diff --git a/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/domain.kt b/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/domain.kt
index 2763c6afd7..914aa757b7 100644
--- a/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/domain.kt
+++ b/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/domain.kt
@@ -13,7 +13,7 @@ import java.util.Locale
 
 data class ADT(val pckg: KSName, val declaration: KSClassDeclaration, val targets: List<Target>) {
   val sourceClassName = declaration.qualifiedNameOrSimpleName
-  val sourceName = declaration.simpleName.asString().replaceFirstChar { it.lowercase(Locale.getDefault()) }
+  val sourceName = declaration.simpleName.asString().replaceFirstChar { it.lowercase(Locale.getDefault()) }.sanitize()
   val simpleName = declaration.nameWithParentClass
   val packageName = pckg.asSanitizedString()
   val visibilityModifierName = when (declaration.companionObject?.getVisibility()) {
diff --git a/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/lenses.kt b/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/lenses.kt
index 1583dc4494..fed5eeb5f4 100644
--- a/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/lenses.kt
+++ b/arrow-libs/optics/arrow-optics-ksp-plugin/src/main/kotlin/arrow/optics/plugin/internals/lenses.kt
@@ -14,10 +14,7 @@ private fun OpticsProcessorOptions.processElement(adt: ADT, foci: List<Focus>):
 
   val setBody = { focus: Focus ->
     val setBodyCopy = """${adt.sourceName}.copy(${
-      focus.paramName.plusIfNotBlank(
-        prefix = "`",
-        postfix = "`",
-      )
+      focus.escapedParamName
     } = value)"""
     when {
       focus.subclasses.isNotEmpty() -> {
diff --git a/arrow-libs/optics/arrow-optics-ksp-plugin/src/test/kotlin/arrow/optics/plugin/DSLTests.kt b/arrow-libs/optics/arrow-optics-ksp-plugin/src/test/kotlin/arrow/optics/plugin/DSLTests.kt
index 844ae0f2e0..b8e7b06d94 100755
--- a/arrow-libs/optics/arrow-optics-ksp-plugin/src/test/kotlin/arrow/optics/plugin/DSLTests.kt
+++ b/arrow-libs/optics/arrow-optics-ksp-plugin/src/test/kotlin/arrow/optics/plugin/DSLTests.kt
@@ -195,4 +195,37 @@ class DSLTests {
       |}
       """.compilationSucceeds()
   }
+
+  @Test
+  fun `Using Object as the name a class, prisms, #3474`() {
+    """
+      |$`package`
+      |$imports
+      |
+      |@optics
+      |sealed interface Thing {
+      |  data class Object(val value: Int) : Thing
+      |  companion object
+      |}
+      |
+      |val i: Prism<Thing, Thing.Object> = Thing.`object`
+      |val r = i != null
+      """.evals("r" to true)
+  }
+
+  @Test
+  fun `Using Object as the name a class, lenses, #3474`() {
+    """
+      |$`package`
+      |$imports
+      |
+      |@optics
+      |data class Object(val value: Int) {
+      |  companion object
+      |}
+      |
+      |val i: Lens<Object, Int> = Object.value
+      |val r = i != null
+      """.evals("r" to true)
+  }
 }