diff --git a/js/js.inliner/src/org/jetbrains/kotlin/js/inline/clean/removeUnusedFunctionDefinitions.kt b/js/js.inliner/src/org/jetbrains/kotlin/js/inline/clean/removeUnusedFunctionDefinitions.kt
index 13a36601115..ef03d7d77a2 100644
--- a/js/js.inliner/src/org/jetbrains/kotlin/js/inline/clean/removeUnusedFunctionDefinitions.kt
+++ b/js/js.inliner/src/org/jetbrains/kotlin/js/inline/clean/removeUnusedFunctionDefinitions.kt
@@ -20,7 +20,7 @@ import org.jetbrains.kotlin.js.backend.ast.*
 import org.jetbrains.kotlin.js.backend.ast.metadata.isLocal
 import org.jetbrains.kotlin.js.backend.ast.metadata.staticRef
 import org.jetbrains.kotlin.js.inline.util.IdentitySet
-import org.jetbrains.kotlin.js.inline.util.collectFunctionReferencesInside
+import org.jetbrains.kotlin.js.inline.util.collectReferencedNames
 
 /**
  * Removes unused function definitions:
@@ -93,13 +93,13 @@ private class UnusedLocalFunctionsCollector(private val functions: Map<JsName, J
     }
 
     private fun processLocalFunction(name: JsName, function: JsFunction) {
-        for (referenced in collectFunctionReferencesInside(function)) {
+        for (referenced in collectReferencedNames(function)) {
             tracker.addRemovableReference(name, referenced)
         }
     }
 
     private fun processNonLocalFunction(function: JsFunction) {
-        for (referenced in collectFunctionReferencesInside(function)) {
+        for (referenced in collectReferencedNames(function)) {
             tracker.markReachable(referenced)
         }
     }
diff --git a/js/js.inliner/src/org/jetbrains/kotlin/js/inline/util/collectUtils.kt b/js/js.inliner/src/org/jetbrains/kotlin/js/inline/util/collectUtils.kt
index 1499596b180..433b1a790fc 100644
--- a/js/js.inliner/src/org/jetbrains/kotlin/js/inline/util/collectUtils.kt
+++ b/js/js.inliner/src/org/jetbrains/kotlin/js/inline/util/collectUtils.kt
@@ -19,14 +19,10 @@ package org.jetbrains.kotlin.js.inline.util
 import org.jetbrains.kotlin.js.backend.JsToStringGenerationVisitor
 import org.jetbrains.kotlin.js.backend.ast.*
 import org.jetbrains.kotlin.js.backend.ast.metadata.imported
-import org.jetbrains.kotlin.js.backend.ast.metadata.staticRef
 import org.jetbrains.kotlin.js.inline.util.collectors.InstanceCollector
 import org.jetbrains.kotlin.js.translate.expression.InlineMetadata
 import org.jetbrains.kotlin.js.translate.utils.JsAstUtils
 
-fun collectFunctionReferencesInside(scope: JsNode): List<JsName> =
-        collectReferencedNames(scope).filter { it.staticRef is JsFunction }
-
 fun collectReferencedNames(scope: JsNode): Set<JsName> {
     val references = mutableSetOf<JsName>()
 
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
index 16c71d2dc2c..f3839545a57 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/BoxJsTestGenerated.java
@@ -3803,6 +3803,12 @@ public class BoxJsTestGenerated extends AbstractBoxJsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("inlineLambda.kt")
+        public void testInlineLambda() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("js/js.translator/testData/box/incremental/inlineLambda.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("jsModule.kt")
         public void testJsModule() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("js/js.translator/testData/box/incremental/jsModule.kt");
diff --git a/js/js.translator/testData/box/incremental/inlineLambda.kt b/js/js.translator/testData/box/incremental/inlineLambda.kt
new file mode 100644
index 00000000000..49aac002e29
--- /dev/null
+++ b/js/js.translator/testData/box/incremental/inlineLambda.kt
@@ -0,0 +1,13 @@
+// EXPECTED_REACHABLE_NODES: 1128
+// FILE: a.kt
+inline fun foo(f: () -> String): () -> String {
+    val result = f()
+    return { result }
+}
+
+
+// FILE: main.kt
+// RECOMPILE
+fun bar(f: () -> String) = foo(f)()
+
+fun box(): String = bar { "OK" }
\ No newline at end of file