diff --git a/spec/compiler/codegen/proc_spec.cr b/spec/compiler/codegen/proc_spec.cr
index d53ab169dad9..2c4998d116ce 100644
--- a/spec/compiler/codegen/proc_spec.cr
+++ b/spec/compiler/codegen/proc_spec.cr
@@ -9,6 +9,14 @@ describe "Code gen: proc" do
     run("f = ->(x : Int32) { x &+ 1 }; f.call(41)").to_i.should eq(42)
   end
 
+  it "call proc literal with return type" do
+    run(<<-CR).to_b.should be_true
+      f = -> : Int32 | Float64 { 1 }
+      x = f.call
+      x.is_a?(Int32) && x == 1
+      CR
+  end
+
   it "call proc pointer" do
     run("def foo; 1; end; x = ->foo; x.call").to_i.should eq(1)
   end
diff --git a/spec/compiler/formatter/formatter_spec.cr b/spec/compiler/formatter/formatter_spec.cr
index 90f347238de3..6520b56478d1 100644
--- a/spec/compiler/formatter/formatter_spec.cr
+++ b/spec/compiler/formatter/formatter_spec.cr
@@ -780,6 +780,7 @@ describe Crystal::Formatter do
   assert_format "foo = 1\n->foo.bar=(Int32)"
   assert_format "foo = 1\n->foo.[](Int32)"
   assert_format "foo = 1\n->foo.[]=(Int32)"
+
   assert_format "->{ x }"
   assert_format "->{\nx\n}", "->{\n  x\n}"
   assert_format "->do\nx\nend", "->do\n  x\nend"
@@ -787,6 +788,12 @@ describe Crystal::Formatter do
   assert_format "->() do x end", "->do x end"
   assert_format "->( x , y )   { x }", "->(x, y) { x }"
   assert_format "->( x : Int32 , y )   { x }", "->(x : Int32, y) { x }"
+  assert_format "->{}"
+
+  assert_format "-> : Int32 {}"
+  assert_format "->\n:\nInt32\n{\n}", "-> : Int32 {\n}"
+  assert_format "->( x )\n:\nInt32 { }", "->(x) : Int32 {}"
+  assert_format "->: Int32 do\nx\nend", "-> : Int32 do\n  x\nend"
 
   {:+, :-, :*, :/, :^, :>>, :<<, :|, :&, :&+, :&-, :&*, :&**}.each do |sym|
     assert_format ":#{sym}"
diff --git a/spec/compiler/macro/macro_methods_spec.cr b/spec/compiler/macro/macro_methods_spec.cr
index b52ae9e3b3f3..f7d450ce26e7 100644
--- a/spec/compiler/macro/macro_methods_spec.cr
+++ b/spec/compiler/macro/macro_methods_spec.cr
@@ -2081,6 +2081,11 @@ module Crystal
       it "executes args" do
         assert_macro %({{x.args}}), "[z]", {x: ProcLiteral.new(Def.new("->", [Arg.new("z")]))}
       end
+
+      it "executes return_type" do
+        assert_macro %({{x.return_type}}), "Int32", {x: ProcLiteral.new(Def.new("->", return_type: "Int32".path))}
+        assert_macro %({{x.return_type}}), "", {x: ProcLiteral.new(Def.new("->"))}
+      end
     end
 
     describe "proc pointer methods" do
diff --git a/spec/compiler/parser/parser_spec.cr b/spec/compiler/parser/parser_spec.cr
index 8e4216e52ccb..2b14541c2e43 100644
--- a/spec/compiler/parser/parser_spec.cr
+++ b/spec/compiler/parser/parser_spec.cr
@@ -1318,6 +1318,15 @@ module Crystal
     it_parses "x = 1; ->{ x }", [Assign.new("x".var, 1.int32), ProcLiteral.new(Def.new("->", body: "x".var))]
     it_parses "f ->{ a do\n end\n }", Call.new(nil, "f", ProcLiteral.new(Def.new("->", body: Call.new(nil, "a", block: Block.new))))
 
