diff --git a/crates/ide_completion/src/completions/fn_param.rs b/crates/ide_completion/src/completions/fn_param.rs
index 80ad3b9c8f..1488436df3 100644
--- a/crates/ide_completion/src/completions/fn_param.rs
+++ b/crates/ide_completion/src/completions/fn_param.rs
@@ -6,14 +6,17 @@ use syntax::{
     match_ast, AstNode,
 };
 
-use crate::{CompletionContext, CompletionItem, CompletionItemKind, CompletionKind, Completions};
+use crate::{
+    context::ParamKind, CompletionContext, CompletionItem, CompletionItemKind, CompletionKind,
+    Completions,
+};
 
 /// Complete repeated parameters, both name and type. For example, if all
 /// functions in a file have a `spam: &mut Spam` parameter, a completion with
 /// `spam: &mut Spam` insert text/label and `spam` lookup string will be
 /// suggested.
 pub(crate) fn complete_fn_param(acc: &mut Completions, ctx: &CompletionContext) -> Option<()> {
-    if !ctx.is_param {
+    if ctx.is_param != Some(ParamKind::Function) {
         return None;
     }
 
diff --git a/crates/ide_completion/src/context.rs b/crates/ide_completion/src/context.rs
index e38234a8a5..f4637c401b 100644
--- a/crates/ide_completion/src/context.rs
+++ b/crates/ide_completion/src/context.rs
@@ -60,6 +60,12 @@ pub(crate) enum CallKind {
     Mac,
     Expr,
 }
+
+#[derive(Copy, Clone, Debug, PartialEq, Eq)]
+pub(crate) enum ParamKind {
+    Function,
+    Closure,
+}
 /// `CompletionContext` is created early during completion to figure out, where
 /// exactly is the cursor, syntax-wise.
 #[derive(Debug)]
@@ -91,7 +97,7 @@ pub(crate) struct CompletionContext<'a> {
 
     // potentially set if we are completing a name
     pub(super) is_pat_or_const: Option<PatternRefutability>,
-    pub(super) is_param: bool,
+    pub(super) is_param: Option<ParamKind>,
 
     pub(super) completion_location: Option<ImmediateLocation>,
     pub(super) prev_sibling: Option<ImmediatePrevSibling>,
@@ -158,7 +164,7 @@ impl<'a> CompletionContext<'a> {
             lifetime_allowed: false,
             is_label_ref: false,
             is_pat_or_const: None,
-            is_param: false,
+            is_param: None,
             completion_location: None,
             prev_sibling: None,
             attribute_under_caret: None,
@@ -670,7 +676,17 @@ impl<'a> CompletionContext<'a> {
             self.fill_impl_def();
         }
 
-        self.is_param |= is_node::<ast::Param>(name.syntax());
+        if let Some(param) = name
+            .syntax()
+            .ancestors()
+            .find_map(ast::Param::cast)
+            .filter(|it| it.syntax().text_range() == name.syntax().text_range())
+        {
+            let is_closure_param =
+                param.syntax().ancestors().nth(2).and_then(ast::ClosureExpr::cast).is_some();
+            self.is_param =
+                Some(if is_closure_param { ParamKind::Closure } else { ParamKind::Function });
+        }
     }
 
     fn classify_name_ref(&mut self, original_file: &SyntaxNode, name_ref: ast::NameRef) {
@@ -774,13 +790,6 @@ fn find_node_with_range<N: AstNode>(syntax: &SyntaxNode, range: TextRange) -> Op
     syntax.covering_element(range).ancestors().find_map(N::cast)
 }
 
-fn is_node<N: AstNode>(node: &SyntaxNode) -> bool {
-    match node.ancestors().find_map(N::cast) {
-        None => false,
-        Some(n) => n.syntax().text_range() == node.text_range(),
-    }
-}
-
 fn path_or_use_tree_qualifier(path: &ast::Path) -> Option<(ast::Path, bool)> {
     if let Some(qual) = path.qualifier() {
         return Some((qual, false));
diff --git a/crates/ide_completion/src/render/pattern.rs b/crates/ide_completion/src/render/pattern.rs
index 17dd6662f5..67961a602f 100644
--- a/crates/ide_completion/src/render/pattern.rs
+++ b/crates/ide_completion/src/render/pattern.rs
@@ -4,7 +4,10 @@ use hir::{db::HirDatabase, HasAttrs, HasVisibility, Name, StructKind};
 use ide_db::helpers::SnippetCap;
 use itertools::Itertools;
 
-use crate::{item::CompletionKind, render::RenderContext, CompletionItem, CompletionItemKind};
+use crate::{
+    context::ParamKind, item::CompletionKind, render::RenderContext, CompletionItem,
+    CompletionItemKind,
+};
 
 pub(crate) fn render_struct_pat(
     ctx: RenderContext<'_>,
@@ -83,7 +86,7 @@ fn render_pat(
         _ => return None,
     };
 
-    if ctx.completion.is_param {
+    if ctx.completion.is_param == Some(ParamKind::Function) {
         pat.push(':');
         pat.push(' ');
         pat.push_str(name);
diff --git a/crates/ide_completion/src/render/struct_literal.rs b/crates/ide_completion/src/render/struct_literal.rs
index a6571eb022..68871a4671 100644
--- a/crates/ide_completion/src/render/struct_literal.rs
+++ b/crates/ide_completion/src/render/struct_literal.rs
@@ -58,11 +58,6 @@ fn render_literal(
         _ => return None,
     };
 
-    if ctx.completion.is_param {
-        literal.push(':');
-        literal.push(' ');
-        literal.push_str(name);
-    }
     if ctx.snippet_cap().is_some() {
         literal.push_str("$0");
     }
diff --git a/crates/ide_completion/src/tests/pattern.rs b/crates/ide_completion/src/tests/pattern.rs
index 10647e490e..3e10575b19 100644
--- a/crates/ide_completion/src/tests/pattern.rs
+++ b/crates/ide_completion/src/tests/pattern.rs
@@ -309,3 +309,41 @@ fn outer(Foo { bar$0 }: Foo) {}
         expect![[r#""#]],
     )
 }
+
+#[test]
+fn completes_in_fn_param() {
+    check_empty(
+        r#"
+struct Foo { bar: Bar }
+struct Bar(u32);
+fn foo($0) {}
+"#,
+        expect![[r#"
+            kw mut
+            bn Foo Foo { bar$1 }: Foo$0
+            st Foo
+            bn Bar Bar($1): Bar$0
+            st Bar
+        "#]],
+    )
+}
+
+#[test]
+fn completes_in_closure_param() {
+    check_empty(
+        r#"
+struct Foo { bar: Bar }
+struct Bar(u32);
+fn foo() {
+    |$0| {};
+}
+"#,
+        expect![[r#"
+            kw mut
+            bn Foo Foo { bar$1 }$0
+            st Foo
+            bn Bar Bar($1)$0
+            st Bar
+        "#]],
+    )
+}