diff --git a/compiler/rustc_hir_typeck/src/cast.rs b/compiler/rustc_hir_typeck/src/cast.rs
index 2bbcbbdab9a64..4cbeaa6278049 100644
--- a/compiler/rustc_hir_typeck/src/cast.rs
+++ b/compiler/rustc_hir_typeck/src/cast.rs
@@ -591,7 +591,12 @@ impl<'a, 'tcx> CastCheck<'tcx> {
                     err.span_label(self.span, "invalid cast");
                 }
 
-                fcx.suggest_no_capture_closure(&mut err, self.cast_ty, self.expr_ty);
+                fcx.suggest_closure_to_fn_ptr_coercion(
+                    &mut err,
+                    self.expr,
+                    self.cast_ty,
+                    self.expr_ty,
+                );
                 self.try_suggest_collection_to_bool(fcx, &mut err);
 
                 err.emit();
diff --git a/compiler/rustc_hir_typeck/src/demand.rs b/compiler/rustc_hir_typeck/src/demand.rs
index 66c214a1be98a..671bf52205689 100644
--- a/compiler/rustc_hir_typeck/src/demand.rs
+++ b/compiler/rustc_hir_typeck/src/demand.rs
@@ -44,7 +44,7 @@ impl<'a, 'tcx> FnCtxt<'a, 'tcx> {
             || self.suggest_compatible_variants(err, expr, expected, expr_ty)
             || self.suggest_non_zero_new_unwrap(err, expr, expected, expr_ty)
             || self.suggest_calling_boxed_future_when_appropriate(err, expr, expected, expr_ty)
-            || self.suggest_no_capture_closure(err, expected, expr_ty)
+            || self.suggest_closure_to_fn_ptr_coercion(err, expr, expected, expr_ty)
             || self.suggest_boxing_when_appropriate(
                 err,
                 expr.peel_blocks().span,
diff --git a/compiler/rustc_hir_typeck/src/fn_ctxt/suggestions.rs b/compiler/rustc_hir_typeck/src/fn_ctxt/suggestions.rs
index 3aec9d4dae5ca..b28eb8ad940d9 100644
--- a/compiler/rustc_hir_typeck/src/fn_ctxt/suggestions.rs
+++ b/compiler/rustc_hir_typeck/src/fn_ctxt/suggestions.rs
@@ -3,6 +3,7 @@ use core::cmp::min;
 use core::iter;
 
 use hir::def_id::LocalDefId;
+use itertools::Itertools;
 use rustc_ast::util::parser::ExprPrecedence;
 use rustc_data_structures::packed::Pu128;
 use rustc_errors::{Applicability, Diag, MultiSpan, listify, msg};
@@ -670,10 +671,11 @@ impl<'a, 'tcx> FnCtxt<'a, 'tcx> {
     }
 
     /// When encountering a closure that captures variables, where a FnPtr is expected,
-    /// suggest a non-capturing closure
-    pub(in super::super) fn suggest_no_capture_closure(
+    /// explain why coercion fails and suggest changing the return type to `impl Fn(...)`.
+    pub(in super::super) fn suggest_closure_to_fn_ptr_coercion(
         &self,
         err: &mut Diag<'_>,
+        expr: &hir::Expr<'_>,
         expected: Ty<'tcx>,
         found: Ty<'tcx>,
     ) -> bool {
@@ -701,11 +703,44 @@ impl<'a, 'tcx> FnCtxt<'a, 'tcx> {
                 multi_span,
                 "closures can only be coerced to `fn` types if they do not capture any variables",
             );
+
+            // If the expected fn pointer type comes from the enclosing function's return type,
+            // suggest changing it to `impl Fn(...)` so that a capturing closure can be returned.
+            self.suggest_impl_fn_for_fn_ptr_ret(err, expr);
+
             return true;
         }
         false
     }
 
