diff --git a/ets2panda/checker/types/signature.cpp b/ets2panda/checker/types/signature.cpp
index 5ced79c41120e511b5f411031ffe5a045c8275b0..4533d51d309bd4531ecd1e4ea21d85ee0b66feaf 100644
--- a/ets2panda/checker/types/signature.cpp
+++ b/ets2panda/checker/types/signature.cpp
@@ -51,6 +51,10 @@ Signature *Signature::Substitute(TypeRelation *relation, const Substitution *sub
         if (newParamType != param->TsType()) {
             anyChange = true;
             newParam = param->Copy(allocator, param->Declaration());
+            if (newParamType->IsETSVoidType()) {
+                // since `void` is not allowed to be used as param type
+                newParamType = checker->GlobalETSUndefinedType();
+            }
             newParam->SetTsType(newParamType);
         }
         newSigInfo->params.push_back(newParam);
diff --git a/ets2panda/test/runtime/ets/voidTypeArg.ets b/ets2panda/test/runtime/ets/voidTypeArg.ets
index 66c7cee2db95bbecc20c51e4655eec6c7eb92a84..e9367a44f66f9e5518b4d47d82fdbfe4dccd8c77 100644
--- a/ets2panda/test/runtime/ets/voidTypeArg.ets
+++ b/ets2panda/test/runtime/ets/voidTypeArg.ets
@@ -17,9 +17,17 @@ function foo<T>(a0: T): T {
     return a0;
 }
 
+type Fn<T> = (e: T) => void;
+
+function test(arg: Fn<void>) {}
+
 function main() : void {
     foo<void>(undefined);
     let bfoo = foo<undefined>(undefined);
 
     arktest.assertEQ(bfoo, undefined)
+
+    test((e) => {
+        arktest.assertEQ(e, undefined)
+    })
 }