diff --git a/java/codeserver/highlighting/src/com/intellij/java/codeserver/highlighting/JavaErrorVisitor.java b/java/codeserver/highlighting/src/com/intellij/java/codeserver/highlighting/JavaErrorVisitor.java
index 4e170bfa990d..dfa5a67fbb7f 100644
--- a/java/codeserver/highlighting/src/com/intellij/java/codeserver/highlighting/JavaErrorVisitor.java
+++ b/java/codeserver/highlighting/src/com/intellij/java/codeserver/highlighting/JavaErrorVisitor.java
@@ -1,4 +1,4 @@
-// Copyright 2000-2025 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+// Copyright 2000-2026 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.java.codeserver.highlighting;
 
 import com.intellij.codeInsight.UnhandledExceptions;
@@ -208,7 +208,7 @@ final class JavaErrorVisitor extends JavaElementVisitor {
     if (ContainerUtil.exists(JavaErrorFilter.EP_NAME.getExtensionList(), ep -> ep.shouldSuppressError(myPsiFile, error))) return;
     myErrorConsumer.accept(error);
   }
-  
+
   @Contract(pure = true)
   boolean isApplicable(@NotNull JavaFeature feature) {
     return feature.isSufficient(myLanguageLevel);
@@ -242,7 +242,7 @@ final class JavaErrorVisitor extends JavaElementVisitor {
   boolean hasErrorResults() {
     return myHasError;
   }
-  
+
   @Contract(pure = true)
   boolean isIncompleteModel() {
     return IncompleteModelUtil.isIncompleteModel(myPsiFile);
@@ -376,7 +376,7 @@ final class JavaErrorVisitor extends JavaElementVisitor {
     if (!hasErrorResults()) checkFeature(annotation, JavaFeature.ANNOTATIONS);
     myAnnotationChecker.checkAnnotation(annotation);
   }
-  
+
   @Override
   public void visitPackageStatement(@NotNull PsiPackageStatement statement) {
     super.visitPackageStatement(statement);
@@ -517,8 +517,7 @@ final class JavaErrorVisitor extends JavaElementVisitor {
     if (!hasErrorResults()) myFunctionChecker.checkMethodReferenceQualifier(expression);
     if (!hasErrorResults()) {
       boolean resolvedButNonApplicable = results.length == 1 && results[0] instanceof MethodCandidateInfo methodInfo &&
-                                         !methodInfo.isApplicable() &&
-                                         functionalInterfaceType != null;
+                                         !methodInfo.isApplicable() && functionalInterfaceType != null;
       if (results.length != 1 || resolvedButNonApplicable) {
         if (expression.isConstructor()) {
           PsiClass containingClass = PsiMethodReferenceUtil.getQualifierResolveResult(expression).getContainingClass();
@@ -548,17 +547,19 @@ final class JavaErrorVisitor extends JavaElementVisitor {
       }
     }
     if (!hasErrorResults()) myFunctionChecker.checkRawConstructorReference(expression);
+    PsiClass aClass = PsiUtil.resolveClassInClassTypeOnly(LambdaUtil.normalizeFunctionalType(functionalInterfaceType));
     if (functionalInterfaceType != null) {
       if (!hasErrorResults()) myFunctionChecker.checkExtendsSealedClass(expression, functionalInterfaceType);
-      boolean isFunctional = LambdaUtil.isFunctionalType(functionalInterfaceType);
-      if (!hasErrorResults() && !isFunctional && 
+      if (!hasErrorResults() && (aClass != null || !(functionalInterfaceType instanceof PsiClassType)) && !LambdaUtil.isFunctionalClass(aClass) &&
           !(isIncompleteModel() && IncompleteModelUtil.isUnresolvedClassType(functionalInterfaceType))) {
         report(JavaErrorKinds.LAMBDA_NOT_FUNCTIONAL_INTERFACE.create(expression, functionalInterfaceType));
       }
       if (!hasErrorResults()) myFunctionChecker.checkMethodReferenceContext(expression, functionalInterfaceType);
       if (!hasErrorResults()) myFunctionChecker.checkFunctionalInterfaceTypeAccessible(expression, functionalInterfaceType);
     }
-    if (!hasErrorResults()) myFunctionChecker.checkMethodReferenceResolve(expression, results, functionalInterfaceType);
+    if (!hasErrorResults() && (aClass != null || results.length == 0)) {
+      myFunctionChecker.checkMethodReferenceResolve(expression, results, functionalInterfaceType);
+    }
     if (!hasErrorResults()) myFunctionChecker.checkMethodReferenceReturnType(expression, result, functionalInterfaceType);
     if (!hasErrorResults() && method instanceof PsiModifierListOwner) checkPreviewFeature(expression);
   }
@@ -918,7 +919,7 @@ final class JavaErrorVisitor extends JavaElementVisitor {
     if (!hasErrorResults()) myTypeChecker.checkVarTypeApplicability(variable);
     if (!hasErrorResults()) myTypeChecker.checkVariableInitializerType(variable);
   }
-  
+
   @Override
   public void visitReferenceExpression(@NotNull PsiReferenceExpression expression) {
     visitElement(expression);
@@ -978,8 +979,6 @@ final class JavaErrorVisitor extends JavaElementVisitor {
     if (!hasErrorResults()) myExpressionChecker.checkClassReferenceAfterQualifier(expression, resolved);
     if (!hasErrorResults() && resolved instanceof PsiModifierListOwner) checkPreviewFeature(expression);
   }
-  
-  
 