+    /// When a capturing closure is returned where a `fn(...)` pointer return type is expected,
+    /// suggest changing the return type to `impl Fn(...)`.
+    fn suggest_impl_fn_for_fn_ptr_ret(&self, err: &mut Diag<'_>, expr: &hir::Expr<'_>) {
+        let Some((_, fn_decl)) = self.get_fn_decl(expr.hir_id) else { return };
+        let hir::FnRetTy::Return(ret_ty) = fn_decl.output else { return };
+        let hir::TyKind::FnPtr(fn_ptr_ty) = ret_ty.kind else { return };
+
+        let hir::FnDecl { inputs, output, .. } = fn_ptr_ty.decl;
+
+        let inputs_str =
+            inputs.iter().map(|ty| rustc_hir_pretty::ty_to_string(&self.tcx, ty)).join(", ");
+
+        let output_str = match output {
+            hir::FnRetTy::DefaultReturn(_) => String::new(),
+            hir::FnRetTy::Return(ty) => {
+                format!(" -> {}", rustc_hir_pretty::ty_to_string(&self.tcx, ty))
+            }
+        };
+
+        let suggestion = format!("impl Fn({inputs_str}){output_str}");
+        err.span_suggestion(
+            ret_ty.span,
+            "change the return type to return a type-erased closure instead",
+            suggestion,
+            Applicability::MaybeIncorrect,
+        );
+    }
+
     /// When encountering an `impl Future` where `BoxFuture` is expected, suggest `Box::pin`.
     #[instrument(skip(self, err))]
     pub(in super::super) fn suggest_calling_boxed_future_when_appropriate(
diff --git a/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.rs b/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.rs
new file mode 100644
index 0000000000000..c8273017f38a3
--- /dev/null
+++ b/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.rs
@@ -0,0 +1,53 @@
+//! Regression test for <https://github.com/rust-lang/rust/issues/159481>.
+//! When a capturing closure is returned where a `fn(...)` pointer return type is
+//! expected, suggest changing the return type to `impl Fn(...)`.
+
+#![crate_type = "lib"]
+
+fn no_args(a: i32) -> fn() -> i32 {
+    || a
+    //~^ ERROR mismatched types
+}
+
+fn no_args_no_return(a: i32) -> fn() {
+    || println!("{}", a)
+    //~^ ERROR mismatched types
+}
+
+fn one_arg(a: i32) -> fn(i32) -> i32 {
+    |x| x + a
+    //~^ ERROR mismatched types
+}
+
+fn one_arg_unsafe(a: i32) -> unsafe fn(i32) -> i32 {
+    |x| x + a
+    //~^ ERROR mismatched types
+}
+
+fn one_arg_extern(a: i32) -> extern "C" fn(i32) -> i32 {
+    |x| x + a
+    //~^ ERROR mismatched types
+}
+
+fn one_arg_no_return(a: i32) -> fn(i32) {
+    |x| println!("{}", x + a)
+    //~^ ERROR mismatched types
+}
+
+fn one_arg_return_unit(a: i32) -> fn(i32) -> () {
+    |x| println!("{}", x + a)
+    //~^ ERROR mismatched types
+}
+
+fn one_arg_ref(a: i32) -> fn(&i32) -> &i32 {
+    |x| {
+        //~^ ERROR mismatched types
+        println!("{}", a);
+        x
+    }
+}
+
+fn multi_args(a: i32, b: i32) -> fn(i32, i32) -> i32 {
+    |x, y| x + y + a + b
+    //~^ ERROR mismatched types
+}
diff --git a/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.stderr b/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.stderr
new file mode 100644
index 0000000000000..1baaf6b32bcd8
--- /dev/null
+++ b/tests/ui/closures/suggest-impl-fn-return-for-capturing-closure.stderr
@@ -0,0 +1,198 @@
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:8:5
+   |
+LL | fn no_args(a: i32) -> fn() -> i32 {
+   |                       ----------- expected `fn() -> i32` because of return type
+LL |     || a
+   |     ^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn() -> i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:8:5: 8:7}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:8:8
+   |
+LL |     || a
+   |        ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn no_args(a: i32) -> fn() -> i32 {
+LL + fn no_args(a: i32) -> impl Fn() -> i32 {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:13:5
+   |
+LL | fn no_args_no_return(a: i32) -> fn() {
+   |                                 ---- expected `fn()` because of return type
+LL |     || println!("{}", a)
+   |     ^^^^^^^^^^^^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn()`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:13:5: 13:7}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:13:23
+   |
+LL |     || println!("{}", a)
+   |                       ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn no_args_no_return(a: i32) -> fn() {
+LL + fn no_args_no_return(a: i32) -> impl Fn() {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:18:5
+   |
+LL | fn one_arg(a: i32) -> fn(i32) -> i32 {
+   |                       -------------- expected `fn(i32) -> i32` because of return type
+LL |     |x| x + a
+   |     ^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn(i32) -> i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:18:5: 18:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:18:13
