diff --git a/packages/react-docgen/src/utils/__tests__/findFunctionReturn-test.ts b/packages/react-docgen/src/utils/__tests__/findFunctionReturn-test.ts
index 252542eb85c..36a55c1fac2 100644
--- a/packages/react-docgen/src/utils/__tests__/findFunctionReturn-test.ts
+++ b/packages/react-docgen/src/utils/__tests__/findFunctionReturn-test.ts
@@ -152,6 +152,27 @@ describe('findFunctionReturn', () => {
       expect(findFunctionReturn(def, predicate)).toBeUndefined();
     });
 
+    test('handles direct prop return', () => {
+      const def = parse.statement(`
+        function Foo ({ children }) {
+          return children;
+        }
+      `);
+
+      expect(findFunctionReturn(def, predicate)).toBeDefined();
+    });
+
+    test('handles null return', () => {
+      const def = parse.statement(`
+        function Foo (props) {
+          return null;
+        }
+      `);
+
+      const received = findFunctionReturn(def, predicate);
+      expect(received).toBeDefined();
+    });
+
     testReturnValues(
       'does not see ifs as separate block',
       `
diff --git a/packages/react-docgen/src/utils/findFunctionReturn.ts b/packages/react-docgen/src/utils/findFunctionReturn.ts
index 492ae08201c..ede82281876 100644
--- a/packages/react-docgen/src/utils/findFunctionReturn.ts
+++ b/packages/react-docgen/src/utils/findFunctionReturn.ts
@@ -19,7 +19,11 @@ const explodedVisitors = visitors.explode<TraverseState>({
     enter: function (path, state) {
       const argument = path.get('argument');
 
-      if (argument.hasNode()) {
+      if (argument.node?.type === 'NullLiteral') {
+        // Handle null return value
+        state.resolvedReturnPath = path;
+        path.stop();
+      } else if (argument.hasNode()) {
         const resolvedPath = resolvesToFinalValue(
           argument,
           state.predicate,
@@ -90,6 +94,10 @@ function resolvesToFinalValue<T extends NodePath>(
     }
   }
 
+  if (resolvedPath.isObjectProperty()) {
+    return resolvedPath as T;
+  }
+
   return;
 }