+    it_parses "-> : Int32 { }", ProcLiteral.new(Def.new("->", return_type: "Int32".path))
+    it_parses "->\n:\nInt32\n{\n}", ProcLiteral.new(Def.new("->", return_type: "Int32".path))
+    it_parses "->() : Int32 { }", ProcLiteral.new(Def.new("->", return_type: "Int32".path))
+    it_parses "->() : Int32 do end", ProcLiteral.new(Def.new("->", return_type: "Int32".path))
+    it_parses "->(x : Int32) : Int32 { }", ProcLiteral.new(Def.new("->", [Arg.new("x", restriction: "Int32".path)], return_type: "Int32".path))
+
+    assert_syntax_error "-> :Int32 { }", "a space is mandatory between ':' and return type"
+    assert_syntax_error "->() :Int32 { }", "a space is mandatory between ':' and return type"
+
     %w(foo foo= foo? foo!).each do |method|
       it_parses "->#{method}", ProcPointer.new(nil, method)
       it_parses "foo = 1; ->foo.#{method}", [Assign.new("foo".var, 1.int32), ProcPointer.new("foo".var, method)]
diff --git a/spec/compiler/parser/to_s_spec.cr b/spec/compiler/parser/to_s_spec.cr
index 9b740a6ece96..cb35814d6e10 100644
--- a/spec/compiler/parser/to_s_spec.cr
+++ b/spec/compiler/parser/to_s_spec.cr
@@ -188,4 +188,6 @@ describe "ASTNode#to_s" do
   expect_to_s %[他.说("你好")]
   expect_to_s %[他.说 = "你好"]
   expect_to_s %[あ.い, う.え.お = 1, 2]
+  expect_to_s "-> : Int32 do\nend"
+  expect_to_s "->(x : Int32, y : Bool) : Char do\n  'a'\nend"
 end
diff --git a/spec/compiler/semantic/instance_var_spec.cr b/spec/compiler/semantic/instance_var_spec.cr
index e0fb8c83de5c..4300972205a9 100644
--- a/spec/compiler/semantic/instance_var_spec.cr
+++ b/spec/compiler/semantic/instance_var_spec.cr
@@ -775,6 +775,22 @@ describe "Semantic: instance var" do
       )) { named_tuple_of({"x": int32, "y": string}) }
   end
 
+  it "infers type from proc literal with return type" do
+    assert_type(<<-CR) { proc_of([int32, bool, string]) }
+      class Foo
+        def initialize
+          @x = ->(x : Int32, y : Bool) : String { "" }
+        end
+
+        def x
+          @x
+        end
+      end
+
+      Foo.new.x
+      CR
+  end
+
   it "infers type from new expression" do
     assert_type(%(
       class Bar
diff --git a/spec/compiler/semantic/proc_spec.cr b/spec/compiler/semantic/proc_spec.cr
index 0d522a95ba48..8886d00cda62 100644
--- a/spec/compiler/semantic/proc_spec.cr
+++ b/spec/compiler/semantic/proc_spec.cr
@@ -21,6 +21,18 @@ describe "Semantic: proc" do
     assert_type("f = ->(x : Int32) { x }; f.call(1)", inject_primitives: true) { int32 }
   end
 
+  it "types proc literal with return type (1)" do
+    assert_type("->(x : Int32) : Int32 { x }") { proc_of(int32, int32) }
+  end
+
+  it "types proc literal with return type (2)" do
+    assert_type("-> : Int32 | String { 1 }") { proc_of(union_of int32, string) }
+  end
+
+  it "types proc call with return type" do
+    assert_type("x = -> : Int32 | String { 1 }; x.call()", inject_primitives: true) { union_of int32, string }
+  end
+
   it "types proc pointer" do
     assert_type("def foo; 1; end; ->foo") { proc_of(int32) }
   end
@@ -227,6 +239,14 @@ describe "Semantic: proc" do
       "can't cast Proc(Int32, Float64) to Proc(Float64, Float64)", inject_primitives: true
   end
 
+  it "errors if inferred return type doesn't match return type restriction (1)" do
+    assert_error "-> : Int32 { true }", "expected Proc to return Int32, not Bool"
+  end
+
+  it "errors if inferred return type doesn't match return type restriction (2)" do
+    assert_error "->(x : Int32) : Int32 { x || 'a' }", "expected Proc to return Int32, not (Char | Int32)"
+  end
+
   it "types proc literal hard type inference (1)" do
     assert_type(%(
       require "prelude"
@@ -763,6 +783,13 @@ describe "Semantic: proc" do
         "can't use #{type} as a Proc argument type"
     end
 