+   |
+LL |     |x| x + a
+   |             ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg(a: i32) -> fn(i32) -> i32 {
+LL + fn one_arg(a: i32) -> impl Fn(i32) -> i32 {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:23:5
+   |
+LL | fn one_arg_unsafe(a: i32) -> unsafe fn(i32) -> i32 {
+   |                              --------------------- expected `unsafe fn(i32) -> i32` because of return type
+LL |     |x| x + a
+   |     ^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `unsafe fn(i32) -> i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:23:5: 23:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:23:13
+   |
+LL |     |x| x + a
+   |             ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg_unsafe(a: i32) -> unsafe fn(i32) -> i32 {
+LL + fn one_arg_unsafe(a: i32) -> impl Fn(i32) -> i32 {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:28:5
+   |
+LL | fn one_arg_extern(a: i32) -> extern "C" fn(i32) -> i32 {
+   |                              ------------------------- expected `extern "C" fn(i32) -> i32` because of return type
+LL |     |x| x + a
+   |     ^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `extern "C" fn(i32) -> i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:28:5: 28:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:28:13
+   |
+LL |     |x| x + a
+   |             ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg_extern(a: i32) -> extern "C" fn(i32) -> i32 {
+LL + fn one_arg_extern(a: i32) -> impl Fn(i32) -> i32 {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:33:5
+   |
+LL | fn one_arg_no_return(a: i32) -> fn(i32) {
+   |                                 ------- expected `fn(i32)` because of return type
+LL |     |x| println!("{}", x + a)
+   |     ^^^^^^^^^^^^^^^^^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn(i32)`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:33:5: 33:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:33:28
+   |
+LL |     |x| println!("{}", x + a)
+   |                            ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg_no_return(a: i32) -> fn(i32) {
+LL + fn one_arg_no_return(a: i32) -> impl Fn(i32) {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:38:5
+   |
+LL | fn one_arg_return_unit(a: i32) -> fn(i32) -> () {
+   |                                   ------------- expected `fn(i32)` because of return type
+LL |     |x| println!("{}", x + a)
+   |     ^^^^^^^^^^^^^^^^^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn(i32)`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:38:5: 38:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:38:28
+   |
+LL |     |x| println!("{}", x + a)
+   |                            ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg_return_unit(a: i32) -> fn(i32) -> () {
+LL + fn one_arg_return_unit(a: i32) -> impl Fn(i32) -> () {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:43:5
+   |
+LL |   fn one_arg_ref(a: i32) -> fn(&i32) -> &i32 {
+   |                             ---------------- expected `for<'a> fn(&'a i32) -> &'a i32` because of return type
+LL | /     |x| {
+LL | |
+LL | |         println!("{}", a);
+LL | |         x
+LL | |     }
+   | |_____^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `for<'a> fn(&'a i32) -> &'a i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:43:5: 43:8}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:45:24
+   |
+LL |         println!("{}", a);
+   |                        ^ `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn one_arg_ref(a: i32) -> fn(&i32) -> &i32 {
+LL + fn one_arg_ref(a: i32) -> impl Fn(&'_ i32) -> &'_ i32 {
+   |
+
+error[E0308]: mismatched types
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:51:5
+   |
+LL | fn multi_args(a: i32, b: i32) -> fn(i32, i32) -> i32 {
+   |                                  ------------------- expected `fn(i32, i32) -> i32` because of return type
+LL |     |x, y| x + y + a + b
+   |     ^^^^^^^^^^^^^^^^^^^^ expected fn pointer, found closure
+   |
+   = note: expected fn pointer `fn(i32, i32) -> i32`
+                 found closure `{closure@$DIR/suggest-impl-fn-return-for-capturing-closure.rs:51:5: 51:11}`
+note: closures can only be coerced to `fn` types if they do not capture any variables
+  --> $DIR/suggest-impl-fn-return-for-capturing-closure.rs:51:20
+   |
+LL |     |x, y| x + y + a + b
+   |                    ^   ^ `b` captured here
+   |                    |
+   |                    `a` captured here
+help: change the return type to return a type-erased closure instead
+   |
+LL - fn multi_args(a: i32, b: i32) -> fn(i32, i32) -> i32 {
+LL + fn multi_args(a: i32, b: i32) -> impl Fn(i32, i32) -> i32 {
+   |
+
+error: aborting due to 9 previous errors
+
+For more information about this error, try `rustc --explain E0308`.