diff --git a/src/name_canonicalization.cpp b/src/name_canonicalization.cpp
index 97f10e0f8..f6243025a 100644
--- a/src/name_canonicalization.cpp
+++ b/src/name_canonicalization.cpp
@@ -674,6 +674,17 @@ gb_internal void write_canonical_entity_name(TypeWriter *w, Entity *e) {
 				write_scope_index_suffix = true;
 			}
 
+			goto write_base_name;
+		} else if (s->decl_info != nullptr && s->decl_info->proc_lit != nullptr) {
+			Ast *proc_lit = s->decl_info->proc_lit;
+			String file_name = filename_without_directory(proc_lit->file()->fullpath);
+			type_writer_append(w, e->pkg->name.text, e->pkg->name.len);
+			type_writer_append_fmt(w, CANONICAL_NAME_SEPARATOR CANONICAL_ANON_PREFIX "_%.*s:%d" CANONICAL_NAME_SEPARATOR,
+			                       LIT(file_name), ast_token(proc_lit).pos.offset);
+			if (e->scope->index > 0) {
+				write_scope_index_suffix = true;
+			}
+
 			goto write_base_name;
 		} else if ((s->flags & ScopeFlag_File) && s->file != nullptr) {
 			String file_name = filename_without_directory(s->file->fullpath);
diff --git a/tests/issues/run.sh b/tests/issues/run.sh
index 98c144d9c..a6e81e9a3 100755
--- a/tests/issues/run.sh
+++ b/tests/issues/run.sh
@@ -91,6 +91,7 @@ $ODIN check ../test_issue_6979.odin -no-entry-point $COMMON_CHECK
 $ODIN test ../test_issue_7008.odin $COMMON
 $ODIN check ../test_issue_7012.odin -no-entry-point $COMMON_CHECK
 $ODIN build ../test_issue_7037.odin $COMMON -o:none
+$ODIN check ../test_issue_7429.odin $COMMON_CHECK
 $ODIN test ../test_issue_7356.odin $COMMON
 $ODIN build ../test_issue_7167.odin $COMMON
 $ODIN build ../test_issue_7188.odin $COMMON
diff --git a/tests/issues/test_issue_7429.odin b/tests/issues/test_issue_7429.odin
new file mode 100644
index 000000000..21e407bed
--- /dev/null
+++ b/tests/issues/test_issue_7429.odin
@@ -0,0 +1,15 @@
+// Tests issue #7429: local distinct types in procedure literal values must have
+// unique canonical names.
+// https://github.com/odin-lang/Odin/issues/7429
+package test_issues
+
+main :: proc() {
+	_ = proc() {
+		Foo :: distinct string
+		_ = typeid_of(Foo)
+	}
+	_ = proc() {
+		Foo :: distinct string
+		_ = typeid_of(Foo)
+	}
+}