diff --git a/rust/src/analyzer/definitions.rs b/rust/src/analyzer/definitions.rs
index d97ac83..f7ad244 100644
--- a/rust/src/analyzer/definitions.rs
+++ b/rust/src/analyzer/definitions.rs
@@ -67,6 +67,8 @@ pub(crate) fn process_def_node(
     let method_name = String::from_utf8_lossy(def_node.name().as_slice()).to_string();
     install_method(genv, method_name.clone());
 
+    let merge_vtx = genv.scope_manager.current_method_return_vertex();
+
     // Process parameters BEFORE processing body
     let param_vtxs = if let Some(params_node) = def_node.parameters() {
         install_parameters(genv, lenv, changes, source, &params_node)
@@ -81,15 +83,22 @@ pub(crate) fn process_def_node(
         }
     }
 
-    // Register user-defined method with return vertex and param vertices (before exiting scope)
-    if let Some(return_vtx) = last_vtx {
+    // Connect last expression to merge vertex so that implicit return
+    // (Ruby's last-expression-is-return-value) is included in the union type
+    if let (Some(last), Some(merge)) = (last_vtx, merge_vtx) {
+        genv.add_edge(last, merge);
+    }
+
+    // Register user-defined method with merge vertex as return vertex
+    let return_vtx = merge_vtx.or(last_vtx);
+    if let Some(ret_vtx) = return_vtx {
         let recv_type_name = genv.scope_manager.current_qualified_name();
 
         if let Some(name) = recv_type_name {
             genv.register_user_method(
                 Type::instance(&name),
                 &method_name,
-                return_vtx,
+                ret_vtx,
                 param_vtxs,
             );
         }
diff --git a/rust/src/analyzer/install.rs b/rust/src/analyzer/install.rs
index 3841208..20150d4 100644
--- a/rust/src/analyzer/install.rs
+++ b/rust/src/analyzer/install.rs
@@ -14,6 +14,7 @@ use super::definitions::{process_class_node, process_def_node, process_module_no
 use super::dispatch::{dispatch_needs_child, dispatch_simple, process_needs_child, DispatchResult};
 use super::literals::install_literal_node;
 use super::parentheses::process_parentheses_node;
+use super::returns::process_return_node;
 
 /// Build graph from AST (public API wrapper)
 pub struct AstInstaller<'a> {
@@ -81,6 +82,10 @@ pub(crate) fn install_node(
         return process_parentheses_node(genv, lenv, changes, source, &paren_node);
     }
 
+    if let Some(return_node) = node.as_return_node() {
+        return process_return_node(genv, lenv, changes, source, &return_node);
+    }
+
     match dispatch_simple(genv, lenv, node) {
         DispatchResult::Vertex(vtx) => return Some(vtx),
         DispatchResult::NotHandled => {}
diff --git a/rust/src/analyzer/mod.rs b/rust/src/analyzer/mod.rs
index fdc2b2e..e195b59 100644
--- a/rust/src/analyzer/mod.rs
+++ b/rust/src/analyzer/mod.rs
@@ -8,6 +8,7 @@ mod install;
 mod literals;
 mod parameters;
 mod parentheses;
+mod returns;
 mod variables;
 
