diff --git a/plugins/kotlin/code-insight/fixes-k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/fixes/CreateLabelFixFactories.kt b/plugins/kotlin/code-insight/fixes-k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/fixes/CreateLabelFixFactories.kt
index 094b27b0d78e..8b85b7654373 100644
--- a/plugins/kotlin/code-insight/fixes-k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/fixes/CreateLabelFixFactories.kt
+++ b/plugins/kotlin/code-insight/fixes-k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/fixes/CreateLabelFixFactories.kt
@@ -11,7 +11,8 @@ import org.jetbrains.kotlin.psi.*
 internal object CreateLabelFixFactories {
 
     val unresolvedLabelFactory = KotlinQuickFixFactory.IntentionBased { diagnostic: KaFirDiagnostic.UnresolvedLabel ->
-        val labelReferenceExpression = diagnostic.psi as? KtLabelReferenceExpression ?: return@IntentionBased emptyList()
+        val labelReferenceExpression = diagnostic.psi as? KtLabelReferenceExpression
+            ?: (diagnostic.psi as? KtReturnExpression)?.getTargetLabel() as? KtLabelReferenceExpression ?: return@IntentionBased emptyList()
         return@IntentionBased getFixes(labelReferenceExpression)
     }
 
diff --git a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt
index c1e06dfc2951..0e0f042a0dd6 100644
--- a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt
+++ b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt
@@ -1,6 +1,3 @@
-/* IGNORE_K2 */
-// Remove this ignoring after KT-69829 is fixed
-
 // "Create label foo@" "true"
 
 inline fun Int.bar(f: (Int) -> Unit) { }
diff --git a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt.after b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt.after
index 88032abe9f6b..afc60e8f92f9 100644
--- a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt.after
+++ b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInLambda.kt.after
@@ -1,6 +1,3 @@
-/* IGNORE_K2 */
-// Remove this ignoring after KT-69829 is fixed
-
 // "Create label foo@" "true"
 
 inline fun Int.bar(f: (Int) -> Unit) { }
diff --git a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt
index 47f67ade81b2..1010df00360a 100644
--- a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt
+++ b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt
@@ -1,6 +1,3 @@
-/* IGNORE_K2 */
-// Remove this ignoring after KT-69829 is fixed
-
 // "Create label foo@" "true"
 
 inline fun Int.bar(f: (Int) -> Unit) { }
diff --git a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt.after b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt.after
index 0f4663741ec8..d4efe8f9a754 100644
--- a/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt.after
+++ b/plugins/kotlin/idea/tests/testData/quickfix/createLabel/returnInOuterLambda.kt.after
@@ -1,6 +1,3 @@
-/* IGNORE_K2 */
-// Remove this ignoring after KT-69829 is fixed
-
 // "Create label foo@" "true"
 
 inline fun Int.bar(f: (Int) -> Unit) { }