diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.kt
index ff33db3689e..b813fcac000 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.kt
@@ -41,12 +41,16 @@ abstract class InlineCodegen<out T : BaseExpressionCodegen>(
         AsmUtil.genThrow(codegen.visitor, "java/lang/UnsupportedOperationException", "Call is part of inline cycle: $text")
     }
 
+    fun compileInline(): SMAPAndMethodNode {
+        return sourceCompiler.compileInlineFunction(jvmSignature).apply {
+            node.preprocessSuspendMarkers(forInline = true, keepFakeContinuation = false)
+        }
+    }
+
     fun performInline(registerLineNumberAfterwards: Boolean, isInlineOnly: Boolean) {
         var nodeAndSmap: SMAPAndMethodNode? = null
         try {
-            nodeAndSmap = sourceCompiler.compileInlineFunction(jvmSignature).apply {
-                node.preprocessSuspendMarkers(forInline = true, keepFakeContinuation = false)
-            }
+            nodeAndSmap = compileInline()
             val result = inlineCall(nodeAndSmap, isInlineOnly)
             leaveTemps()
             codegen.propagateChildReifiedTypeParametersUsages(result.reifiedTypeParametersUsages)
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentFunctionFactory.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentFunctionFactory.kt
index 1cb98be05fa..d5b18bacbf1 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentFunctionFactory.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentFunctionFactory.kt
@@ -49,12 +49,9 @@ abstract class DefaultArgumentFunctionFactory(open val context: CommonBackendCon
                 type = if (makeNullable) newType.makeNullable() else newType,
                 defaultValue = if (it.defaultValue != null) {
                     original.factory.createExpressionBody(
-                        IrErrorExpressionImpl(
-                            UNDEFINED_OFFSET,
-                            UNDEFINED_OFFSET,
-                            it.type,
-                            "Default Stub"
-                        )
+                        IrErrorExpressionImpl(UNDEFINED_OFFSET, UNDEFINED_OFFSET, it.type, "Default Stub").apply {
+                            attributeOwnerId = it.defaultValue!!.expression
+                        }
                     )
                 } else null,
                 isAssignable = it.defaultValue != null
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentStubGenerator.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentStubGenerator.kt
index da580ab8a3f..ba92cbed21d 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentStubGenerator.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/DefaultArgumentStubGenerator.kt
@@ -462,7 +462,9 @@ class DefaultParameterCleaner(
             if (replaceDefaultValuesWithStubs) {
                 if (context.mapping.defaultArgumentsOriginalFunction[declaration.parent as IrFunction] == null) {
                     declaration.defaultValue = context.irFactory.createExpressionBody(
-                        IrErrorExpressionImpl(UNDEFINED_OFFSET, UNDEFINED_OFFSET, declaration.type, "Default Stub")
+                        IrErrorExpressionImpl(UNDEFINED_OFFSET, UNDEFINED_OFFSET, declaration.type, "Default Stub").apply {
+                            attributeOwnerId = declaration.defaultValue!!.expression
+                        }
                     )
                 }
             } else {
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ProvisionalFunctionExpressionLowering.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ProvisionalFunctionExpressionLowering.kt
index 2ef8d275597..b47198ea15b 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ProvisionalFunctionExpressionLowering.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ProvisionalFunctionExpressionLowering.kt
@@ -6,24 +6,19 @@
 package org.jetbrains.kotlin.backend.common.lower
 
 import org.jetbrains.kotlin.backend.common.BodyLoweringPass
-import org.jetbrains.kotlin.backend.common.FileLoweringPass
 import org.jetbrains.kotlin.ir.IrElement
-import org.jetbrains.kotlin.ir.IrStatement
 import org.jetbrains.kotlin.ir.declarations.IrDeclaration
-import org.jetbrains.kotlin.ir.declarations.IrFile
 import org.jetbrains.kotlin.ir.declarations.IrVariable
+import org.jetbrains.kotlin.ir.declarations.copyAttributes
 import org.jetbrains.kotlin.ir.expressions.*
 import org.jetbrains.kotlin.ir.expressions.impl.IrBlockImpl
 import org.jetbrains.kotlin.ir.expressions.impl.IrFunctionReferenceImpl
-import org.jetbrains.kotlin.ir.util.remapTypes
 import org.jetbrains.kotlin.ir.visitors.IrElementTransformer
-import org.jetbrains.kotlin.ir.visitors.IrElementTransformerVoid
-import org.jetbrains.kotlin.ir.visitors.transformChildrenVoid
 
 class ProvisionalFunctionExpressionLoweringContext(
-    val outer: ProvisionalFunctionExpressionLoweringContext? = null,
     val startOffset: Int? = null,
-    val endOffset: Int? = null)
+    val endOffset: Int? = null
+)
 class ProvisionalFunctionExpressionLowering :
     IrElementTransformer<ProvisionalFunctionExpressionLoweringContext>,
     BodyLoweringPass {
@@ -35,7 +30,6 @@ class ProvisionalFunctionExpressionLowering :
     override fun visitCall(expression: IrCall, data: ProvisionalFunctionExpressionLoweringContext) = super.visitCall(
         expression,
         ProvisionalFunctionExpressionLoweringContext(
-            data,
             expression.startOffset,
             expression.endOffset
         )
@@ -44,14 +38,18 @@ class ProvisionalFunctionExpressionLowering :
     override fun visitVariable(declaration: IrVariable, data: ProvisionalFunctionExpressionLoweringContext) = super.visitVariable(
         declaration,
         ProvisionalFunctionExpressionLoweringContext(
-            data,
             declaration.startOffset,
             declaration.endOffset
         )
     )
 
