diff --git a/crates/ide-completion/src/context/analysis.rs b/crates/ide-completion/src/context/analysis.rs
index db0045aef6e..fff9678e5e9 100644
--- a/crates/ide-completion/src/context/analysis.rs
+++ b/crates/ide-completion/src/context/analysis.rs
@@ -353,7 +353,7 @@ fn expected_type_and_name(
         _ => ty,
     };
 
-    loop {
+    let (ty, name) = loop {
         break match_ast! {
             match node {
                 ast::LetStmt(it) => {
@@ -385,9 +385,7 @@ fn expected_type_and_name(
                        token.clone(),
                     ).map(|ap| {
                         let name = ap.ident().map(NameOrNameRef::Name);
-
-                        let ty = strip_refs(ap.ty);
-                        (Some(ty), name)
+                        (Some(ap.ty), name)
                     })
                     .unwrap_or((None, None))
                 },
@@ -489,7 +487,8 @@ fn expected_type_and_name(
                 },
             }
         };
-    }
+    };
+    (ty.map(strip_refs), name)
 }
 
 fn classify_lifetime(
diff --git a/crates/ide-completion/src/context/tests.rs b/crates/ide-completion/src/context/tests.rs
index a654a5db574..82a1c10c531 100644
--- a/crates/ide-completion/src/context/tests.rs
+++ b/crates/ide-completion/src/context/tests.rs
@@ -411,3 +411,15 @@ fn main() {
         expect!["ty: i32, name: ?"],
     );
 }
+
+#[test]
+fn expected_type_ref_return_pos() {
+    check_expected_type_and_name(
+        r#"
+fn f(thing: u32) -> &u32 {
+    &thin$0
+}
+"#,
+        expect!["ty: u32, name: ?"],
+    );
+}