diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8422906c8b7..9de0592c65a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -419,3 +419,7 @@
 - Fixed a bug where renaming a local variable which is used in combination with
   label shorthand syntax would produce invalid code.
   ([Surya Rose](https://github.com/GearsDatapacks))
+
+- Fixed a bug where the language server would not show the "Unqualify type" code
+  action for record declarations.
+  ([cysabi](https://github.com/cysabi))
diff --git a/compiler-core/src/ast/visit.rs b/compiler-core/src/ast/visit.rs
index dbdc6a506cb..166363995bc 100644
--- a/compiler-core/src/ast/visit.rs
+++ b/compiler-core/src/ast/visit.rs
@@ -700,10 +700,15 @@ where
 {
 }
 
-pub fn visit_typed_custom_type<'a, V>(_v: &mut V, _custom_type: &'a TypedCustomType)
+pub fn visit_typed_custom_type<'a, V>(v: &mut V, custom_type: &'a TypedCustomType)
 where
     V: Visit<'a> + ?Sized,
 {
+    for record in &custom_type.constructors {
+        for argument in &record.arguments {
+            v.visit_type_ast(&argument.ast);
+        }
+    }
 }
 
 pub fn visit_typed_expr<'a, V>(v: &mut V, node: &'a TypedExpr)
diff --git a/compiler-core/src/language_server/tests/action.rs b/compiler-core/src/language_server/tests/action.rs
index 50f6dea0cd0..cac7189a87b 100644
--- a/compiler-core/src/language_server/tests/action.rs
+++ b/compiler-core/src/language_server/tests/action.rs
@@ -2445,6 +2445,22 @@ pub fn main() {
     );
 }
 
+#[test]
+fn test_qualified_to_unqualified_import_custom_type_record_declaration() {
+    let src = r#"
+import wobble
+
+pub type Wibble {
+  Wibble(wibble: wobble.Wobble)
+}
+"#;
+    assert_code_action!(
+        "Unqualify wobble.Wobble",
+        TestProject::for_source(src).add_hex_module("wobble", "pub type Wobble { Wibble }"),
+        find_position_of(".").select_until(find_position_of("Wobble"))
+    );
+}
+
 #[test]
 fn test_qualified_to_unqualified_import_basic_type_without_argument() {
     let src = r#"
diff --git a/compiler-core/src/language_server/tests/snapshots/gleam_core__language_server__tests__action__qualified_to_unqualified_import_custom_type_record_declaration.snap b/compiler-core/src/language_server/tests/snapshots/gleam_core__language_server__tests__action__qualified_to_unqualified_import_custom_type_record_declaration.snap
new file mode 100644
index 00000000000..3f043eda347
--- /dev/null
+++ b/compiler-core/src/language_server/tests/snapshots/gleam_core__language_server__tests__action__qualified_to_unqualified_import_custom_type_record_declaration.snap
@@ -0,0 +1,21 @@
+---
+source: compiler-core/src/language_server/tests/action.rs
+expression: "\nimport wobble\n\npub type Wibble {\n  Wibble(wibble: wobble.Wobble)\n}\n"
+---
+----- BEFORE ACTION
+
+import wobble
+
+pub type Wibble {
+  Wibble(wibble: wobble.Wobble)
+                       ▔↑      
+}
+
+
+----- AFTER ACTION
+
+import wobble.{type Wobble}
+
+pub type Wibble {
+  Wibble(wibble: Wobble)
+}