diff --git a/crates/oxc_ast/src/ast/ts.rs b/crates/oxc_ast/src/ast/ts.rs
index af4168ac4483c..66fa710b24418 100644
--- a/crates/oxc_ast/src/ast/ts.rs
+++ b/crates/oxc_ast/src/ast/ts.rs
@@ -237,6 +237,20 @@ macro_rules! match_ts_type {
 pub use match_ts_type;
 
 impl<'a> TSType<'a> {
+    pub fn get_identifier_reference(&self) -> Option<IdentifierReference<'a>> {
+        match self {
+            TSType::TSTypeReference(reference) => {
+                Some(TSTypeName::get_first_name(&reference.type_name))
+            }
+            TSType::TSQualifiedName(qualified) => Some(TSTypeName::get_first_name(&qualified.left)),
+            TSType::TSTypeQuery(query) => match &query.expr_name {
+                TSTypeQueryExprName::IdentifierReference(ident) => Some((*ident).clone()),
+                _ => None,
+            },
+            _ => None,
+        }
+    }
+
     pub fn is_const_type_reference(&self) -> bool {
         matches!(self, TSType::TSTypeReference(reference) if reference.type_name.is_const())
     }
diff --git a/crates/oxc_transformer_dts/src/diagnostics.rs b/crates/oxc_transformer_dts/src/diagnostics.rs
new file mode 100644
index 0000000000000..3d586e59270db
--- /dev/null
+++ b/crates/oxc_transformer_dts/src/diagnostics.rs
@@ -0,0 +1,23 @@
+use oxc_ast::ast::Function;
+use oxc_diagnostics::OxcDiagnostic;
+use oxc_span::{Atom, Span};
+
+pub fn function_must_have_explicit_return_type(func: &Function<'_>) -> OxcDiagnostic {
+    OxcDiagnostic::error(
+        "Function must have an explicit return type annotation with --isolatedDeclarations.",
+    )
+    .with_label(func.id.as_ref().map_or_else(
+        || {
+            let start = func.params.span.start;
+            Span::new(start, start)
+        },
+        |id| id.span,
+    ))
+}
+
+pub fn type_containing_private_name(name: &Atom<'_>, span: Span) -> OxcDiagnostic {
+    OxcDiagnostic::error(format!(
+        "Type containing private name '{name}' can't be used with --isolatedDeclarations."
+    ))
+    .with_label(span)
+}
diff --git a/crates/oxc_transformer_dts/src/inferrer.rs b/crates/oxc_transformer_dts/src/inferrer.rs
index 622990874c9af..8bdbed7fa2e3e 100644
--- a/crates/oxc_transformer_dts/src/inferrer.rs
+++ b/crates/oxc_transformer_dts/src/inferrer.rs
@@ -6,7 +6,10 @@ use oxc_ast::ast::{
 use oxc_diagnostics::OxcDiagnostic;
 use oxc_span::{GetSpan, SPAN};
 
-use crate::{return_type::FunctionReturnType, TransformerDts};
+use crate::{
+    diagnostics::function_must_have_explicit_return_type, return_type::FunctionReturnType,
+    TransformerDts,
+};
 
 impl<'a> TransformerDts<'a> {
     pub fn infer_type_from_expression(&self, expr: &Expression<'a>) -> Option<TSType<'a>> {
@@ -100,19 +103,21 @@ impl<'a> TransformerDts<'a> {
             return self.ctx.ast.copy(&function.return_type);
         }
 
+        if function.r#async || function.generator {
+            self.ctx.error(function_must_have_explicit_return_type(function));
+        }
+
         let return_type = FunctionReturnType::infer(
             self,
             function
                 .body
                 .as_ref()
-                .unwrap_or_else(|| unreachable!("declare function can not have body")),
+                .unwrap_or_else(|| unreachable!("Only declare function can have no body")),
         )
         .map(|type_annotation| self.ctx.ast.ts_type_annotation(SPAN, type_annotation));
 
         if return_type.is_none() {
-            self.ctx.error(OxcDiagnostic::error(
-                "Function must have an explicit return type annotation with --isolatedDeclarations.",
-            ).with_label(function.span));
+            self.ctx.error(function_must_have_explicit_return_type(function));
 
             Some(self.ctx.ast.ts_type_annotation(SPAN, self.ctx.ast.ts_unknown_keyword(SPAN)))
         } else {
diff --git a/crates/oxc_transformer_dts/src/lib.rs b/crates/oxc_transformer_dts/src/lib.rs
index 58ee3e3333ce3..ac8eb359a491a 100644
--- a/crates/oxc_transformer_dts/src/lib.rs
+++ b/crates/oxc_transformer_dts/src/lib.rs
@@ -8,6 +8,7 @@
 mod class;
 mod context;
 mod declaration;
+mod diagnostics;
 mod function;
 mod inferrer;
 mod module;
diff --git a/crates/oxc_transformer_dts/src/return_type.rs b/crates/oxc_transformer_dts/src/return_type.rs
index aa7e9f13e37d7..cd761ac1156a8 100644
--- a/crates/oxc_transformer_dts/src/return_type.rs
+++ b/crates/oxc_transformer_dts/src/return_type.rs
@@ -7,11 +7,10 @@ use oxc_ast::{
     },
     Visit,
 };
-use oxc_diagnostics::OxcDiagnostic;
 use oxc_span::{Atom, GetSpan};
 use oxc_syntax::scope::ScopeFlags;
 
