diff --git a/palantir-java-format/src/main/java/com/palantir/javaformat/java/JavaInputAstVisitor.java b/palantir-java-format/src/main/java/com/palantir/javaformat/java/JavaInputAstVisitor.java
index a0a2878ed..b4428c643 100644
--- a/palantir-java-format/src/main/java/com/palantir/javaformat/java/JavaInputAstVisitor.java
+++ b/palantir-java-format/src/main/java/com/palantir/javaformat/java/JavaInputAstVisitor.java
@@ -1237,7 +1237,10 @@ protected void visitLambdaExpression(LambdaExpressionTree node, boolean statemen
                 token(",");
                 builder.breakOp(" ");
             }
-            scan(parameter, null);
+            visitVariables(
+                    ImmutableList.of(parameter),
+                    DeclarationKind.NONE,
+                    inlineAnnotationDirection(parameter.getModifiers()));
             first = false;
         }
         if (parens) {
diff --git a/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.input b/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.input
new file mode 100644
index 000000000..e39300406
--- /dev/null
+++ b/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.input
@@ -0,0 +1,5 @@
+class I959 {
+    public void test() {
+      new File(".").listFiles((final var dir, final var name) -> true);
+    }
+}
diff --git a/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.output b/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.output
new file mode 100644
index 000000000..80ba99016
--- /dev/null
+++ b/palantir-java-format/src/test/resources/com/palantir/javaformat/java/testdata/I959.output
@@ -0,0 +1,5 @@
+class I959 {
+    public void test() {
+        new File(".").listFiles((final var dir, final var name) -> true);
+    }
+}