diff --git a/compiler/testData/codegen/box/coroutines/localDelegate.kt b/compiler/testData/codegen/box/coroutines/localDelegate.kt
new file mode 100644
index 00000000000..d2169d806a8
--- /dev/null
+++ b/compiler/testData/codegen/box/coroutines/localDelegate.kt
@@ -0,0 +1,29 @@
+// WITH_RUNTIME
+// WITH_COROUTINES
+import kotlin.coroutines.*
+import kotlin.coroutines.intrinsics.SUSPENDED_MARKER
+import kotlin.coroutines.intrinsics.suspendCoroutineOrReturn
+
+class OkDelegate {
+    operator fun getValue(receiver: Any?, property: Any?): String = "OK"
+}
+
+suspend fun <T> suspendWithValue(value: T): T = suspendCoroutineOrReturn { c ->
+    c.resume(value)
+    SUSPENDED_MARKER
+}
+
+fun launch(c: suspend () -> String): String {
+    var result: String = "fail: result not assigned"
+    c.startCoroutine(handleResultContinuation { value ->
+        result = value
+    })
+    return result
+}
+
+fun box(): String {
+    return launch {
+        val ok by OkDelegate()
+        ok
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/light-analysis/coroutines/localDelegate.txt b/compiler/testData/codegen/light-analysis/coroutines/localDelegate.txt
new file mode 100644
index 00000000000..736996e0c9a
--- /dev/null
+++ b/compiler/testData/codegen/light-analysis/coroutines/localDelegate.txt
@@ -0,0 +1,37 @@
+@kotlin.Metadata
+public final class CoroutineUtilKt {
+    public final static @org.jetbrains.annotations.NotNull method handleExceptionContinuation(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): kotlin.coroutines.Continuation
+    public final static @org.jetbrains.annotations.NotNull method handleResultContinuation(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): kotlin.coroutines.Continuation
+}
+
+@kotlin.Metadata
+public class EmptyContinuation {
+    public final static field Companion: EmptyContinuation.Companion
+    private final @org.jetbrains.annotations.NotNull field context: kotlin.coroutines.CoroutineContext
+    inner class EmptyContinuation/Companion
+    public @synthetic.kotlin.jvm.GeneratedByJvmOverloads method <init>(): void
+    public method <init>(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.CoroutineContext): void
+    public synthetic method <init>(p0: kotlin.coroutines.CoroutineContext, p1: int, p2: kotlin.jvm.internal.DefaultConstructorMarker): void
+    public @org.jetbrains.annotations.NotNull method getContext(): kotlin.coroutines.CoroutineContext
+    public method resume(@org.jetbrains.annotations.Nullable p0: java.lang.Object): void
+    public method resumeWithException(@org.jetbrains.annotations.NotNull p0: java.lang.Throwable): void
+}
+
+@kotlin.Metadata
+public final static class EmptyContinuation/Companion {
+    inner class EmptyContinuation/Companion
+    private method <init>(): void
+}
+
+@kotlin.Metadata
+public final class LocalDelegateKt {
+    public final static @org.jetbrains.annotations.NotNull method box(): java.lang.String
+    public final static @org.jetbrains.annotations.NotNull method launch(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): java.lang.String
+    public final static @org.jetbrains.annotations.Nullable method suspendWithValue(p0: java.lang.Object, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.Continuation): java.lang.Object
+}
+
+@kotlin.Metadata
+public final class OkDelegate {
+    public method <init>(): void
+    public final @org.jetbrains.annotations.NotNull method getValue(@org.jetbrains.annotations.Nullable p0: java.lang.Object, @org.jetbrains.annotations.Nullable p1: java.lang.Object): java.lang.String
+}
diff --git a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index e1992d276a4..512b871678d 100644
--- a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -4769,6 +4769,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             doTest(fileName);
         }
 
+        @TestMetadata("localDelegate.kt")
+        public void testLocalDelegate() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/localDelegate.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("multipleInvokeCalls.kt")
         public void testMultipleInvokeCalls() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/multipleInvokeCalls.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 6cdb9c393fa..b222a33b344 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -4769,6 +4769,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             doTest(fileName);
         }
 
+        @TestMetadata("localDelegate.kt")
+        public void testLocalDelegate() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/localDelegate.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("multipleInvokeCalls.kt")
         public void testMultipleInvokeCalls() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/multipleInvokeCalls.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
index b64605ff21c..45273d83d14 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
@@ -4769,6 +4769,12 @@ public class LightAnalysisModeCodegenTestGenerated extends AbstractLightAnalysis
             doTest(fileName);
         }
 
+        @TestMetadata("localDelegate.kt")
+        public void testLocalDelegate() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/localDelegate.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("multipleInvokeCalls.kt")
         public void testMultipleInvokeCalls() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/multipleInvokeCalls.kt");
diff --git a/js/js.inliner/src/org/jetbrains/kotlin/js/coroutine/CoroutinePasses.kt b/js/js.inliner/src/org/jetbrains/kotlin/js/coroutine/CoroutinePasses.kt
index df74249cb3f..8b77880c580 100644
--- a/js/js.inliner/src/org/jetbrains/kotlin/js/coroutine/CoroutinePasses.kt
+++ b/js/js.inliner/src/org/jetbrains/kotlin/js/coroutine/CoroutinePasses.kt
@@ -211,6 +211,8 @@ fun JsBlock.replaceSpecialReferences(context: CoroutineTransformationContext) {
             ctx.replaceMe(JsNameRef(context.receiverFieldName, JsLiteral.THIS))
         }
 
+        override fun visit(x: JsFunction, ctx: JsContext<*>) = false
+
         override fun endVisit(x: JsNameRef, ctx: JsContext<in JsNode>) {
             when {
                 x.coroutineReceiver -> {
@@ -237,6 +239,8 @@ fun JsBlock.replaceSpecialReferences(context: CoroutineTransformationContext) {
 fun JsBlock.replaceLocalVariables(scope: JsScope, context: CoroutineTransformationContext, localVariables: Set<JsName>) {
     replaceSpecialReferences(context)
     val visitor = object : JsVisitorWithContextImpl() {
+        override fun visit(x: JsFunction, ctx: JsContext<*>) = false
+
         override fun endVisit(x: JsNameRef, ctx: JsContext<in JsNode>) {
             if (x.qualifier == null && x.name in localVariables) {
                 val fieldName = scope.getFieldName(x.name!!)
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 a971b7fe02c..cc1ce7f3195 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
@@ -5454,6 +5454,12 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             doTest(fileName);
         }
 
+        @TestMetadata("localDelegate.kt")
+        public void testLocalDelegate() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/localDelegate.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("multipleInvokeCalls.kt")
         public void testMultipleInvokeCalls() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/multipleInvokeCalls.kt");