+    override fun visitContainerExpression(expression: IrContainerExpression, data: ProvisionalFunctionExpressionLoweringContext): IrExpression {
+        if (expression !is IrReturnableBlock) return super.visitContainerExpression(expression, data)
+        return super.visitContainerExpression(expression, ProvisionalFunctionExpressionLoweringContext())
+    }
+
     override fun visitFunctionExpression(expression: IrFunctionExpression, data: ProvisionalFunctionExpressionLoweringContext): IrElement {
-        expression.transformChildren(this, ProvisionalFunctionExpressionLoweringContext(data))
+        expression.transformChildren(this, ProvisionalFunctionExpressionLoweringContext())
 
         val startOffset = data.startOffset ?: expression.startOffset
         val endOffset = data.endOffset ?: expression.endOffset
@@ -70,7 +68,7 @@ class ProvisionalFunctionExpressionLowering :
                     valueArgumentsCount = function.valueParameters.size,
                     reflectionTarget = null,
                     origin = origin
-                )
+                ).copyAttributes(expression) // TODO better to copy just name
             )
         )
     }
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ReturnableBlockLowering.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ReturnableBlockLowering.kt
index f4f379bba59..c05c0f8bbad 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ReturnableBlockLowering.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ReturnableBlockLowering.kt
@@ -9,6 +9,7 @@ import org.jetbrains.kotlin.backend.common.BodyLoweringPass
 import org.jetbrains.kotlin.backend.common.CommonBackendContext
 import org.jetbrains.kotlin.backend.common.IrElementTransformerVoidWithContext
 import org.jetbrains.kotlin.ir.IrStatement
+import org.jetbrains.kotlin.ir.UNDEFINED_OFFSET
 import org.jetbrains.kotlin.ir.builders.*
 import org.jetbrains.kotlin.ir.declarations.IrDeclaration
 import org.jetbrains.kotlin.ir.declarations.IrSymbolOwner
@@ -162,7 +163,8 @@ class ReturnableBlockTransformer(val context: CommonBackendContext, val containe
                 if (!expression.type.isUnit()) {
                     // In case of Unit return type we don't need to return an explicit value. This will not be optimized by JVM backend and
                     // may result in exceptions in `MethodVerifier` before optimizations.
-                    +irGet(variable)
+                    // Also note that `UNDEFINED_OFFSET` is needed to make proper line number for JVM.
+                    +at(UNDEFINED_OFFSET, UNDEFINED_OFFSET).irGet(variable)
                 }
             }
         }
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/inline/FunctionInlining.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/inline/FunctionInlining.kt
index d60fd6710df..783539b2dc6 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/inline/FunctionInlining.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/inline/FunctionInlining.kt
@@ -689,6 +689,8 @@ class FunctionInlining(
                 } else {
                     val newVariable =
                         currentScope.scope.createTemporaryVariable(
+                            startOffset = if (it.isDefaultArg) irExpression.startOffset else UNDEFINED_OFFSET,
+                            endOffset = if (it.isDefaultArg) irExpression.startOffset else UNDEFINED_OFFSET,
                             irExpression = irExpression,
                             irType = if (inlineArgumentsWithTheirOriginalTypeAndOffset) it.parameter.getOriginalType() else irExpression.type,
                             nameHint = callee.symbol.owner.name.asStringStripSpecialMarkers() + "_" + it.parameter.name.asStringStripSpecialMarkers(),
@@ -793,14 +795,18 @@ class FunctionInlining(
                     (alwaysCreateTemporaryVariablesForArguments && !parameter.isInlineParameter()) ||
                             argument.shouldBeSubstitutedViaTemporaryVariable()
 
-                if (!shouldCreateTemporaryVariable) {
-                    substituteMap[parameter] = variableInitializer
+                if (shouldCreateTemporaryVariable) {
+                    val newVariable = createTemporaryVariable(parameter, variableInitializer, argument.isDefaultArg, callee)
+                    if (argument.isDefaultArg) evaluationStatementsFromDefault.add(newVariable) else evaluationStatements.add(newVariable)
+                    substituteMap[parameter] = IrGetValueWithoutLocation(newVariable.symbol)
                     return@forEach
                 }
 
-                val newVariable = createTemporaryVariable(parameter, variableInitializer, callee)
-                if (argument.isDefaultArg) evaluationStatementsFromDefault.add(newVariable) else evaluationStatements.add(newVariable)
-                substituteMap[parameter] = IrGetValueWithoutLocation(newVariable.symbol)
+                substituteMap[parameter] = if (variableInitializer is IrGetValue) {
+                    IrGetValueWithoutLocation(variableInitializer.symbol)
+                } else {
+                    variableInitializer
+                }
             }
 
 
@@ -824,13 +830,19 @@ class FunctionInlining(
         }
 
         private fun ParameterToArgument.shouldBeSubstitutedViaTemporaryVariable(): Boolean =
-            !isImmutableVariableLoad && !(argumentExpression.isPure(false, context = context) && inlinePureArguments)
+            !(isImmutableVariableLoad && parameter.index >= 0) &&
+                    !(argumentExpression.isPure(false, context = context) && inlinePureArguments)
 
-        private fun createTemporaryVariable(parameter: IrValueParameter, variableInitializer: IrExpression, callee: IrFunction): IrVariable {
+        private fun createTemporaryVariable(
+            parameter: IrValueParameter,
+            variableInitializer: IrExpression,
+            isDefaultArg: Boolean,
+            callee: IrFunction
+        ): IrVariable {
             val variable = currentScope.scope.createTemporaryVariable(
                 irExpression = IrBlockImpl(
-                    variableInitializer.startOffset,
-                    variableInitializer.endOffset,
+                    if (isDefaultArg) variableInitializer.startOffset else UNDEFINED_OFFSET,
+                    if (isDefaultArg) variableInitializer.endOffset else UNDEFINED_OFFSET,
                     if (inlineArgumentsWithTheirOriginalTypeAndOffset) parameter.getOriginalType() else variableInitializer.type,
                     InlinerExpressionLocationHint((currentScope.irElement as IrSymbolOwner).symbol)
                 ).apply {
diff --git a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
index 2ac54d0f81e..76cf848da2d 100644
--- a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
+++ b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
@@ -81,6 +81,7 @@ class ClassCodegen private constructor(
         )
     }
 
