diff --git a/language-server/modules/langserver-core/src/main/java/org/ballerinalang/langserver/command/visitors/FunctionCallExpressionTypeFinder.java b/language-server/modules/langserver-core/src/main/java/org/ballerinalang/langserver/command/visitors/FunctionCallExpressionTypeFinder.java
index f846bba1b8f2..18d52939201d 100644
--- a/language-server/modules/langserver-core/src/main/java/org/ballerinalang/langserver/command/visitors/FunctionCallExpressionTypeFinder.java
+++ b/language-server/modules/langserver-core/src/main/java/org/ballerinalang/langserver/command/visitors/FunctionCallExpressionTypeFinder.java
@@ -36,12 +36,14 @@
 import io.ballerina.compiler.api.symbols.TypeSymbol;
 import io.ballerina.compiler.api.symbols.UnionTypeSymbol;
 import io.ballerina.compiler.api.symbols.VariableSymbol;
+import io.ballerina.compiler.api.symbols.WorkerSymbol;
 import io.ballerina.compiler.syntax.tree.AssignmentStatementNode;
 import io.ballerina.compiler.syntax.tree.BinaryExpressionNode;
 import io.ballerina.compiler.syntax.tree.BlockStatementNode;
 import io.ballerina.compiler.syntax.tree.CheckExpressionNode;
 import io.ballerina.compiler.syntax.tree.ConditionalExpressionNode;
 import io.ballerina.compiler.syntax.tree.ErrorConstructorExpressionNode;
+import io.ballerina.compiler.syntax.tree.ExplicitAnonymousFunctionExpressionNode;
 import io.ballerina.compiler.syntax.tree.ExplicitNewExpressionNode;
 import io.ballerina.compiler.syntax.tree.FailStatementNode;
 import io.ballerina.compiler.syntax.tree.FunctionArgumentNode;
@@ -57,6 +59,7 @@
 import io.ballerina.compiler.syntax.tree.MethodCallExpressionNode;
 import io.ballerina.compiler.syntax.tree.ModuleVariableDeclarationNode;
 import io.ballerina.compiler.syntax.tree.NamedArgumentNode;
+import io.ballerina.compiler.syntax.tree.NamedWorkerDeclarationNode;
 import io.ballerina.compiler.syntax.tree.Node;
 import io.ballerina.compiler.syntax.tree.NodeVisitor;
 import io.ballerina.compiler.syntax.tree.ObjectFieldNode;
@@ -402,6 +405,12 @@ public void visit(BlockStatementNode node) {
         node.parent().accept(this);
     }
 
+    @Override
+    public void visit(NamedWorkerDeclarationNode namedWorkerDeclarationNode) {
+        semanticModel.symbol(namedWorkerDeclarationNode)
+                .ifPresent(value -> checkAndSetTypeResult(((WorkerSymbol) value).returnType()));
+    }
+
     @Override
     public void visit(ReturnStatementNode returnStatementNode) {
         this.semanticModel.typeOf(returnStatementNode).ifPresent(this::checkAndSetTypeResult);
@@ -411,11 +420,14 @@ public void visit(ReturnStatementNode returnStatementNode) {
 
         // Get function type symbol and get return type descriptor from it
         returnStatementNode.parent().accept(this);
-        if (resultFound && returnTypeSymbol.typeKind() == TypeDescKind.FUNCTION) {
+
+        if (!resultFound) {
+            resetResult();
+            return;
+        }
+        if (returnTypeSymbol.typeKind() == TypeDescKind.FUNCTION) {
             FunctionTypeSymbol functionTypeSymbol = (FunctionTypeSymbol) returnTypeSymbol;
             functionTypeSymbol.returnTypeDescriptor().ifPresentOrElse(this::checkAndSetTypeResult, this::resetResult);
-        } else {
-            resetResult();
         }
     }
 
@@ -512,6 +524,11 @@ public void visit(ImplicitAnonymousFunctionExpressionNode expr) {
         }
     }
 
