diff --git a/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt b/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
index 535fd846733..696cf73ed0a 100644
--- a/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
@@ -98,7 +98,7 @@ class CanBeValInspection : AbstractKotlinInspection() {
                 var instruction = from
                 while (instruction is InstructionWithNext) {
                     val next = instruction.next ?: return false
-                    if (next in visited) continue
+                    if (next in visited) return false
                     if (next in targets) return true
                     visited.add(next)
                     instruction = next
diff --git a/idea/testData/inspections/canBeVal/inspectionData/expected.xml b/idea/testData/inspections/canBeVal/inspectionData/expected.xml
index 5ec5cf9612d..1d57b430a09 100644
--- a/idea/testData/inspections/canBeVal/inspectionData/expected.xml
+++ b/idea/testData/inspections/canBeVal/inspectionData/expected.xml
@@ -61,4 +61,13 @@
         <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Local 'var' can be declared as 'val'</problem_class>
         <description>Can be declared as 'val'</description>
     </problem>
+
+    <problem>
+        <file>kt11891.kt</file>
+        <line>2</line>
+        <module>light_idea_test_case</module>
+        <entry_point TYPE="file" FQNAME="kt11891.kt" />
+        <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Local 'var' can be declared as 'val'</problem_class>
+        <description>Can be declared as 'val'</description>
+    </problem>
 </problems>
diff --git a/idea/testData/inspections/canBeVal/kt11891.kt b/idea/testData/inspections/canBeVal/kt11891.kt
new file mode 100644
index 00000000000..6849cdd794e
--- /dev/null
+++ b/idea/testData/inspections/canBeVal/kt11891.kt
@@ -0,0 +1,12 @@
+fun main(args: Array<String?>) {
+    var a: String?
+
+    if (args.size == 1) {
+        a = args[0]
+    }
+    else {
+        a  = args.toString()
+    }
+
+    if (a != null && a.equals("cde")) return
+}