diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 59982ce7c8d..4bd89816b3d 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -20638,6 +20638,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
                 runTest("compiler/testData/diagnostics/tests/inline/labeled.kt");
             }
 
+            @Test
+            @TestMetadata("labelsAndNonInlineUsage.kt")
+            public void testLabelsAndNonInlineUsage() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt");
+            }
+
             @Test
             @TestMetadata("lambdaCast.kt")
             public void testLambdaCast() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index a040b392f9c..e2b7f4b9f6c 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -20638,6 +20638,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
                 runTest("compiler/testData/diagnostics/tests/inline/labeled.kt");
             }
 
+            @Test
+            @TestMetadata("labelsAndNonInlineUsage.kt")
+            public void testLabelsAndNonInlineUsage() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt");
+            }
+
             @Test
             @TestMetadata("lambdaCast.kt")
             public void testLambdaCast() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 91f85bbfbc4..e21f32a453d 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -20632,6 +20632,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
                 runTest("compiler/testData/diagnostics/tests/inline/labeled.kt");
             }
 
+            @Test
+            @TestMetadata("labelsAndNonInlineUsage.kt")
+            public void testLabelsAndNonInlineUsage() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt");
+            }
+
             @Test
             @TestMetadata("lambdaCast.kt")
             public void testLambdaCast() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index cfbe1730ad0..dfa824a937d 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -20638,6 +20638,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/tests/inline/labeled.kt");
             }
 
+            @Test
+            @TestMetadata("labelsAndNonInlineUsage.kt")
+            public void testLabelsAndNonInlineUsage() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt");
+            }
+
             @Test
             @TestMetadata("lambdaCast.kt")
             public void testLambdaCast() throws Exception {
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInlineDeclarationChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInlineDeclarationChecker.kt
index 478e386198b..85c955447eb 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInlineDeclarationChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirInlineDeclarationChecker.kt
@@ -132,7 +132,7 @@ object FirInlineDeclarationChecker : FirFunctionChecker(MppCheckerKind.Common) {
             val calledFunctionSymbol = targetSymbol as? FirFunctionSymbol ?: return
             val argumentMapping = functionCall.resolvedArgumentMapping ?: return
             for ((wrappedArgument, valueParameter) in argumentMapping) {
-                val argument = wrappedArgument.unwrapArgument()
+                val argument = wrappedArgument.unwrapErrorExpression()?.unwrapArgument() ?: continue
                 val resolvedArgumentSymbol = argument.toResolvedCallableSymbol(session) as? FirVariableSymbol<*> ?: continue
 
                 val valueParameterOfOriginalInlineFunction = inlinableParameters.firstOrNull { it == resolvedArgumentSymbol }
@@ -163,7 +163,8 @@ object FirInlineDeclarationChecker : FirFunctionChecker(MppCheckerKind.Common) {
             reporter: DiagnosticReporter,
         ) {
             if (receiverExpression == null) return
-            val receiverSymbol = receiverExpression.toResolvedCallableSymbol(session) as? FirValueParameterSymbol ?: return
+            val receiverSymbol =
+                receiverExpression.unwrapErrorExpression()?.toResolvedCallableSymbol(session) as? FirValueParameterSymbol ?: return
             if (receiverSymbol in inlinableParameters) {
                 if (!isInvokeOrInlineExtension(targetSymbol)) {
                     reporter.reportOn(
@@ -217,9 +218,9 @@ object FirInlineDeclarationChecker : FirFunctionChecker(MppCheckerKind.Common) {
             val containingQualifiedAccess = context.callsOrAssignments.getOrNull(
                 context.callsOrAssignments.size - 2
             ) ?: return false
-            if (this == (containingQualifiedAccess as? FirQualifiedAccessExpression)?.explicitReceiver) return true
+            if (this == (containingQualifiedAccess as? FirQualifiedAccessExpression)?.explicitReceiver?.unwrapErrorExpression()) return true
             val call = containingQualifiedAccess as? FirCall ?: return false
-            return call.arguments.any { it.unwrapArgument() == this }
+            return call.arguments.any { it.unwrapErrorExpression()?.unwrapArgument() == this }
         }
 
