diff --git a/pkg/analysis_server/lib/src/lsp/handlers/handler_inline_value.dart b/pkg/analysis_server/lib/src/lsp/handlers/handler_inline_value.dart
index 58816cd9b6c..2492c3c1e09 100644
--- a/pkg/analysis_server/lib/src/lsp/handlers/handler_inline_value.dart
+++ b/pkg/analysis_server/lib/src/lsp/handlers/handler_inline_value.dart
@@ -335,6 +335,12 @@ class _InlineValueVisitor extends GeneralizingAstVisitor<void> {
     super.visitFunctionExpression(node);
   }
 
+  @override
+  void visitGenericFunctionType(GenericFunctionType node) {
+    // Don't descent into function types or we may generate values
+    // for their parameters.
+  }
+
   @override
   void visitPrefixedIdentifier(PrefixedIdentifier node) {
     if (experimentalInlineValuesProperties) {
diff --git a/pkg/analysis_server/test/lsp/inline_value_test.dart b/pkg/analysis_server/test/lsp/inline_value_test.dart
index 5a8004f4acd..b6c275e830b 100644
--- a/pkg/analysis_server/test/lsp/inline_value_test.dart
+++ b/pkg/analysis_server/test/lsp/inline_value_test.dart
@@ -120,6 +120,20 @@ void f(List list1, List<int> /*[0*/list2/*0]*/, Iterable iterable1, Iterable ite
     await verify_values(code, ofType: InlineValueVariableLookup);
   }
 
+  Future<void> test_parameter_nestedInFunctionType() async {
+    // A parameter nested inside a function type should not produce a value.
+    code = TestCode.parse(r'''
+void f(
+  int /*[0*/value/*0]*/, {
+  required void Function(int value) /*[1*/func/*1]*/,
+}) {
+  ^
+}
+''');
+
+    await verify_values(code, ofType: InlineValueVariableLookup);
+  }
+
   Future<void> test_parameter_read() async {
     code = TestCode.parse(r'''
 void f(int aaa, int bbb) {