diff --git a/clang-tools-extra/clangd/AST.cpp b/clang-tools-extra/clangd/AST.cpp
--- a/clang-tools-extra/clangd/AST.cpp
+++ b/clang-tools-extra/clangd/AST.cpp
@@ -430,6 +430,11 @@
   PrintCB PCB(&CurContext);
   PP.Callbacks = &PCB;
 
+  if (const auto *const RDecl = QT->getAsCXXRecordDecl();
+      RDecl && RDecl->isLambda()) {
+    return "auto";
+  }
+
   QT.print(OS, PP, Placeholder);
   return OS.str();
 }
diff --git a/clang-tools-extra/clangd/unittests/tweaks/ExtractFunctionTests.cpp b/clang-tools-extra/clangd/unittests/tweaks/ExtractFunctionTests.cpp
--- a/clang-tools-extra/clangd/unittests/tweaks/ExtractFunctionTests.cpp
+++ b/clang-tools-extra/clangd/unittests/tweaks/ExtractFunctionTests.cpp
@@ -190,6 +190,32 @@
     }]]
   )cpp";
   EXPECT_EQ(apply(CompoundFailInput), "unavailable");
+
+  std::string LambdaInput = R"cpp(
+auto bar() {
+  int x = 10;
+  auto lambda = [x]() { return x; };
+  [[int y = 42;
+  int z = lambda();]]
+
+  return lambda();
+}
+  )cpp";
+
+  std::string LambdaOutput = R"cpp(
+void extracted(auto &lambda) {
+int y = 42;
+  int z = lambda();
+}
+auto bar() {
+  int x = 10;
+  auto lambda = [x]() { return x; };
+  extracted(lambda);
+
+  return lambda();
+}
+  )cpp";
+  EXPECT_EQ(apply(LambdaInput), LambdaOutput);
 }
 
 TEST_F(ExtractFunctionTest, DifferentHeaderSourceTest) {
diff --git a/clang-tools-extra/docs/ReleaseNotes.rst b/clang-tools-extra/docs/ReleaseNotes.rst
--- a/clang-tools-extra/docs/ReleaseNotes.rst
+++ b/clang-tools-extra/docs/ReleaseNotes.rst
@@ -78,6 +78,8 @@
 Miscellaneous
 ^^^^^^^^^^^^^
 
+- Fixed extracted function signatures spelling out lambda types.
+
 Improvements to clang-doc
 -------------------------