diff --git a/idea/src/org/jetbrains/jet/plugin/codeInsight/CodeInsightUtils.java b/idea/src/org/jetbrains/jet/plugin/codeInsight/CodeInsightUtils.java
index 70c5ed11b2e..54c3f66f5a9 100644
--- a/idea/src/org/jetbrains/jet/plugin/codeInsight/CodeInsightUtils.java
+++ b/idea/src/org/jetbrains/jet/plugin/codeInsight/CodeInsightUtils.java
@@ -210,7 +210,7 @@ public class CodeInsightUtils {
     public static PsiElement getTopmostElementAtOffset(@NotNull PsiElement element, int offset) {
         do {
             PsiElement parent = element.getParent();
-            if (parent == null || (parent.getTextOffset() < offset)) {
+            if (parent == null || (parent.getTextOffset() < offset) || parent instanceof JetBlockExpression) {
                 break;
             }
             element = parent;
diff --git a/idea/testData/debugger/tinyApp/outs/insertInBlock.out b/idea/testData/debugger/tinyApp/outs/insertInBlock.out
new file mode 100644
index 00000000000..6936cb0ff92
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/outs/insertInBlock.out
@@ -0,0 +1,7 @@
+LineBreakpoint created at insertInBlock.kt:6
+!JDK_HOME!\bin\java -agentlib:jdwp=transport=dt_socket,address=!HOST_NAME!:!HOST_PORT!,suspend=y,server=n -Dfile.encoding=!FILE_ENCODING! -classpath !APP_PATH!\classes;!KOTLIN_RUNTIME!;!RT_JAR! insertInBlock.InsertInBlockPackage
+Connected to the target VM, address: '!HOST_NAME!:PORT_NAME!', transport: 'socket'
+insertInBlock.kt:5
+Disconnected from the target VM, address: '!HOST_NAME!:PORT_NAME!', transport: 'socket'
+
+Process finished with exit code 0
diff --git a/idea/testData/debugger/tinyApp/src/evaluate/insertInBlock.kt b/idea/testData/debugger/tinyApp/src/evaluate/insertInBlock.kt
new file mode 100644
index 00000000000..880f9fbb09b
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/evaluate/insertInBlock.kt
@@ -0,0 +1,11 @@
+package insertInBlock
+
+fun main(args: Array<String>) {
+    val lambda = {
+        //Breakpoint!
+        val a = 1
+    }()
+}
+
+// EXPRESSION: 1 + 1
+// RESULT: 2: I
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java b/idea/tests/org/jetbrains/jet/plugin/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
index 2c6c127315c..73973e98407 100644
--- a/idea/tests/org/jetbrains/jet/plugin/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/plugin/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
@@ -96,6 +96,11 @@ public class KotlinEvaluateExpressionTestGenerated extends AbstractKotlinEvaluat
         doTest("idea/testData/debugger/tinyApp/src/evaluate/imports.kt");
     }
     
+    @TestMetadata("insertInBlock.kt")
+    public void testInsertInBlock() throws Exception {
+        doTest("idea/testData/debugger/tinyApp/src/evaluate/insertInBlock.kt");
+    }
+    
     @TestMetadata("multilineExpressionAtBreakpoint.kt")
     public void testMultilineExpressionAtBreakpoint() throws Exception {
         doTest("idea/testData/debugger/tinyApp/src/evaluate/multilineExpressionAtBreakpoint.kt");