diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
index 6a622076440..3faeec79c8f 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
@@ -7777,6 +7777,11 @@ public class FirDiagnosticsSmokeTestGenerated extends AbstractFirDiagnosticsSmok
             runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLIteralInBlockInIf.kt");
         }
 
+        @TestMetadata("functionLiteralAsArgumentForFunction.kt")
+        public void testFunctionLiteralAsArgumentForFunction() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt");
+        }
+
         @TestMetadata("functionLiteralInIf.kt")
         public void testFunctionLiteralInIf() throws Exception {
             runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralInIf.kt");
@@ -12448,11 +12453,6 @@ public class FirDiagnosticsSmokeTestGenerated extends AbstractFirDiagnosticsSmok
                 KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/diagnostics/tests/j+k/sam"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.ANY, true);
             }
 
-            @TestMetadata("contravariantSamConvertedFunctionFromAnotherModule.kt")
-            public void testContravariantSamConvertedFunctionFromAnotherModule() throws Exception {
-                runTest("compiler/testData/diagnostics/tests/j+k/sam/contravariantSamConvertedFunctionFromAnotherModule.kt");
-            }
-
             @TestMetadata("enhancedSamConstructor.kt")
             public void testEnhancedSamConstructor() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt");
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
index 59a7748e9a9..f544704a5e6 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
@@ -129,7 +129,7 @@ class ResolvedAtomCompleter(
             val substitutedTypes = returnTypes.filterNotNull()
             // we have some unsubstituted types
             if (substitutedTypes.isEmpty()) return false
-            val commonReturnType = CommonSupertypes.commonSupertype(returnTypes)
+            val commonReturnType = CommonSupertypes.commonSupertype(substitutedTypes)
             return commonReturnType.isUnit()
         }
 
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt b/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt
new file mode 100644
index 00000000000..f9c35bd04d1
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt
@@ -0,0 +1,25 @@
+class Log
+
+data class CalculatedVariable(
+    val idString: String,
+    val presentableName: String,
+    val units: String,
+    val function: (Log) -> ((TimeIndex) -> Any?)?,
+    val converter: (Any) -> Double
+) {
+    constructor(idString: String, presentableName: String, units: String, function: (Log) -> ((TimeIndex) -> Double?)?)
+            : this(idString, presentableName, units, function, { it as Double })
+}
+
+object CalculatedVariables {
+    val x = CalculatedVariable(
+        "A",
+        "B",
+        "C",
+        fun(<!UNUSED_ANONYMOUS_PARAMETER!>log<!>: Log): ((TimeIndex) -> Double?)? {
+            return { 0.0 }
+        }
+    )
+}
+
+class TimeIndex
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.txt b/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.txt
new file mode 100644
index 00000000000..c845830d415
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.txt
@@ -0,0 +1,42 @@
+package
+
+public final data class CalculatedVariable {
+    public constructor CalculatedVariable(/*0*/ idString: kotlin.String, /*1*/ presentableName: kotlin.String, /*2*/ units: kotlin.String, /*3*/ function: (Log) -> ((TimeIndex) -> kotlin.Any?)?, /*4*/ converter: (kotlin.Any) -> kotlin.Double)
+    public constructor CalculatedVariable(/*0*/ idString: kotlin.String, /*1*/ presentableName: kotlin.String, /*2*/ units: kotlin.String, /*3*/ function: (Log) -> ((TimeIndex) -> kotlin.Double?)?)
+    public final val converter: (kotlin.Any) -> kotlin.Double
+    public final val function: (Log) -> ((TimeIndex) -> kotlin.Any?)?
+    public final val idString: kotlin.String
+    public final val presentableName: kotlin.String
+    public final val units: kotlin.String
+    public final operator /*synthesized*/ fun component1(): kotlin.String
+    public final operator /*synthesized*/ fun component2(): kotlin.String
+    public final operator /*synthesized*/ fun component3(): kotlin.String
+    public final operator /*synthesized*/ fun component4(): (Log) -> ((TimeIndex) -> kotlin.Any?)?
+    public final operator /*synthesized*/ fun component5(): (kotlin.Any) -> kotlin.Double
+    public final /*synthesized*/ fun copy(/*0*/ idString: kotlin.String = ..., /*1*/ presentableName: kotlin.String = ..., /*2*/ units: kotlin.String = ..., /*3*/ function: (Log) -> ((TimeIndex) -> kotlin.Any?)? = ..., /*4*/ converter: (kotlin.Any) -> kotlin.Double = ...): CalculatedVariable
+    public open override /*1*/ /*synthesized*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*synthesized*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*synthesized*/ fun toString(): kotlin.String
+}
+
+public object CalculatedVariables {
+    private constructor CalculatedVariables()
+    public final val x: CalculatedVariable
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Log {
+    public constructor Log()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class TimeIndex {
+    public constructor TimeIndex()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index f5414773990..8c69459b93c 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -7784,6 +7784,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLIteralInBlockInIf.kt");
             }
 
+            @TestMetadata("functionLiteralAsArgumentForFunction.kt")
+            public void testFunctionLiteralAsArgumentForFunction() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt");
+            }
+
             @TestMetadata("functionLiteralInIf.kt")
             public void testFunctionLiteralInIf() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralInIf.kt");
@@ -12455,11 +12460,6 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                     KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/diagnostics/tests/j+k/sam"), Pattern.compile("^(.*)\\.kts?$"), TargetBackend.ANY, true);
                 }
 
-                @TestMetadata("contravariantSamConvertedFunctionFromAnotherModule.kt")
-                public void testContravariantSamConvertedFunctionFromAnotherModule() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/j+k/sam/contravariantSamConvertedFunctionFromAnotherModule.kt");
-                }
-
                 @TestMetadata("enhancedSamConstructor.kt")
                 public void testEnhancedSamConstructor() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index a291c144a0c..5bd7765022f 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -7779,6 +7779,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLIteralInBlockInIf.kt");
             }
 
+            @TestMetadata("functionLiteralAsArgumentForFunction.kt")
+            public void testFunctionLiteralAsArgumentForFunction() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralAsArgumentForFunction.kt");
+            }
+
             @TestMetadata("functionLiteralInIf.kt")
             public void testFunctionLiteralInIf() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/functionLiterals/functionLiteralInIf.kt");
@@ -12450,11 +12455,6 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                     KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/diagnostics/tests/j+k/sam"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.ANY, true);
                 }
 
-                @TestMetadata("contravariantSamConvertedFunctionFromAnotherModule.kt")
-                public void testContravariantSamConvertedFunctionFromAnotherModule() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/j+k/sam/contravariantSamConvertedFunctionFromAnotherModule.kt");
-                }
-
                 @TestMetadata("enhancedSamConstructor.kt")
                 public void testEnhancedSamConstructor() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt");