diff --git a/src/typeChecker/__tests__/source4TypedAnyChecker.test.ts b/src/typeChecker/__tests__/source4TypedAnyChecker.test.ts
new file mode 100644
index 000000000..54a179d96
--- /dev/null
+++ b/src/typeChecker/__tests__/source4TypedAnyChecker.test.ts
@@ -0,0 +1,306 @@
+import { parseError } from '../../index'
+import { SourceTypedParser } from '../../parser/source/typed'
+import { Chapter, type LanguageOptions, Variant } from '../../types'
+import { mockContext } from '../../utils/testing/mocks'
+
+const parser = new SourceTypedParser(Chapter.SOURCE_4, Variant.TYPED)
+
+describe('Any checker tests', () => {
+  test('disallow any type in a variable declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInVariables'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const x = 4;', localContext)
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 1: Usage of "any" in variable declaration is not allowed.'
+    )
+  })
+
+  test('allow any type in a variable declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInVariables'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('let x: any = 4;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in a variable declaration, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInVariables'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('let x: number = 4;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in function parameter', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function f(x: any) { return x; }', localContext)
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 1: Usage of "any" in function parameter is not allowed.'
+    )
+  })
+
+  test('allow any type in function parameter', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function f(x: any) { return x; }', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in function parameter, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function f(x: number) { return x; }', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in function return type', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInReturnType'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function g(): any { return 4; }', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in function return type', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInReturnType'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function g(): any { return 4; }', localContext)
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 1: Usage of "any" in function return type is not allowed.'
+    )
+  })
+
+  test('allow any type in function return type, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInReturnType'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('function g(): number { return 4; }', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in lambda parameter', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const h = (x: any) => x + 1;', localContext)
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 1: Usage of "any" in arrow function parameter is not allowed.'
+    )
+  })
+
+  test('allow any type in lambda parameter', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const h = (x: any) => x + 1;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in lambda parameter, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const h = (x: number) => x + 1;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in nested lambda', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const f = (x: number) => (y: any) => x + y;', localContext)
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 1: Usage of "any" in arrow function parameter is not allowed.'
+    )
+  })
+
+  test('allow any type in nested lambda', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const f = (x: number) => (y: any) => x + y;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in nested lambda, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse('const f = (x: number) => (y: number) => x + y;', localContext)
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in nested function', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) {
+        function g(y: any) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in nested function', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) {
+        function g(y: any) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 3: Usage of "any" in function parameter is not allowed.'
+    )
+  })
+
+  test('allow any type in nested function, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: number) => number {
+        function g(y: number) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in type annotation parameters', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationParameters'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: any) => number {
+        function g(y: number) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in type annotation parameters', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: any) => number {
+        function g(y: number) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 2: Usage of "any" in type annotation\'s function parameter is not allowed.'
+    )
+  })
+
+  test('disallow any type in type annotation parameters, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationParameters'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: number) => number {
+        function g(y: number) {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('allow any type in type annotation return type', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationReturnType'] = 'true'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) {
+        function g(y: number) : any {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+
+  test('disallow any type in type annotation return type', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationReturnType'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: number) => any {
+        function g(y: number) : number {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual(
+      'Line 2: Usage of "any" in type annotation\'s function return type is not allowed.'
+    )
+  })
+
+  test('disallow any type in type annotation return type, correct declaration', () => {
+    const languageOptions: LanguageOptions = {}
+    languageOptions['typedAllowAnyInTypeAnnotationReturnType'] = 'false'
+    const localContext = mockContext(Chapter.SOURCE_4, Variant.TYPED, languageOptions)
+    parser.parse(
+      `
+      function f(x: number) : (y: number) => number {
+        function g(y: number) : number {
+          return x + y;
+        }
+        return g;
+      }
+    `,
+      localContext
+    )
+    expect(parseError(localContext.errors)).toEqual('')
+  })
+})
diff --git a/src/typeChecker/__tests__/source4TypedModules.test.ts b/src/typeChecker/__tests__/source4TypedModules.test.ts
index 23dd87246..ad42c8c79 100644
--- a/src/typeChecker/__tests__/source4TypedModules.test.ts
+++ b/src/typeChecker/__tests__/source4TypedModules.test.ts
@@ -1,7 +1,7 @@
-import { mockContext } from '../../utils/testing/mocks'
-import { Chapter, Variant } from '../../types'
-import { parse } from '../../parser/parser'
 import { parseError } from '../../index'
+import { parse } from '../../parser/parser'
+import { Chapter, Variant } from '../../types'
+import { mockContext } from '../../utils/testing/mocks'
 
 function getContext() {
   const context = mockContext(Chapter.SOURCE_4, Variant.TYPED)
@@ -14,6 +14,8 @@ function getContext() {
         class Test1 {}
         class Test2 {}
         class Test3 {}
+        type Test4 = (arg: Test1) => Test2;
+        const Test4 = (arg: Test1) => Test2;
       `,
       x: 'const x: string = "hello"',
       y: 'const y: number = 42',
@@ -179,7 +181,7 @@ describe('Typed module tests', () => {
         const a: string = functionError(10);
       `
       expect(testParseError(code)).toMatchInlineSnapshot(
-        `"Line 6: Type 'number' is not assignable to type 'string'."`
+        `"Line 8: Type 'number' is not assignable to type 'string'."`
       )
     })
 
@@ -261,4 +263,23 @@ describe('Typed module tests', () => {
       )
     })
   })
+
+  /* TEST CASES FOR THE 'Test4' TYPE */
+  it('should allow calling Test4 with a valid Test1 object', () => {
+    const code = `
+      import { test2 } from 'exampleModule';
+      const result: Test4 = (arg: Test1) => test2;
+    `
+    expect(testParseError(code)).toMatchInlineSnapshot(`""`)
+  })
+
+  it('should error when calling Test4 with a string argument', () => {
+    const code = `
+      import { test1 } from 'exampleModule';
+      const result: Test4 = (arg: Test1) => test1;
+    `
+    expect(testParseError(code)).toMatchInlineSnapshot(
+      `"Line 3: Type '(Test1) => Test1' is not assignable to type 'Test4'."`
+    )
+  })
 })