diff --git a/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/references/Fe10IdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java b/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/references/Fe10IdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
index 4537e2baf40..d18fd9bf07b 100644
--- a/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/references/Fe10IdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
+++ b/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/references/Fe10IdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
@@ -1561,6 +1561,12 @@ public class Fe10IdeNormalAnalysisSourceModuleReferenceResolveTestGenerated exte
             runTest("analysis/analysis-api/testData/referenceResolve/withErrors/AnnotationParameter.kt");
         }
 
+        @Test
+        @TestMetadata("ByReturnExpression.kt")
+        public void testByReturnExpression() throws Exception {
+            runTest("analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt");
+        }
+
         @Test
         @TestMetadata("ClassNameBeforeDot.kt")
         public void testClassNameBeforeDot() throws Exception {
diff --git a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/references/FirReferenceResolveHelper.kt b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/references/FirReferenceResolveHelper.kt
index 5e0c6ab08b7..192ac4017b1 100644
--- a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/references/FirReferenceResolveHelper.kt
+++ b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/references/FirReferenceResolveHelper.kt
@@ -387,7 +387,8 @@ internal object FirReferenceResolveHelper {
         symbolBuilder: KtSymbolByFirBuilder
     ): Collection<KtSymbol> {
         return if (expression is KtLabelReferenceExpression) {
-            listOf(fir.target.labeledElement.buildSymbol(symbolBuilder))
+            val labeledElement = fir.target.labeledElement
+            if (labeledElement is FirErrorFunction) emptyList() else listOf(labeledElement.buildSymbol(symbolBuilder))
         } else emptyList()
     }
 
diff --git a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeDependentAnalysisSourceModuleReferenceResolveTestGenerated.java b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeDependentAnalysisSourceModuleReferenceResolveTestGenerated.java
index 7b60669ccd8..dcdaae07d78 100644
--- a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeDependentAnalysisSourceModuleReferenceResolveTestGenerated.java
+++ b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeDependentAnalysisSourceModuleReferenceResolveTestGenerated.java
@@ -1561,6 +1561,12 @@ public class FirIdeDependentAnalysisSourceModuleReferenceResolveTestGenerated ex
             runTest("analysis/analysis-api/testData/referenceResolve/withErrors/AnnotationParameter.kt");
         }
 
+        @Test
+        @TestMetadata("ByReturnExpression.kt")
+        public void testByReturnExpression() throws Exception {
+            runTest("analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt");
+        }
+
         @Test
         @TestMetadata("ClassNameBeforeDot.kt")
         public void testClassNameBeforeDot() throws Exception {
diff --git a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
index d8f1f19529d..a8259f9b44e 100644
--- a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
+++ b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/references/FirIdeNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
@@ -1561,6 +1561,12 @@ public class FirIdeNormalAnalysisSourceModuleReferenceResolveTestGenerated exten
             runTest("analysis/analysis-api/testData/referenceResolve/withErrors/AnnotationParameter.kt");
         }
 
+        @Test
+        @TestMetadata("ByReturnExpression.kt")
+        public void testByReturnExpression() throws Exception {
+            runTest("analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt");
+        }
+
         @Test
         @TestMetadata("ClassNameBeforeDot.kt")
         public void testClassNameBeforeDot() throws Exception {
diff --git a/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/references/FirStandaloneNormalAnalysisSourceModuleReferenceResolveTestGenerated.java b/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/references/FirStandaloneNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
index b2046eeeb42..438a5c0c164 100644
--- a/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/references/FirStandaloneNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
+++ b/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/references/FirStandaloneNormalAnalysisSourceModuleReferenceResolveTestGenerated.java
@@ -1561,6 +1561,12 @@ public class FirStandaloneNormalAnalysisSourceModuleReferenceResolveTestGenerate
             runTest("analysis/analysis-api/testData/referenceResolve/withErrors/AnnotationParameter.kt");
         }
 
+        @Test
+        @TestMetadata("ByReturnExpression.kt")
+        public void testByReturnExpression() throws Exception {
+            runTest("analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt");
+        }
+
         @Test
         @TestMetadata("ClassNameBeforeDot.kt")
         public void testClassNameBeforeDot() throws Exception {
diff --git a/analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt b/analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt
new file mode 100644
index 00000000000..86e890c6a47
--- /dev/null
+++ b/analysis/analysis-api/testData/referenceResolve/withErrors/ByReturnExpression.kt
@@ -0,0 +1,8 @@
+// UNRESOLVED_REFERENCE
+fun bar(block: () -> Unit) {}
+
+fun foo() {
+    bar {
+        return@<caret>b
+    }
+}
\ No newline at end of file