+    val smap = context.getSourceMapper(irClass)
     private val state get() = context.state
 
     private val innerClasses = mutableSetOf<IrClass>()
@@ -158,7 +159,6 @@ class ClassCodegen private constructor(
         // Generating a method node may cause the addition of a field with an initializer if an inline function
         // call uses `assert` and the JVM assertions mode is enabled. To avoid concurrent modification errors,
         // there is a very specific generation order.
-        val smap = context.getSourceMapper(irClass)
         // 1. Any method other than `<clinit>` can add a field and a `<clinit>` statement:
         for (method in irClass.declarations.filterIsInstance<IrFunction>()) {
             if (method.name.asString() != "<clinit>" &&
diff --git a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
index 9da7fc8b6b6..8df3a64e7ea 100644
--- a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
+++ b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
@@ -5,8 +5,10 @@
 
 package org.jetbrains.kotlin.backend.jvm.codegen
 
+import org.jetbrains.kotlin.backend.common.ir.*
 import org.jetbrains.kotlin.backend.common.lower.BOUND_RECEIVER_PARAMETER
 import org.jetbrains.kotlin.backend.common.lower.LoweredStatementOrigins
+import org.jetbrains.kotlin.backend.common.lower.inline.isAdaptedFunctionReference
 import org.jetbrains.kotlin.backend.jvm.*
 import org.jetbrains.kotlin.backend.jvm.intrinsics.IntrinsicMethod
 import org.jetbrains.kotlin.backend.jvm.intrinsics.JavaClassProperty
@@ -34,6 +36,7 @@ import org.jetbrains.kotlin.ir.declarations.*
 import org.jetbrains.kotlin.ir.descriptors.toIrBasedDescriptor
 import org.jetbrains.kotlin.ir.descriptors.toIrBasedKotlinType
 import org.jetbrains.kotlin.ir.expressions.*
+import org.jetbrains.kotlin.ir.expressions.impl.IrCallImpl
 import org.jetbrains.kotlin.ir.expressions.impl.IrCompositeImpl
 import org.jetbrains.kotlin.ir.symbols.IrSymbol
 import org.jetbrains.kotlin.ir.symbols.IrTypeParameterSymbol
@@ -54,12 +57,15 @@ import org.jetbrains.kotlin.resolve.jvm.jvmSignature.JvmMethodSignature
 import org.jetbrains.kotlin.types.TypeSystemCommonBackendContext
 import org.jetbrains.kotlin.types.computeExpandedTypeForInlineClass
 import org.jetbrains.kotlin.types.model.TypeParameterMarker
+import org.jetbrains.kotlin.util.OperatorNameConventions
 import org.jetbrains.kotlin.utils.addToStdlib.firstIsInstanceOrNull
 import org.jetbrains.org.objectweb.asm.Label
 import org.jetbrains.org.objectweb.asm.Opcodes
 import org.jetbrains.org.objectweb.asm.Type
 import org.jetbrains.org.objectweb.asm.commons.InstructionAdapter
 import java.util.*
+import kotlin.contracts.ExperimentalContracts
+import kotlin.contracts.contract
 
 sealed class ExpressionInfo {
     var blockInfo: BlockInfo? = null
@@ -138,6 +144,21 @@ class ExpressionCodegen(
     val smap: SourceMapper,
     val reifiedTypeParametersUsages: ReifiedTypeParametersUsages,
 ) : IrElementVisitor<PromisedValue, BlockInfo>, BaseExpressionCodegen {
+    data class AdditionalIrInlineData(val smap: SourceMapCopier, val inlinedBlock: IrInlinedFunctionBlock, val parentSmap: SourceMapper, val tryInfo: TryWithFinallyInfo?) {
+//        fun isInvokeOnLambda(): Boolean = inlinedBlock.inlineCall.symbol.owner.name == OperatorNameConventions.INVOKE
+    }
+
+    val classToCachedSourceMapper = mutableMapOf<IrDeclaration, SourceMapper>()
+    val localSmapCopiersByClass = mutableListOf<AdditionalIrInlineData>()
+
+    private fun getLocalSmap(): List<AdditionalIrInlineData> = /*context.*/localSmapCopiersByClass
+    private fun dropLastLocalSmap() {
+        /*context.*/localSmapCopiersByClass.removeLast()
+    }
+
+    private fun addToLocalSmap(info: AdditionalIrInlineData) {
+        /*context.*/localSmapCopiersByClass.add(info)
+    }
 
     override fun toString(): String = signature.toString()
 
@@ -152,7 +173,7 @@ class ExpressionCodegen(
 
     val state = context.state
 
-    private val fileEntry = irFunction.fileParent.fileEntry
+    private val fileEntry = irFunction.fileParentBeforeInline.fileEntry
 
     override val visitor: InstructionAdapter
         get() = mv
@@ -187,7 +208,35 @@ class ExpressionCodegen(
 
     private fun markNewLinkedLabel() = linkedLabel().apply { mv.visitLabel(this) }
 
-    private fun getLineNumberForOffset(offset: Int): Int = fileEntry.getLineNumber(offset) + 1
+    private fun getLineNumberForOffset(offset: Int): Int {
+        if (getLocalSmap().isNotEmpty()) {
+            var previousData: AdditionalIrInlineData? = null
+            var result = -1
+            val iterator = getLocalSmap().reversed().iterator()
+            while (iterator.hasNext()) {
+                if (previousData?.inlinedBlock?.isLambdaInlining() == true) {
+                    while (iterator.hasNext() && iterator.next().inlinedBlock.inlineDeclaration != getInlinedAt(previousData.inlinedBlock.inlinedElement)) {
+                        // after lambda's smap we should skip "frames" that were inlined inside body of inline function that accept given lambda
+                        continue
+                    }
+                    if (!iterator.hasNext()) break
+                }
+                val inlineData = iterator.next()
+
+                previousData = inlineData
+                val localFileEntry = if (inlineData.inlinedBlock.inlinedElement is IrCallableReference<*>)
+                    getLocalSmap().reversed().map { it.inlinedBlock }
+                        .firstOrNull { it.isFunctionInlining() }?.inlineDeclaration?.fileOrNull?.fileEntry ?: fileEntry
+                else
+                    inlineData.inlinedBlock.inlineDeclaration.fileEntry
+                val lineNumber = if (result == -1) localFileEntry.getLineNumber(offset) + 1 else result
+                val mappedLineNumber = inlineData.smap.mapLineNumber(lineNumber)
+                result = mappedLineNumber
+            }
+            return result
+        }
+        return fileEntry.getLineNumber(offset) + 1
+    }
 