         private fun checkVisibilityAndAccess(
diff --git a/compiler/fir/tree/src/org/jetbrains/kotlin/fir/expressions/FirExpressionUtil.kt b/compiler/fir/tree/src/org/jetbrains/kotlin/fir/expressions/FirExpressionUtil.kt
index f0586027977..5f4ea5f60f3 100644
--- a/compiler/fir/tree/src/org/jetbrains/kotlin/fir/expressions/FirExpressionUtil.kt
+++ b/compiler/fir/tree/src/org/jetbrains/kotlin/fir/expressions/FirExpressionUtil.kt
@@ -101,6 +101,9 @@ fun <T : FirStatement> FirBlock.replaceFirstStatement(factory: (T) -> FirStateme
     return existing
 }
 
+fun FirExpression.unwrapErrorExpression(): FirExpression? =
+    if (this is FirErrorExpression) expression?.run { unwrapErrorExpression() } else this
+
 fun FirExpression.unwrapArgument(): FirExpression = (this as? FirWrappedArgumentExpression)?.expression ?: this
 
 fun FirExpression.unwrapAndFlattenArgument(flattenArrays: Boolean): List<FirExpression> = buildList { unwrapAndFlattenArgumentTo(this, flattenArrays) }
diff --git a/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.fir.kt b/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.fir.kt
new file mode 100644
index 00000000000..3f4aba8cad5
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.fir.kt
@@ -0,0 +1,37 @@
+// !DIAGNOSTICS: -REDUNDANT_LABEL_WARNING -UNDERSCORE_IS_RESERVED
+
+// See KT-65337
+// !DIAGNOSTICS: -UNRESOLVED_REFERENCE
+
+// KT-65319
+inline fun inline(s: () -> Unit) {}
+fun noInline(s: () -> Unit) {}
+
+inline fun bar(s: () -> Unit) {
+    inline(s)
+    noInline(<!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    inline(l@ s)
+    noInline(l@ <!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    inline(l2@ l1@ s)
+    noInline(l2@ l1@ <!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    inline(_@ s)
+    noInline(_@ <!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    inline(__@ _@ s)
+    noInline(__@ _@ <!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    s()
+    (l@ s)()
+    (l2@ l1@ s)()
+    (_@ s)()
+    (__@ _@ s)()
+
+    s.invoke()
+    (l@ s).invoke()
+    (l2@ l1@ s).invoke()
+    (_@ s).invoke()
+    (__@ _@ s).invoke()
+}
diff --git a/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt b/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt
new file mode 100644
index 00000000000..52d054200c9
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt
@@ -0,0 +1,37 @@
+// !DIAGNOSTICS: -REDUNDANT_LABEL_WARNING -UNDERSCORE_IS_RESERVED
+
+// See KT-65337
+// !DIAGNOSTICS: -UNRESOLVED_REFERENCE
+
+// KT-65319
+inline fun inline(s: () -> Unit) {}
+fun noInline(s: () -> Unit) {}
+
+inline fun bar(s: () -> Unit) {
+    inline(s)
+    noInline(<!USAGE_IS_NOT_INLINABLE!>s<!>)
+
+    inline(l@ s)
+    noInline(l@ s)
+
+    inline(l2@ l1@ s)
+    noInline(l2@ l1@ s)
+
+    inline(_@ s)
+    noInline(_@ s)
+
+    inline(__@ _@ s)
+    noInline(__@ _@ s)
+
+    s()
+    (l@ s)()
+    (l2@ l1@ s)()
+    (_@ s)()
+    (__@ _@ s)()
+
+    s.invoke()
+    (l@ s).invoke()
+    (l2@ l1@ s).invoke()
+    (_@ s).invoke()
+    (__@ _@ s).invoke()
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 426977c1d02..654e1584b0c 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -20638,6 +20638,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/inline/labeled.kt");
             }
 
+            @Test
+            @TestMetadata("labelsAndNonInlineUsage.kt")
+            public void testLabelsAndNonInlineUsage() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inline/labelsAndNonInlineUsage.kt");
+            }
+
             @Test
             @TestMetadata("lambdaCast.kt")
             public void testLambdaCast() throws Exception {