diff --git a/compiler/src/dotty/tools/dotc/ast/Desugar.scala b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
index d0a8733d05f7..0bbe5ee7c7ac 100644
--- a/compiler/src/dotty/tools/dotc/ast/Desugar.scala
+++ b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
@@ -1611,6 +1611,8 @@ object desugar {
     def makePolyFunction(targs: List[Tree], body: Tree): Tree = body match {
       case Parens(body1) =>
         makePolyFunction(targs, body1)
+      case Block(Nil, body1) =>
+        makePolyFunction(targs, body1)
       case Function(vargs, res) =>
         assert(targs.nonEmpty)
         // TODO: Figure out if we need a `PolyFunctionWithMods` instead.
diff --git a/compiler/src/dotty/tools/dotc/parsing/Parsers.scala b/compiler/src/dotty/tools/dotc/parsing/Parsers.scala
index eac39ca72120..c8ad2d706945 100644
--- a/compiler/src/dotty/tools/dotc/parsing/Parsers.scala
+++ b/compiler/src/dotty/tools/dotc/parsing/Parsers.scala
@@ -1312,6 +1312,7 @@ object Parsers {
 
     private def isFunction(tree: Tree): Boolean = tree match {
       case Parens(tree1) => isFunction(tree1)
+      case Block(Nil, tree1) => isFunction(tree1)
       case _: Function => true
       case _ => false
     }
diff --git a/tests/run/polymorphic-functions.scala b/tests/run/polymorphic-functions.scala
index e723fa34cf79..d059484d60cd 100644
--- a/tests/run/polymorphic-functions.scala
+++ b/tests/run/polymorphic-functions.scala
@@ -95,4 +95,6 @@ object Test extends App {
   // Parens handling
   val tt1: [T] => (T => T) = [T] =>  (x: T) => x
   val tt2: [T] =>  T => T =  [T] => ((x: T) => x)
+  val tt3: [T] =>  T => T =  [T] => { (x: T) => x }
+  val tt4: [T] =>  T => T =  [T] => (x: T) => { x }
 }