diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiLabeledStatementImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiLabeledStatementImpl.java
index 14dee8b04c57..a6700056eeab 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiLabeledStatementImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiLabeledStatementImpl.java
@@ -102,7 +102,7 @@ public class PsiLabeledStatementImpl extends CompositePsiElement implements PsiL
 
   @Override
   public boolean processDeclarations(@NotNull PsiScopeProcessor processor, @NotNull ResolveState state, PsiElement lastParent, @NotNull PsiElement place) {
-    if (lastParent != null && lastParent.getParent() != this){
+    if (lastParent == null || lastParent.getParent() != this){
       PsiElement[] children = getChildren();
       for (PsiElement aChildren : children) {
         if (!aChildren.processDeclarations(processor, state, null, place)) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingPatterns/InstanceOfControlFlow.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingPatterns/InstanceOfControlFlow.java
index 6ac423d006cb..0cef91829525 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingPatterns/InstanceOfControlFlow.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingPatterns/InstanceOfControlFlow.java
@@ -117,4 +117,12 @@ class X {
     }
     System.out.println("Found: "+s.trim());
   }
+  
+  void testLabel() {
+    Object o = "hello";
+    L0: if(!(o instanceof String s)) {
+      return;
+    }
+    System.out.println(s.length());
+  }
 }
\ No newline at end of file