diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/KotlinNothingValueExceptionLowering.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/KotlinNothingValueExceptionLowering.kt
index f904a5a1797..d7a3af77ca2 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/KotlinNothingValueExceptionLowering.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/KotlinNothingValueExceptionLowering.kt
@@ -7,8 +7,10 @@ package org.jetbrains.kotlin.backend.common.lower
 
 import org.jetbrains.kotlin.backend.common.BodyLoweringPass
 import org.jetbrains.kotlin.backend.common.CommonBackendContext
+import org.jetbrains.kotlin.backend.common.runOnFilePostfix
 import org.jetbrains.kotlin.ir.builders.irCall
 import org.jetbrains.kotlin.ir.declarations.IrDeclaration
+import org.jetbrains.kotlin.ir.declarations.IrFile
 import org.jetbrains.kotlin.ir.expressions.IrBody
 import org.jetbrains.kotlin.ir.expressions.IrCall
 import org.jetbrains.kotlin.ir.expressions.IrExpression
@@ -20,6 +22,9 @@ import org.jetbrains.kotlin.ir.visitors.transformChildrenVoid
 class KotlinNothingValueExceptionLowering(
     val backendContext: CommonBackendContext, val skip: (IrDeclaration) -> Boolean = { false }
 ) : BodyLoweringPass {
+    override fun lower(irFile: IrFile) =
+        runOnFilePostfix(irFile, withLocalDeclarations = true)
+
     override fun lower(irBody: IrBody, container: IrDeclaration) {
         if (!skip(container)) {
             irBody.transformChildrenVoid(Transformer(container.symbol))
@@ -27,6 +32,8 @@ class KotlinNothingValueExceptionLowering(
     }
 
     private inner class Transformer(val parent: IrSymbol) : IrElementTransformerVoid() {
+        override fun visitBody(body: IrBody): IrBody = body
+
         override fun visitCall(expression: IrCall): IrExpression =
             if (expression.type.isNothing()) {
                 // Replace call 'foo' of type 'kotlin.Nothing' with a block:
diff --git a/compiler/testData/codegen/box/coroutines/tailCallToNothing.kt b/compiler/testData/codegen/box/coroutines/tailCallToNothing.kt
index 599cb5dbec7..92992c861ff 100644
--- a/compiler/testData/codegen/box/coroutines/tailCallToNothing.kt
+++ b/compiler/testData/codegen/box/coroutines/tailCallToNothing.kt
@@ -5,12 +5,14 @@ import helpers.*
 import kotlin.coroutines.*
 import kotlin.coroutines.intrinsics.*
 
+class Success : RuntimeException()
+
 suspend fun suspendThenThrow(): Nothing {
     suspendCoroutineUninterceptedOrReturn<Unit> {
         it.resume(Unit)
         COROUTINE_SUSPENDED
     }
-    throw RuntimeException()
+    throw Success()
 }
 
 suspend fun foo(x: Int = 1): Nothing = suspendThenThrow()
@@ -26,9 +28,20 @@ class C : I by (object : I {
 var result = ""
 
 fun box(): String {
+    var counter = 0
     suspend {
-        try { foo() } catch (e: RuntimeException) { result += "O" }
-        try { C().bar() } catch (e: RuntimeException) { result += "K" }
+        // 1. foo$default is a bridge to foo, should not throw after foo returns
+        try { foo() } catch (e: Success) { counter++ }
+        // 2. C.bar is a delegation to another method, so same
+        try { C().bar() } catch (e: Success) { counter++ }
+        // 3. object.foo$default is the same as 1 but in a local object
+        try {
+            object {
+                suspend fun foo(x: Int = 1): Nothing = suspendThenThrow()
+            }.foo()
+        } catch (e: Success) { counter++ }
+        // 4. this point should be reached exactly once
+        counter++
     }.startCoroutine(EmptyContinuation)
-    return result
+    return if (counter == 4) "OK" else "counter incremented $counter times"
 }