diff --git a/lib/rules/await-async-events.ts b/lib/rules/await-async-events.ts
index 96adfcb2..6ca29473 100644
--- a/lib/rules/await-async-events.ts
+++ b/lib/rules/await-async-events.ts
@@ -91,9 +91,6 @@ export default createTestingLibraryRule<Options, MessageIds>({
 			messageId?: MessageIds;
 			fix?: TSESLint.ReportFixFunction;
 		}): void {
-			if (node.name === USER_EVENT_SETUP_FUNCTION_NAME) {
-				return;
-			}
 			if (!isPromiseHandled(node)) {
 				context.report({
 					node: closestCallExpression.callee,
@@ -136,6 +133,10 @@ 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 2f0ce78e..ba7110a5 100644
--- a/tests/lib/rules/await-async-events.test.ts
+++ b/tests/lib/rules/await-async-events.test.ts
@@ -204,6 +204,19 @@ ruleTester.run(RULE_NAME, rule, {
 				`,
 				options: [{ eventModule: 'userEvent' }] as const,
 			},
+			{
+				code: `
+				import userEvent from '${testingFramework}'
+				function customSetup() {
+					const user = userEvent.setup();
+					return { user };
+				}
+				test('setup method called and returned is valid', () => {
+					const { user } = customSetup();
+				})
+				`,
+				options: [{ eventModule: 'userEvent' }] as const,
+			},
 			...USER_EVENT_ASYNC_FUNCTIONS.map((eventMethod) => ({
 				code: `
         import userEvent from '${testingFramework}'