diff --git a/lib/prism/translation/ruby_parser.rb b/lib/prism/translation/ruby_parser.rb
index 3808cd3130..1ac394b9f1 100644
--- a/lib/prism/translation/ruby_parser.rb
+++ b/lib/prism/translation/ruby_parser.rb
@@ -1151,7 +1151,7 @@ module Prism
         def visit_lambda_node(node)
           parameters =
             case node.parameters
-            when nil, NumberedParametersNode
+            when nil, ItParametersNode, NumberedParametersNode
               s(node, :args)
             else
               visit(node.parameters)
diff --git a/test/prism/fixtures/it.txt b/test/prism/fixtures/it.txt
index 76deb68028..5410b01e71 100644
--- a/test/prism/fixtures/it.txt
+++ b/test/prism/fixtures/it.txt
@@ -1,3 +1,5 @@
 x do
   it
 end
+
+-> { it }
diff --git a/test/prism/ruby/parser_test.rb b/test/prism/ruby/parser_test.rb
index cd52758f2e..2396f4186c 100644
--- a/test/prism/ruby/parser_test.rb
+++ b/test/prism/ruby/parser_test.rb
@@ -181,9 +181,13 @@ module Prism
       actual_ast = Prism::Translation::Parser34.new.tokenize(buffer)[0]
 
       it_block_parameter_sexp = parse_sexp {
+        s(:begin,
         s(:itblock,
           s(:send, nil, :x), :it,
-          s(:lvar, :it))
+          s(:lvar, :it)),
+        s(:itblock,
+          s(:lambda), :it,
+          s(:lvar, :it)))
       }
 
       assert_equal(it_block_parameter_sexp, actual_ast.to_sexp)