diff --git a/src/testdir/test_vim9_func.vim b/src/testdir/test_vim9_func.vim
index 06f135a..f7be6a0 100644
--- a/src/testdir/test_vim9_func.vim
+++ b/src/testdir/test_vim9_func.vim
@@ -2999,6 +2999,24 @@
   assert_equal([42], g:Shadowed())
 enddef
 
+def Test_compiling_referenced_func_no_shadow()
+  var lines =<< trim END
+      vim9script
+
+      def InitializeReply(lspserver: dict<any>)
+      enddef
+
+      def ProcessReply(lspserver: dict<any>)
+        var lsp_reply_handlers: dict<func> =
+          { 'initialize': InitializeReply }
+        lsp_reply_handlers['initialize'](lspserver)
+      enddef
+
+      call ProcessReply({})
+  END
+  v9.CheckScriptSuccess(lines)
+enddef
+
 def s:Line_continuation_in_def(dir: string = ''): string
   var path: string = empty(dir)
           \ ? 'empty'
diff --git a/src/version.c b/src/version.c
index 534c8ad..fe974f6 100644
--- a/src/version.c
+++ b/src/version.c
@@ -751,6 +751,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    4580,
+/**/
     4579,
 /**/
     4578,
diff --git a/src/vim9expr.c b/src/vim9expr.c
index 8276a77..3a329cc 100644
--- a/src/vim9expr.c
+++ b/src/vim9expr.c
@@ -364,7 +364,7 @@
     // Need to compile any default values to get the argument types.
     compile_type = get_compile_type(ufunc);
     if (func_needs_compiling(ufunc, compile_type)
-	      && compile_def_function(ufunc, TRUE, compile_type, cctx) == FAIL)
+	      && compile_def_function(ufunc, TRUE, compile_type, NULL) == FAIL)
 	return FAIL;
     return generate_PUSHFUNC(cctx, ufunc->uf_name, ufunc->uf_func_type);
 }