+        abstract val actual: KtType
+    }
+
     abstract class ExtensionInClassReferenceNotAllowed : KtFirDiagnostic<KtExpression>() {
         override val diagnosticClass get() = ExtensionInClassReferenceNotAllowed::class
         abstract val referencedDeclaration: KtCallableSymbol
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
index d537c8b0a45..ce988e34c0a 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
@@ -1131,6 +1131,15 @@ internal class NameInConstraintIsNotATypeParameterImpl(
     override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
 }
 
+internal class ReturnTypeMismatchImpl(
+    override val expected: KtType,
+    override val actual: KtType,
+    firDiagnostic: FirPsiDiagnostic<*>,
+    override val token: ValidityToken,
+) : KtFirDiagnostic.ReturnTypeMismatch(), KtAbstractFirDiagnostic<KtExpression> {
+    override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
+}
+
 internal class ExtensionInClassReferenceNotAllowedImpl(
     override val referencedDeclaration: KtCallableSymbol,
     firDiagnostic: FirPsiDiagnostic<*>,
diff --git a/idea/testData/checker/FunctionReturnTypes.fir.kt b/idea/testData/checker/FunctionReturnTypes.fir.kt
index 41ffd65f4af..ab4aa1f6db5 100644
--- a/idea/testData/checker/FunctionReturnTypes.fir.kt
+++ b/idea/testData/checker/FunctionReturnTypes.fir.kt
@@ -6,14 +6,14 @@ fun none() {}
 fun unitEmptyInfer() {}
 fun unitEmpty() : Unit {}
 fun unitEmptyReturn() : Unit {return}
-fun unitIntReturn() : Unit {return 1}
+fun unitIntReturn() : Unit {return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Unit, actual kotlin/Int">1</error>}
 fun unitUnitReturn() : Unit {return Unit}
 fun test1() : Any = { <error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here">return</error> }
 fun test2() : Any = a@ {return@a 1}
 fun test3() : Any { return }
 
 fun bbb() {
-  return 1
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Unit, actual kotlin/Int">1</error>
 }
 
 fun foo(expr: StringBuilder): Int {
@@ -26,8 +26,8 @@ fun foo(expr: StringBuilder): Int {
 
 
 fun unitShort() : Unit = Unit
-fun unitShortConv() : Unit = 1
-fun unitShortNull() : Unit = null
+fun unitShortConv() : Unit = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Unit, actual kotlin/Int">1</error>
+fun unitShortNull() : Unit = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Unit, actual kotlin/Nothing?">null</error>
 
 fun intEmpty() : Int {}
 fun intShortInfer() = 1
@@ -36,56 +36,56 @@ fun intShort() : Int = 1
 fun intBlock() : Int {return 1}
 fun intBlock1() : Int {1}
 
-fun intString(): Int = "s"
-fun intFunctionLiteral(): Int = { 10 }
+fun intString(): Int = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/String">"s"</error>
+fun intFunctionLiteral(): Int = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Function0<kotlin/Int>">{ 10 }</error>
 
-fun blockReturnUnitMismatch() : Int {return}
-fun blockReturnValueTypeMismatch() : Int {return 3.4}
+fun blockReturnUnitMismatch() : Int {<error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Unit">return</error>}
+fun blockReturnValueTypeMismatch() : Int {return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">3.4</error>}
 fun blockReturnValueTypeMatch() : Int {return 1}
-fun blockReturnValueTypeMismatchUnit() : Int {return Unit}
+fun blockReturnValueTypeMismatchUnit() : Int {return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Unit">Unit</error>}
 
 fun blockAndAndMismatch() : Int {
   true && false
 }
 fun blockAndAndMismatch1() : Int {
-  return true && false
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">true && false</error>
 }
 fun blockAndAndMismatch2() : Int {
-  (return true) && (return false)
+  (return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">true</error>) && (return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">false</error>)
 }
 
