diff --git a/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/compile/CodeFragmentCapturedValue.kt b/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/compile/CodeFragmentCapturedValue.kt
index d8617561cdf..50241d895cc 100644
--- a/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/compile/CodeFragmentCapturedValue.kt
+++ b/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/compile/CodeFragmentCapturedValue.kt
@@ -85,12 +85,6 @@ public sealed class CodeFragmentCapturedValue(
             get() = "this@$name"
     }
 
-    /** Represents a captured named local function. */
-    public class LocalFunction(
-        name: Name,
-        isCrossingInlineBounds: Boolean,
-    ) : CodeFragmentCapturedValue(name.asString(), isMutated = false, isCrossingInlineBounds)
-
     /** Represents an externally provided value. */
     public class ForeignValue(
         name: Name,
diff --git a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.capturing.txt b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.capturing.txt
index 3d1f7671d8d..8f6923a8842 100644
--- a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.capturing.txt
+++ b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.capturing.txt
@@ -1,6 +1,3 @@
-LocalFunction[name: call; isMutated: false; displayText: call]
-    fun call(a: R|kotlin/Int|, b: R|kotlin/String|): R|kotlin/Unit|
-    R|(kotlin/Int, kotlin/String) -> kotlin/Unit|
 Local[name: x; isMutated: false; displayText: x]
     lval x: R|kotlin/Int|
     R|kotlin/Int|
diff --git a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.ir.txt b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.ir.txt
index 8fbb48011c4..e6ecff33f07 100644
--- a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.ir.txt
+++ b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.ir.txt
@@ -22,10 +22,11 @@ MODULE_FRAGMENT name:<Sources of main>
       CONSTRUCTOR visibility:public <> () returnType:<root>.CodeFragment [primary]
         BLOCK_BODY
           DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () [primary] declared in kotlin.Any'
-      FUN name:run visibility:public modality:FINAL <> (p0:kotlin.Function2<kotlin.Int, kotlin.String, kotlin.Unit>, p1:kotlin.Int, p2:kotlin.String) returnType:kotlin.Unit
-        VALUE_PARAMETER name:p0 index:0 type:kotlin.Function2<kotlin.Int, kotlin.String, kotlin.Unit>
-        VALUE_PARAMETER name:p1 index:1 type:kotlin.Int
-        VALUE_PARAMETER name:p2 index:2 type:kotlin.String
+      FUN name:run visibility:public modality:FINAL <> (p0:kotlin.Int, p1:kotlin.String) returnType:kotlin.Unit
+        VALUE_PARAMETER name:p0 index:0 type:kotlin.Int
+        VALUE_PARAMETER name:p1 index:1 type:kotlin.String
         EXPRESSION_BODY
           BLOCK type=kotlin.Unit origin=null
-            GET_VAR 'p0: kotlin.Function2<kotlin.Int, kotlin.String, kotlin.Unit> declared in <root>.CodeFragment.run' type=kotlin.Function2<kotlin.Int, kotlin.String, kotlin.Unit> origin=null
+            CALL 'local final fun call (a: kotlin.Int, b: kotlin.String): kotlin.Unit declared in <root>.test' type=kotlin.Unit origin=null
+              a: GET_VAR 'p0: kotlin.Int declared in <root>.CodeFragment.run' type=kotlin.Int origin=null
+              b: GET_VAR 'p1: kotlin.String declared in <root>.CodeFragment.run' type=kotlin.String origin=null
diff --git a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.txt b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.txt
index 23fe40979b5..79040982afb 100644
--- a/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.txt
+++ b/analysis/analysis-api/testData/components/compilerFacility/compilation/codeFragments/capturing/localFunction.txt
@@ -1,7 +1,7 @@
 public final class CodeFragment {
     // source: 'fragment.kt'
     public method <init>(): void
-    public final static method run(p0: kotlin.jvm.functions.Function2, p1: int, p2: java.lang.String): void
+    public final static method run(p0: int, p1: java.lang.String): void
 }
 
 public final class LocalFunctionKt
\ No newline at end of file
diff --git a/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/compile/CodeFragmentCapturedValueAnalyzer.kt b/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/compile/CodeFragmentCapturedValueAnalyzer.kt
index 5a8cebd8e16..71836cc3a80 100644
--- a/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/compile/CodeFragmentCapturedValueAnalyzer.kt
+++ b/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/compile/CodeFragmentCapturedValueAnalyzer.kt
@@ -27,14 +27,12 @@ import org.jetbrains.kotlin.fir.labelName
 import org.jetbrains.kotlin.fir.references.FirSuperReference
 import org.jetbrains.kotlin.fir.references.FirThisReference
 import org.jetbrains.kotlin.fir.references.toResolvedCallableSymbol
-import org.jetbrains.kotlin.fir.resolve.constructFunctionType
 import org.jetbrains.kotlin.fir.resolve.defaultType
 import org.jetbrains.kotlin.fir.symbols.FirBasedSymbol
 import org.jetbrains.kotlin.fir.symbols.impl.*
 import org.jetbrains.kotlin.fir.types.FirResolvedTypeRef
 import org.jetbrains.kotlin.fir.types.FirTypeRef
 import org.jetbrains.kotlin.fir.types.builder.buildResolvedTypeRef
-import org.jetbrains.kotlin.fir.types.specialFunctionTypeKind
 import org.jetbrains.kotlin.fir.visitors.FirDefaultVisitorVoid
 import org.jetbrains.kotlin.name.StandardClassIds
 import org.jetbrains.kotlin.psi
@@ -195,12 +193,6 @@ private class CodeFragmentCapturedValueVisitor(
             }
             is FirNamedFunctionSymbol -> {
                 if (symbol.isLocal) {
-                    val isCrossingInlineBounds = isCrossingInlineBounds(element, symbol)
-                    val capturedValue = CodeFragmentCapturedValue.LocalFunction(symbol.name, isCrossingInlineBounds)
-                    val firFunction = symbol.fir
-                    val functionType = firFunction.constructFunctionType(firFunction.specialFunctionTypeKind(session))
-                    val typeRef = buildResolvedTypeRef { type = functionType }
-                    register(symbol, CodeFragmentCapturedSymbol(capturedValue, symbol, typeRef))
                     registerFile(symbol)
                 }
             }