     private fun IrElement.markLineNumber(startOffset: Boolean) {
         if (noLineNumberScope) return
@@ -195,6 +244,7 @@ class ExpressionCodegen(
         if (offset < 0) return
 
         val lineNumber = getLineNumberForOffset(offset)
+
         assert(lineNumber > 0)
         if (lastLineNumber != lineNumber) {
             lastLineNumber = lineNumber
@@ -204,6 +254,17 @@ class ExpressionCodegen(
 
     fun markLineNumber(element: IrElement) = element.markLineNumber(true)
 
+    @OptIn(ExperimentalContracts::class)
+    private inline fun noLineNumberScopeWithCondition(flag: Boolean, block: () -> Unit) {
+        contract {
+            callsInPlace(block, kotlin.contracts.InvocationKind.EXACTLY_ONCE)
+        }
+        val previousState = noLineNumberScope
+        noLineNumberScope = noLineNumberScope || flag
+        block()
+        noLineNumberScope = previousState
+    }
+
     fun noLineNumberScope(block: () -> Unit) {
         val previousState = noLineNumberScope
         noLineNumberScope = true
@@ -400,6 +461,11 @@ class ExpressionCodegen(
                 writeLocalVariablesInTable(info, markNewLabel())
             }
         }
+
+        if (expression is IrInlinedFunctionBlock && expression.isFunctionInlining()) {
+            markLineNumberAfterInlineIfNeeded(isInsideCondition)
+        }
+
         if (isSynthesizedInitBlock) {
             expression.markLineNumber(startOffset = false)
             mv.nop()
@@ -453,11 +519,138 @@ class ExpressionCodegen(
         }
     }
 
-    private fun visitStatementContainer(container: IrStatementContainer, data: BlockInfo) =
-        container.statements.fold(unitValue) { prev, exp ->
+    private inline fun stashSmapForGivenTry(tryInfo: TryWithFinallyInfo, block: () -> Unit) {
+        val lastLineNumberBeforeFinally = lastLineNumber
+        val localSmap = getLocalSmap()
+        val smapCountToDrop = localSmap.indexOfFirst { it.tryInfo == tryInfo }
+        if (smapCountToDrop == -1) {
+            return block()
+        }
+
+        val smapInTryBlock = localSmap.takeLast(localSmap.size - smapCountToDrop)
+        smapInTryBlock.forEach { _ -> dropLastLocalSmap() }
+        block()
+        smapInTryBlock.forEach { addToLocalSmap(it) }
+        if (smapInTryBlock.isNotEmpty()) {
+            lastLineNumber = lastLineNumberBeforeFinally
+        }
+    }
+
+    private fun visitInlinedFunctionBlock(block: IrInlinedFunctionBlock, data: BlockInfo): PromisedValue {
+        val lineNumberForOffset = getLineNumberForOffset(block.inlineCall.startOffset)
+        val callee = block.inlineDeclaration as? IrFunction
+
+        block.getNonDefaultAdditionalStatementsFromInlinedBlock().forEach { exp ->
+            exp.accept(this, data).discard()
+        }
+
+        // TODO start_4: reuse code from org/jetbrains/kotlin/codegen/inline/MethodInliner.kt:267
+        if (block.isLambdaInlining()) {
+            val overrideLineNumber = getLocalSmap().reversed().firstOrNull { !it.inlinedBlock.isLambdaInlining() }
+                ?.inlinedBlock?.inlineDeclaration?.isInlineOnly() == true
+            val currentLineNumber = if (overrideLineNumber) getLocalSmap().last().smap.callSite!!.line else lineNumberForOffset
+
+            val firstLine = callee?.body?.statements?.firstOrNull()?.let {
+                block.inlineDeclaration.fileEntry.getLineNumber(it.startOffset) + 1
+            } ?: -1
+            // TODO DefaultLambda
+            if (/*(info is DefaultLambda != overrideLineNumber) &&*/ currentLineNumber >= 0 && firstLine == currentLineNumber) {
+                val label = Label()
+                val fakeLineNumber = (getLocalSmap().lastOrNull()?.smap?.parent ?: smap)
+                    .mapSyntheticLineNumber(SourceMapper.LOCAL_VARIABLE_INLINE_ARGUMENT_SYNTHETIC_LINE_NUMBER)
+                mv.visitLabel(label)
+                mv.visitLineNumber(fakeLineNumber, label)
+            }
+        }
+        // TODO end_4
+
+        noLineNumberScopeWithCondition(block.inlineDeclaration.isInlineOnly()) {
+            buildSmapFor(block, data)
+
+            block.getDefaultAdditionalStatementsFromInlinedBlock().forEach { exp ->
+                exp.accept(this, data).discard()
+            }
+
+            if (block.inlineCall.usesDefaultArguments()) {
+                // we must reset LN because at this point in original inliner we will inline non default call
+                lastLineNumber = -1
+            }
+
+            val result = block.getOriginalStatementsFromInlinedBlock().fold(unitValue) { prev, exp ->
+                prev.discard()
+                exp.accept(this, data)
+            }
+
+            val calleeBody = callee?.body
+            if (block.inlinedElement !is IrCallableReference<*> || callee?.isInline == true) {
+                if (calleeBody !is IrStatementContainer || calleeBody.statements.lastOrNull() !is IrReturn) {
+                    // TODO start_1: reuse code
+                    // Allow setting a breakpoint on the closing brace of a void-returning function
+                    // without an explicit return, or the `class Something(` line of a primary constructor.
+                    if (callee?.origin != JvmLoweredDeclarationOrigin.CLASS_STATIC_INITIALIZER) {
+                        callee?.let {
+                            it.markLineNumber(startOffset = callee is IrConstructor && callee.isPrimary)
+                            mv.nop()
+                        }
+                    }
+                }
+            }
+            // TODO end_1
+
+//            if (!(block.origin as InlinedFunction).isLambdaInlining) {
+            // TODO start_3: reuse from visitReturn and see ReturnableBlockLowering
+            val lastStatement = callee?.body?.statements?.lastOrNull()
+            if (lastStatement is IrReturn) {
+                val returnTarget = lastStatement.returnTargetSymbol.owner
+                val originalTarget = (returnTarget as? IrAttributeContainer)?.attributeOwnerId ?: returnTarget
+                if (originalTarget == block.inlineDeclaration) {
+                    // if return is implicit we must put new LN at the end of expression
+                    block.statements.last().markLineNumber(startOffset = lastStatement.startOffset != lastStatement.endOffset)
+                    mv.nop()
+                }
+            }
+            // TODO end_3
+//            }
+
+            dropLastLocalSmap()
+
+
+            if (block.isLambdaInlining()) {
+                val overrideLineNumber = getLocalSmap().reversed().firstOrNull { !it.inlinedBlock.isLambdaInlining() }
+                    ?.inlinedBlock?.inlineDeclaration?.isInlineOnly() == true
+                val currentLineNumber = if (overrideLineNumber) getLocalSmap().last().smap.callSite!!.line else lineNumberForOffset
+//        currentLineNumber = getLineNumberForOffset(marker.inlineCall.startOffset)
+                // TODO start_2: reuse code
+                if (currentLineNumber != -1) {
+                    if (overrideLineNumber) {
+                        // This is from the function we're inlining into, so no need to remap.
+                        mv.visitLineNumber(currentLineNumber, markNewLabel())
+                    } else {
+                        // Need to go through the superclass here to properly remap the line number via `sourceMapper`.
+                        block.inlineCall.markLineNumber(true)
+                    }
+                    mv.nop()
+                }
+                // TODO end_2
+            }
+
+            // takeUnless is required to avoid markLineNumberAfterInlineIfNeeded for inline only
+            if (block.isFunctionInlining()) {
+                lastLineNumber = lineNumberForOffset.takeUnless { noLineNumberScope } ?: -1
+            }
+            return result
+        }
+    }
+
+    private fun visitStatementContainer(container: IrStatementContainer, data: BlockInfo): PromisedValue {
+        if (container is IrInlinedFunctionBlock) {
+            return visitInlinedFunctionBlock(container, data)
+        }
+        return container.statements.fold(unitValue) { prev, exp ->
             prev.discard()
             exp.accept(this, data)
         }
+    }
 