 fun blockAndAndMismatch3() : Int {
   true || false
 }
 fun blockAndAndMismatch4() : Int {
-  return true || false
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">true || false</error>
 }
 fun blockAndAndMismatch5() : Int {
-  (return true) || (return false)
+  (return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">true</error>) || (return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Boolean">false</error>)
 }
 fun blockReturnValueTypeMatch1() : Int {
-  return if (1 > 2) 1.0 else 2.0
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">if (1 > 2) 1.0 else 2.0</error>
 }
 fun blockReturnValueTypeMatch2() : Int {
     return <error descr="[INVALID_IF_AS_EXPRESSION] 'if' must have both main and 'else' branches if used as an expression">if</error> (1 > 2) 1
 }
 fun blockReturnValueTypeMatch3() : Int {
-    return if (1 > 2) else 1
+    return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Any">if (1 > 2) else 1</error>
 }
 fun blockReturnValueTypeMatch4() : Int {
   if (1 > 2)
-    return 1.0
-  else return 2.0
+    return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">1.0</error>
+  else return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">2.0</error>
 }
 fun blockReturnValueTypeMatch5() : Int {
   if (1 > 2)
-    return 1.0
-  return 2.0
+    return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">1.0</error>
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">2.0</error>
 }
 fun blockReturnValueTypeMatch6() : Int {
   if (1 > 2)
-    else return 1.0
-  return 2.0
+    else return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">1.0</error>
+  return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">2.0</error>
 }
 fun blockReturnValueTypeMatch7() : Int {
   if (1 > 2)
@@ -112,7 +112,7 @@ fun blockReturnValueTypeMatch11() : Int {
 fun blockReturnValueTypeMatch12() : Int {
   if (1 > 2)
     return 1
-  else return 1.0
+  else return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Double">1.0</error>
 }
 fun blockNoReturnIfValDeclaration(): Int {
   val x = 1
@@ -130,23 +130,23 @@ fun blockNoReturnIfUnitInOneBranch(): Int {
     }
   }
 }
-fun nonBlockReturnIfEmptyIf(): Int = if (1 < 2) {} else {}
-fun nonBlockNoReturnIfUnitInOneBranch(): Int = if (1 < 2) {} else 2
+fun nonBlockReturnIfEmptyIf(): Int = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Unit">if (1 < 2) {} else {}</error>
+fun nonBlockNoReturnIfUnitInOneBranch(): Int = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/Any">if (1 < 2) {} else 2</error>
 
 val a = <error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here">return</error> 1
 
 class A() {
 }
-fun illegalConstantBody(): Int = "s"
+fun illegalConstantBody(): Int = <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/String">"s"</error>
 fun illegalConstantBlock(): String {
-    return 1
+    return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/Int">1</error>
 }
 fun illegalIfBody(): Int =
-    if (1 < 2) 'a' else { 1.0 }
+    <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual it(kotlin/Comparable<*> & java/io/Serializable)">if (1 < 2) 'a' else { 1.0 }</error>
 fun illegalIfBlock(): Boolean {
     if (1 < 2)
         return false
-    else { return 1 }
+    else { return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Boolean, actual kotlin/Int">1</error> }
 }
 fun illegalReturnIf(): Char {
     return if (1 < 2) 'a' else { 1 }
diff --git a/idea/testData/checker/infos/SmartCasts.fir.kt b/idea/testData/checker/infos/SmartCasts.fir.kt
index e7875925b4d..2fe868ece94 100644
--- a/idea/testData/checker/infos/SmartCasts.fir.kt
+++ b/idea/testData/checker/infos/SmartCasts.fir.kt
@@ -161,7 +161,7 @@ fun illegalWhenBody(a: Any): Int = when(a) {
 fun illegalWhenBlock(a: Any): Int {
     when(a) {
         is Int -> return a
-        is String -> return a
+        is String -> return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/Int, actual kotlin/String">a</error>
         else -> return 1
     }
 }
@@ -218,11 +218,11 @@ fun f(): String {
     if (a is String) {
         val i: String = a
         a.compareTo("f")
-        val f: Function0<String> = {
+        val f: Function0<String> = <error descr="[INITIALIZER_TYPE_MISMATCH] Initializer type mismatch: expected kotlin/Function0<kotlin/String>, actual kotlin/Function0<kotlin/Int>">{
             a = 42
             a
-        }
-        return a
+        }</error>
+        return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/Int">a</error>
     }
     return ""
 }
@@ -234,13 +234,13 @@ class Mutable(var x: String?) {
 
     fun foo(): String {
         if (x is String) {
-            return x
+            return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/String?">x</error>
         }
         if (x != null) {
-            return x
+            return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/String?">x</error>
         }
         if (xx is String) {
-            return xx
+            return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/String?">xx</error>
         }
         return ""
     }
@@ -248,7 +248,7 @@ class Mutable(var x: String?) {
     fun bar(other: Mutable): String {
         var y = other
         if (y.x is String) {
-            return y.x
+            return <error descr="[RETURN_TYPE_MISMATCH] Return type mismatch: expected kotlin/String, actual kotlin/String?">y.x</error>
         }
         return ""
     }