diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
index b83616cc7cc..127b6fe047b 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
@@ -911,7 +911,7 @@ class MethodInliner(
             return
         }
 
-        if (inliningContext.isInliningLambda && inliningContext.lambdaInfo is IrExpressionLambda) {
+        if (inliningContext.isInliningLambda && inliningContext.lambdaInfo is IrExpressionLambda && !inliningContext.parent!!.isInliningLambda) {
             val capturedVars = inliningContext.lambdaInfo.capturedVars
             var offset = parameters.realParametersSizeOnStack
             val map = capturedVars.map {
diff --git a/compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt b/compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt
new file mode 100644
index 00000000000..5a19cee2ef5
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt
@@ -0,0 +1,19 @@
+// FILE: 1.kt
+package test
+
+inline fun <R> myRun(g: () -> R) = g()
+
+// FILE: 2.kt
+import test.*
+
+inline fun <reified A> Any?.complicatedCast() =
+    myRun {                     // 1. Inline function call with a lambda
+        object {                // 2. Anonymous object inside a lambda
+            fun f(x: Any?): A { // 3. Anonymous object uses a reified type parameter
+                val y = x       // 4. A method in that object uses locals
+                return y as A
+            }
+        }.f(this)               // 5. The lambda captures more values than the object
+    }
+
+fun box() = "OK".complicatedCast<String>()
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxInlineCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxInlineCodegenTestGenerated.java
index 8646e2263a6..48acede9975 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxInlineCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxInlineCodegenTestGenerated.java
@@ -2880,6 +2880,11 @@ public class BlackBoxInlineCodegenTestGenerated extends AbstractBlackBoxInlineCo
             runTest("compiler/testData/codegen/boxInline/reified/kt9637_2.kt");
         }
 
+        @TestMetadata("nonCapturingObjectInLambda.kt")
+        public void testNonCapturingObjectInLambda() throws Exception {
+            runTest("compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt");
+        }
+
         @TestMetadata("packages.kt")
         public void testPackages() throws Exception {
             runTest("compiler/testData/codegen/boxInline/reified/packages.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/CompileKotlinAgainstInlineKotlinTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/CompileKotlinAgainstInlineKotlinTestGenerated.java
index 58468ce4322..3520d9a146a 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/CompileKotlinAgainstInlineKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/CompileKotlinAgainstInlineKotlinTestGenerated.java
@@ -2880,6 +2880,11 @@ public class CompileKotlinAgainstInlineKotlinTestGenerated extends AbstractCompi
             runTest("compiler/testData/codegen/boxInline/reified/kt9637_2.kt");
         }
 
+        @TestMetadata("nonCapturingObjectInLambda.kt")
+        public void testNonCapturingObjectInLambda() throws Exception {
+            runTest("compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt");
+        }
+
         @TestMetadata("packages.kt")
         public void testPackages() throws Exception {
             runTest("compiler/testData/codegen/boxInline/reified/packages.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxInlineCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxInlineCodegenTestGenerated.java
index 02ee3ea33ce..0ae113306b6 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxInlineCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxInlineCodegenTestGenerated.java
@@ -2880,6 +2880,11 @@ public class IrBlackBoxInlineCodegenTestGenerated extends AbstractIrBlackBoxInli
             runTest("compiler/testData/codegen/boxInline/reified/kt9637_2.kt");
         }
 
+        @TestMetadata("nonCapturingObjectInLambda.kt")
+        public void testNonCapturingObjectInLambda() throws Exception {
+            runTest("compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt");
+        }
+
         @TestMetadata("packages.kt")
         public void testPackages() throws Exception {
             runTest("compiler/testData/codegen/boxInline/reified/packages.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
index 2401d19e945..0fe1a12ee31 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
@@ -2880,6 +2880,11 @@ public class IrCompileKotlinAgainstInlineKotlinTestGenerated extends AbstractIrC
             runTest("compiler/testData/codegen/boxInline/reified/kt9637_2.kt");
         }
 
+        @TestMetadata("nonCapturingObjectInLambda.kt")
+        public void testNonCapturingObjectInLambda() throws Exception {
+            runTest("compiler/testData/codegen/boxInline/reified/nonCapturingObjectInLambda.kt");
+        }
+
         @TestMetadata("packages.kt")
         public void testPackages() throws Exception {
             runTest("compiler/testData/codegen/boxInline/reified/packages.kt");