     override fun visitBlockBody(body: IrBlockBody, data: BlockInfo): PromisedValue {
         visitStatementContainer(body, data).discard()
@@ -856,11 +1049,116 @@ class ExpressionCodegen(
                     element.render()
         )
 
+    private fun IrDeclaration.getClassWithDeclaredFunction(): IrClass? {
+        val parent = this.parentClassOrNull ?: return null
+        if (!parent.isInterface || (this is IrFunction && this.hasJvmDefault())) return parent
+        return parent.declarations.singleOrNull { it.origin == JvmLoweredDeclarationOrigin.DEFAULT_IMPLS } as IrClass
+    }
+
+    private fun IrFunctionAccessExpression.isInvokeOnDefaultArg(expected: IrDeclaration): Boolean {
+        if (this.symbol.owner.name != OperatorNameConventions.INVOKE) return false
+
+        val dispatch = this.dispatchReceiver as? IrGetValue
+        val parameter = dispatch?.symbol?.owner as? IrValueParameter
+        val default = parameter?.defaultValue?.expression as? IrFunctionExpression
+
+        return default?.function == expected
+    }
+
+    private fun getInlinedAt(originalExpression: IrElement): IrDeclaration? {
+        for (block in getLocalSmap().map { it.inlinedBlock }.filter { it.isFunctionInlining() }) {
+            block.inlineCall.getAllArgumentsWithIr().forEach {
+                val actualArg = (it.second?.attributeOwnerId ?: ((it.first.defaultValue?.expression?.attributeOwnerId as? IrBlock)?.statements?.firstOrNull() as? IrClass)?.attributeOwnerId) as? IrExpression
+                val extractedAnonymousFunction = if (actualArg?.isAdaptedFunctionReference() == true) ((actualArg as IrBlock).statements.last() as IrFunctionReference).attributeOwnerId else actualArg
+                if (extractedAnonymousFunction == ((originalExpression as? IrAttributeContainer)?.attributeOwnerId ?: originalExpression)) {
+                    return block.inlineDeclaration
+                }
+            }
+        }
+
+        return null
+    }
+
+    private fun buildSmapFor(declaration: IrInlinedFunctionBlock, data: BlockInfo): PromisedValue {
+        val inlineCall = declaration.inlineCall
+        val callee = declaration.inlineDeclaration
+
+        declaration.inlineCall.markLineNumber(startOffset = true)
+        mv.nop()
+
+        val localSmaps = getLocalSmap()
+        if (declaration.isLambdaInlining()) {
+            val callSite = getLocalSmap().lastOrNull()?.smap?.callSite?.takeIf { inlineCall.isInvokeOnDefaultArg(callee) }
+            val classSMAP = context.typeToCachedSMAP[context.getLocalClassType(declaration.inlinedElement as IrAttributeContainer)]!!
+
+            val sourceMapper = if (localSmaps.isEmpty()) {
+                smap
+            } else {
+                localSmaps.reversed().firstOrNull { it.inlinedBlock.inlineDeclaration == getInlinedAt(declaration.inlinedElement) }?.smap?.parent
+                    ?: localSmaps.last().smap.parent // if we are in anonymous inlined class and lambda was declared outside
+            }
+            addToLocalSmap(
+                AdditionalIrInlineData(
+                    SourceMapCopier(sourceMapper, classSMAP, callSite),
+                    declaration,
+                    context.getSourceMapper(if (declaration.inlinedElement is IrCallableReference<*>) irFunction.parentAsClass else callee.parentClassOrNull!!),
+                    data.infos.filterIsInstance<TryWithFinallyInfo>().lastOrNull()
+                )
+            )
+        } else {
+            val calleeFromActualClass = callee.getClassWithDeclaredFunction()!!.declarations
+                .asSequence()
+                .filterIsInstance<IrSimpleFunction>()
+                .filter { it.attributeOwnerId == callee } // original callee could be transformed after lowerings, so we must get correct one
+                .filter { if (inlineCall.usesDefaultArguments()) it.origin == IrDeclarationOrigin.FUNCTION_FOR_DEFAULT_PARAMETER else it.origin != IrDeclarationOrigin.FUNCTION_FOR_DEFAULT_PARAMETER }
+                .filter { it.origin != JvmLoweredDeclarationOrigin.FOR_INLINE_STATE_MACHINE_TEMPLATE } // filter functions with $$forInline postfix
+                .single()
+            val nodeAndSmap = calleeFromActualClass.let { actualCallee ->
+                val callToActualCallee = IrCallImpl.fromSymbolOwner(inlineCall.startOffset, inlineCall.endOffset, inlineCall.type, actualCallee.symbol)
+                val callable = methodSignatureMapper.mapToCallableMethod(callToActualCallee, null)
+                val callGenerator = getOrCreateCallGenerator(callToActualCallee, data, callable.signature)
+                (callGenerator as InlineCodegen<*>).compileInline()
+            }
+
+            val key = callee.parentClassOrNull!!
+            val newSmap = if (localSmaps.isEmpty()) {
+                smap
+            } else {
+                localSmaps.last().parentSmap
