diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/JsLineNumberTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/JsLineNumberTestGenerated.java
index 354717dd9ec..9c3dedcbd7d 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/JsLineNumberTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/JsLineNumberTestGenerated.java
@@ -36,6 +36,12 @@ public class JsLineNumberTestGenerated extends AbstractJsLineNumberTest {
         KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("js/js.translator/testData/lineNumbers"), Pattern.compile("^([^_](.+))\\.kt$"), TargetBackend.JS, true);
     }
 
+    @TestMetadata("closure.kt")
+    public void testClosure() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("js/js.translator/testData/lineNumbers/closure.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("inlining.kt")
     public void testInlining() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("js/js.translator/testData/lineNumbers/inlining.kt");
diff --git a/js/js.translator/src/org/jetbrains/kotlin/js/translate/expression/LiteralFunctionTranslator.kt b/js/js.translator/src/org/jetbrains/kotlin/js/translate/expression/LiteralFunctionTranslator.kt
index 24f8ee9ae66..e1120f0b867 100644
--- a/js/js.translator/src/org/jetbrains/kotlin/js/translate/expression/LiteralFunctionTranslator.kt
+++ b/js/js.translator/src/org/jetbrains/kotlin/js/translate/expression/LiteralFunctionTranslator.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -63,7 +63,7 @@ class LiteralFunctionTranslator(context: TranslationContext) : AbstractTranslato
         val tracker = functionContext.usageTracker()!!
 
         if (tracker.hasCapturedExceptContaining()) {
-            val lambdaCreator = simpleReturnFunction(invokingContext.scope(), lambda)
+            val lambdaCreator = simpleReturnFunction(invokingContext.scope(), lambda.source(declaration))
             lambdaCreator.name = invokingContext.getInnerNameForDescriptor(descriptor)
             lambdaCreator.isLocal = true
             if (descriptor in tracker.capturedDescriptors && !descriptor.isCoroutineLambda) {
diff --git a/js/js.translator/testData/lineNumbers/closure.kt b/js/js.translator/testData/lineNumbers/closure.kt
new file mode 100644
index 00000000000..ddfa7d64ddf
--- /dev/null
+++ b/js/js.translator/testData/lineNumbers/closure.kt
@@ -0,0 +1,8 @@
+fun box(x: Int, y: Int): Int {
+    fun foo(
+            z: Int) =
+                x + z
+    return foo(y)
+}
+
+// LINES: 2 4 2 5
\ No newline at end of file