 pub use install::AstInstaller;
diff --git a/rust/src/analyzer/returns.rs b/rust/src/analyzer/returns.rs
new file mode 100644
index 0000000..bfef14f
--- /dev/null
+++ b/rust/src/analyzer/returns.rs
@@ -0,0 +1,191 @@
+//! Return statement handling
+//!
+//! Processes `return expr` by connecting the expression's vertex
+//! to the enclosing method's merge vertex.
+
+use crate::env::{GlobalEnv, LocalEnv};
+use crate::graph::{ChangeSet, VertexId};
+
+use super::install::install_node;
+
+/// Process ReturnNode: connect return value to method's merge vertex
+pub(crate) fn process_return_node(
+    genv: &mut GlobalEnv,
+    lenv: &mut LocalEnv,
+    changes: &mut ChangeSet,
+    source: &str,
+    return_node: &ruby_prism::ReturnNode,
+) -> Option<VertexId> {
+    // Process return value (first argument only; multi-value return not yet supported)
+    let value_vtx = if let Some(arguments) = return_node.arguments() {
+        arguments
+            .arguments()
+            .iter()
+            .next()
+            .and_then(|arg| install_node(genv, lenv, changes, source, &arg))
+    } else {
+        // `return` without value → nil
+        Some(genv.new_source(crate::types::Type::Nil))
+    };
+
+    // Connect return value to method's merge vertex
+    if let Some(vtx) = value_vtx {
+        if let Some(merge_vtx) = genv.scope_manager.current_method_return_vertex() {
+            genv.add_edge(vtx, merge_vtx);
+        }
+    }
+
+    None
+}
+
+#[cfg(test)]
+mod tests {
+    use crate::env::{GlobalEnv, LocalEnv};
+    use crate::graph::ChangeSet;
+    use crate::parser::ParseSession;
+    use crate::types::Type;
+
+    fn setup_and_infer(source: &str) -> GlobalEnv {
+        let session = ParseSession::new();
+        let parse_result = session.parse_source(source, "test.rb").unwrap();
+        let root = parse_result.node();
+        let program = root.as_program_node().unwrap();
+
+        let mut genv = GlobalEnv::new();
+        let mut lenv = LocalEnv::new();
+        let mut changes = ChangeSet::new();
+
+        for stmt in &program.statements().body() {
+            crate::analyzer::install::install_node(
+                &mut genv, &mut lenv, &mut changes, source, &stmt,
+            );
+        }
+
+        genv.apply_changes(changes);
+        genv.run_all();
+        genv
+    }
+
+    fn get_return_type(genv: &GlobalEnv, class_name: &str, method_name: &str) -> String {
+        let info = genv
+            .resolve_method(&Type::instance(class_name), method_name)
+            .unwrap_or_else(|| panic!("{}#{} should be registered", class_name, method_name));
+        let vtx = info
+            .return_vertex
+            .expect("return_vertex should be Some");
+
+        if let Some(source) = genv.get_source(vtx) {
+            source.ty.show()
+        } else if let Some(vertex) = genv.get_vertex(vtx) {
+            vertex.show()
+        } else {
+            panic!("return_vertex not found");
+        }
+    }
+
+    #[test]
+    fn test_simple_return() {
+        let source = r#"
+class Foo
+  def bar
+    return "hello"
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        assert_eq!(get_return_type(&genv, "Foo", "bar"), "String");
+    }
+
+    #[test]
+    fn test_return_with_implicit_return_union() {
+        let source = r#"
+class Foo
+  def bar
+    return "hello" if true
+    42
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        let ty = get_return_type(&genv, "Foo", "bar");
+        assert!(ty.contains("Integer"), "should contain Integer, got: {}", ty);
+        assert!(ty.contains("String"), "should contain String, got: {}", ty);
+    }
+
+    #[test]
+    fn test_multiple_returns() {
+        let source = r#"
+class Foo
+  def bar
+    return "a" if true
+    return :b if false
+    42
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        let ty = get_return_type(&genv, "Foo", "bar");
+        assert!(ty.contains("Integer"), "should contain Integer, got: {}", ty);
+        assert!(ty.contains("String"), "should contain String, got: {}", ty);
+        assert!(ty.contains("Symbol"), "should contain Symbol, got: {}", ty);
+    }
+
+    #[test]
+    fn test_return_without_value() {
+        let source = r#"
+class Foo
+  def bar
+    return if true
+    42
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        let ty = get_return_type(&genv, "Foo", "bar");
+        assert!(ty.contains("Integer"), "should contain Integer, got: {}", ty);
+        assert!(ty.contains("nil"), "should contain nil, got: {}", ty);
+    }
+
+    #[test]
+    fn test_no_return_backward_compat() {
+        let source = r#"
+class Foo
+  def bar
+    "hello"
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        assert_eq!(get_return_type(&genv, "Foo", "bar"), "String");
+    }
+
+    #[test]
+    fn test_return_only_method() {
+        let source = r#"
+class Foo
+  def bar
+    return "hello"
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        assert_eq!(get_return_type(&genv, "Foo", "bar"), "String");
+    }
+
+    #[test]
+    fn test_return_dead_code_over_approximation() {
+        let source = r#"
+class Foo
+  def bar
+    return "hello"
+    42
+  end
+end
+"#;
+        let genv = setup_and_infer(source);
+        let ty = get_return_type(&genv, "Foo", "bar");
+        // Dead code after return is still processed (over-approximation)
+        assert!(ty.contains("Integer"), "should contain Integer (dead code), got: {}", ty);
+        assert!(ty.contains("String"), "should contain String, got: {}", ty);
+    }
+}
diff --git a/rust/src/env/global_env.rs b/rust/src/env/global_env.rs
index 10c4ec5..f5e7b36 100644
--- a/rust/src/env/global_env.rs
+++ b/rust/src/env/global_env.rs
@@ -210,9 +210,11 @@ impl GlobalEnv {
     pub fn enter_method(&mut self, name: String) -> ScopeId {
         // Look for class or module context
         let receiver_type = self.scope_manager.current_qualified_name();
+        let return_vertex = Some(self.new_vertex());
         let scope_id = self.scope_manager.new_scope(ScopeKind::Method {
             name,
             receiver_type,
+            return_vertex,
         });
         self.scope_manager.enter_scope(scope_id);
         scope_id
diff --git a/rust/src/env/scope.rs b/rust/src/env/scope.rs
index 72397fb..6a1f371 100644
--- a/rust/src/env/scope.rs
+++ b/rust/src/env/scope.rs
@@ -20,6 +20,7 @@ pub enum ScopeKind {
     Method {
         name: String,
         receiver_type: Option<String>, // Receiver class/module name
+        return_vertex: Option<VertexId>, // Merge vertex for return statements
     },
     Block,
 }
@@ -309,6 +310,22 @@ impl ScopeManager {
         Some(result)
     }
 
+    /// Get return_vertex from the nearest enclosing method scope
+    pub fn current_method_return_vertex(&self) -> Option<VertexId> {
+        let mut current = Some(self.current_scope);
+        while let Some(scope_id) = current {
+            if let Some(scope) = self.scopes.get(&scope_id) {
+                if let ScopeKind::Method { return_vertex, .. } = &scope.kind {
+                    return *return_vertex;
+                }
+                current = scope.parent;
+            } else {
+                break;
+            }
+        }
+        None
+    }
+
     /// Lookup instance variable in enclosing module scope
     pub fn lookup_instance_var_in_module(&self, name: &str) -> Option<VertexId> {
         let mut current = Some(self.current_scope);
@@ -448,6 +465,7 @@ mod tests {
         let method_id = sm.new_scope(ScopeKind::Method {
             name: "test".to_string(),
             receiver_type: None,
+            return_vertex: None,
         });
         sm.enter_scope(method_id);
 
@@ -472,6 +490,7 @@ mod tests {
         let method_id = sm.new_scope(ScopeKind::Method {
             name: "helper".to_string(),
             receiver_type: Some("Utils".to_string()),
+            return_vertex: None,
         });
         sm.enter_scope(method_id);
 
@@ -500,6 +519,7 @@ mod tests {
         let method_id = sm.new_scope(ScopeKind::Method {
             name: "get_setting".to_string(),
             receiver_type: Some("Config".to_string()),
+            return_vertex: None,
         });
         sm.enter_scope(method_id);
 
@@ -559,6 +579,7 @@ mod tests {
         let method_id = sm.new_scope(ScopeKind::Method {
             name: "greet".to_string(),
             receiver_type: None,
+            return_vertex: None,
         });
         sm.enter_scope(method_id);
 
diff --git a/test/return_test.rb b/test/return_test.rb
new file mode 100644
index 0000000..c4918ee
--- /dev/null
+++ b/test/return_test.rb
@@ -0,0 +1,132 @@
+# frozen_string_literal: true
+
+require 'test_helper'
+
+class ReturnTest < Minitest::Test
+  include CLITestHelper
+
+  # ============================================
+  # No Error (check CLI)
+  # ============================================
+
+  def test_return_string_upcase_no_error
+    source = <<~RUBY
+      class Formatter
+        def format
+          return "" if true
+          "default"
+        end
+
+        def run
+          self.format.upcase
+        end
+      end
+    RUBY
+
+    assert_no_check_errors(source)
+  end
+
+  def test_return_only_method_no_error
+    source = <<~RUBY
+      class Foo
+        def bar
+          return "hello"
+        end
+
+        def baz
+          self.bar.upcase
+        end
+      end
+    RUBY
+
+    assert_no_check_errors(source)
+  end
+
+  def test_no_return_backward_compat
+    source = <<~RUBY
+      class Foo
+        def bar
+          "hello"
+        end
+
+        def baz
+          self.bar.upcase
+        end
+      end
+    RUBY
+
+    assert_no_check_errors(source)
+  end
+
+  def test_multiple_returns_union_no_error
+    source = <<~RUBY
+      class Converter
+        def convert
+          return "hello" if true
+          return "world" if false
+          "default"
+        end
+
+        def run
+          self.convert.upcase
+        end
+      end
+    RUBY
+
+    assert_no_check_errors(source)
+  end
+
+  def test_return_with_implicit_return_union_no_error
+    source = <<~RUBY
+      class Calculator
+        def compute
+          return 0 if true
+          42
+        end
+
+        def run
+          self.compute.even?
+        end
+      end
+    RUBY
+
+    assert_no_check_errors(source)
+  end
+
+  # ============================================
+  # Error Detection (check CLI)
+  # ============================================
+
+  def test_return_string_even_error
+    source = <<~RUBY
+      class Parser
+        def parse
+          return "error"
+        end
+
+        def run
+          self.parse.even?
+        end
+      end
+    RUBY
+
+    assert_check_error(source, method_name: 'even?', receiver_type: 'String')
+  end
+
+  def test_return_union_string_integer_even_error
+    source = <<~RUBY
+      class Validator
+        def validate
+          return "invalid" if true
+          42
+        end
+
+        def run
+          self.validate.even?
+        end
+      end
+    RUBY
+
+    assert_check_error(source, method_name: 'even?', receiver_type: 'String')
+  end
+end