diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/LightTreeRawFirDeclarationBuilder.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/LightTreeRawFirDeclarationBuilder.kt
index 3c6c1e26495..81bb52a0cba 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/LightTreeRawFirDeclarationBuilder.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/LightTreeRawFirDeclarationBuilder.kt
@@ -1728,7 +1728,7 @@ class LightTreeRawFirDeclarationBuilder(
                 }
 
                 symbol = functionSymbol
-                dispatchReceiverType = currentDispatchReceiverType()
+                dispatchReceiverType = runIf(!isLocal) { currentDispatchReceiverType() }
                 contextReceivers.addAll(convertContextReceivers(functionDeclaration))
             }
         }
diff --git a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/PsiRawFirBuilder.kt b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/PsiRawFirBuilder.kt
index d799422135f..b3cf3329bf5 100644
--- a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/PsiRawFirBuilder.kt
+++ b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/PsiRawFirBuilder.kt
@@ -1507,7 +1507,7 @@ open class PsiRawFirBuilder(
                     name = function.nameAsSafeName
                     labelName = context.getLastLabel(function)?.name ?: runIf(!name.isSpecial) { name.identifier }
                     symbol = FirNamedFunctionSymbol(callableIdForName(function.nameAsSafeName)).also { functionSymbol = it }
-                    dispatchReceiverType = currentDispatchReceiverType()
+                    dispatchReceiverType = runIf(!isLocalFunction) { currentDispatchReceiverType() }
                     status = FirDeclarationStatusImpl(
                         if (isLocalFunction) Visibilities.Local else function.visibility,
                         function.modality,