diff --git a/compiler/closureiters.nim b/compiler/closureiters.nim
index 7e0f54b12e..835cbf0ca7 100644
--- a/compiler/closureiters.nim
+++ b/compiler/closureiters.nim
@@ -1451,6 +1451,14 @@ proc detectCapturedVars(c: var Ctx, n: PNode, stateIdx: int) =
       detectCapturedVars(c, n[0][1], stateIdx)
     else:
       detectCapturedVars(c, n[0], stateIdx)
+  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit,
+     nkTemplateDef, nkTypeSection, nkProcDef, nkMethodDef,
+     nkConverterDef, nkMacroDef, nkFuncDef, nkCommentStmt,
+     nkTypeOfExpr, nkMixinStmt, nkBindStmt:
+    discard
+  of nkLambdaKinds, nkIteratorDef:
+    if n.typ != nil:
+      detectCapturedVars(c, n[namePos], stateIdx)
   else:
     for i in 0 ..< n.safeLen:
       detectCapturedVars(c, n[i], stateIdx)
@@ -1481,6 +1489,12 @@ proc liftLocals(c: var Ctx, n: PNode): PNode =
       n[0][1] = liftLocals(c, n[0][1])
     else:
       n[0] = liftLocals(c, n[0])
+  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit,
+     nkTemplateDef, nkTypeSection, nkProcDef, nkMethodDef,
+     nkConverterDef, nkMacroDef, nkFuncDef, nkCommentStmt,
+     nkTypeOfExpr, nkMixinStmt, nkBindStmt,
+     nkLambdaKinds, nkIteratorDef:
+    discard
   else:
     for i in 0 ..< n.safeLen:
       n[i] = liftLocals(c, n[i])
diff --git a/compiler/lambdalifting.nim b/compiler/lambdalifting.nim
index 640bb4b2f8..c8c5acf974 100644
--- a/compiler/lambdalifting.nim
+++ b/compiler/lambdalifting.nim
@@ -199,7 +199,7 @@ proc interestingVar(s: PSym): bool {.inline.} =
 proc illegalCapture(s: PSym): bool {.inline.} =
   result = classifyViewType(s.typ) != noView or s.kind == skResult
 
-proc isInnerProc(s: PSym): bool =
+proc isInnerProc*(s: PSym): bool =
   if s.kind in {skProc, skFunc, skMethod, skConverter, skIterator} and s.magic == mNone:
     result = s.skipGenericOwner.kind in routineKinds
   else:
diff --git a/tests/iter/t24863.nim b/tests/iter/t24863.nim
new file mode 100644
index 0000000000..96ddbcef7c
--- /dev/null
+++ b/tests/iter/t24863.nim
@@ -0,0 +1,30 @@
+# issue #24863
+
+type M = object
+  p: iterator(): M {.gcsafe.}
+
+template h(f: M): int =
+  yield f
+  456
+
+proc s(): M =
+  iterator g(): M {.closure.} = discard
+  let v = M(p: g)
+  doAssert(not isNil(v.p))
+  discard v.p()
+  v
+
+proc c(): M =
+  iterator b(): M {.closure.} =
+    let r = h(s())
+    doAssert r == 456
+    proc n(): M =
+      iterator y(): M {.closure.} =
+        let _ = r
+      let _ = y
+    let _ = proc () = discard n()
+  let j = M(p: b)
+  doAssert(not isNil(j.p))
+  discard j.p()
+
+let _ = c()
diff --git a/tests/iter/tnestedclosures.nim b/tests/iter/tnestedclosures.nim
index e23fa1355f..f2dc7a51d4 100644
--- a/tests/iter/tnestedclosures.nim
+++ b/tests/iter/tnestedclosures.nim
@@ -25,6 +25,9 @@ Test 7:
 0
 1
 2
+Test 8:
+123
+456
 '''
 """
 
@@ -156,3 +159,20 @@ block: # issue #12487
     doAssert s == @["something"]
 
   main()
+
+block: # minimized issue #24863
+  echo "Test 8:"
+  proc c() =
+    iterator b(): int {.closure.} =
+      let r = 456
+      yield 123
+      proc n() =
+        echo r
+      let a = proc () = n()
+      a()
+
+    let j = b
+    echo j()
+    discard j()
+
+  c()