+            }
+            val sourcePosition = let {
+                val sourceInfo = newSmap.sourceInfo!!
+                val localFileEntry = getLocalSmap().lastOrNull()?.inlinedBlock?.inlineDeclaration?.fileEntry ?: fileEntry
+                val line = if (inlineCall.startOffset < 0) lastLineNumber else localFileEntry.getLineNumber(inlineCall.startOffset) + 1
+//                val file = fileEntry.name.drop(1)
+                SourcePosition(line, sourceInfo.sourceFileName!!, sourceInfo.pathOrCleanFQN)
+            }
+            val sourceMapCopier = SourceMapCopier(newSmap, nodeAndSmap.classSMAP, sourcePosition)
+            addToLocalSmap(
+                AdditionalIrInlineData(
+                    sourceMapCopier, declaration, context.getSourceMapper(key),
+                    data.infos.filterIsInstance<TryWithFinallyInfo>().lastOrNull()
+                )
+            )
+
+        }
+        if (inlineCall.usesDefaultArguments()) {
+            // $default function has first LN pointing to original callee
+            callee.markLineNumber(startOffset = true)
+            mv.nop()
+        }
+
+        return unitValue
+    }
+
     override fun visitClass(declaration: IrClass, data: BlockInfo): PromisedValue {
         if (declaration.origin != JvmLoweredDeclarationOrigin.CONTINUATION_CLASS) {
             val childCodegen = ClassCodegen.getOrCreate(declaration, context, enclosingFunctionForLocalObjects)
             childCodegen.generate()
             closureReifiedMarkers[declaration] = childCodegen.reifiedTypeParametersUsages
+            if (irFunction.origin == IrDeclarationOrigin.FUNCTION_FOR_DEFAULT_PARAMETER || declaration.origin == JvmLoweredDeclarationOrigin.LAMBDA_IMPL) {
+                context.typeToCachedSMAP[childCodegen.type] = SMAP(childCodegen.smap.resultMappings)
+            }
         }
         return unitValue
     }
@@ -1169,6 +1467,10 @@ class ExpressionCodegen(
         mv.nop()
         val endLabel = Label()
         val stackElement = unwindBlockStack(endLabel, data) { it.loop == jump.loop }
+        if ((jump.loop.body as? IrBlock)?.statements?.singleOrNull() is IrInlinedFunctionBlock) {
+            // There must be another line number because this jump is actually return from inlined function
+            jump.markLineNumber(startOffset = true)
+        }
         if (stackElement == null) {
             generateGlobalReturnFlagIfPossible(jump, jump.loop.nonLocalReturnLabel(jump is IrBreak))
             mv.areturn(Type.VOID_TYPE)
@@ -1307,15 +1609,17 @@ class ExpressionCodegen(
     ) {
         val gapStart = markNewLinkedLabel()
         data.localGapScope(tryWithFinallyInfo) {
-            finallyDepth++
-            if (isFinallyMarkerRequired) {
-                generateFinallyMarker(mv, finallyDepth, true)
+            stashSmapForGivenTry(tryWithFinallyInfo) {
+                finallyDepth++
+                if (isFinallyMarkerRequired) {
+                    generateFinallyMarker(mv, finallyDepth, true)
+                }
+                tryWithFinallyInfo.onExit.accept(this, data).discard()
+                if (isFinallyMarkerRequired) {
+                    generateFinallyMarker(mv, finallyDepth, false)
+                }
+                finallyDepth--
             }
-            tryWithFinallyInfo.onExit.accept(this, data).discard()
-            if (isFinallyMarkerRequired) {
-                generateFinallyMarker(mv, finallyDepth, false)
-            }
-            finallyDepth--
             if (tryCatchBlockEnd != null) {
                 tryWithFinallyInfo.onExit.markLineNumber(startOffset = false)
                 mv.goTo(tryCatchBlockEnd)
diff --git a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/irCodegenUtils.kt b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/irCodegenUtils.kt
index 60611e45933..a34d10f49a6 100644
--- a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/irCodegenUtils.kt
+++ b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/irCodegenUtils.kt
@@ -25,8 +25,8 @@ import org.jetbrains.kotlin.descriptors.ClassKind
 import org.jetbrains.kotlin.descriptors.DescriptorVisibilities
 import org.jetbrains.kotlin.descriptors.Modality
 import org.jetbrains.kotlin.ir.declarations.*
-import org.jetbrains.kotlin.ir.expressions.*
-import org.jetbrains.kotlin.ir.symbols.IrClassSymbol
+import org.jetbrains.kotlin.ir.expressions.IrCall
+import org.jetbrains.kotlin.ir.expressions.IrExpressionBody
 import org.jetbrains.kotlin.ir.symbols.IrSymbol
 import org.jetbrains.kotlin.ir.symbols.IrTypeParameterSymbol
 import org.jetbrains.kotlin.ir.types.*
@@ -38,6 +38,7 @@ import org.jetbrains.kotlin.resolve.jvm.jvmSignature.JvmClassSignature
 import org.jetbrains.kotlin.utils.addIfNotNull
 import org.jetbrains.org.objectweb.asm.Opcodes
 import org.jetbrains.org.objectweb.asm.Type
+import kotlin.collections.set
 