+    @Override
+    public void visit(ExplicitAnonymousFunctionExpressionNode explicitAnonymousFunctionExpressionNode) {
+        semanticModel.typeOf(explicitAnonymousFunctionExpressionNode).ifPresent(this::checkAndSetTypeResult);
+    }
+
     @Override
     public void visit(PanicStatementNode panicStatementNode) {
         checkAndSetTypeResult(semanticModel.types().ERROR);
diff --git a/language-server/modules/langserver-core/src/test/java/org/ballerinalang/langserver/codeaction/CreateFunctionTest.java b/language-server/modules/langserver-core/src/test/java/org/ballerinalang/langserver/codeaction/CreateFunctionTest.java
index a451910e5282..3f80af11e19d 100644
--- a/language-server/modules/langserver-core/src/test/java/org/ballerinalang/langserver/codeaction/CreateFunctionTest.java
+++ b/language-server/modules/langserver-core/src/test/java/org/ballerinalang/langserver/codeaction/CreateFunctionTest.java
@@ -186,6 +186,18 @@ public Object[][] dataProvider() {
 
                 {"create_function_in_anonymous_function1.json"},
                 {"create_function_in_anonymous_function2.json"},
+
+                {"create_function_in_worker1.json"},
+                {"create_function_in_worker2.json"},
+                {"create_function_in_worker3.json"},
+                {"create_function_in_worker4.json"},
+                {"create_function_in_worker5.json"},
+
+                {"create_function_in_explicit_anonymous_function1.json"},
+                {"create_function_in_explicit_anonymous_function2.json"},
+                {"create_function_in_explicit_anonymous_function3.json"},
+                {"create_function_in_explicit_anonymous_function4.json"},
+                {"create_function_in_explicit_anonymous_function5.json"}
         };
     }
 
