diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BranchingExpressionGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BranchingExpressionGenerator.kt
index 6970bc7c773..12d0052ebf9 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BranchingExpressionGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BranchingExpressionGenerator.kt
@@ -16,6 +16,7 @@
 
 package org.jetbrains.kotlin.psi2ir.generators
 
+import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.ir.UNDEFINED_OFFSET
 import org.jetbrains.kotlin.ir.builders.whenComma
 import org.jetbrains.kotlin.ir.declarations.IrVariable
@@ -85,12 +86,17 @@ class BranchingExpressionGenerator(statementGenerator: StatementGenerator) : Sta
             scope.createTemporaryVariable(statementGenerator.generateExpression(it), "subject")
         }
 
+
+        val inferredType = getInferredTypeWithImplicitCastsOrFail(expression)
+
         // TODO relies on ControlFlowInformationProvider, get rid of it
-        val resultType =
-                if (context.bindingContext[BindingContext.USED_AS_EXPRESSION, expression] ?: false)
-                    getInferredTypeWithImplicitCastsOrFail(expression)
-                else
-                    context.builtIns.unitType
+        val isUsedAsExpression = context.bindingContext[BindingContext.USED_AS_EXPRESSION, expression] ?: false
+
+        val resultType = when {
+            isUsedAsExpression -> inferredType
+            KotlinBuiltIns.isNothing(inferredType) -> inferredType
+            else -> context.builtIns.unitType
+        }
 
         val irWhen = IrWhenImpl(expression.startOffset, expression.endOffset, resultType, IrStatementOrigin.WHEN)
 
diff --git a/compiler/testData/ir/irCfg/when/whenReturn.txt b/compiler/testData/ir/irCfg/when/whenReturn.txt
index 445747384d5..078317f60fc 100644
--- a/compiler/testData/ir/irCfg/when/whenReturn.txt
+++ b/compiler/testData/ir/irCfg/when/whenReturn.txt
@@ -5,7 +5,7 @@ CONTENT
       1 FUN public fun toString(grade: kotlin.String): kotlin.String
       2 GET_VAR 'value-parameter grade: String' type=kotlin.String origin=null
       3 VAR IR_TEMPORARY_VARIABLE val tmp0_subject: kotlin.String
-      4 WHEN type=kotlin.Unit origin=WHEN
+      4 WHEN type=kotlin.Nothing origin=WHEN
       5 GET_VAR 'tmp0_subject: String' type=kotlin.String origin=null
       6 CONST String type=kotlin.String value='A'
 OUTGOING -> BB 1, 5
diff --git a/compiler/testData/ir/irText/expressions/whenReturn.txt b/compiler/testData/ir/irText/expressions/whenReturn.txt
index bfd715abca8..c53df485f78 100644
--- a/compiler/testData/ir/irText/expressions/whenReturn.txt
+++ b/compiler/testData/ir/irText/expressions/whenReturn.txt
@@ -2,10 +2,10 @@ FILE /whenReturn.kt
   FUN public fun toString(grade: kotlin.String): kotlin.String
     VALUE_PARAMETER value-parameter grade: kotlin.String
     BLOCK_BODY
-      BLOCK type=kotlin.Unit origin=WHEN
+      BLOCK type=kotlin.Nothing origin=WHEN
         VAR IR_TEMPORARY_VARIABLE val tmp0_subject: kotlin.String
           GET_VAR 'value-parameter grade: String' type=kotlin.String origin=null
-        WHEN type=kotlin.Unit origin=WHEN
+        WHEN type=kotlin.Nothing origin=WHEN
           BRANCH
             if: CALL 'EQEQ(Any?, Any?): Boolean' type=kotlin.Boolean origin=EQEQ
               arg0: GET_VAR 'tmp0_subject: String' type=kotlin.String origin=null