 class IrFrameMap : FrameMapBase<IrSymbol>() {
     private val typeMap = mutableMapOf<IrSymbol, Type>()
@@ -67,19 +68,11 @@ fun IrFrameMap.leave(irDeclaration: IrSymbolOwner): Int {
     return leave(irDeclaration.symbol)
 }
 
-fun IrClass.getOriginalDeclaration(): IrDeclaration? {
-    val originalClass = this.attributeOwnerIdBeforeInline ?: return null
-    return when (originalClass) {
-        is IrClass -> return originalClass
-        is IrFunctionExpression -> originalClass.function
-        is IrFunctionReference -> originalClass.symbol.owner
-        else -> null
-    }
-}
-
 fun JvmBackendContext.getSourceMapper(declaration: IrClass): SourceMapper {
-    val originalDeclarationBeforeInline = declaration.getOriginalDeclaration() ?: declaration
-    val fileEntry = originalDeclarationBeforeInline.fileParent.fileEntry
+    val irFile = declaration.fileParentBeforeInline
+    val type = declaration.getAttributeOwnerBeforeInline()?.let { getLocalClassType(it) } ?: defaultTypeMapper.mapClass(declaration)
+
+    val fileEntry = irFile.fileEntry
     // NOTE: apparently inliner requires the source range to cover the
     //       whole file the class is declared in rather than the class only.
     val endLineNumber = when (fileEntry) {
@@ -88,9 +81,8 @@ fun JvmBackendContext.getSourceMapper(declaration: IrClass): SourceMapper {
     }
     val sourceFileName = when (fileEntry) {
         is MultifileFacadeFileEntry -> fileEntry.partFiles.singleOrNull()?.name
-        else -> originalDeclarationBeforeInline.fileParent.name
+        else -> irFile.name
     }
-    val type = declaration.attributeOwnerIdBeforeInline?.let { getLocalClassType(it)!! } ?: defaultTypeMapper.mapClass(declaration)
     return SourceMapper(
         SourceInfo(
             sourceFileName,
diff --git a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/intrinsics/SingleArgumentInlineFunctionIntrinsic.kt b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/intrinsics/SingleArgumentInlineFunctionIntrinsic.kt
index 3b7e137ea2b..d900b3dde07 100644
--- a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/intrinsics/SingleArgumentInlineFunctionIntrinsic.kt
+++ b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/intrinsics/SingleArgumentInlineFunctionIntrinsic.kt
@@ -17,6 +17,7 @@ object SingleArgumentInlineFunctionIntrinsic : IntrinsicMethod() {
         if (inlineLambda != null) {
             val lambdaInfo = IrExpressionLambdaImpl(codegen, inlineLambda)
             lambdaInfo.generateLambdaBody(sourceCompiler)
+            codegen.context.typeToCachedSMAP[lambdaInfo.lambdaClassType] = lambdaInfo.node.classSMAP
         }
 
         return codegen.unitValue
diff --git a/compiler/ir/backend.jvm/lower/src/org/jetbrains/kotlin/backend/jvm/lower/SuspendLambdaLowering.kt b/compiler/ir/backend.jvm/lower/src/org/jetbrains/kotlin/backend/jvm/lower/SuspendLambdaLowering.kt
index 91dc92877ec..d5ebb37e0d6 100644
--- a/compiler/ir/backend.jvm/lower/src/org/jetbrains/kotlin/backend/jvm/lower/SuspendLambdaLowering.kt
+++ b/compiler/ir/backend.jvm/lower/src/org/jetbrains/kotlin/backend/jvm/lower/SuspendLambdaLowering.kt
@@ -209,7 +209,7 @@ private class SuspendLambdaLowering(context: JvmBackendContext) : SuspendLowerin
             }
 
             this.metadata = function.metadata
-            context.suspendLambdaToOriginalFunctionMap[attributeOwnerId as IrFunctionReference] = function
+            context.suspendLambdaToOriginalFunctionMap[attributeOwnerId] = function
         }
 
