diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
index a8b590b7726..6e25ee77403 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
@@ -100,7 +100,7 @@ class ExpressionCodegen(
     override val frameMap: IrFrameMap,
     val mv: InstructionAdapter,
     val classCodegen: ClassCodegen,
-    val isInlineLambda: Boolean = false
+    val inlinedInto: ExpressionCodegen?
 ) : IrElementVisitor<PromisedValue, BlockInfo>, BaseExpressionCodegen {
 
     var finallyDepth = 0
@@ -202,7 +202,7 @@ class ExpressionCodegen(
         if (state.isParamAssertionsDisabled)
             return
 
-        val notCallableFromJava = isInlineLambda ||
+        val notCallableFromJava = inlinedInto != null ||
                 Visibilities.isPrivate(irFunction.visibility) ||
                 irFunction.origin.isSynthetic ||
                 // TODO: refine this condition to not generate nullability assertions on parameters
@@ -314,7 +314,7 @@ class ExpressionCodegen(
         visitStatementContainer(expression, data).coerce(expression.type)
 
     override fun visitCall(expression: IrCall, data: BlockInfo): PromisedValue {
-        return visitFunctionAccess(expression.createSuspendFunctionCallViewIfNeeded(context, irFunction, isInlineLambda), data)
+        return visitFunctionAccess(expression.createSuspendFunctionCallViewIfNeeded(context, irFunction, inlinedInto != null), data)
     }
 
     override fun visitFunctionAccess(expression: IrFunctionAccessExpression, data: BlockInfo): PromisedValue {
@@ -1012,7 +1012,26 @@ class ExpressionCodegen(
 
     override fun consumeReifiedOperationMarker(typeParameter: TypeParameterMarker) {
         require(typeParameter is IrTypeParameterSymbol)
-        if (typeParameter.owner.parent != irFunction) {
+        // This is a hack to work around the problem in LocalDeclarationsLowering. Specifically, suppose an inline
+        // lambda uses a reified type parameter declared by a function:
+        //
+        //     object {
+        //         inline fun <reified T : Any> f() = run { T::class.java.getName() }
+        //     }
+        //
+        // LocalDeclarationsLowering would extract that lambda into a method of the enclosing type, but will not create
+        // a reified type parameter in it (in fact, the lambda method isn't even marked as inline):
+        //
+        //     object {
+        //         /* static */ private fun `f$lambda-0`() = T::class.java.getName()
+        //         inline fun <reified T : Any> f() = run(::`f$lambda-0`)
+        //     }
+        //
+        // The parent of the type parameter then is not `irFunction` (i.e. the lambda itself), but the function
+        // it is inlined into.
+        //
+        // TODO make LocalDeclarationsLowering handle captured type parameters and only compare with `irFunction`.
+        if (generateSequence(this) { it.inlinedInto }.none { it.irFunction == typeParameter.owner.parent }) {
             classCodegen.reifiedTypeParametersUsages.addUsedReifiedParameter(typeParameter.owner.name.asString())
         }
     }
@@ -1039,7 +1058,7 @@ class ExpressionCodegen(
     }
 
     fun isFinallyMarkerRequired(): Boolean {
-        return irFunction.isInline || isInlineLambda
+        return irFunction.isInline || inlinedInto != null
     }
 
     private val IrType.isReifiedTypeParameter: Boolean
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/FunctionCodegen.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/FunctionCodegen.kt
index a3c0716a021..7c6a2ee0777 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/FunctionCodegen.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/FunctionCodegen.kt
@@ -30,7 +30,7 @@ import org.jetbrains.org.objectweb.asm.commons.InstructionAdapter
 open class FunctionCodegen(
     private val irFunction: IrFunction,
     private val classCodegen: ClassCodegen,
-    private val isInlineLambda: Boolean = false
+    private val inlinedInto: ExpressionCodegen? = null
 ) {
     val context = classCodegen.context
     val state = classCodegen.state
@@ -95,7 +95,7 @@ open class FunctionCodegen(
                 )
                 else -> methodVisitor
             }
-            ExpressionCodegen(functionView, signature, frameMap, InstructionAdapter(methodVisitor), classCodegen, isInlineLambda).generate()
+            ExpressionCodegen(functionView, signature, frameMap, InstructionAdapter(methodVisitor), classCodegen, inlinedInto).generate()
             methodVisitor.visitMaxs(-1, -1)
             continuationClassBuilder?.done()
         }
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
index b549af5397b..4ec3bb351e6 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
@@ -74,7 +74,7 @@ class IrSourceCompilerForInline(
 
     private fun makeInlineNode(function: IrFunction, classCodegen: ClassCodegen, isLambda: Boolean): SMAPAndMethodNode {
         var node: MethodNode? = null
-        val functionCodegen = object : FunctionCodegen(function, classCodegen, isLambda) {
+        val functionCodegen = object : FunctionCodegen(function, classCodegen, codegen.takeIf { isLambda }) {
             override fun createMethod(flags: Int, signature: JvmMethodGenericSignature): MethodVisitor {
                 val asmMethod = signature.asmMethod
                 node = MethodNode(Opcodes.API_VERSION, flags, asmMethod.name, asmMethod.descriptor, signature.genericsSignature, null)
@@ -134,7 +134,7 @@ class IrSourceCompilerForInline(
     override fun createCodegenForExternalFinallyBlockGenerationOnNonLocalReturn(finallyNode: MethodNode, curFinallyDepth: Int) =
         ExpressionCodegen(
             codegen.irFunction, codegen.signature, codegen.frameMap, InstructionAdapter(finallyNode), codegen.classCodegen,
-            codegen.isInlineLambda
+            codegen.inlinedInto
         ).also {
             it.finallyDepth = curFinallyDepth
         }
diff --git a/compiler/testData/codegen/box/reified/anonymousObjectNoPropagate.kt b/compiler/testData/codegen/box/reified/anonymousObjectNoPropagate.kt
index 681c7ae2517..ae7d058fa46 100644
--- a/compiler/testData/codegen/box/reified/anonymousObjectNoPropagate.kt
+++ b/compiler/testData/codegen/box/reified/anonymousObjectNoPropagate.kt
@@ -1,4 +1,3 @@
-// IGNORE_BACKEND: JVM_IR
 // TARGET_BACKEND: JVM
 
 // WITH_RUNTIME