diff --git a/vlib/v/gen/c/if.v b/vlib/v/gen/c/if.v
index 8d38fa6da91e49..de9789d1957a7e 100644
--- a/vlib/v/gen/c/if.v
+++ b/vlib/v/gen/c/if.v
@@ -282,9 +282,18 @@ fn (mut g Gen) if_expr(node ast.IfExpr) {
 				// nested if on return stmt
 				g.write2(g.styp(g.unwrap_generic(g.last_if_option_type)), ' ')
 			} else {
-				g.write('${styp} ')
+				// For function types, generate the function pointer declaration inline
+				// to avoid issues with closure-specific type names that lack typedefs
+				resolved_sym := g.table.sym(resolved_typ)
+				if resolved_sym.kind == .function && resolved_sym.info is ast.FnType
+					&& !resolved_typ.has_option_or_result() {
+					g.write_fn_ptr_decl(&resolved_sym.info, tmp)
+					g.writeln('; /* if prepend */')
+				} else {
+					g.write('${styp} ')
+					g.writeln('${tmp}; /* if prepend */')
+				}
 			}
-			g.writeln('${tmp}; /* if prepend */')
 			g.set_current_pos_as_last_stmt_pos()
 		}
 		if g.infix_left_var_name.len > 0 {
diff --git a/vlib/v/tests/closure_in_if_expr_test.v b/vlib/v/tests/closure_in_if_expr_test.v
new file mode 100644
index 00000000000000..f605012fefe718
--- /dev/null
+++ b/vlib/v/tests/closure_in_if_expr_test.v
@@ -0,0 +1,202 @@
+// Test for closures in if expressions
+// Regression test for https://github.com/vlang/v/issues/26595
+//
+// Bug: inline `if` expression cannot return a closure when
+// local variables are declared in the `if` block before the
+// closure literal, and the else branch returns an existing
+// function-pointer variable.
+//
+// The fix ensures that function pointer types in if expressions
+// are generated correctly, using inline function pointer declarations
+// instead of relying on typedefs that may not exist for closure types.
+module main
+
+struct Event {
+mut:
+	value int
+}
+
+struct Cfg {
+	delay    int
+	callback fn (int, mut Event) = unsafe { nil }
+}
+
+// Test closure with captured variable in if expression
+fn test_closure_in_if_expr_with_capture() {
+	cond := true
+
+	result := if cond {
+		tag := 'captured'
+		fn [tag] (x int, mut e Event) {
+			assert tag == 'captured'
+		}
+	} else {
+		fn (x int, mut e Event) {}
+	}
+
+	mut e := Event{}
+	result(0, mut e)
+}
+
+// Test two closures with captures in if expression
+fn test_two_closures_in_if_expr() {
+	cond1 := true
+	cond2 := false
+
+	// Test first branch taken
+	result1 := if cond1 {
+		tag := 'first'
+		fn [tag] (x int, mut e Event) {
+			assert tag == 'first'
+		}
+	} else {
+		tag := 'second'
+		fn [tag] (x int, mut e Event) {
+			assert tag == 'second'
+		}
+	}
+
+	mut e := Event{}
+	result1(0, mut e)
+
+	// Test second branch taken
+	result2 := if cond2 {
+		tag := 'first'
+		fn [tag] (x int, mut e Event) {
+			assert tag == 'first'
+		}
+	} else {
+		tag := 'second'
+		fn [tag] (x int, mut e Event) {
+			assert tag == 'second'
+		}
+	}
+
+	result2(0, mut e)
+}
+
+// Test closure in if expression with function type return
+// This is the core pattern from issue #26595:
+// - if branch has local declarations before closure literal
+// - else branch returns struct field (function pointer)
+fn resolve(cfg &Cfg) fn (int, mut Event) {
+	result := if cfg.delay > 0 {
+		tag := 'tag'
+		fn [cfg, tag] (x int, mut e Event) {
+			assert tag == 'tag'
+			assert cfg.delay == 100
+		}
+	} else {
+		cfg.callback
+	}
+	return result
+}
+
+fn test_closure_with_struct_field_capture() {
+	callback := fn (x int, mut e Event) {
+		e.value = 42
+	}
+
+	cfg := Cfg{
+		delay:    100
+		callback: callback
+	}
+
+	resolved_fn := resolve(&cfg)
+	mut e := Event{}
+	resolved_fn(0, mut e)
+
+	// Test the else branch
+	cfg2 := Cfg{
+		delay:    0
+		callback: callback
+	}
+	resolved_fn2 := resolve(&cfg2)
+	mut e2 := Event{}
+	resolved_fn2(0, mut e2)
+	assert e2.value == 42
+}
+
+// Test nested if expressions with closures
+fn test_nested_if_expr_with_closures() {
+	outer_cond := true
+	inner_cond := true
+
+	result := if outer_cond {
+		tag1 := 'outer'
+		if inner_cond {
+			tag2 := 'inner'
+			fn [tag1, tag2] () string {
+				return '${tag1}_${tag2}'
+			}
+		} else {
+			fn [tag1] () string {
+				return tag1
+			}
+		}
+	} else {
+		fn () string {
+			return 'none'
+		}
+	}
+
+	assert result() == 'outer_inner'
+}
+
+// Test closure in if expression with different return types
+fn test_closure_returning_value() {
+	cond := true
+
+	result := if cond {
+		multiplier := 2
+		fn [multiplier] (n int) int {
+			return n * multiplier
+		}
+	} else {
+		fn (n int) int {
+			return n
+		}
+	}
+
+	assert result(5) == 10
+}
+
+// Test the exact pattern from issue #26595
+fn test_issue_26595_pattern() {
+	struct Event2 {}
+
+	struct Cfg2 {
+		delay    int
+		callback fn (&int, mut Event2) = unsafe { nil }
+	}
+
+	resolve2 := fn (cfg &Cfg2) fn (&int, mut Event2) {
+		// This pattern previously caused C compilation error:
+		// "error: expected ';' after expression"
+		// because the closure type name lacked a typedef
+		result := if cfg.delay > 0 {
+			tag := 'tag'
+			fn [cfg, tag] (x &int, mut e Event2) {
+				dump('${tag}')
+			}
+		} else {
+			cfg.callback
+		}
+		return result
+	}
+
+	resolve2(&Cfg2{
+		delay:    2000
+		callback: fn (x &int, mut e Event2) {}
+	})
+}
+
+fn main() {
+	test_closure_in_if_expr_with_capture()
+	test_two_closures_in_if_expr()
+	test_closure_with_struct_field_capture()
+	test_nested_if_expr_with_closures()
+	test_closure_returning_value()
+	test_issue_26595_pattern()
+	println('All tests passed!')
+}