diff --git a/src/Var.cc b/src/Var.cc
index c447517b53..d49323b7f3 100644
--- a/src/Var.cc
+++ b/src/Var.cc
@@ -476,16 +476,6 @@ void end_func(IntrusivePtr<Stmt> body)
 	{
 	auto ingredients = std::make_unique<function_ingredients>(pop_scope(), std::move(body));
 
-	if ( streq(ingredients->id->Name(), "anonymous-function") )
-		{
-		OuterIDBindingFinder cb(ingredients->scope.get());
-		ingredients->body->Traverse(&cb);
-
-		for ( size_t i = 0; i < cb.outer_id_references.size(); ++i )
-			cb.outer_id_references[i]->Error(
-						"referencing outer function IDs not supported");
-		}
-
 	if ( ingredients->id->HasVal() )
 		ingredients->id->ID_Val()->AsFunc()->AddBody(
 			ingredients->body,
diff --git a/src/parse.y b/src/parse.y
index 7f379d44ec..dd22fbee04 100644
--- a/src/parse.y
+++ b/src/parse.y
@@ -57,7 +57,7 @@
 %type <ic> init_class
 %type <expr> opt_init
 %type <val> TOK_CONSTANT
-%type <expr> expr opt_expr init anonymous_function index_slice opt_deprecated
+%type <expr> expr opt_expr init anonymous_function lambda_body index_slice opt_deprecated
 %type <event_expr> event
 %type <stmt> stmt stmt_list func_body for_head
 %type <type> type opt_type enum_body
@@ -504,7 +504,7 @@ expr:
 			$$ = new FieldAssignExpr($2, {AdoptRef{}, $4});
 			}
 
-	|       '$' TOK_ID func_params '='
+	|	'$' TOK_ID func_params '='
 			{
 			func_hdr_location = @1;
 			func_id = current_scope()->GenerateTemporary("anonymous-function");
@@ -512,11 +512,9 @@ expr:
 			begin_func(func_id, current_module.c_str(), FUNC_FLAVOR_FUNCTION,
 			           0, {AdoptRef{}, $3});
 			}
-		 func_body
+		 lambda_body
 			{
-			$$ = new FieldAssignExpr($2,
-			        make_intrusive<ConstExpr>(
-			            IntrusivePtr<Val>{NewRef{}, func_id->ID_Val()}));
+			$$ = new FieldAssignExpr($2, IntrusivePtr{AdoptRef{}, $6});
 			Unref(func_id);
 			}
 
@@ -1237,9 +1235,7 @@ func_body:
 			}
 	;
 
-anonymous_function:
-		TOK_FUNCTION begin_func
-
+lambda_body:
 		'{'
 			{
 			saved_in_init.push_back(in_init);
@@ -1254,20 +1250,25 @@ anonymous_function:
 
 		'}'
 			{
-			set_location(@1, @7);
+			set_location(@1, @5);
 
 			// Code duplication here is sad but needed. end_func actually instantiates the function
 			// and associates it with an ID. We perform that association later and need to return
 			// a lambda expression.
 
 			// Gather the ingredients for a BroFunc from the current scope
-			auto ingredients = std::make_unique<function_ingredients>(IntrusivePtr{NewRef{}, current_scope()}, IntrusivePtr{AdoptRef{}, $5});
+			auto ingredients = std::make_unique<function_ingredients>(IntrusivePtr{NewRef{}, current_scope()}, IntrusivePtr{AdoptRef{}, $3});
 			id_list outer_ids = gather_outer_ids(pop_scope().get(), ingredients->body.get());
 
 			$$ = new LambdaExpr(std::move(ingredients), std::move(outer_ids));
 			}
 	;
 
+anonymous_function:
+		TOK_FUNCTION begin_func lambda_body
+			{ $$ = $3; }
+	;
+
 begin_func:
 		func_params
 			{
diff --git a/testing/btest/Baseline/language.lambda-record-field/out b/testing/btest/Baseline/language.lambda-record-field/out
new file mode 100644
index 0000000000..31e0fce560
--- /dev/null
+++ b/testing/btest/Baseline/language.lambda-record-field/out
@@ -0,0 +1 @@
+helloworld
diff --git a/testing/btest/Baseline/scripts.base.frameworks.input.reread/out b/testing/btest/Baseline/scripts.base.frameworks.input.reread/out
index 19d323afcb..13adcdd31d 100644
--- a/testing/btest/Baseline/scripts.base.frameworks.input.reread/out
+++ b/testing/btest/Baseline/scripts.base.frameworks.input.reread/out
@@ -39,7 +39,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -134,7 +134,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -241,7 +241,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -468,7 +468,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -593,7 +593,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -718,7 +718,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -843,7 +843,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -968,7 +968,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1198,7 +1198,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1251,7 +1251,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1304,7 +1304,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1357,7 +1357,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1410,7 +1410,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
@@ -1463,7 +1463,7 @@ print A::outfile, Left;
 print A::outfile, A::left;
 print A::outfile, Right;
 print A::outfile, A::right;
-}, pred=anonymous-function
+}, pred=lambda_<10906653936191056190>
 { 
 print A::outfile, ============PREDICATE============;
 print A::outfile, A::typ;
diff --git a/testing/btest/language/lambda-record-field.zeek b/testing/btest/language/lambda-record-field.zeek
new file mode 100644
index 0000000000..bcb7e1bc75
--- /dev/null
+++ b/testing/btest/language/lambda-record-field.zeek
@@ -0,0 +1,13 @@
+# @TEST-EXEC: zeek -b %INPUT >out
+# @TEST-EXEC: btest-diff out
+
+type myrec: record {
+	foo: function(a: string);
+};
+
+event zeek_init()
+	{
+	local w = "world";
+	local mr = myrec($foo(a: string) = { print a + w; });
+	mr$foo("hello");
+	}