diff --git a/CHANGELOG.md b/CHANGELOG.md
index 18b01f536066..1d08ffcaa375 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,10 @@ Read our [guidelines for writing a good changelog entry](https://github.com/biom
 
 - Add [noMisleadingInstantiator](https://biomejs.dev/linter/rules/no-mileading-instantiator) rule. The rule reports the misleading use of the `new` and `constructor` methods. Contributed by @unvalley
 
+#### Bug fixes
+
+- Fix [#294](https://github.com/biomejs/biome/issues/294). [noConfusingVoidType](https://biomejs.dev/linter/rules/no-confusing-void-type/) no longer reports false positives for return types. Contributed by @b4s36t4
+
 ### Parser
 ### VSCode
 
diff --git a/crates/biome_js_analyze/src/analyzers/nursery/no_confusing_void_type.rs b/crates/biome_js_analyze/src/analyzers/nursery/no_confusing_void_type.rs
index f2df6e6fae91..c8445ea5d414 100644
--- a/crates/biome_js_analyze/src/analyzers/nursery/no_confusing_void_type.rs
+++ b/crates/biome_js_analyze/src/analyzers/nursery/no_confusing_void_type.rs
@@ -114,6 +114,7 @@ fn node_in(node: &SyntaxNode<Language>) -> Option<VoidTypeIn> {
             JsSyntaxKind::TS_THIS_PARAMETER
             | JsSyntaxKind::TS_RETURN_TYPE_ANNOTATION
             | JsSyntaxKind::TS_TYPE_PARAMETER
+            | JsSyntaxKind::TS_FUNCTION_TYPE
             | JsSyntaxKind::TS_TYPE_ARGUMENT_LIST => {
                 return None;
             }
diff --git a/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts b/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts
index 0e590a71f24b..a35ed7e33554 100644
--- a/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts
+++ b/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts
@@ -5,3 +5,5 @@ logAndReturn<void>(undefined);
 
 let voidPromise: Promise<void> = new Promise<void>(() => { });
 let voidMap: Map<string, void> = new Map<string, void>();
+
+type FallbackHandler = (error?: Error) => void;
\ No newline at end of file
diff --git a/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts.snap b/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts.snap
index e3e20055d86d..4239668bf62e 100644
--- a/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts.snap
+++ b/crates/biome_js_analyze/tests/specs/nursery/noConfusingVoidType/valid.ts.snap
@@ -1,6 +1,5 @@
 ---
 source: crates/biome_js_analyze/tests/spec_tests.rs
-assertion_line: 80
 expression: valid.ts
 ---
 # Input
@@ -13,6 +12,7 @@ logAndReturn<void>(undefined);
 let voidPromise: Promise<void> = new Promise<void>(() => { });
 let voidMap: Map<string, void> = new Map<string, void>();
 
+type FallbackHandler = (error?: Error) => void;
 ```
 
 
diff --git a/website/src/content/docs/internals/changelog.mdx b/website/src/content/docs/internals/changelog.mdx
index e364abd59152..4bf3716e8d85 100644
--- a/website/src/content/docs/internals/changelog.mdx
+++ b/website/src/content/docs/internals/changelog.mdx
@@ -28,6 +28,10 @@ Read our [guidelines for writing a good changelog entry](https://github.com/biom
 
 - Add [noMisleadingInstantiator](https://biomejs.dev/linter/rules/no-mileading-instantiator) rule. The rule reports the misleading use of the `new` and `constructor` methods. Contributed by @unvalley
 
+#### Bug fixes
+
+- Fix [#294](https://github.com/biomejs/biome/issues/294). [noConfusingVoidType](https://biomejs.dev/linter/rules/no-confusing-void-type/) no longer reports false positives for return types. Contributed by @b4s36t4
+
 ### Parser
 ### VSCode