diff --git a/mtags/src/main/scala-3/scala/meta/internal/pc/PcCollector.scala b/mtags/src/main/scala-3/scala/meta/internal/pc/PcCollector.scala
index a5c647169ca..a4e33785e04 100644
--- a/mtags/src/main/scala-3/scala/meta/internal/pc/PcCollector.scala
+++ b/mtags/src/main/scala-3/scala/meta/internal/pc/PcCollector.scala
@@ -203,6 +203,12 @@ abstract class PcCollector[T](
         val realName = arg.name.stripModuleClassSuffix.lastPart
         if pos.span.start > arg.span.start && pos.span.end < arg.span.point + realName.length
         then
+          val length = realName.toString.backticked.length()
+          val pos = arg.sourcePos.withSpan(
+            arg.span
+              .withEnd(arg.span.start + length)
+              .withPoint(arg.span.start)
+          )
           appl.symbol.paramSymss.flatten.find(_.name == arg.name).map { s =>
             // if it's a case class we need to look for parameters also
             if caseClassSynthetics(s.owner.name) && s.owner.is(Flags.Synthetic)
@@ -214,9 +220,9 @@ abstract class PcCollector[T](
                   s.owner.owner.info.member(s.name).symbol,
                 )
                   .filter(_ != NoSymbol),
-                arg.sourcePos,
+                pos,
               )
-            else (Set(s), arg.sourcePos)
+            else (Set(s), pos)
           }
         else None
         end if
@@ -521,6 +527,7 @@ abstract class PcCollector[T](
           }
           val named = args.map { arg =>
             val realName = arg.name.stripModuleClassSuffix.lastPart
+            val length = realName.toString.backticked.length()
             val sym = apply.symbol.paramSymss.flatten
               .find(_.name == realName)
             collect(
@@ -528,7 +535,7 @@ abstract class PcCollector[T](
               pos
                 .withSpan(
                   arg.span
-                    .withEnd(arg.span.start + realName.length)
+                    .withEnd(arg.span.start + length)
                     .withPoint(arg.span.start)
                 ),
               sym,
diff --git a/tests/cross/src/test/scala/tests/highlight/DocumentHighlightSuite.scala b/tests/cross/src/test/scala/tests/highlight/DocumentHighlightSuite.scala
index 3c6bc30c025..2ff93e96386 100644
--- a/tests/cross/src/test/scala/tests/highlight/DocumentHighlightSuite.scala
+++ b/tests/cross/src/test/scala/tests/highlight/DocumentHighlightSuite.scala
@@ -866,4 +866,15 @@ class DocumentHighlightSuite extends BaseDocumentHighlightSuite {
        |}
        |""".stripMargin,
   )
+
+  check(
+    "named-arg-backtick",
+    """|object Main {
+       |  def foo(<<`type`>>: String): String = <<`type`>>
+       |  val x = foo(
+       |    <<`ty@@pe`>> = "abc"
+       |  )
+       |}
+       |""".stripMargin,
+  )
 }
diff --git a/tests/cross/src/test/scala/tests/pc/PcPrepareRenameSuite.scala b/tests/cross/src/test/scala/tests/pc/PcPrepareRenameSuite.scala
index 8f2a138af82..ad4e2279139 100644
--- a/tests/cross/src/test/scala/tests/pc/PcPrepareRenameSuite.scala
+++ b/tests/cross/src/test/scala/tests/pc/PcPrepareRenameSuite.scala
@@ -505,4 +505,17 @@ class PcPrepareRenameSuite extends BasePcRenameSuite {
        |""".stripMargin,
   )
 
+  prepare(
+    "named-arg-backtick",
+    """|object Main {
+       |  def m() = {
+       |    def foo(`type`: String): String = `type`
+       |    val x = foo(
+       |      <<`ty@@pe`>> = "abc"
+       |    )
+       |  }
+       |}
+       |""".stripMargin,
+  )
+
 }
diff --git a/tests/cross/src/test/scala/tests/tokens/SemanticTokensSuite.scala b/tests/cross/src/test/scala/tests/tokens/SemanticTokensSuite.scala
index d10c2494cf2..56ed4a6b987 100644
--- a/tests/cross/src/test/scala/tests/tokens/SemanticTokensSuite.scala
+++ b/tests/cross/src/test/scala/tests/tokens/SemanticTokensSuite.scala
@@ -321,4 +321,15 @@ class SemanticTokensSuite extends BaseSemanticTokensSuite {
     ),
   )
 
+  check(
+    "named-arg-backtick",
+    """|object <<Main>>/*class*/ {
+       |  def <<foo>>/*method,definition*/(<<`type`>>/*parameter,declaration,readonly*/: <<String>>/*type*/): <<String>>/*type*/ = <<`type`>>/*parameter,readonly*/
+       |  val <<x>>/*variable,definition,readonly*/ = <<foo>>/*method*/(
+       |    <<`type`>>/*parameter,readonly*/ = "abc"
+       |  )
+       |}
+       |""".stripMargin,
+  )
+
 }