diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetFileElementType.java b/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetFileElementType.java
index d324cda19c7..6e9778e93c0 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetFileElementType.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetFileElementType.java
@@ -38,7 +38,7 @@ import java.io.IOException;
  * @author Nikolay Krasko
  */
 public class JetFileElementType extends IStubFileElementType<PsiJetFileStub> {
-    public static final int STUB_VERSION = 10;
+    public static final int STUB_VERSION = 12;
 
     public JetFileElementType() {
         super("jet.FILE", JetLanguage.INSTANCE);
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetStubElementType.java b/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetStubElementType.java
index c60e6b56775..f8b594bba4b 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetStubElementType.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/psi/stubs/elements/JetStubElementType.java
@@ -20,8 +20,10 @@ import com.intellij.lang.ASTNode;
 import com.intellij.psi.PsiElement;
 import com.intellij.psi.stubs.IStubElementType;
 import com.intellij.psi.stubs.StubElement;
+import com.intellij.psi.util.PsiTreeUtil;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.plugin.JetLanguage;
 
 /**
@@ -39,4 +41,23 @@ public abstract class JetStubElementType<StubT extends StubElement, PsiT extends
     public String getExternalId() {
         return "jet." + toString();
     }
+
+    @Override
+    public boolean shouldCreateStub(ASTNode node) {
+        PsiElement psi = node.getPsi();
+
+        if (PsiTreeUtil.getParentOfType(psi, JetFunctionLiteral.class) != null) {
+            return false;
+        }
+
+        JetBlockExpression blockExpression = PsiTreeUtil.getParentOfType(psi, JetBlockExpression.class);
+        @SuppressWarnings("unchecked") JetDeclarationWithBody stubStopElement =
+                PsiTreeUtil.getParentOfType(blockExpression, JetFunction.class, JetPropertyAccessor.class);
+
+        if (stubStopElement != null) {
+            return false;
+        }
+
+        return super.shouldCreateStub(node);
+    }
 }
diff --git a/idea/tests/org/jetbrains/jet/plugin/stubs/JetStubsTest.java b/idea/tests/org/jetbrains/jet/plugin/stubs/JetStubsTest.java
index 74f30ae0770..a03ac7e9974 100644
--- a/idea/tests/org/jetbrains/jet/plugin/stubs/JetStubsTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/stubs/JetStubsTest.java
@@ -84,6 +84,13 @@ public class JetStubsTest extends LightCodeInsightFixtureTestCase {
                     "      VALUE_PARAMETER:PsiJetParameterStubImpl[val name=other typeText=String defaultValue=\"hello\"]\n");
     }
 
+    public void testNotStoreInFunction() {
+        doBuildTest("fun some() { val test = 12;\n fun fake() {}\n class FakeClass\n }",
+                    "PsiJetFileStubImpl[package=]\n" +
+                    "  FUN:PsiJetFunctionStubImpl[top name=some]\n" +
+                    "    VALUE_PARAMETER_LIST:PsiJetParameterListStubImpl\n");
+    }
+
     private void doBuildTest(@NonNls final String source, @NonNls @NotNull final String tree) {
         final JetFile file = (JetFile) createLightFile(JetFileType.INSTANCE, source);
         final FileASTNode fileNode = file.getNode();