diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
index 4469e551cc2..2cccc5a1143 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
@@ -207,6 +207,7 @@ class LocalDeclarationsLowering(
         val localFunctions: MutableMap<IrFunction, LocalFunctionContext> = LinkedHashMap()
         val localClasses: MutableMap<IrClass, LocalClassContext> = LinkedHashMap()
         val localClassConstructors: MutableMap<IrConstructor, LocalClassConstructorContext> = LinkedHashMap()
+        val usedLocalFunctionNames: MutableSet<Name> = mutableSetOf()
 
         val transformedDeclarations = mutableMapOf<IrSymbolOwner, IrDeclaration>()
 
@@ -530,8 +531,9 @@ class LocalDeclarationsLowering(
 
         private fun suggestLocalName(declaration: IrDeclarationWithName): String {
             localFunctions[declaration]?.let {
+                val baseName = if (declaration.name.isSpecial) "lambda" else declaration.name
                 if (it.index >= 0)
-                    return "lambda-${it.index}"
+                    return "$baseName-${it.index}"
             }
 
             return localNameProvider.localName(declaration)
@@ -827,9 +829,12 @@ class LocalDeclarationsLowering(
                         localFunctions[declaration] =
                             LocalFunctionContext(
                                 declaration,
-                                if (declaration.name.isSpecial) (scopeWithIr as ScopeWithCounter).counter++ else -1,
+                                if (declaration.name.isSpecial || declaration.name in usedLocalFunctionNames)
+                                    (scopeWithIr as ScopeWithCounter).counter++
+                                else -1,
                                 scopeWithIr.irElement as IrDeclarationContainer
                             )
+                        usedLocalFunctionNames.add(declaration.name)
                     }
                 }
 
diff --git a/compiler/testData/codegen/box/functions/localFunctions/nameClash.kt b/compiler/testData/codegen/box/functions/localFunctions/nameClash.kt
new file mode 100644
index 00000000000..2374fe33694
--- /dev/null
+++ b/compiler/testData/codegen/box/functions/localFunctions/nameClash.kt
@@ -0,0 +1,12 @@
+// IGNORE_BACKEND_FIR: JVM_IR
+
+fun test(b: Boolean): String {
+    if (b) {
+        fun result() = "OK"
+        return result()
+    } else {
+        fun result() = "Fail"
+        return result()
+    }
+}
+fun box(): String = test(true)
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 67564b99932..7c5650be0fe 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -12206,6 +12206,11 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 9fc94a96ef3..36a591536bf 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -12206,6 +12206,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
index 7fa08947b49..45fbbd5616f 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
@@ -11051,6 +11051,11 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 6e07f3cf147..7042980af16 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -11051,6 +11051,11 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
index 84d559eb6b5..d79440211b4 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
@@ -9511,6 +9511,11 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index 8aa1715b94f..3e52472bf6e 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -10591,6 +10591,11 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionVsLocalVariable.kt");
             }
 
+            @TestMetadata("nameClash.kt")
+            public void testNameClash() throws Exception {
+                runTest("compiler/testData/codegen/box/functions/localFunctions/nameClash.kt");
+            }
+
             @TestMetadata("overloadedLocalFunWithoutClosure.kt")
             public void testOverloadedLocalFunWithoutClosure() throws Exception {
                 runTest("compiler/testData/codegen/box/functions/localFunctions/overloadedLocalFunWithoutClosure.kt");