diff --git a/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java b/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
index e3380fc94c4..e339c280616 100644
--- a/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
+++ b/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
@@ -30,4 +30,9 @@ public final class ClosureTest extends SingleFileTranslationTest {
     public void testIteratingCallbacks() throws Exception {
         fooBoxTest();
     }
+
+
+    public void testLocalParameterInCallback() throws Exception {
+        fooBoxTest();
+    }
 }
diff --git a/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/CaptureClosureVisitor.java b/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/CaptureClosureVisitor.java
index e018b57297a..021417724f8 100644
--- a/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/CaptureClosureVisitor.java
+++ b/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/CaptureClosureVisitor.java
@@ -21,8 +21,10 @@ import com.intellij.psi.util.PsiTreeUtil;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.JetNodeTypes;
 import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
+import org.jetbrains.jet.lang.descriptors.PropertyDescriptor;
 import org.jetbrains.jet.lang.descriptors.VariableDescriptor;
 import org.jetbrains.jet.lang.psi.JetElement;
+import org.jetbrains.jet.lang.psi.JetProperty;
 import org.jetbrains.jet.lang.psi.JetSimpleNameExpression;
 import org.jetbrains.jet.lang.psi.JetTreeVisitor;
 import org.jetbrains.jet.lang.resolve.BindingContext;
@@ -48,6 +50,7 @@ public class CaptureClosureVisitor extends JetTreeVisitor<ClosureContext> {
     @Override
     public Void visitSimpleNameExpression(@NotNull JetSimpleNameExpression expression,
                                           @NotNull ClosureContext context) {
+        //TODO: this gets as dirty as it can be, should clean up and test more or use different approach
         expression.acceptChildren(this, context);
         DeclarationDescriptor descriptor = BindingUtils.getNullableDescriptorForReferenceExpression(bindingContext, expression);
         if (!(descriptor instanceof VariableDescriptor)) {
@@ -61,6 +64,11 @@ public class CaptureClosureVisitor extends JetTreeVisitor<ClosureContext> {
         if (PsiTreeUtil.isAncestor(functionElement, variableDeclaration, false)) {
             return null;
         }
+        boolean isProperty = variableDescriptor instanceof PropertyDescriptor;
+        if (!isProperty && !variableDescriptor.isVar() && variableDeclaration instanceof JetProperty) {
+            context.put(variableDescriptor);
+            return null;
+        }
         boolean isLoopParameter = variableDeclaration.getNode().getElementType().equals(JetNodeTypes.LOOP_PARAMETER);
         if (isLoopParameter) {
             context.put(variableDescriptor);
diff --git a/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/ClosureContext.java b/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/ClosureContext.java
index e2fec87d2d9..f6761904b17 100644
--- a/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/ClosureContext.java
+++ b/js/js.translator/src/org/jetbrains/k2js/translate/utils/closure/ClosureContext.java
@@ -17,10 +17,13 @@
 package org.jetbrains.k2js.translate.utils.closure;
 
 import com.google.common.collect.Lists;
+import com.google.common.collect.Sets;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.descriptors.VariableDescriptor;
 
+import java.util.Collection;
 import java.util.List;
+import java.util.Set;
 
 /**
  * @author Pavel Talanov
@@ -28,14 +31,14 @@ import java.util.List;
 public final class ClosureContext {
 
     @NotNull
-    private List<VariableDescriptor> descriptors = Lists.newArrayList();
+    private Set<VariableDescriptor> descriptors = Sets.newHashSet();
 
     /*package*/ void put(@NotNull VariableDescriptor descriptor) {
         descriptors.add(descriptor);
     }
 
     @NotNull
-    public List<VariableDescriptor> getDescriptors() {
+    public Collection<VariableDescriptor> getDescriptors() {
         return descriptors;
     }
 }
diff --git a/js/js.translator/testFiles/closure/cases/iteratingCallbacks.kt b/js/js.translator/testFiles/closure/cases/iteratingCallbacks.kt
index 5928ac14768..a01dd483b94 100644
--- a/js/js.translator/testFiles/closure/cases/iteratingCallbacks.kt
+++ b/js/js.translator/testFiles/closure/cases/iteratingCallbacks.kt
@@ -24,7 +24,3 @@ fun box() : Boolean {
     }
     return (sum == 27)
 }
-
-fun main(args : Array<String>) {
-  println(box())
-}
diff --git a/js/js.translator/testFiles/closure/cases/localParameterInCallBack.kt b/js/js.translator/testFiles/closure/cases/localParameterInCallBack.kt
new file mode 100644
index 00000000000..4a7e66a3c31
--- /dev/null
+++ b/js/js.translator/testFiles/closure/cases/localParameterInCallBack.kt
@@ -0,0 +1,27 @@
+package foo
+
+import java.util.*
+
+fun box() : Boolean {
+    val oneTwo = Array(2) {
+        it + 1
+    }
+    val a = ArrayList<()->Int>()
+    for (i in oneTwo) {
+        for (l in 1..2) {
+            val j = l
+            a.add({
+                var res = 0
+                for (t in 0..2) {
+                    res += i * j
+                }
+                res
+            })
+        }
+    }
+    var sum = 0
+    for (f in a) {
+        sum += f()
+    }
+    return (sum == 27)
+}