diff --git a/crates/typst-eval/src/markup.rs b/crates/typst-eval/src/markup.rs
index 5beefa912..22b413d66 100644
--- a/crates/typst-eval/src/markup.rs
+++ b/crates/typst-eval/src/markup.rs
@@ -62,7 +62,7 @@ fn eval_markup<'a>(
                             ));
                         }
 
-                        *elem = std::mem::take(elem).labelled(label);
+                        *elem = std::mem::take(elem).labelled(label, expr.span());
                     } else {
                         vm.engine.sink.warn(warning!(
                             expr.span(),
diff --git a/crates/typst-ide/src/definition.rs b/crates/typst-ide/src/definition.rs
index 69d702b3b..7080f6d44 100644
--- a/crates/typst-ide/src/definition.rs
+++ b/crates/typst-ide/src/definition.rs
@@ -75,7 +75,10 @@ pub fn definition(
             let label = Label::new(PicoStr::intern(node.cast::<ast::Ref>()?.target()));
             let selector = Selector::Label(label);
             let elem = document?.introspector.query_first(&selector)?;
-            return Some(Definition::Span(elem.span()));
+            let labelled_at = elem.labelled_at().or(elem.span());
+            if !labelled_at.is_detached() {
+                return Some(Definition::Span(labelled_at));
+            }
         }
 
         _ => {}
@@ -181,7 +184,13 @@ mod tests {
 
     #[test]
     fn test_definition_ref() {
-        test("#figure[] <hi> See @hi", -2, Side::After).must_be_at("main.typ", 1..9);
+        test("#figure[] <hi> See @hi", -2, Side::After).must_be_at("main.typ", 10..14);
+        let source =
+            r#"#let test1(body) = figure(body); #test1([Test1]) <fig:test1> @fig:test1"#;
+        test(source, -2, Side::After).must_be_at("main.typ", 49..60);
+        let source = r#"#let test1(body) = figure(body); #test1([Test1]) <fig:test1> @fig:test1
+#let test2(body) = test1(body); #test2([Test2]) <fig:test2>; @fig:test2"#;
+        test(source, -2, Side::After).must_be_at("main.typ", 120..131);
     }
 
     #[test]
diff --git a/crates/typst-library/src/foundations/content.rs b/crates/typst-library/src/foundations/content.rs
index daf6c2dd9..f240fe7d1 100644
--- a/crates/typst-library/src/foundations/content.rs
+++ b/crates/typst-library/src/foundations/content.rs
@@ -82,6 +82,8 @@ pub struct Content {
 struct Inner<T: ?Sized + 'static> {
     /// An optional label attached to the element.
     label: Option<Label>,
+    /// The span where the label is attached.
+    labelled_at: Span,
     /// The element's location which identifies it in the layouted output.
     location: Option<Location>,
     /// Manages the element during realization.
@@ -99,6 +101,7 @@ impl Content {
         Self {
             inner: Arc::new(Inner {
                 label: None,
+                labelled_at: Span::detached(),
                 location: None,
                 lifecycle: SmallBitSet::new(),
                 elem: elem.into(),
@@ -135,9 +138,16 @@ impl Content {
         self.inner.label
     }
 
+    /// Get the span where the label is attached.
+    pub fn labelled_at(&self) -> Span {
+        self.inner.labelled_at
+    }
+
     /// Attach a label to the content.
-    pub fn labelled(mut self, label: Label) -> Self {
-        self.set_label(label);
+    pub fn labelled(mut self, label: Label, labelled_at: Span) -> Self {
+        let m = self.make_mut();
+        m.label = Some(label);
+        m.labelled_at = labelled_at;
         self
     }
 
@@ -540,8 +550,7 @@ impl Content {
     /// The content's element function. This function can be used to create the element
     /// contained in this content. It can be used in set and show rules for the
     /// element. Can be compared with global functions to check whether you have
-    /// a specific
-    /// kind of element.
+    /// a specific kind of element.
     #[func]
     pub fn func(&self) -> Element {
         self.elem()
@@ -742,6 +751,7 @@ impl<T: NativeElement> Bounds for T {
                 location: inner.location,
                 lifecycle: inner.lifecycle.clone(),
                 elem: LazyHash::reuse(self.clone(), &inner.elem),
+                labelled_at: inner.labelled_at,
             }),
             span,
         }