diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt3162tryAsInitializer.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt3162tryAsInitializer.kt
new file mode 100644
index 00000000000..a459cf6cf91
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt3162tryAsInitializer.kt
@@ -0,0 +1,12 @@
+//KT-3162 More precise try-finally error marking
+
+fun foo(x: String) : String {
+    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>a<!> =<!> try {
+        x
+    } finally {
+        try {
+        } catch (e: Exception) {
+        }
+        return x
+    }
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index b37702a0811..c5b4ea4326f 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -1551,6 +1551,11 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                     doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_3.kt");
                 }
                 
+                @TestMetadata("kt3162tryAsInitializer.kt")
+                public void testKt3162tryAsInitializer() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt3162tryAsInitializer.kt");
+                }
+                
                 @TestMetadata("kt5200DeadCodeInLambdas.kt")
                 public void testKt5200DeadCodeInLambdas() throws Exception {
                     doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt5200DeadCodeInLambdas.kt");