     private fun IrClass.addInvokeSuspendForLambda(
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/JvmBackendContext.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/JvmBackendContext.kt
index ac67f6a9c43..bd687cc7a6d 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/JvmBackendContext.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/JvmBackendContext.kt
@@ -19,6 +19,7 @@ import org.jetbrains.kotlin.backend.jvm.caches.BridgeLoweringCache
 import org.jetbrains.kotlin.backend.jvm.caches.CollectionStubComputer
 import org.jetbrains.kotlin.backend.jvm.mapping.IrTypeMapper
 import org.jetbrains.kotlin.backend.jvm.mapping.MethodSignatureMapper
+import org.jetbrains.kotlin.codegen.inline.SMAP
 import org.jetbrains.kotlin.codegen.state.GenerationState
 import org.jetbrains.kotlin.descriptors.ClassDescriptor
 import org.jetbrains.kotlin.descriptors.TypeParameterDescriptor
@@ -29,7 +30,6 @@ import org.jetbrains.kotlin.ir.builders.irBlock
 import org.jetbrains.kotlin.ir.declarations.*
 import org.jetbrains.kotlin.ir.declarations.impl.IrFactoryImpl
 import org.jetbrains.kotlin.ir.expressions.IrExpression
-import org.jetbrains.kotlin.ir.expressions.IrFunctionReference
 import org.jetbrains.kotlin.ir.expressions.IrStatementOrigin
 import org.jetbrains.kotlin.ir.symbols.*
 import org.jetbrains.kotlin.ir.types.IrType
@@ -105,6 +105,9 @@ class JvmBackendContext(
 
     lateinit var getIntrinsic: (IrFunctionSymbol) -> IntrinsicMarker?
 
+    // Store evaluated SMAP for anonymous classes. Used only with IR inliner.
+    val typeToCachedSMAP = mutableMapOf<Type, SMAP>()
+
     private val localClassType = ConcurrentHashMap<IrAttributeContainer, Type>()
 
     val isCompilingAgainstJdk8OrLater = state.jvmBackendClassResolver.resolveToClassDescriptors(
@@ -157,7 +160,7 @@ class JvmBackendContext(
 
     override val internalPackageFqn = FqName("kotlin.jvm")
 
-    val suspendLambdaToOriginalFunctionMap = ConcurrentHashMap<IrFunctionReference, IrFunction>()
+    val suspendLambdaToOriginalFunctionMap = ConcurrentHashMap<IrAttributeContainer, IrFunction>()
     val suspendFunctionOriginalToView = ConcurrentHashMap<IrSimpleFunction, IrSimpleFunction>()
 
     val staticDefaultStubs = ConcurrentHashMap<IrSimpleFunctionSymbol, IrSimpleFunction>()
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrInlineUtils.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrInlineUtils.kt
index 71f8621ea8d..86cab596749 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrInlineUtils.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrInlineUtils.kt
@@ -12,6 +12,7 @@ import org.jetbrains.kotlin.descriptors.DescriptorVisibility
 import org.jetbrains.kotlin.ir.IrStatement
 import org.jetbrains.kotlin.ir.declarations.*
 import org.jetbrains.kotlin.ir.expressions.IrBlock
+import org.jetbrains.kotlin.ir.expressions.IrFunctionExpression
 import org.jetbrains.kotlin.ir.expressions.IrFunctionReference
 import org.jetbrains.kotlin.ir.types.isNullable
 import org.jetbrains.kotlin.ir.util.*
@@ -75,9 +76,11 @@ private fun IrFunction.isInlineArrayConstructor(context: JvmBackendContext): Boo
         it == context.irBuiltIns.arrayClass || it in context.irBuiltIns.primitiveArraysToPrimitiveTypes
     }
 
-fun IrFunction.isInlineOnly(): Boolean =
-    (isInline && hasAnnotation(INLINE_ONLY_ANNOTATION_FQ_NAME)) ||
-            (this is IrSimpleFunction && correspondingPropertySymbol?.owner?.hasAnnotation(INLINE_ONLY_ANNOTATION_FQ_NAME) == true)
+fun IrDeclaration.isInlineOnly(): Boolean =
+    this is IrFunction && (
+            (isInline && hasAnnotation(INLINE_ONLY_ANNOTATION_FQ_NAME)) ||
+                    (this is IrSimpleFunction && correspondingPropertySymbol?.owner?.hasAnnotation(INLINE_ONLY_ANNOTATION_FQ_NAME) == true)
+            )
 
 fun IrDeclarationWithVisibility.isEffectivelyInlineOnly(): Boolean =
     this is IrFunction && (isReifiable() || isInlineOnly() || isPrivateInlineSuspend())
@@ -87,3 +90,26 @@ fun IrFunction.isPrivateInlineSuspend(): Boolean =
 
 fun IrFunction.isReifiable(): Boolean =
     typeParameters.any { it.isReified }
+
+private fun IrAttributeContainer.getDeclarationBeforeInline(): IrDeclaration? {
+    val original = this.attributeOwnerIdBeforeInline ?: return null
+    return when (original) {
+        is IrClass -> return original
+        is IrFunctionExpression -> original.function
+        is IrFunctionReference -> original.symbol.owner
+        else -> null
+    }
+}
+
+fun IrAttributeContainer.getAttributeOwnerBeforeInline(): IrAttributeContainer? {
+    if (this.attributeOwnerIdBeforeInline == null) return null
+    return generateSequence(this) { it.attributeOwnerIdBeforeInline }.last()
+}
+
+val IrDeclaration.fileParentBeforeInline: IrFile
+    get() {
+        val original = (this as? IrAttributeContainer)?.getDeclarationBeforeInline()
+            ?: this.parentClassOrNull?.getDeclarationBeforeInline()
+            ?: this
+        return original.fileParent
+    }
\ No newline at end of file
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/IrUtils.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/IrUtils.kt
index 76678eb8af2..2bec68e5460 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/IrUtils.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/IrUtils.kt
@@ -205,7 +205,7 @@ fun IrExpression.implicitCastIfNeededTo(type: IrType) =
         IrTypeOperatorCallImpl(startOffset, endOffset, type, IrTypeOperator.IMPLICIT_CAST, type, this)
 
 fun IrFunctionAccessExpression.usesDefaultArguments(): Boolean =
-    symbol.owner.valueParameters.any { this.getValueArgument(it.index) == null }
+    symbol.owner.valueParameters.any { this.getValueArgument(it.index) == null && (!it.isVararg || it.defaultValue != null) }
 
 fun IrValueParameter.createStubDefaultValue(): IrExpressionBody =
     factory.createExpressionBody(