diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/coneDiagnosticToFirDiagnostic.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/coneDiagnosticToFirDiagnostic.kt
index fea281218e9..93c6faa5af0 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/coneDiagnosticToFirDiagnostic.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/coneDiagnosticToFirDiagnostic.kt
@@ -26,6 +26,7 @@ import org.jetbrains.kotlin.lexer.KtTokens
 import org.jetbrains.kotlin.resolve.calls.inference.model.*
 import org.jetbrains.kotlin.resolve.calls.tower.CandidateApplicability
 import org.jetbrains.kotlin.resolve.calls.tower.isSuccess
+import org.jetbrains.kotlin.types.AbstractTypeChecker
 import org.jetbrains.kotlin.utils.addIfNotNull
 import org.jetbrains.kotlin.utils.addToStdlib.firstIsInstance
 import org.jetbrains.kotlin.utils.addToStdlib.safeAs
@@ -230,7 +231,12 @@ private fun ConstraintSystemError.toDiagnostic(
                 }
 
             argument?.let {
-                return FirErrors.ARGUMENT_TYPE_MISMATCH.on(it.source ?: source, lowerConeType, upperConeType)
+                return FirErrors.ARGUMENT_TYPE_MISMATCH.on(
+                    it.source ?: source,
+                    lowerConeType,
+                    upperConeType,
+                    isArgumentTypeMismatchDueToNullability(lowerConeType, upperConeType, typeContext)
+                )
             }
 
             when (position) {
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
index 9c2171c1aa7..55a636e0315 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
@@ -333,6 +333,18 @@ private fun Candidate.captureTypeFromExpressionOrNull(argumentType: ConeKotlinTy
     ) as? ConeKotlinType
 }
 
+fun isArgumentTypeMismatchDueToNullability(
+    argumentType: ConeKotlinType,
+    actualExpectedType: ConeKotlinType,
+    typeContext: ConeTypeContext
+): Boolean {
+    return AbstractTypeChecker.isSubtypeOf(
+        typeContext,
+        argumentType,
+        actualExpectedType.withNullability(ConeNullability.NULLABLE, typeContext)
+    )
+}
+
 private fun checkApplicabilityForArgumentType(
     csBuilder: ConstraintSystemBuilder,
     argument: FirExpression,
@@ -375,18 +387,14 @@ private fun checkApplicabilityForArgumentType(
             return type
         }
 
-        // Reaching here means argument types mismatch, and we want to record whether it's due to the nullability by checking a subtype
-        // relation with nullable expected type.
-        val isMismatchDueToNullability = argumentType.canBeNull && !actualExpectedType.isNullable && AbstractTypeChecker.isSubtypeOf(
-            context.session.typeContext,
-            argumentType,
-            actualExpectedType.withNullability(ConeNullability.NULLABLE, context.session.typeContext)
-        )
+
         return ArgumentTypeMismatch(
             tryGetConeTypeThatCompatibleWithKtType(actualExpectedType),
             tryGetConeTypeThatCompatibleWithKtType(argumentType),
             argument,
-            isMismatchDueToNullability
+            // Reaching here means argument types mismatch, and we want to record whether it's due to the nullability by checking a subtype
+            // relation with nullable expected type.
+            isArgumentTypeMismatchDueToNullability(argumentType, actualExpectedType, context.session.typeContext)
         )
     }
 
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 8d47c364430..94bf5f1a348 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
@@ -8,15 +8,14 @@ package org.jetbrains.kotlin.fir.resolve.inference
 import org.jetbrains.kotlin.fir.FirSession
 import org.jetbrains.kotlin.fir.declarations.FirAnonymousFunction
 import org.jetbrains.kotlin.fir.expressions.FirCallableReferenceAccess
-import org.jetbrains.kotlin.fir.resolve.calls.ArgumentTypeMismatch
-import org.jetbrains.kotlin.fir.resolve.calls.Candidate
-import org.jetbrains.kotlin.fir.resolve.calls.CheckerSink
-import org.jetbrains.kotlin.fir.resolve.calls.ResolutionContext
+import org.jetbrains.kotlin.fir.resolve.calls.*
 import org.jetbrains.kotlin.fir.resolve.createFunctionalType
 import org.jetbrains.kotlin.fir.resolve.inference.model.ConeArgumentConstraintPosition
+import org.jetbrains.kotlin.fir.typeContext
 import org.jetbrains.kotlin.fir.types.*
 import org.jetbrains.kotlin.resolve.calls.inference.ConstraintSystemBuilder
 import org.jetbrains.kotlin.resolve.calls.inference.addSubtypeConstraintIfCompatible
+import org.jetbrains.kotlin.types.AbstractTypeChecker
 import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 
 fun Candidate.preprocessLambdaArgument(
@@ -57,7 +56,14 @@ fun Candidate.preprocessLambdaArgument(
             csBuilder.addSubtypeConstraint(lambdaType, expectedType, position)
         } else {
             if (!csBuilder.addSubtypeConstraintIfCompatible(lambdaType, expectedType, position)) {
-                sink.reportDiagnostic(ArgumentTypeMismatch(lambdaType, expectedType, argument))
+                sink.reportDiagnostic(
+                    ArgumentTypeMismatch(
+                        lambdaType,
+                        expectedType,
+                        argument,
+                        isArgumentTypeMismatchDueToNullability(lambdaType, expectedType, context.session.typeContext)
+                    )
+                )
             }
         }
     }