diff --git a/ets2panda/checker/ets/assignAnalyzer.cpp b/ets2panda/checker/ets/assignAnalyzer.cpp
index a411f9d429bf07f01adc90396a3a08a1261112b7..5a80f4b41ddb94c64d77f1c5d2b18c4189813219 100644
--- a/ets2panda/checker/ets/assignAnalyzer.cpp
+++ b/ets2panda/checker/ets/assignAnalyzer.cpp
@@ -1184,8 +1184,26 @@ void AssignAnalyzer::AnalyzeUpdateExpr(const ir::UpdateExpression *updateExpr)
 
 void AssignAnalyzer::AnalyzeArrowFunctionExpr(const ir::ArrowFunctionExpression *arrowFuncExpr)
 {
-    // NOTE (pantos) handle lamdas correctly
-    (void)arrowFuncExpr;
+    auto *func = arrowFuncExpr->Function();
+    ES2PANDA_ASSERT(func != nullptr);
+    if (func->Body() == nullptr || func->IsProxy()) {
+        return;
+    }
+
+    Set initsPrev = inits_;
+    Set uninitsPrev = uninits_;
+    ScopeGuard save(firstAdr_, nextAdr_, returnAdr_, isInitialConstructor_);
+    hasTryFinallyBlock_ = func->IsAnyChild([](ir::AstNode *ast) {
+        return (ast->Type() == ir::AstNodeType::TRY_STATEMENT && ast->AsTryStatement()->FinallyBlock() != nullptr);
+    });
+    isInitialConstructor_ = false;
+    firstAdr_ = nextAdr_;
+
+    AnalyzeStat(func->Body());
+    CheckPendingExits();
+
+    inits_ = std::move(initsPrev);
+    uninits_ = std::move(uninitsPrev);
 }
 
 util::StringView AssignAnalyzer::GetVariableType(const ir::AstNode *node) const
diff --git a/ets2panda/test/ast/compiler/ets/assign_analyzer_for_lambda_neg.ets b/ets2panda/test/ast/compiler/ets/assign_analyzer_for_lambda_neg.ets
new file mode 100644
index 0000000000000000000000000000000000000000..3e9c2de64cd03a7fb8063db00f2a2d0d5b1ca280
--- /dev/null
+++ b/ets2panda/test/ast/compiler/ets/assign_analyzer_for_lambda_neg.ets
@@ -0,0 +1,32 @@
+/*
+ * Copyright (c) 2025 Huawei Device Co., Ltd.
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+function it(s:string, cb: (done: ()=> void) => Promise<void>) {}
+function foo(s: SymKey) {}
+interface SymKey {
+  index: number;
+  name: string;
+}
+
+it("test", async (done: () => void): Promise<void> => {
+      try {
+        let algName: string = "SHA256";
+        let key: SymKey;
+        foo(/* @@ label */key)
+      } catch (error) {}
+      done();
+});
+
+/* @@@ label Error TypeError: Variable 'key' is used before being assigned. */