diff --git a/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/lower/JsCodeOutliningLowering.kt b/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/lower/JsCodeOutliningLowering.kt
index 62c74bc1a21..d47dfbedbb3 100644
--- a/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/lower/JsCodeOutliningLowering.kt
+++ b/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/lower/JsCodeOutliningLowering.kt
@@ -30,12 +30,14 @@ import org.jetbrains.kotlin.ir.expressions.IrContainerExpression
 import org.jetbrains.kotlin.ir.expressions.IrExpression
 import org.jetbrains.kotlin.ir.symbols.IrFunctionSymbol
 import org.jetbrains.kotlin.ir.util.constructors
+import org.jetbrains.kotlin.ir.util.dumpKotlinLike
 import org.jetbrains.kotlin.ir.visitors.IrElementVisitorVoid
 import org.jetbrains.kotlin.ir.visitors.acceptChildrenVoid
 import org.jetbrains.kotlin.ir.visitors.transformChildrenVoid
 import org.jetbrains.kotlin.js.backend.ast.*
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.utils.addIfNotNull
+import java.lang.IllegalStateException
 
 // Outlines `kotlin.js.js(code: String)` calls where JS code references Kotlin locals.
 // Makes locals usages explicit.
@@ -164,7 +166,10 @@ private class JsCodeOutlineTransformer(
         }
         // We don't need this function's body. Using empty block body stub, because some code might expect all functions to have bodies.
         outlinedFunction.body = backendContext.irFactory.createBlockBody(UNDEFINED_OFFSET, UNDEFINED_OFFSET)
-        outlinedFunction.parent = container as IrDeclarationParent
+        outlinedFunction.parent = when (container) {
+            is IrDeclarationParent -> container
+            else -> container.parent
+        }
         kotlinLocalsUsedInJs.forEach { local ->
             outlinedFunction.addValueParameter {
                 name = local.name
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/es6/semantics/IrBoxJsES6TestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/es6/semantics/IrBoxJsES6TestGenerated.java
index 2431469a3cd..f242ccc9e68 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/es6/semantics/IrBoxJsES6TestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/es6/semantics/IrBoxJsES6TestGenerated.java
@@ -5105,6 +5105,11 @@ public class IrBoxJsES6TestGenerated extends AbstractIrBoxJsES6Test {
             runTest("js/js.translator/testData/box/jsCode/if.kt");
         }
 
+        @TestMetadata("init.kt")
+        public void testInit() throws Exception {
+            runTest("js/js.translator/testData/box/jsCode/init.kt");
+        }
+
         @TestMetadata("invocation.kt")
         public void testInvocation() throws Exception {
             runTest("js/js.translator/testData/box/jsCode/invocation.kt");
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/semantics/IrBoxJsTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/semantics/IrBoxJsTestGenerated.java
index 902c771bee4..10b4993e6e8 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/semantics/IrBoxJsTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/semantics/IrBoxJsTestGenerated.java
@@ -5105,6 +5105,11 @@ public class IrBoxJsTestGenerated extends AbstractIrBoxJsTest {
             runTest("js/js.translator/testData/box/jsCode/if.kt");
         }
 
+        @TestMetadata("init.kt")
+        public void testInit() throws Exception {
+            runTest("js/js.translator/testData/box/jsCode/init.kt");
+        }
+
         @TestMetadata("invocation.kt")
         public void testInvocation() throws Exception {
             runTest("js/js.translator/testData/box/jsCode/invocation.kt");
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
index 74d0097f158..b0085c52349 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
@@ -5120,6 +5120,11 @@ public class BoxJsTestGenerated extends AbstractBoxJsTest {
             runTest("js/js.translator/testData/box/jsCode/if.kt");
         }
 
+        @TestMetadata("init.kt")
+        public void testInit() throws Exception {
+            runTest("js/js.translator/testData/box/jsCode/init.kt");
+        }
+
         @TestMetadata("invocation.kt")
         public void testInvocation() throws Exception {
             runTest("js/js.translator/testData/box/jsCode/invocation.kt");
diff --git a/js/js.translator/testData/box/jsCode/init.kt b/js/js.translator/testData/box/jsCode/init.kt
new file mode 100644
index 00000000000..f53e8569146
--- /dev/null
+++ b/js/js.translator/testData/box/jsCode/init.kt
@@ -0,0 +1,21 @@
+// EXPECTED_REACHABLE_NODES: 1282
+package foo
+
+class A {
+    var ok: String
+
+    init {
+        var ok = "fail"
+        ok = js(
+            """
+            ok = 'OK'
+            return ok
+            """
+        )
+        this.ok = ok
+    }
+}
+
+fun box(): String {
+    return A().ok
+}
\ No newline at end of file