diff --git a/pkg/compiler/codegen.go b/pkg/compiler/codegen.go
index 7f565ab3d..7e838946c 100644
--- a/pkg/compiler/codegen.go
+++ b/pkg/compiler/codegen.go
@@ -712,6 +712,7 @@ func (c *codegen) Visit(node ast.Node) ast.Visitor {
 			name      string
 			numArgs   = len(n.Args)
 			isBuiltin bool
+			isFunc    bool
 		)
 
 		switch fun := n.Fun.(type) {
@@ -721,6 +722,10 @@ func (c *codegen) Visit(node ast.Node) ast.Visitor {
 			if !ok && !isBuiltin {
 				name = fun.Name
 			}
+			// distinguish lambda invocations from type conversions
+			if fun.Obj != nil && fun.Obj.Kind == ast.Var {
+				isFunc = true
+			}
 		case *ast.SelectorExpr:
 			// If this is a method call we need to walk the AST to load the struct locally.
 			// Otherwise this is a function call from a imported package and we can call it
@@ -767,9 +772,11 @@ func (c *codegen) Visit(node ast.Node) ast.Visitor {
 			// We can be sure builtins are of type *ast.Ident.
 			c.convertBuiltin(n)
 		case name != "":
-			// Function was not found thus is can be only an invocation of func-typed variable.
-			c.emitLoadVar(name)
-			emit.Opcode(c.prog.BinWriter, opcode.CALLA)
+			// Function was not found thus is can be only an invocation of func-typed variable or type conversion.
+			if isFunc {
+				c.emitLoadVar(name)
+				emit.Opcode(c.prog.BinWriter, opcode.CALLA)
+			}
 		case isSyscall(f):
 			c.convertSyscall(n, f.selector.Name, f.name)
 		default:
diff --git a/pkg/compiler/convert_test.go b/pkg/compiler/convert_test.go
index e768d7573..613e1af3a 100644
--- a/pkg/compiler/convert_test.go
+++ b/pkg/compiler/convert_test.go
@@ -72,3 +72,17 @@ func TestTypeAssertion(t *testing.T) {
 	}`
 	eval(t, src, big.NewInt(1))
 }
+
+func TestTypeConversion(t *testing.T) {
+	src := `package foo
+	type myInt int
+	func Main() int32 {
+		var a int32 = 41
+		b := myInt(a)
+		incMy := func(x myInt) myInt { return x + 1 }
+		c := incMy(b)
+		return int32(c)
+	}`
+
+	eval(t, src, big.NewInt(42))
+}