-use crate::{context::Ctx, TransformerDts};
+use crate::{context::Ctx, diagnostics::type_containing_private_name, TransformerDts};
 
 /// Infer return type from return statement. Does not support multiple return statements.
 pub struct FunctionReturnType<'a> {
@@ -67,11 +66,12 @@ impl<'a> FunctionReturnType<'a> {
                 };
 
                 if is_defined_in_current_scope {
-                    transformer.ctx.error(
-                        OxcDiagnostic::error(format!("Type containing private name '{reference_name}' can't be used with --isolatedDeclarations.")).with_label(
-                            expr.span()
-                        )
-                    );
+                    transformer.ctx.error(type_containing_private_name(
+                        &reference_name,
+                        expr_type
+                            .get_identifier_reference()
+                            .map_or_else(|| expr_type.span(), |ident| ident.span),
+                    ));
                 }
             }
 
diff --git a/crates/oxc_transformer_dts/src/scope.rs b/crates/oxc_transformer_dts/src/scope.rs
index d40c9e3683750..d8180d3c0b723 100644
--- a/crates/oxc_transformer_dts/src/scope.rs
+++ b/crates/oxc_transformer_dts/src/scope.rs
@@ -51,11 +51,11 @@ impl<'a> ScopeTree<'a> {
         self.type_bindings.last_mut().unwrap().insert(ident.clone());
     }
 
-    fn add_unresolved_value_reference(&mut self, ident: &Atom<'a>) {
+    fn add_value_reference(&mut self, ident: &Atom<'a>) {
         self.value_references.last_mut().unwrap().insert(ident.clone());
     }
 
-    fn add_unresolved_type_reference(&mut self, ident: &Atom<'a>) {
+    fn add_type_reference(&mut self, ident: &Atom<'a>) {
         self.type_references.last_mut().unwrap().insert(ident.clone());
     }
 
@@ -65,7 +65,6 @@ impl<'a> ScopeTree<'a> {
     fn resolve_references(&mut self) {
         let current_value_bindings = self.value_bindings.pop().unwrap_or_default();
         let current_value_references = self.value_references.pop().unwrap_or_default();
-
         self.type_references
             .last_mut()
             .unwrap()
@@ -95,7 +94,7 @@ impl<'a> Visit<'a> for ScopeTree<'a> {
     }
 
     fn visit_identifier_reference(&mut self, ident: &IdentifierReference<'a>) {
-        self.add_unresolved_value_reference(&ident.name);
+        self.add_value_reference(&ident.name);
     }
 
     fn visit_binding_pattern(&mut self, pattern: &BindingPattern<'a>) {
@@ -107,7 +106,7 @@ impl<'a> Visit<'a> for ScopeTree<'a> {
 
     fn visit_ts_type_name(&mut self, name: &TSTypeName<'a>) {
         if let TSTypeName::IdentifierReference(ident) = name {
-            self.add_unresolved_type_reference(&ident.name);
+            self.add_type_reference(&ident.name);
         } else {
             walk_ts_type_name(self, name);
         }
@@ -116,7 +115,7 @@ impl<'a> Visit<'a> for ScopeTree<'a> {
     fn visit_ts_type_query(&mut self, ty: &TSTypeQuery<'a>) {
         if let Some(type_name) = ty.expr_name.as_ts_type_name() {
             let ident = TSTypeName::get_first_name(type_name);
-            self.add_unresolved_value_reference(&ident.name);
+            self.add_value_reference(&ident.name);
         } else {
             walk_ts_type_query(self, ty);
         }
@@ -125,8 +124,8 @@ impl<'a> Visit<'a> for ScopeTree<'a> {
     fn visit_export_named_declaration(&mut self, decl: &ExportNamedDeclaration<'a>) {
         for specifier in &decl.specifiers {
             if let ModuleExportName::Identifier(ident) = &specifier.local {
-                self.add_type_binding(&ident.name);
-                self.add_value_binding(&ident.name);
+                self.add_type_reference(&ident.name);
+                self.add_value_reference(&ident.name);
             }
         }
     }
diff --git a/tasks/coverage/transpile.snap b/tasks/coverage/transpile.snap
index e0850b563aa3f..abf6b7bd7c909 100644
--- a/tasks/coverage/transpile.snap
+++ b/tasks/coverage/transpile.snap
@@ -2,14 +2,13 @@ commit: d8086f14
 
 transpile Summary:
 AST Parsed     : 20/20 (100.00%)
-Positive Passed: 7/20 (35.00%)
+Positive Passed: 8/20 (40.00%)
 Mismatch: "declarationAsyncAndGeneratorFunctions.ts"
 Mismatch: "declarationBasicSyntax.ts"
 Mismatch: "declarationComputedPropertyNames.ts"
 Mismatch: "declarationCrossFileInferences.ts"
 Mismatch: "declarationEmitPartialNodeReuse.ts"
 Mismatch: "declarationFunctionDeclarations.ts"
-Mismatch: "declarationLinkedAliases.ts"
 Mismatch: "declarationNotInScopeTypes.ts"
 Mismatch: "declarationPartialNodeReuseTypeOf.ts"
 Mismatch: "declarationRestParameters.ts"