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function1.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function1.json
new file mode 100644
index 000000000000..8a5bd5ce911e
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function1.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 4,
+    "character": 16
+  },
+  "source": "create_function_in_explicit_anonymous_function.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns int {\n    return 0;\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_explicit_anonymous_function.bal",
+        "range": {
+          "start": {
+            "line": 4,
+            "character": 15
+          },
+          "end": {
+            "line": 4,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 4.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 4.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function2.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function2.json
new file mode 100644
index 000000000000..cb29a4c1db21
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function2.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 8,
+    "character": 10
+  },
+  "source": "create_function_in_explicit_anonymous_function.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo(int i) {\n    \n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_explicit_anonymous_function.bal",
+        "range": {
+          "start": {
+            "line": 8,
+            "character": 8
+          },
+          "end": {
+            "line": 8,
+            "character": 15
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 8.0,
+              "character": 8.0
+            },
+            "end": {
+              "line": 8.0,
+              "character": 15.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function3.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function3.json
new file mode 100644
index 000000000000..578f6dfa919f
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function3.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 13,
+    "character": 17
+  },
+  "source": "create_function_in_explicit_anonymous_function.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() {\n    \n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_explicit_anonymous_function.bal",
+        "range": {
+          "start": {
+            "line": 13,
+            "character": 15
+          },
+          "end": {
+            "line": 13,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 13.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 13.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function4.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function4.json
new file mode 100644
index 000000000000..4d499c7f50d1
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function4.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 17,
+    "character": 17
+  },
+  "source": "create_function_in_explicit_anonymous_function.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns module1:TestRecord2 {\n    return {};\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_explicit_anonymous_function.bal",
+        "range": {
+          "start": {
+            "line": 17,
+            "character": 15
+          },
+          "end": {
+            "line": 17,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 17.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 17.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function5.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function5.json
new file mode 100644
index 000000000000..008a88e1e092
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_explicit_anonymous_function5.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 22,
+    "character": 22
+  },
+  "source": "create_function_in_explicit_anonymous_function.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns int {\n    return 0;\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_explicit_anonymous_function.bal",
+        "range": {
+          "start": {
+            "line": 22,
+            "character": 19
+          },
+          "end": {
+            "line": 22,
+            "character": 24
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 22.0,
+              "character": 19.0
+            },
+            "end": {
+              "line": 22.0,
+              "character": 24.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker1.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker1.json
new file mode 100644
index 000000000000..d7dd1dd1e95b
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker1.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 4,
+    "character": 16
+  },
+  "source": "create_function_in_worker.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns int {\n    return 0;\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_worker.bal",
+        "range": {
+          "start": {
+            "line": 4,
+            "character": 15
+          },
+          "end": {
+            "line": 4,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 4.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 4.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker2.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker2.json
new file mode 100644
index 000000000000..7374fb76cf78
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker2.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 8,
+    "character": 10
+  },
+  "source": "create_function_in_worker.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo(int i) {\n    \n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_worker.bal",
+        "range": {
+          "start": {
+            "line": 8,
+            "character": 8
+          },
+          "end": {
+            "line": 8,
+            "character": 15
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 8.0,
+              "character": 8.0
+            },
+            "end": {
+              "line": 8.0,
+              "character": 15.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker3.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker3.json
new file mode 100644
index 000000000000..641f38fc3fb9
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker3.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 13,
+    "character": 17
+  },
+  "source": "create_function_in_worker.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() {\n    \n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_worker.bal",
+        "range": {
+          "start": {
+            "line": 13,
+            "character": 15
+          },
+          "end": {
+            "line": 13,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 13.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 13.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker4.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker4.json
new file mode 100644
index 000000000000..55276910a9b4
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker4.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 17,
+    "character": 17
+  },
+  "source": "create_function_in_worker.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns module1:TestRecord2 {\n    return {};\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_worker.bal",
+        "range": {
+          "start": {
+            "line": 17,
+            "character": 15
+          },
+          "end": {
+            "line": 17,
+            "character": 20
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 17.0,
+              "character": 15.0
+            },
+            "end": {
+              "line": 17.0,
+              "character": 20.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker5.json b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker5.json
new file mode 100644
index 000000000000..fd4ff61bc968
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/config/create_function_in_worker5.json
@@ -0,0 +1,57 @@
+{
+  "position": {
+    "line": 22,
+    "character": 22
+  },
+  "source": "create_function_in_worker.bal",
+  "expected": [
+    {
+      "title": "Create function 'foo(...)'",
+      "kind": "quickfix",
+      "edits": [
+        {
+          "range": {
+            "start": {
+              "line": 25,
+              "character": 1
+            },
+            "end": {
+              "line": 25,
+              "character": 1
+            }
+          },
+          "newText": "\n\nfunction foo() returns int {\n    return 0;\n}"
+        }
+      ],
+      "resolvable": true,
+      "data": {
+        "extName": "org.ballerinalang.langserver.codeaction.BallerinaCodeActionExtension",
+        "codeActionName": "Create Function",
+        "fileUri": "create_function_in_worker.bal",
+        "range": {
+          "start": {
+            "line": 22,
+            "character": 19
+          },
+          "end": {
+            "line": 22,
+            "character": 24
+          }
+        },
+        "actionData": {
+          "key": "node.range",
+          "value": {
+            "start": {
+              "line": 22.0,
+              "character": 19.0
+            },
+            "end": {
+              "line": 22.0,
+              "character": 24.0
+            }
+          }
+        }
+      }
+    }
+  ]
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_explicit_anonymous_function.bal b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_explicit_anonymous_function.bal
new file mode 100644
index 000000000000..19bee2900b25
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_explicit_anonymous_function.bal
@@ -0,0 +1,26 @@
+import ballerina/module1;
+
+function createFunctionInWorker() {
+    var fn1 = function() returns int {
+        return foo();
+    };
+
+    var fn2 = function() returns string {
+        foo(32);
+        return "bar";
+    };
+
+    var fn3 = function() {
+        return foo();
+    };
+
+    var fn4 = function() returns module1:TestRecord2 {
+        return foo();
+    };
+
+    var fn5 = function() returns function () returns int {
+        return function () returns int {
+            return foo();
+        };
+    };
+}
diff --git a/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_worker.bal b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_worker.bal
new file mode 100644
index 000000000000..d889e6371fc8
--- /dev/null
+++ b/language-server/modules/langserver-core/src/test/resources/codeaction/create-function/source/create_function_in_worker.bal
@@ -0,0 +1,26 @@
+import ballerina/module1;
+
+function createFunctionInWorker() {
+    worker A returns int {
+        return foo();
+    }
+
+    worker B returns string {
+        foo(32);
+        return "bar";
+    }
+
+    worker C {
+        return foo();
+    }
+
+    worker D returns module1:TestRecord2 {
+        return foo();
+    }
+
+    fork {
+        worker E returns int {
+            return foo();
+        }
+    }
+}