+    it "disallows #{type} in proc return types" do
+      assert_error %(
+        -> : #{type} { }
+        ),
+        "can't use #{type} as a Proc argument type"
+    end
+
     it "disallows #{type} in captured block" do
       assert_error %(
         def foo(&block : #{type} ->)
@@ -795,6 +822,13 @@ describe "Semantic: proc" do
         "can't use Object as a Proc argument type"
     end
 
+    it "disallows Class in proc return types" do
+      assert_error %(
+        -> : Class { }
+        ),
+        "can't use Class as a Proc argument type"
+    end
+
     it "disallows Class in captured block" do
       assert_error %(
         def foo(&block : Class ->)
diff --git a/src/compiler/crystal/macros.cr b/src/compiler/crystal/macros.cr
index 56fc0126f280..5f4ef695acea 100644
--- a/src/compiler/crystal/macros.cr
+++ b/src/compiler/crystal/macros.cr
@@ -1480,6 +1480,10 @@ module Crystal::Macros
     # Returns the body of this proc.
     def body : ASTNode
     end
+
+    # Returns the return type of this proc, if specified.
+    def return_type : ASTNode | Nop
+    end
   end
 
   # A proc pointer, like `->my_var.some_method(String)`
diff --git a/src/compiler/crystal/macros/methods.cr b/src/compiler/crystal/macros/methods.cr
index 2d98f4a64264..80535fdc5575 100644
--- a/src/compiler/crystal/macros/methods.cr
+++ b/src/compiler/crystal/macros/methods.cr
@@ -1188,7 +1188,7 @@ module Crystal
   class ProcLiteral
     def interpret(method : String, args : Array(ASTNode), named_args : Hash(String, ASTNode)?, block : Crystal::Block?, interpreter : Crystal::MacroInterpreter, name_loc : Location?)
       case method
-      when "args", "body"
+      when "args", "body", "return_type"
         @def.interpret(method, args, named_args, block, interpreter, location)
       else
         super
diff --git a/src/compiler/crystal/semantic/bindings.cr b/src/compiler/crystal/semantic/bindings.cr
index 83a9f344787e..e745fe5109f4 100644
--- a/src/compiler/crystal/semantic/bindings.cr
+++ b/src/compiler/crystal/semantic/bindings.cr
@@ -465,6 +465,7 @@ module Crystal
   class ProcLiteral
     property? force_nil = false
     property expected_return_type : Type?
+    property? from_block = false
 
     def update(from = nil)
       return unless self.def.args.all? &.type?
@@ -475,7 +476,7 @@ module Crystal
 
       expected_return_type = @expected_return_type
       if expected_return_type && !expected_return_type.nil_type? && !return_type.implements?(expected_return_type)
-        raise "expected block to return #{expected_return_type.devirtualize}, not #{return_type}"
+        raise "expected #{from_block? ? "block" : "Proc"} to return #{expected_return_type.devirtualize}, not #{return_type}"
       end
 
       types << (expected_return_type || return_type)
diff --git a/src/compiler/crystal/semantic/call.cr b/src/compiler/crystal/semantic/call.cr
index db6fda0bea70..2739eae08611 100644
--- a/src/compiler/crystal/semantic/call.cr
+++ b/src/compiler/crystal/semantic/call.cr
@@ -929,6 +929,7 @@ class Crystal::Call
 
           fun_literal = ProcLiteral.new(a_def).at(self)
           fun_literal.expected_return_type = output_type if output_type
+          fun_literal.from_block = true
           fun_literal.force_nil = true unless output
           fun_literal.accept parent_visitor
         end
diff --git a/src/compiler/crystal/semantic/main_visitor.cr b/src/compiler/crystal/semantic/main_visitor.cr
index e694eb2560ef..2d2fbafadaab 100644
--- a/src/compiler/crystal/semantic/main_visitor.cr
+++ b/src/compiler/crystal/semantic/main_visitor.cr
@@ -1148,6 +1148,17 @@ module Crystal
         meta_vars[arg.name] = meta_var
       end
 
