diff --git a/lib/rules/await-async-events.ts b/lib/rules/await-async-events.ts
index 6ca29473..06a80d78 100644
--- a/lib/rules/await-async-events.ts
+++ b/lib/rules/await-async-events.ts
@@ -122,6 +122,10 @@ export default createTestingLibraryRule<Options, MessageIds>({
 					(isFireEventEnabled && helpers.isFireEventMethod(node)) ||
 					(isUserEventEnabled && helpers.isUserEventMethod(node))
 				) {
+					if (node.name === USER_EVENT_SETUP_FUNCTION_NAME) {
+						return;
+					}
+
 					detectEventMethodWrapper(node);
 
 					const closestCallExpression = findClosestCallExpressionNode(
@@ -133,10 +137,6 @@ export default createTestingLibraryRule<Options, MessageIds>({
 						return;
 					}
 
-					if (node.name === USER_EVENT_SETUP_FUNCTION_NAME) {
-						return;
-					}
-
 					const references = getVariableReferences(
 						context,
 						closestCallExpression.parent
diff --git a/tests/lib/rules/await-async-events.test.ts b/tests/lib/rules/await-async-events.test.ts
index 894f7f92..505e1972 100644
--- a/tests/lib/rules/await-async-events.test.ts
+++ b/tests/lib/rules/await-async-events.test.ts
@@ -204,6 +204,16 @@ ruleTester.run(RULE_NAME, rule, {
 				`,
 				options: [{ eventModule: 'userEvent' }] as const,
 			},
+			{
+				code: `
+				import userEvent from '${testingFramework}'
+				const customSetup = () => userEvent.setup();
+				test('setup method called and returned as arrow function body is valid', () => {
+					const user = customSetup();
+				})
+				`,
+				options: [{ eventModule: 'userEvent' }] as const,
+			},
 			{
 				code: `
 				import userEvent from '${testingFramework}'