diff --git a/compiler/testData/codegen/customScript/providedPropsInLambda.kts b/compiler/testData/codegen/customScript/providedPropsInLambda.kts
new file mode 100644
index 00000000000..890c1fedfc4
--- /dev/null
+++ b/compiler/testData/codegen/customScript/providedPropsInLambda.kts
@@ -0,0 +1,10 @@
+
+// KOTLIN_SCRIPT_DEFINITION: org.jetbrains.kotlin.codegen.TestScriptWithSimpleEnvVars
+
+// envVar: stringVar1=abracadabra
+
+fun foo(body: () -> String): String = body()
+
+val res = foo { stringVar1.drop(5) }
+
+// expected: res=adabra
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/CustomScriptCodegenTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/CustomScriptCodegenTestGenerated.java
index e9967d96aec..ab17c238138 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/CustomScriptCodegenTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/CustomScriptCodegenTestGenerated.java
@@ -34,6 +34,11 @@ public class CustomScriptCodegenTestGenerated extends AbstractCustomScriptCodege
         runTest("compiler/testData/codegen/customScript/pathPattern5.kts");
     }
 
+    @TestMetadata("providedPropsInLambda.kts")
+    public void testProvidedPropsInLambda_kts() throws Exception {
+        runTest("compiler/testData/codegen/customScript/providedPropsInLambda.kts");
+    }
+
     @TestMetadata("simpleEnvVars.kts")
     public void testSimpleEnvVars_kts() throws Exception {
         runTest("compiler/testData/codegen/customScript/simpleEnvVars.kts");
diff --git a/libraries/scripting/jsr223-test/test/kotlin/script/experimental/jsr223/test/KotlinJsr223ScriptEngineIT.kt b/libraries/scripting/jsr223-test/test/kotlin/script/experimental/jsr223/test/KotlinJsr223ScriptEngineIT.kt
index 633afacc00f..9ed9afbb973 100644
--- a/libraries/scripting/jsr223-test/test/kotlin/script/experimental/jsr223/test/KotlinJsr223ScriptEngineIT.kt
+++ b/libraries/scripting/jsr223-test/test/kotlin/script/experimental/jsr223/test/KotlinJsr223ScriptEngineIT.kt
@@ -18,6 +18,12 @@ private const val KOTLIN_JSR223_RESOLVE_FROM_CLASSLOADER_PROPERTY = "kotlin.jsr2
 @Suppress("unused") // accessed from the tests below
 val shouldBeVisibleFromRepl = 7
 
+@Suppress("unused") // accessed from the tests below
+fun callLambda(x: Int, aFunction: (Int) -> Int): Int = aFunction.invoke(x)
+
+@Suppress("unused") // accessed from the tests below
+inline fun inlineCallLambda(x: Int, aFunction: (Int) -> Int): Int = aFunction.invoke(x)
+
 class KotlinJsr223ScriptEngineIT {
 
     init {
@@ -297,6 +303,30 @@ obj
         Assert.assertEquals(42, result)
     }
 
+    @Test
+    fun testResolveFromContextLambda() {
+        val scriptEngine = ScriptEngineManager().getEngineByExtension("kts")!!
+
+        val script1 = """
+            kotlin.script.experimental.jsr223.test.callLambda(4) { x -> 
+                x % aValue
+            }
+        """
+
+        val script2 = """
+            kotlin.script.experimental.jsr223.test.inlineCallLambda(5) { x ->
+                x % aValue
+            }
+        """
+
+        scriptEngine.put("aValue", 3)
+
+        val res1 = scriptEngine.eval(script1)
+        Assert.assertEquals(1, res1)
+        val res2 = scriptEngine.eval(script2)
+        Assert.assertEquals(2, res2)
+    }
+
     @Test
     fun testResolveFromContextDirectExperimental() {
         val prevProp = System.setProperty(KOTLIN_JSR223_RESOLVE_FROM_CLASSLOADER_PROPERTY, "true")
diff --git a/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/resolve/ScriptProvidedPropertyDescriptor.kt b/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/resolve/ScriptProvidedPropertyDescriptor.kt
index 599750b9b3b..68878e47238 100644
--- a/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/resolve/ScriptProvidedPropertyDescriptor.kt
+++ b/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/resolve/ScriptProvidedPropertyDescriptor.kt
@@ -8,9 +8,6 @@ package org.jetbrains.kotlin.scripting.resolve
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.annotations.Annotations
 import org.jetbrains.kotlin.descriptors.impl.PropertyDescriptorImpl
-import org.jetbrains.kotlin.descriptors.impl.PropertyGetterDescriptorImpl
-import org.jetbrains.kotlin.descriptors.impl.PropertySetterDescriptorImpl
-import org.jetbrains.kotlin.descriptors.impl.ValueParameterDescriptorImpl
 import org.jetbrains.kotlin.name.Name
 
 class ScriptProvidedPropertyDescriptor(
@@ -24,7 +21,7 @@ class ScriptProvidedPropertyDescriptor(
     null,
     Annotations.EMPTY,
     Modality.FINAL,
-    DescriptorVisibilities.PRIVATE,
+    DescriptorVisibilities.PUBLIC,
     isVar,
     name,
     CallableMemberDescriptor.Kind.SYNTHESIZED,
@@ -34,58 +31,7 @@ class ScriptProvidedPropertyDescriptor(
 ) {
     init {
         setType(typeDescriptor.defaultType, emptyList(), receiver, null)
-        initialize(
-            makePropertyGetterDescriptor(),
-            if (!isVar) null else makePropertySetterDescriptor()
-        )
+        // TODO: consider delegation instead
+        initialize(null, null, null, null)
     }
 }
-
-private fun PropertyDescriptorImpl.makePropertyGetterDescriptor() =
-    PropertyGetterDescriptorImpl(
-        this,
-        Annotations.EMPTY,
-        this.modality,
-        this.visibility,
-        /* isDefault = */
-        false, /* isExternal = */
-        false, /* isInline = */
-        false,
-        this.kind,
-        null,
-        SourceElement.NO_SOURCE
-    ).also {
-        it.initialize(returnType)
-    }
-
-private fun PropertyDescriptorImpl.makePropertySetterDescriptor() =
-    PropertySetterDescriptorImpl(
-        this,
-        Annotations.EMPTY,
-        this.modality,
-        this.visibility,
-        /* isDefault = */
-        false, /* isExternal = */
-        false, /* isInline = */
-        false,
-        this.kind,
-        null,
-        SourceElement.NO_SOURCE
-    ).also {
-        it.initialize(
-            ValueParameterDescriptorImpl(
-                this,
-                null,
-                0,
-                Annotations.EMPTY,
-                Name.special("<set-?>"),
-                returnType,
-                /* declaresDefaultValue = */
-                false, /* isCrossinline = */
-                false, /* isNoinline = */
-                false,
-                null,
-                SourceElement.NO_SOURCE
-            )
-        )
-    }