diff --git a/compiler/mono/src/ir.rs b/compiler/mono/src/ir.rs
index 4a1c6b1f23..cbf8649aaf 100644
--- a/compiler/mono/src/ir.rs
+++ b/compiler/mono/src/ir.rs
@@ -4212,6 +4212,7 @@ fn convert_tag_union<'a>(
             )));
         }
     };
+
     match variant {
         Never => unreachable!(
             "The `[]` type has no constructors, source var {:?}",
@@ -4253,7 +4254,13 @@ fn convert_tag_union<'a>(
                 .unwrap_or_else(|err| panic!("TODO turn fn_var into a RuntimeError {:?}", err));
 
             // even though this was originally a Tag, we treat it as a Struct from now on
-            let stmt = Stmt::Let(assigned, Expr::Struct(field_symbols), layout, hole);
+            let stmt = if let [only_field] = field_symbols {
+                let mut hole = hole.clone();
+                substitute_in_exprs(env.arena, &mut hole, assigned, *only_field);
+                hole
+            } else {
+                Stmt::Let(assigned, Expr::Struct(field_symbols), layout, hole)
+            };
 
             let iter = field_symbols_temp.into_iter().map(|(_, _, data)| data);
             assign_to_symbols(env, procs, layout_cache, iter, stmt)
@@ -4480,6 +4487,7 @@ fn tag_union_to_function<'a>(
 ) -> Stmt<'a> {
     let mut loc_pattern_args = vec![];
     let mut loc_expr_args = vec![];
+
     for arg_var in argument_variables {
         let arg_symbol = env.unique_symbol();
 
@@ -4490,12 +4498,14 @@ fn tag_union_to_function<'a>(
         loc_pattern_args.push((arg_var, loc_pattern));
         loc_expr_args.push((arg_var, loc_expr));
     }
+
     let loc_body = Located::at_zero(roc_can::expr::Expr::Tag {
         variant_var: return_variable,
         name: tag_name,
         arguments: loc_expr_args,
         ext_var,
     });
+
     let inserted = procs.insert_anonymous(
         env,
         proc_symbol,
@@ -4506,8 +4516,9 @@ fn tag_union_to_function<'a>(
         return_variable,
         layout_cache,
     );
+
     match inserted {
-        Ok(layout) => {
+        Ok(_layout) => {
             // only need to construct closure data
             let full_layout =
                 return_on_layout_error!(env, layout_cache.from_var(env.arena, whole_var, env.subs));
diff --git a/compiler/test_gen/src/gen_tags.rs b/compiler/test_gen/src/gen_tags.rs
index 81c5500ed1..a16ba1a6af 100644
--- a/compiler/test_gen/src/gen_tags.rs
+++ b/compiler/test_gen/src/gen_tags.rs
@@ -996,7 +996,6 @@ fn applied_tag_function() {
 }
 
 #[test]
-#[ignore]
 fn applied_tag_function_result() {
     assert_evals_to!(
         indoc!(
@@ -1016,7 +1015,6 @@ fn applied_tag_function_result() {
 }
 
 #[test]
-#[ignore]
 fn applied_tag_function_linked_list() {
     assert_evals_to!(
         indoc!(
diff --git a/compiler/unify/src/unify.rs b/compiler/unify/src/unify.rs
index 3f88aff3bd..7a7ca125a0 100644
--- a/compiler/unify/src/unify.rs
+++ b/compiler/unify/src/unify.rs
@@ -1270,11 +1270,11 @@ fn unify_function_or_tag_union_and_func(
     pool: &mut Pool,
     ctx: &Context,
     tag_name: &TagName,
-    _tag_symbol: Symbol,
+    tag_symbol: Symbol,
     tag_ext: Variable,
     function_arguments: &[Variable],
     function_return: Variable,
-    _function_lambda_set: Variable,
+    function_lambda_set: Variable,
     left: bool,
 ) -> Outcome {
     use FlatType::*;
@@ -1287,12 +1287,40 @@ fn unify_function_or_tag_union_and_func(
 
     let new_tag_union_var = fresh(subs, pool, ctx, content);
 
-    let problems = if left {
+    let mut problems = if left {
         unify_pool(subs, pool, new_tag_union_var, function_return)
     } else {
         unify_pool(subs, pool, function_return, new_tag_union_var)
     };
 
+    {
+        let lambda_set_ext = subs.fresh_unnamed_flex_var();
+
+        let mut closure_tags = MutMap::with_capacity_and_hasher(1, default_hasher());
+        closure_tags.insert(TagName::Closure(tag_symbol), vec![]);
+
+        let lambda_set_content = Structure(TagUnion(closure_tags, lambda_set_ext));
+
+        let tag_lambda_set = register(
+            subs,
+            Descriptor {
+                content: lambda_set_content,
+                rank: ctx.first_desc.rank.min(ctx.second_desc.rank),
+                mark: Mark::NONE,
+                copy: OptVariable::NONE,
+            },
+            pool,
+        );
+
+        let closure_problems = if left {
+            unify_pool(subs, pool, tag_lambda_set, function_lambda_set)
+        } else {
+            unify_pool(subs, pool, function_lambda_set, tag_lambda_set)
+        };
+
+        problems.extend(closure_problems);
+    }
+
     if problems.is_empty() {
         let desc = if left {
             subs.get(ctx.second)