   @Override
   public void visitArrayInitializerExpression(@NotNull PsiArrayInitializerExpression expression) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/FunctionalInterfaceCheck.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/FunctionalInterfaceCheck.java
index 74537d41e2c0..bec80c60542b 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/FunctionalInterfaceCheck.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/FunctionalInterfaceCheck.java
@@ -1,5 +1,6 @@
 class Demo {
     public static void main(String[] args) {
         Runnable r = () -> <error descr="void is not a functional interface">() -> () -> {}</error>;
+        <error descr="Cannot resolve symbol 'Supplier'">Supplier</error><String> unresolved = String::new;
     }
 }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Ambiguity.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Ambiguity.java
index 294b7554ccff..43a177f60ebc 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Ambiguity.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Ambiguity.java
@@ -22,7 +22,7 @@ class MyTest {
 
     {
         Bar1 b1 = MyTest :: foo;
-        bar(MyTest :: <error descr="Reference to 'foo' is ambiguous, both 'foo(String)' and 'foo(int)' match">foo</error>);
+        bar<error descr="Ambiguous method call: both 'MyTest.bar(Bar1)' and 'MyTest.bar(Bar2)' match">(MyTest :: foo)</error>;
     }
 }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
index 676e16731df6..ec1a5235f21a 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
@@ -71,7 +71,7 @@ class StaticInner1 {
     static void call3(I2 s) {}
 
     static {
-      call3(StaticInner1.Inner :: <error descr="Cannot resolve constructor 'Inner'">new</error>);
+      call3<error descr="Ambiguous method call: both 'StaticInner1.call3(I1)' and 'StaticInner1.call3(I2)' match">(StaticInner1.Inner :: new)</error>;
     }
 }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/SOE.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/SOE.java
index 23459132ca89..12ccc26a5b76 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/SOE.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/SOE.java
@@ -2,7 +2,7 @@ import java.util.*;
 
 class LambdaTest {
     public void testR() {
-        new ArrayList<String>() :: <error descr="Reference to 'size' is ambiguous, both 'size()' and 'size()' match">size</error> = ""; 
+        <error descr="Variable expected">new ArrayList<String>() :: size</error> = ""; 
 
     }
 }
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/StaticProblems.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/StaticProblems.java
index 56b1bad6f2a1..e6e06559878d 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/StaticProblems.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/StaticProblems.java
@@ -116,7 +116,7 @@ class MyTest2 {
     static void call3(I2 s) {}
     static {
           call3(MyTest2::m1);
-          call3(MyTest2::<error descr="Reference to 'm2' is ambiguous, both 'm2(MyTest2, String)' and 'm2(String)' match">m2</error>);
+          call3<error descr="Ambiguous method call: both 'MyTest2.call3(I1)' and 'MyTest2.call3(I2)' match">(MyTest2::m2)</error>;
           call3(MyTest2::m3);
           call3(MyTest2::<error descr="Reference to 'm4' is ambiguous, both 'm4(MyTest2, String)' and 'm4(String)' match">m4</error>);
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newLambda/AmbiguousConstructorCallWithLambdaInside.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newLambda/AmbiguousConstructorCallWithLambdaInside.java
index 96c76b4a99d1..6c56fe9b4761 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newLambda/AmbiguousConstructorCallWithLambdaInside.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newLambda/AmbiguousConstructorCallWithLambdaInside.java
@@ -4,8 +4,8 @@ import java.util.function.Supplier;
 class OverloadCast {
 
