diff --git a/SyntaxVisitors/YieldVisitors/ReplaceYieldWithLamdasVisitor.cs b/SyntaxVisitors/YieldVisitors/ReplaceYieldWithLamdasVisitor.cs
index 12ba57ab7..1120e5180 100644
--- a/SyntaxVisitors/YieldVisitors/ReplaceYieldWithLamdasVisitor.cs
+++ b/SyntaxVisitors/YieldVisitors/ReplaceYieldWithLamdasVisitor.cs
@@ -38,7 +38,7 @@ namespace SyntaxVisitors
             VarIdent.source_context = yn.ex.source_context;
             var_statement vs;
             if (yn.ex is nil_const)
-                vs = new var_statement(VarIdent, new named_type_reference("System.Object"), yn.ex);
+                vs = new var_statement(VarIdent, new named_type_reference("$yield_element_type"), yn.ex);
             else
                 vs = new var_statement(VarIdent, yn.ex);
             vs.source_context = yn.ex.source_context;
diff --git a/TestSuite/yield3.pas b/TestSuite/yield3.pas
new file mode 100644
index 000000000..deb0b3956
--- /dev/null
+++ b/TestSuite/yield3.pas
@@ -0,0 +1,8 @@
+function Test: sequence of integer->integer;
+begin
+  yield nil;
+end;
+
+begin
+  assert(Test.First = nil);
+end.
\ No newline at end of file
diff --git a/TreeConverter/TreeConversion/compilation_context.cs b/TreeConverter/TreeConversion/compilation_context.cs
index 3a1fc7e10..61e183a95 100644
--- a/TreeConverter/TreeConversion/compilation_context.cs
+++ b/TreeConverter/TreeConversion/compilation_context.cs
@@ -2092,6 +2092,20 @@ namespace PascalABCCompiler.TreeConverter
         public SymbolInfoList find(string name)
         {
             SymbolTable.Scope curscope = CurrentScope;
+            if (name == "$yield_element_type")
+            {
+            	if (top_function != null)
+            	{
+            		return new SymbolInfoList(new SymbolInfoUnit(top_function.return_value_type.instance_params[0]));
+            	}
+            	else
+            	{
+            		type_node tn = converted_type.ImplementingInterfaces.Find(x=>(x as type_node).full_name.StartsWith("System.Collections.Generic.IEnumerable")) as type_node;
+            		return new SymbolInfoList(new SymbolInfoUnit(tn.instance_params[0]));
+            	}
+            }
+            
+            	
             SymbolInfoList si = curscope.Find(name, curscope);
             if (si == null && _compiled_tn != null && curscope.TopScope != null)
             {
diff --git a/TreeConverter/TreeConversion/syntax_tree_visitor.cs b/TreeConverter/TreeConversion/syntax_tree_visitor.cs
index c0dbff6fd..45f73c764 100644
--- a/TreeConverter/TreeConversion/syntax_tree_visitor.cs
+++ b/TreeConverter/TreeConversion/syntax_tree_visitor.cs
@@ -1613,6 +1613,7 @@ namespace PascalABCCompiler.TreeConverter
             	names.names[names.names.Count-1].name += "Attribute";
                 si = context.find_definition_node(names, loc);
             }
+            
             if (si != null && si.First().sym_info != null && si.First().sym_info.general_node_type == general_node_type.generic_indicator)
             {
                 generic_indicator gi = si.First().sym_info as generic_indicator;
@@ -15466,7 +15467,7 @@ namespace PascalABCCompiler.TreeConverter
 
         private expression_node ident_value_reciving(SyntaxTree.ident _ident)
         {
-            SymbolInfoList si = context.find(_ident.name);
+        	SymbolInfoList si = context.find(_ident.name);
             return ident_value_reciving(si, _ident);
         }