+      if return_type = node.def.return_type
+        @in_type_args += 1
+        return_type.accept self
+        @in_type_args -= 1
+        check_not_a_constant(return_type)
+
+        def_type = return_type.type
+        MainVisitor.check_type_allowed_as_proc_argument(node, def_type)
+        node.expected_return_type = def_type.virtual_type
+      end
+
       node.bind_to node.def
       node.def.bind_to node.def.body
       node.def.vars = meta_vars
diff --git a/src/compiler/crystal/semantic/type_guess_visitor.cr b/src/compiler/crystal/semantic/type_guess_visitor.cr
index 2d4c954142af..6974073f2333 100644
--- a/src/compiler/crystal/semantic/type_guess_visitor.cr
+++ b/src/compiler/crystal/semantic/type_guess_visitor.cr
@@ -601,6 +601,32 @@ module Crystal
       end
     end
 
+    def guess_type(node : ProcLiteral)
+      output = node.def.return_type
+      return nil unless output
+
+      types = nil
+
+      node.def.args.each do |input|
+        restriction = input.restriction
+        return nil unless restriction
+
+        input_type = lookup_type?(restriction)
+        return nil unless input_type
+
+        types ||= [] of Type
+        types << input_type.virtual_type
+      end
+
+      output_type = lookup_type?(output)
+      return nil unless output_type
+
+      types ||= [] of Type
+      types << output_type.virtual_type
+
+      program.proc_of(types)
+    end
+
     def guess_type(node : Call)
       if expanded = node.expanded
         return guess_type(expanded)
diff --git a/src/compiler/crystal/syntax/parser.cr b/src/compiler/crystal/syntax/parser.cr
index f63e324f4383..289cd95bb699 100644
--- a/src/compiler/crystal/syntax/parser.cr
+++ b/src/compiler/crystal/syntax/parser.cr
@@ -1798,8 +1798,14 @@ module Crystal
 
       next_token_skip_space_or_newline
 
-      unless @token.type == :"{" || @token.type == :"(" || @token.keyword?(:do)
-        return parse_fun_pointer
+      case @token.type
+      when :SYMBOL
+        # -> :T { }
+        raise "a space is mandatory between ':' and return type", @token
+      when :"{", :"(", :":"
+        # do nothing
+      else
+        return parse_fun_pointer unless @token.keyword?(:do)
       end
 
       args = [] of Arg
@@ -1817,6 +1823,16 @@ module Crystal
         next_token_skip_space_or_newline
       end
 
+      case @token.type
+      when :SYMBOL
+        # ->() :T { }
+        raise "a space is mandatory between ':' and return type", @token
+      when :":"
+        next_token_skip_space_or_newline
+        return_type = parse_bare_proc_type
+        skip_space_or_newline
+      end
+
       with_lexical_var_scope do
         push_vars args
 
@@ -1838,7 +1854,7 @@ module Crystal
           unexpected_token
         end
 
-        a_def = Def.new("->", args, body).at(location).at_end(end_location)
+        a_def = Def.new("->", args, body, return_type: return_type).at(location).at_end(end_location)
         ProcLiteral.new(a_def).at(location).at_end(end_location)
       end
     end
diff --git a/src/compiler/crystal/syntax/to_s.cr b/src/compiler/crystal/syntax/to_s.cr
index c5e03a2375b5..d576ebb359f6 100644
--- a/src/compiler/crystal/syntax/to_s.cr
+++ b/src/compiler/crystal/syntax/to_s.cr
@@ -616,6 +616,10 @@ module Crystal
         node.def.args.join(@str, ", ", &.accept self)
         @str << ')'
       end
+      if return_type = node.def.return_type
+        @str << " : "
+        return_type.accept self
+      end
       @str << ' '
       @str << keyword("do")
       newline
diff --git a/src/compiler/crystal/tools/formatter.cr b/src/compiler/crystal/tools/formatter.cr
index b849449fb839..99e83a94f916 100644
--- a/src/compiler/crystal/tools/formatter.cr
+++ b/src/compiler/crystal/tools/formatter.cr
@@ -4131,7 +4131,15 @@ module Crystal
         next_token_skip_space_or_newline
       end
 
-      write " " unless a_def.args.empty?
+      if return_type = a_def.return_type
+        check :":"
+        write " : "
+        next_token_skip_space_or_newline
+        accept return_type
+        next_token_skip_space_or_newline
+      end
+
+      write " " unless a_def.args.empty? && !return_type
 
       is_do = false
       if @token.keyword?(:do)