diff --git a/compiler/compile.go b/compiler/compile.go
index 552db89..d47e00f 100644
--- a/compiler/compile.go
+++ b/compiler/compile.go
@@ -291,8 +291,29 @@ func (c *compiler) compilePackage(p *packages.Package, colors functionColors) er
 				}
 
 			case *ast.FuncDecl:
-				color, ok := colorsByFunc[decl]
-				if !ok {
+				declcolor := colorsByFunc[decl]
+
+				// Check for colored function literals in the body.  If found, color the
+				// function decl so that it's compiled.
+				var err error
+				ast.Inspect(decl, func(n ast.Node) bool {
+					if f, ok := n.(*ast.FuncLit); ok {
+						if litcolor, ok := colorsByFunc[f]; ok {
+							if declcolor == nil {
+								declcolor = litcolor
+								colorsByFunc[decl] = declcolor
+							} else if !types.Identical(declcolor, litcolor) {
+								err = fmt.Errorf("function %s.%s has more than one color: %v vs. %v", p.Name, decl.Name, declcolor, litcolor)
+							}
+						}
+					}
+					return true
+				})
+				if err != nil {
+					return err
+				}
+
+				if declcolor == nil {
 					gen.Decls = append(gen.Decls, decl)
 					continue
 				}
@@ -302,7 +323,7 @@ func (c *compiler) compilePackage(p *packages.Package, colors functionColors) er
 				}
 
 				scope := &scope{compiler: c, colors: colorsByFunc}
-				gen.Decls = append(gen.Decls, scope.compileFuncDecl(p, decl, color))
+				gen.Decls = append(gen.Decls, scope.compileFuncDecl(p, decl, declcolor))
 			}
 		}
 
diff --git a/compiler/testdata/coroutine_durable.go b/compiler/testdata/coroutine_durable.go
index 412244a..112d149 100644
--- a/compiler/testdata/coroutine_durable.go
+++ b/compiler/testdata/coroutine_durable.go
@@ -3174,6 +3174,64 @@ func varArgs(_fn0 ...int) {
 		}
 	}
 }
+
+//go:noinline
+func YieldFromClosure(_fn0 int) {
+	_c := coroutine.LoadContext[int, any]()
+	var _f0 *struct {
+		IP int
+		X0 int
+		X1 func()
+	} = coroutine.Push[struct {
+		IP int
+		X0 int
+		X1 func()
+	}](&_c.Stack)
+	if _f0.IP == 0 {
+		*_f0 = struct {
+			IP int
+			X0 int
+			X1 func()
+		}{X0: _fn0}
+	}
+	defer func() {
+		if !_c.Unwinding() {
+			coroutine.Pop(&_c.Stack)
+		}
+	}()
+	switch {
+	case _f0.IP < 2:
+		_f0.X1 = closure(_f0.X0)
+		_f0.IP = 2
+		fallthrough
+	case _f0.IP < 3:
+		_f0.X1()
+	}
+}
+
+//go:noinline
+func closure(_fn0 int) (_ func()) {
+	_c := coroutine.LoadContext[int, any]()
+	var _f0 *struct {
+		IP int
+		X0 int
+	} = coroutine.Push[struct {
+		IP int
+		X0 int
+	}](&_c.Stack)
+	if _f0.IP == 0 {
+		*_f0 = struct {
+			IP int
+			X0 int
+		}{X0: _fn0}
+	}
+	defer func() {
+		if !_c.Unwinding() {
+			coroutine.Pop(&_c.Stack)
+		}
+	}()
+	return func() { coroutine.Yield[int, any](_f0.X0) }
+}
 func init() {
 	_types.RegisterFunc[func(n int)]("github.com/stealthrocket/coroutine/compiler/testdata.Double")
 	_types.RegisterFunc[func(_fn0 int)]("github.com/stealthrocket/coroutine/compiler/testdata.EvenSquareGenerator")
@@ -3289,6 +3347,7 @@ func init() {
 			X3 []func()
 		}
 	}]("github.com/stealthrocket/coroutine/compiler/testdata.YieldAndDeferAssign.func2")
+	_types.RegisterFunc[func(_fn0 int)]("github.com/stealthrocket/coroutine/compiler/testdata.YieldFromClosure")
 	_types.RegisterFunc[func()]("github.com/stealthrocket/coroutine/compiler/testdata.YieldingDurations")
 	_types.RegisterClosure[func(), struct {
 		F  uintptr
@@ -3303,5 +3362,13 @@ func init() {
 	_types.RegisterFunc[func()]("github.com/stealthrocket/coroutine/compiler/testdata.YieldingExpressionDesugaring")
 	_types.RegisterFunc[func(_fn0 int) (_ int)]("github.com/stealthrocket/coroutine/compiler/testdata.a")
 	_types.RegisterFunc[func(_fn0 int) (_ int)]("github.com/stealthrocket/coroutine/compiler/testdata.b")
+	_types.RegisterFunc[func(_fn0 int) (_ func())]("github.com/stealthrocket/coroutine/compiler/testdata.closure")
+	_types.RegisterClosure[func(), struct {
+		F  uintptr
+		X0 *struct {
+			IP int
+			X0 int
+		}
+	}]("github.com/stealthrocket/coroutine/compiler/testdata.closure.func2")
 	_types.RegisterFunc[func(_fn0 ...int)]("github.com/stealthrocket/coroutine/compiler/testdata.varArgs")
 }