diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.fir.txt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.fir.txt
index 20bde2607df..7436d9782b4 100644
--- a/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.fir.txt
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.fir.txt
@@ -2,7 +2,7 @@ FILE: lambdaForKfunction.kt
     public final fun foo(arg: R|kotlin/reflect/KFunction0<kotlin/Unit>|): R|kotlin/Unit| {
     }
     public final fun main(): R|kotlin/Unit| {
-        R|/foo|(fun <anonymous>(): R|kotlin/Unit| <inline=NoInline>  {
+        R|/foo<Inapplicable(INAPPLICABLE): /foo>#|(fun <anonymous>(): R|kotlin/Unit| <inline=Unknown>  {
         }
         )
     }
diff --git a/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.kt b/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.kt
index 02da3fa47af..23b5885ed48 100644
--- a/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.kt
+++ b/compiler/fir/analysis-tests/testData/resolveWithStdlib/intellij/lambdaForKfunction.kt
@@ -5,5 +5,5 @@ import kotlin.reflect.KFunction0
 fun foo(arg: KFunction0<Unit>) {}
 
 fun main() {
-    foo(fun() {}) // K1: TYPE_MISMATCH, K2: ok in compile-time & CCE at run-time
+    foo(<!ARGUMENT_TYPE_MISMATCH!>fun() {}<!>) // K1: TYPE_MISMATCH, K2: ok in compile-time & CCE at run-time
 }
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/PostponedArguments.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/PostponedArguments.kt
index ad5b44f1fe5..c874b7f0e24 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/PostponedArguments.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/PostponedArguments.kt
@@ -64,7 +64,7 @@ fun Candidate.preprocessLambdaArgument(
     if (expectedType != null) {
         val parameters = resolvedArgument.parameters
         val functionTypeKind = context.session.functionTypeService.extractSingleSpecialKindForFunction(anonymousFunction.symbol)
-            ?: resolvedArgument.expectedFunctionTypeKind
+            ?: resolvedArgument.expectedFunctionTypeKind?.nonReflectKind()
             ?: FunctionTypeKind.Function
         val lambdaType = createFunctionType(
             functionTypeKind,