diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/ExpressionsConverter.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/ExpressionsConverter.kt
index bd44fe791c3..d0eff149520 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/ExpressionsConverter.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/ExpressionsConverter.kt
@@ -1265,7 +1265,9 @@ class ExpressionsConverter(
     private val LighterASTNode.usedAsExpression: Boolean
         get() {
             var parent = getParent() ?: return true
-            if (parent.elementType == ANNOTATED_EXPRESSION) {
+            while (parent.elementType == ANNOTATED_EXPRESSION ||
+                parent.elementType == LABELED_EXPRESSION
+            ) {
                 parent = parent.getParent() ?: return true
             }
             val parentTokenType = parent.tokenType
diff --git a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
index 76261fc6047..5a6de38b5de 100644
--- a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
+++ b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
@@ -2001,7 +2001,9 @@ open class RawFirBuilder(
         private val KtExpression.usedAsExpression: Boolean
             get() {
                 var parent = parent
-                if (parent.elementType == KtNodeTypes.ANNOTATED_EXPRESSION) {
+                while (parent.elementType == KtNodeTypes.ANNOTATED_EXPRESSION ||
+                    parent.elementType == KtNodeTypes.LABELED_EXPRESSION
+                ) {
                     parent = parent.parent
                 }
                 if (parent is KtBlockExpression) return false
diff --git a/compiler/testData/codegen/bytecodeText/statements/labeled.kt b/compiler/testData/codegen/bytecodeText/statements/labeled.kt
index e6d2ba1e488..e916024572a 100644
--- a/compiler/testData/codegen/bytecodeText/statements/labeled.kt
+++ b/compiler/testData/codegen/bytecodeText/statements/labeled.kt
@@ -1,5 +1,3 @@
-// IGNORE_BACKEND_FIR: JVM_IR
-
 fun main()
 {
     l@ if (2 != 1) "fail 3"
diff --git a/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.ir.txt b/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.ir.txt
deleted file mode 100644
index 765c1c3280d..00000000000
--- a/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.ir.txt
+++ /dev/null
@@ -1,81 +0,0 @@
-FILE fqName:<root> fileName:/nonLocalReturn.kt
-  FUN name:test0 visibility:public modality:FINAL <> () returnType:kotlin.Unit
-    BLOCK_BODY
-      CALL 'public final fun run <R> (block: kotlin.Function0<R of kotlin.StandardKt.run>): R of kotlin.StandardKt.run [inline] declared in kotlin.StandardKt' type=kotlin.Nothing origin=null
-        <R>: kotlin.Nothing
-        block: FUN_EXPR type=kotlin.Function0<kotlin.Nothing> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Nothing
-            BLOCK_BODY
-              RETURN type=kotlin.Nothing from='public final fun test0 (): kotlin.Unit declared in <root>'
-                GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-  FUN name:test1 visibility:public modality:FINAL <> () returnType:kotlin.Unit
-    BLOCK_BODY
-      CALL 'public final fun run <R> (block: kotlin.Function0<R of kotlin.StandardKt.run>): R of kotlin.StandardKt.run [inline] declared in kotlin.StandardKt' type=kotlin.Unit origin=null
-        <R>: kotlin.Unit
-        block: FUN_EXPR type=kotlin.Function0<kotlin.Unit> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Unit
-            BLOCK_BODY
-              RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Unit declared in <root>.test1'
-                GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-  FUN name:test2 visibility:public modality:FINAL <> () returnType:kotlin.Unit
-    BLOCK_BODY
-      CALL 'public final fun run <R> (block: kotlin.Function0<R of kotlin.StandardKt.run>): R of kotlin.StandardKt.run [inline] declared in kotlin.StandardKt' type=kotlin.Unit origin=null
-        <R>: kotlin.Unit
-        block: FUN_EXPR type=kotlin.Function0<kotlin.Unit> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Unit
-            BLOCK_BODY
-              RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Unit declared in <root>.test2'
-                GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-  FUN name:test3 visibility:public modality:FINAL <> () returnType:kotlin.Unit
-    BLOCK_BODY
-      CALL 'public final fun run <R> (block: kotlin.Function0<R of kotlin.StandardKt.run>): R of kotlin.StandardKt.run [inline] declared in kotlin.StandardKt' type=kotlin.Unit origin=null
-        <R>: kotlin.Unit
-        block: FUN_EXPR type=kotlin.Function0<kotlin.Unit> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Unit
-            BLOCK_BODY
-              RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Unit declared in <root>.test3'
-                CALL 'public final fun run <R> (block: kotlin.Function0<R of kotlin.StandardKt.run>): R of kotlin.StandardKt.run [inline] declared in kotlin.StandardKt' type=kotlin.Nothing origin=null
-                  <R>: kotlin.Nothing
-                  block: FUN_EXPR type=kotlin.Function0<kotlin.Nothing> origin=LAMBDA
-                    FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> () returnType:kotlin.Nothing
-                      BLOCK_BODY
