diff --git a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ExpressionTypingVisitorForStatements.java b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ExpressionTypingVisitorForStatements.java
index 0e8b750ebc6..4308d3ef8ba 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ExpressionTypingVisitorForStatements.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ExpressionTypingVisitorForStatements.java
@@ -84,7 +84,7 @@ public class ExpressionTypingVisitorForStatements extends ExpressionTypingVisito
             @NotNull ExpressionTypingContext context
     ) {
         if (assignmentType != null && !KotlinBuiltIns.isUnit(assignmentType) && !noExpectedType(context.expectedType) &&
-            TypeUtils.equalTypes(context.expectedType, assignmentType)) {
+            !context.expectedType.isError() && TypeUtils.equalTypes(context.expectedType, assignmentType)) {
             context.trace.report(Errors.ASSIGNMENT_TYPE_MISMATCH.on(expression, context.expectedType));
             return null;
         }
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.kt b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.kt
new file mode 100644
index 00000000000..2661582261b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.kt
@@ -0,0 +1,16 @@
+fun test(bal: Array<Int>) {
+    var bar = 4
+
+    val a = { bar += 4 }
+    a : () -> Unit
+
+    val b = { bar = 4 }
+    b : () -> Unit
+
+    val c = { bal[2] = 3 }
+    c : () -> Unit
+
+    val d = run { bar += 4 }
+    d : Unit
+}
+fun <T> run(f: () -> T): T = f()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.txt b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.txt
new file mode 100644
index 00000000000..e4801ceb263
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.txt
@@ -0,0 +1,4 @@
+package
+
+internal fun </*0*/ T> run(/*0*/ f: () -> T): T
+internal fun test(/*0*/ bal: kotlin.Array<kotlin.Int>): kotlin.Unit
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.kt b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.kt
new file mode 100644
index 00000000000..f054b9ca105
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.kt
@@ -0,0 +1,16 @@
+fun test(bal: Array<Int>) {
+    var bar = 4
+
+    val <!UNUSED_VARIABLE!>a<!>: () -> Unit = { bar += 4 }
+
+    val <!UNUSED_VARIABLE!>b<!>: () -> Int = { <!EXPECTED_TYPE_MISMATCH!>bar = 4<!> }
+
+    val <!UNUSED_VARIABLE!>c<!>: () -> <!UNRESOLVED_REFERENCE!>UNRESOLVED<!> = { bal[2] = 3 }
+
+    val <!UNUSED_VARIABLE!>d<!>: () -> Int = { <!ASSIGNMENT_TYPE_MISMATCH(kotlin.Int)!>bar += 4<!> }
+
+    val <!UNUSED_VARIABLE!>e<!>: Unit = run { bar += 4 }
+
+    val <!UNUSED_VARIABLE!>f<!>: Int = <!TYPE_INFERENCE_EXPECTED_TYPE_MISMATCH!>run<!> { bar += 4 }
+}
+fun <T> run(f: () -> T): T = f()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.txt b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.txt
new file mode 100644
index 00000000000..e4801ceb263
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.txt
@@ -0,0 +1,4 @@
+package
+
+internal fun </*0*/ T> run(/*0*/ f: () -> T): T
+internal fun test(/*0*/ bal: kotlin.Array<kotlin.Int>): kotlin.Unit
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/kt6869.kt b/compiler/testData/diagnostics/tests/functionLiterals/kt6869.kt
new file mode 100644
index 00000000000..ac69102251b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/kt6869.kt
@@ -0,0 +1,11 @@
+fun main(args : Array<String>) {
+    var list = listOf(1)
+
+    val a: Int? = 2
+
+    a?.let { list += it }
+}
+
+fun <T : Any, R> T.let(f: (T) -> R): R = f(this)
+fun <T> Iterable<T>.plus(<!UNUSED_PARAMETER!>element<!>: T): List<T> = null!!
+fun listOf<T>(vararg <!UNUSED_PARAMETER!>values<!>: T): List<T> = null!!
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/kt6869.txt b/compiler/testData/diagnostics/tests/functionLiterals/kt6869.txt
new file mode 100644
index 00000000000..3f022ebdf7c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/kt6869.txt
@@ -0,0 +1,6 @@
+package
+
+internal fun </*0*/ T> listOf(/*0*/ vararg values: T /*kotlin.Array<out T>*/): kotlin.List<T>
+internal fun main(/*0*/ args: kotlin.Array<kotlin.String>): kotlin.Unit
+internal fun </*0*/ T : kotlin.Any, /*1*/ R> T.let(/*0*/ f: (T) -> R): R
+internal fun </*0*/ T> kotlin.Iterable<T>.plus(/*0*/ element: T): kotlin.List<T>
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index 9a4fc2ab70c..af471419a1f 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -4521,6 +4521,18 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/diagnostics/tests/functionLiterals"), Pattern.compile("^(.+)\\.kt$"), true);
             }
 
+            @TestMetadata("assignmentOperationInLambda.kt")
+            public void testAssignmentOperationInLambda() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambda.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("assignmentOperationInLambdaWithExpectedType.kt")
+            public void testAssignmentOperationInLambdaWithExpectedType() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/functionLiterals/assignmentOperationInLambdaWithExpectedType.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("DanglingFunctionLiteral.kt")
             public void testDanglingFunctionLiteral() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/functionLiterals/DanglingFunctionLiteral.kt");
@@ -4569,6 +4581,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt6869.kt")
+            public void testKt6869() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/functionLiterals/kt6869.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("LabeledFunctionLiterals.kt")
             public void testLabeledFunctionLiterals() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/functionLiterals/LabeledFunctionLiterals.kt");