diff --git a/compiler/rustc_trait_selection/src/error_reporting/traits/fulfillment_errors.rs b/compiler/rustc_trait_selection/src/error_reporting/traits/fulfillment_errors.rs
index 24615dfdc56..78f6cd9e656 100644
--- a/compiler/rustc_trait_selection/src/error_reporting/traits/fulfillment_errors.rs
+++ b/compiler/rustc_trait_selection/src/error_reporting/traits/fulfillment_errors.rs
@@ -1424,6 +1424,10 @@ impl<'a, 'tcx> TypeErrCtxt<'a, 'tcx> {
                 //    |                 ^^^^^ expected `Unit3`, found `Unit4`
                 //    |
                 diag.span_label(span, "");
+                if !span.overlaps(obligation.cause.span) {
+                    // Point at the binding corresponding to the closure where it is used.
+                    diag.span_label(obligation.cause.span, "");
+                }
             }
 
             let secondary_span = (|| {
diff --git a/tests/ui/closures/return-type-doesnt-match-bound.rs b/tests/ui/closures/return-type-doesnt-match-bound.rs
new file mode 100644
index 00000000000..f9098d0cb5c
--- /dev/null
+++ b/tests/ui/closures/return-type-doesnt-match-bound.rs
@@ -0,0 +1,25 @@
+use std::error::Error;
+use std::process::exit;
+
+fn foo<F>(f: F) -> ()
+where
+    F: FnOnce() -> Result<(), Box<dyn Error>>,
+{
+    f().or_else(|e| -> ! { //~ ERROR to be a closure that returns
+        eprintln!("{:?}", e);
+        exit(1)
+    });
+}
+
+fn bar<F>(f: F) -> ()
+where
+    F: FnOnce() -> Result<(), Box<dyn Error>>,
+{
+    let c = |e| -> ! { //~ ERROR to be a closure that returns
+        eprintln!("{:?}", e);
+        exit(1)
+    };
+    f().or_else(c);
+}
+
+fn main() {}
diff --git a/tests/ui/closures/return-type-doesnt-match-bound.stderr b/tests/ui/closures/return-type-doesnt-match-bound.stderr
new file mode 100644
index 00000000000..c6aad2054f5
--- /dev/null
+++ b/tests/ui/closures/return-type-doesnt-match-bound.stderr
@@ -0,0 +1,35 @@
+error[E0271]: expected `{closure@return-type-doesnt-match-bound.rs:8:17}` to be a closure that returns `Result<(), _>`, but it returns `!`
+  --> $DIR/return-type-doesnt-match-bound.rs:8:24
+   |
+LL |     f().or_else(|e| -> ! {
+   |         ------- -------^
+   |         |              |
+   |         |              expected `Result<(), _>`, found `!`
+   |         required by a bound introduced by this call
+   |
+   = note: expected enum `Result<(), _>`
+              found type `!`
+note: required by a bound in `Result::<T, E>::or_else`
+  --> $SRC_DIR/core/src/result.rs:LL:COL
+
+error[E0271]: expected `{closure@return-type-doesnt-match-bound.rs:18:13}` to be a closure that returns `Result<(), _>`, but it returns `!`
+  --> $DIR/return-type-doesnt-match-bound.rs:18:20
+   |
+LL |     let c = |e| -> ! {
+   |             -------^
+   |                    |
+   |                    expected `Result<(), _>`, found `!`
+...
+LL |     f().or_else(c);
+   |         ------- -
+   |         |
+   |         required by a bound introduced by this call
+   |
+   = note: expected enum `Result<(), _>`
+              found type `!`
+note: required by a bound in `Result::<T, E>::or_else`
+  --> $SRC_DIR/core/src/result.rs:LL:COL
+
+error: aborting due to 2 previous errors
+
+For more information about this error, try `rustc --explain E0271`.