diff --git a/src/fmt/fmt.zig b/src/fmt/fmt.zig
index cec0c46f1db..9d494c437c5 100644
--- a/src/fmt/fmt.zig
+++ b/src/fmt/fmt.zig
@@ -1044,7 +1044,15 @@ const Formatter = struct {
         }
         switch (expr) {
             .apply => |a| {
+                const fn_expr = fmt.ast.store.getExpr(a.@"fn");
+                const needs_callee_parens = fn_expr == .lambda;
+                if (needs_callee_parens) {
+                    try fmt.push('(');
+                }
                 _ = try fmt.formatExpr(a.@"fn");
+                if (needs_callee_parens) {
+                    try fmt.push(')');
+                }
                 const fn_region = fmt.nodeRegion(@intFromEnum(a.@"fn"));
                 const args_region = AST.TokenizedRegion{ .start = fn_region.end, .end = region.end };
                 try fmt.formatCollection(args_region, .round, AST.Expr.Idx, fmt.ast.store.exprSlice(a.args), Formatter.formatExpr);
diff --git a/test/snapshots/arrow_lambda_called.md b/test/snapshots/arrow_lambda_called.md
new file mode 100644
index 00000000000..e0b312af430
--- /dev/null
+++ b/test/snapshots/arrow_lambda_called.md
@@ -0,0 +1,135 @@
+# META
+~~~ini
+description=Arrow syntax with called, parenthesized lambda expressions
+type=snippet
+~~~
+# SOURCE
+~~~roc
+# Basic lambda after arrow
+test1 = 10->(|x| x + 1)()
+
+# Lambda ignoring argument
+test2 = "hello"->(|_| "world")()
+
+# Lambda with if expression
+test3 = ""->(|s| if s.is_empty() "empty" else "not empty")()
+~~~
+# EXPECTED
+NIL
+# PROBLEMS
+NIL
+# TOKENS
+~~~zig
+LowerIdent,OpAssign,Int,OpArrow,NoSpaceOpenRound,OpBar,LowerIdent,OpBar,LowerIdent,OpPlus,Int,CloseRound,NoSpaceOpenRound,CloseRound,
+LowerIdent,OpAssign,StringStart,StringPart,StringEnd,OpArrow,NoSpaceOpenRound,OpBar,Underscore,OpBar,StringStart,StringPart,StringEnd,CloseRound,NoSpaceOpenRound,CloseRound,
+LowerIdent,OpAssign,StringStart,StringPart,StringEnd,OpArrow,NoSpaceOpenRound,OpBar,LowerIdent,OpBar,KwIf,LowerIdent,NoSpaceDotLowerIdent,NoSpaceOpenRound,CloseRound,StringStart,StringPart,StringEnd,KwElse,StringStart,StringPart,StringEnd,CloseRound,NoSpaceOpenRound,CloseRound,
+EndOfFile,
+~~~
+# PARSE
+~~~clojure
+(file
+	(type-module)
+	(statements
+		(s-decl
+			(p-ident (raw "test1"))
+			(e-local-dispatch
+				(e-int (raw "10"))
+				(e-apply
+					(e-lambda
+						(args
+							(p-ident (raw "x")))
+						(e-binop (op "+")
+							(e-ident (raw "x"))
+							(e-int (raw "1")))))))
+		(s-decl
+			(p-ident (raw "test2"))
+			(e-local-dispatch
+				(e-string
+					(e-string-part (raw "hello")))
+				(e-apply
+					(e-lambda
+						(args
+							(p-underscore))
+						(e-string
+							(e-string-part (raw "world")))))))
+		(s-decl
+			(p-ident (raw "test3"))
+			(e-local-dispatch
+				(e-string
+					(e-string-part (raw "")))
+				(e-apply
+					(e-lambda
+						(args
+							(p-ident (raw "s")))
+						(e-if-then-else
+							(e-field-access
+								(e-ident (raw "s"))
+								(e-apply
+									(e-ident (raw "is_empty"))))
+							(e-string
+								(e-string-part (raw "empty")))
+							(e-string
+								(e-string-part (raw "not empty"))))))))))
+~~~
+# FORMATTED
+~~~roc
+NO CHANGE
+~~~
+# CANONICALIZE
+~~~clojure
+(can-ir
+	(d-let
+		(p-assign (ident "test1"))
+		(e-call
+			(e-lambda
+				(args
+					(p-assign (ident "x")))
+				(e-binop (op "add")
+					(e-lookup-local
+						(p-assign (ident "x")))
+					(e-num (value "1"))))
+			(e-num (value "10"))))
+	(d-let
+		(p-assign (ident "test2"))
+		(e-call
+			(e-lambda
+				(args
+					(p-underscore))
+				(e-string
+					(e-literal (string "world"))))
+			(e-string
+				(e-literal (string "hello")))))
+	(d-let
+		(p-assign (ident "test3"))
+		(e-call
+			(e-lambda
+				(args
+					(p-assign (ident "s")))
+				(e-if
+					(if-branches
+						(if-branch
+							(e-dot-access (field "is_empty")
+								(receiver
+									(e-lookup-local
+										(p-assign (ident "s"))))
+								(args))
+							(e-string
+								(e-literal (string "empty")))))
+					(if-else
+						(e-string
+							(e-literal (string "not empty"))))))
+			(e-string
+				(e-literal (string ""))))))
+~~~
+# TYPES
+~~~clojure
+(inferred-types
+	(defs
+		(patt (type "Dec"))
+		(patt (type "Str"))
+		(patt (type "Str")))
+	(expressions
+		(expr (type "Dec"))
+		(expr (type "Str"))
+		(expr (type "Str"))))
+~~~