     public void runMe() {
-        new OverloadCast<error descr="Cannot resolve constructor 'OverloadCast(<method reference>, <lambda expression>)'">(WhitespaceTokenizer::<error descr="Cannot resolve constructor 'WhitespaceTokenizer'">new</error>, src -> new LowerCaseFilter(src))</error>;
-        overloadCast<error descr="Ambiguous method call: both 'OverloadCast.overloadCast(Supplier<Tokenizer>, Function<TokenStream, TokenFilter>)' and 'OverloadCast.overloadCast(Function<TokenStream, TokenFilter>, Function<String, String>)' match">(WhitespaceTokenizer::<error descr="Cannot resolve constructor 'WhitespaceTokenizer'">new</error>, src -> new LowerCaseFilter(src))</error>;
+        new OverloadCast<error descr="Cannot resolve constructor 'OverloadCast(<method reference>, <lambda expression>)'">(WhitespaceTokenizer::new, src -> new LowerCaseFilter(src))</error>;
+        overloadCast<error descr="Ambiguous method call: both 'OverloadCast.overloadCast(Supplier<Tokenizer>, Function<TokenStream, TokenFilter>)' and 'OverloadCast.overloadCast(Function<TokenStream, TokenFilter>, Function<String, String>)' match">(WhitespaceTokenizer::new, src -> new LowerCaseFilter(src))</error>;
     }
 
     private OverloadCast(Supplier<Tokenizer> tokenizerFactory, Function<TokenStream, TokenFilter> filterCreator) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/CreateMethodFromMethodRefApplicability.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/CreateMethodFromMethodRefApplicability.java
index 18864ddf7d99..1cb004a59305 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/CreateMethodFromMethodRefApplicability.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/CreateMethodFromMethodRefApplicability.java
@@ -16,7 +16,7 @@ class DemoApplicationTests {
     Stream.of("")
       .map(l -> a.get(l.length()))
       .map(s -> new DemoApplicationTests()).findAny()
-      .map(d -> d.foo(this::<error descr="Reference to 'bar' is ambiguous, both 'bar(int)' and 'bar(long)' match">bar</error>));
+      .map(d -> d.foo<error descr="Ambiguous method call: both 'DemoApplicationTests.foo(Consumer<Object>)' and 'DemoApplicationTests.foo(Function<Object, Object>)' match">(this::bar)</error>);
   }
 
   <T> void foo(Consumer<T> c) {}
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialApplicability.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialApplicability.java
index cad6bc3d9eb9..bda9f7270b74 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialApplicability.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialApplicability.java
@@ -31,8 +31,8 @@ class Test {
         String i1 = instanceCall(this::m0);
         String i2 = instanceCall(this::m1);
         String i3 = instanceCall(this::m2);
-        String i4 = instanceCall(this::<error descr="Reference to 'm01' is ambiguous, both 'm01()' and 'm01(String)' match">m01</error>);
-        String i5 = instanceCall(this::<error descr="Reference to 'm012' is ambiguous, both 'm012()' and 'm012(String)' match">m012</error>);
+        String i4 = instanceCall<error descr="Ambiguous method call: both 'Test.instanceCall(I0)' and 'Test.instanceCall(I1<Object>)' match">(this::m01)</error>;
+        String i5 = instanceCall<error descr="Ambiguous method call: both 'Test.instanceCall(I0)' and 'Test.instanceCall(I1<Object>)' match">(this::m012)</error>;
     }
 
     void n0() { }
@@ -53,7 +53,7 @@ class Test {
         Test s1 = staticCall(Test::n0);
         Test s2 = staticCall(Test::n1);
         Test s3 = staticCall<error descr="Cannot resolve method 'staticCall(<method reference>)'">(Test::n2)</error>;
-        Test s4 = staticCall(Test::<error descr="Reference to 'n01' is ambiguous, both 'n01()' and 'n01(String)' match">n01</error>);
-        Test s5 = staticCall(Test::<error descr="Reference to 'n012' is ambiguous, both 'n012()' and 'n012(String)' match">n012</error>);
+        Test s4 = staticCall<error descr="Ambiguous method call: both 'Test.staticCall(I1<Object>)' and 'Test.staticCall(I2<Object, String>)' match">(Test::n01)</error>;
+        Test s5 = staticCall<error descr="Ambiguous method call: both 'Test.staticCall(I1<Object>)' and 'Test.staticCall(I2<Object, String>)' match">(Test::n012)</error>;
     }
 }
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialCompatibilityWithInvalidShape.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialCompatibilityWithInvalidShape.java
index 547a5f1b784b..8b2cd92ac7a7 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialCompatibilityWithInvalidShape.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/PotentialCompatibilityWithInvalidShape.java
@@ -34,7 +34,7 @@ class Test {
   {
     Set<String> m = replyWith(this::query);
     System.out.println(m);
-    Set<String> m1 = replyWith(this::<error descr="Reference to 'query1' is ambiguous, both 'query1()' and 'query1(String)' match">query1</error>);
+    Set<String> m1 = replyWith<error descr="Ambiguous method call: both 'Test.replyWith(Function<Object, List<Object>>)' and 'Test.replyWith(Callable<List<Object>>)' match">(this::query1)</error>;
     System.out.println(m1);
   }
 }