-                        RETURN type=kotlin.Nothing from='local final fun <anonymous> (): kotlin.Unit declared in <root>.test3'
-                          GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-  FUN name:testLrmFoo1 visibility:public modality:FINAL <> (ints:kotlin.collections.List<kotlin.Int>) returnType:kotlin.Unit
-    VALUE_PARAMETER name:ints index:0 type:kotlin.collections.List<kotlin.Int>
-    BLOCK_BODY
-      CALL 'public final fun forEach <T> (action: kotlin.Function1<T of kotlin.collections.CollectionsKt.forEach, kotlin.Unit>): kotlin.Unit [inline] declared in kotlin.collections.CollectionsKt' type=kotlin.Unit origin=null
-        <T>: kotlin.Int
-        $receiver: GET_VAR 'ints: kotlin.collections.List<kotlin.Int> declared in <root>.testLrmFoo1' type=kotlin.collections.List<kotlin.Int> origin=null
-        action: FUN_EXPR type=kotlin.Function1<kotlin.Int, kotlin.Unit> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> (it:kotlin.Int) returnType:kotlin.Unit
-            VALUE_PARAMETER name:it index:0 type:kotlin.Int
-            BLOCK_BODY
-              WHEN type=kotlin.Unit origin=IF
-                BRANCH
-                  if: CALL 'public final fun EQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EQEQ
-                    arg0: GET_VAR 'it: kotlin.Int declared in <root>.testLrmFoo1.<anonymous>' type=kotlin.Int origin=null
-                    arg1: CONST Int type=kotlin.Int value=0
-                  then: RETURN type=kotlin.Nothing from='local final fun <anonymous> (it: kotlin.Int): kotlin.Unit declared in <root>.testLrmFoo1'
-                    GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-              CALL 'public final fun print (message: kotlin.Int): kotlin.Unit [inline] declared in kotlin.io.ConsoleKt' type=kotlin.Unit origin=null
-                message: GET_VAR 'it: kotlin.Int declared in <root>.testLrmFoo1.<anonymous>' type=kotlin.Int origin=null
-  FUN name:testLrmFoo2 visibility:public modality:FINAL <> (ints:kotlin.collections.List<kotlin.Int>) returnType:kotlin.Unit
-    VALUE_PARAMETER name:ints index:0 type:kotlin.collections.List<kotlin.Int>
-    BLOCK_BODY
-      CALL 'public final fun forEach <T> (action: kotlin.Function1<T of kotlin.collections.CollectionsKt.forEach, kotlin.Unit>): kotlin.Unit [inline] declared in kotlin.collections.CollectionsKt' type=kotlin.Unit origin=null
-        <T>: kotlin.Int
-        $receiver: GET_VAR 'ints: kotlin.collections.List<kotlin.Int> declared in <root>.testLrmFoo2' type=kotlin.collections.List<kotlin.Int> origin=null
-        action: FUN_EXPR type=kotlin.Function1<kotlin.Int, kotlin.Unit> origin=LAMBDA
-          FUN LOCAL_FUNCTION_FOR_LAMBDA name:<anonymous> visibility:local modality:FINAL <> (it:kotlin.Int) returnType:kotlin.Unit
-            VALUE_PARAMETER name:it index:0 type:kotlin.Int
-            BLOCK_BODY
-              WHEN type=kotlin.Unit origin=IF
-                BRANCH
-                  if: CALL 'public final fun EQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EQEQ
-                    arg0: GET_VAR 'it: kotlin.Int declared in <root>.testLrmFoo2.<anonymous>' type=kotlin.Int origin=null
-                    arg1: CONST Int type=kotlin.Int value=0
-                  then: RETURN type=kotlin.Nothing from='local final fun <anonymous> (it: kotlin.Int): kotlin.Unit declared in <root>.testLrmFoo2'
-                    GET_OBJECT 'CLASS IR_EXTERNAL_DECLARATION_STUB OBJECT name:Unit modality:FINAL visibility:public superTypes:[kotlin.Any]' type=kotlin.Unit
-              CALL 'public final fun print (message: kotlin.Int): kotlin.Unit [inline] declared in kotlin.io.ConsoleKt' type=kotlin.Unit origin=null
-                message: GET_VAR 'it: kotlin.Int declared in <root>.testLrmFoo2.<anonymous>' type=kotlin.Int origin=null
diff --git a/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.kt.txt b/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.kt.txt
deleted file mode 100644
index 8792fe14792..00000000000
--- a/compiler/testData/ir/irText/lambdas/nonLocalReturn.fir.kt.txt
+++ /dev/null
@@ -1,50 +0,0 @@
-fun test0() {
-  run<Nothing>(block = local fun <anonymous>(): Nothing {
-    return Unit
-  }
-)
-}
-
-fun test1() {
-  run<Unit>(block = local fun <anonymous>() {
-    return Unit
-  }
-)
-}
-
-fun test2() {
-  run<Unit>(block = local fun <anonymous>() {
-    return Unit
-  }
-)
-}
-
-fun test3() {
-  run<Unit>(block = local fun <anonymous>() {
-    return run<Nothing>(block = local fun <anonymous>(): Nothing {
-      return Unit
-    }
-)
-  }
-)
-}
-
-fun testLrmFoo1(ints: List<Int>) {
-  ints.forEach<Int>(action = local fun <anonymous>(it: Int) {
-    when {
-      EQEQ(arg0 = it, arg1 = 0) -> return Unit
-    }
-    print(message = it)
-  }
-)
-}
-
-fun testLrmFoo2(ints: List<Int>) {
-  ints.forEach<Int>(action = local fun <anonymous>(it: Int) {
-    when {
-      EQEQ(arg0 = it, arg1 = 0) -> return Unit
-    }
-    print(message = it)
-  }
-)
-}
diff --git a/compiler/testData/ir/irText/lambdas/nonLocalReturn.kt b/compiler/testData/ir/irText/lambdas/nonLocalReturn.kt
index eb21cbba95d..05929f5cf5f 100644
--- a/compiler/testData/ir/irText/lambdas/nonLocalReturn.kt
+++ b/compiler/testData/ir/irText/lambdas/nonLocalReturn.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 // WITH_STDLIB
 
 fun test0() {