diff --git a/src/Standards/PSR12/Sniffs/Functions/ReturnTypeDeclarationSniff.php b/src/Standards/PSR12/Sniffs/Functions/ReturnTypeDeclarationSniff.php
index c26877baae..6326b1438e 100644
--- a/src/Standards/PSR12/Sniffs/Functions/ReturnTypeDeclarationSniff.php
+++ b/src/Standards/PSR12/Sniffs/Functions/ReturnTypeDeclarationSniff.php
@@ -59,6 +59,10 @@ public function process(File $phpcsFile, $stackPtr)
         }
 
         $returnType = $methodProperties['return_type_token'];
+        if ($methodProperties['nullable_return_type'] === true) {
+            $returnType = $phpcsFile->findPrevious(T_NULLABLE, ($returnType - 1));
+        }
+
         if ($tokens[($returnType - 1)]['code'] !== T_WHITESPACE
             || $tokens[($returnType - 1)]['content'] !== ' '
             || $tokens[($returnType - 2)]['code'] !== T_COLON
diff --git a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc
index d3c68e39ab..45b043f16e 100644
--- a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc
+++ b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc
@@ -54,3 +54,9 @@ public function functionName(int $arg1, $arg2) /* can't fix */ : string {}
 public function functionName(int $arg1, $arg2) /* can't fix */
 : // phpcs:ignore Standard.Category.Sniff
 string {}
+
+function functionName(?string $arg1, ?int &$arg2): ?string {}
+function functionName(?string $arg1, ?int &$arg2):?string {}
+function functionName(?string $arg1, ?int &$arg2):  ?string {}
+function functionName(?string $arg1, ?int &$arg2):
+?string {}
diff --git a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc.fixed b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc.fixed
index 4584ee1d17..531508e75b 100644
--- a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc.fixed
+++ b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.inc.fixed
@@ -51,3 +51,8 @@ public function functionName(int $arg1, $arg2) /* can't fix */ : string {}
 public function functionName(int $arg1, $arg2) /* can't fix */
 : // phpcs:ignore Standard.Category.Sniff
 string {}
+
+function functionName(?string $arg1, ?int &$arg2): ?string {}
+function functionName(?string $arg1, ?int &$arg2): ?string {}
+function functionName(?string $arg1, ?int &$arg2): ?string {}
+function functionName(?string $arg1, ?int &$arg2): ?string {}
diff --git a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.php b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.php
index 92b951881a..7849035e79 100644
--- a/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.php
+++ b/src/Standards/PSR12/Tests/Functions/ReturnTypeDeclarationUnitTest.php
@@ -34,6 +34,9 @@ protected function getErrorList()
             52 => 1,
             55 => 1,
             56 => 1,
+            59 => 1,
+            60 => 1,
+            62 => 1,
         ];
 
     }//end getErrorList()