diff --git a/.idea/artifacts/k2js_jar.xml b/.idea/artifacts/k2js_jar.xml
new file mode 100644
index 00000000000..c80e2b9b132
--- /dev/null
+++ b/.idea/artifacts/k2js_jar.xml
@@ -0,0 +1,18 @@
+<component name="ArtifactManager">
+  <artifact type="jar" name="k2js:jar">
+    <output-path>$PROJECT_DIR$/out/artifacts/k2js_jar</output-path>
+    <root id="archive" name="k2js.jar">
+      <element id="module-output" name="backend" />
+      <element id="module-output" name="frontend" />
+      <element id="module-output" name="frontend.java" />
+      <element id="module-output" name="stdlib" />
+      <element id="module-output" name="jetTests" />
+      <element id="module-output" name="translator" />
+      <element id="module-output" name="js" />
+      <element id="extracted-dir" path="$PROJECT_DIR$/translator/lib/js.jar" path-in-jar="/" />
+      <element id="extracted-dir" path="$PROJECT_DIR$/translator/lib/junit-4.10.jar" path-in-jar="/" />
+      <element id="extracted-dir" path="$PROJECT_DIR$/translator/lib/guava-10.0.1.jar" path-in-jar="/" />
+      <element id="extracted-dir" path="$PROJECT_DIR$/../../Kotlin/jet/lib/asm-util-3.3.1.jar" path-in-jar="/" />
+    </root>
+  </artifact>
+</component>
\ No newline at end of file
diff --git a/translator/src/org/jetbrains/k2js/translate/context/Aliaser.java b/translator/src/org/jetbrains/k2js/translate/context/Aliaser.java
index 13059a924d4..8d48863ac3e 100644
--- a/translator/src/org/jetbrains/k2js/translate/context/Aliaser.java
+++ b/translator/src/org/jetbrains/k2js/translate/context/Aliaser.java
@@ -3,13 +3,13 @@ package org.jetbrains.k2js.translate.context;
 import com.google.dart.compiler.backend.js.ast.JsName;
 import com.google.dart.compiler.backend.js.ast.JsNameRef;
 import org.jetbrains.annotations.NotNull;
-import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
 
 import java.util.HashMap;
 import java.util.Map;
+import java.util.Stack;
 
-//TODO: implement aliases stack for this need TESTS
+//TODO: implement aliasesForDescriptors stack for this need TESTS
 public class Aliaser {
 
     public static Aliaser newInstance() {
@@ -17,50 +17,53 @@ public class Aliaser {
     }
 
     @NotNull
-    private final Map<DeclarationDescriptor, JsName> aliases = new HashMap<DeclarationDescriptor, JsName>();
-    @Nullable
-    private JsName aliasForThis = null;
+    private final Map<DeclarationDescriptor, JsName> aliasesForDescriptors = new HashMap<DeclarationDescriptor, JsName>();
+    @NotNull
+    private Stack<JsName> thisAliases = new Stack<JsName>();
 
     private Aliaser() {
     }
 
     @NotNull
     public JsNameRef getAliasForThis() {
-        assert aliasForThis != null : "Alias is null. Use hasAliasForThis function to check.";
-        return aliasForThis.makeRef();
+        assert !thisAliases.empty() : "No alias. Use hasAliasForThis function to check.";
+        return thisAliases.peek().makeRef();
     }
 
     @SuppressWarnings("NullableProblems")
     public void setAliasForThis(@NotNull JsName alias) {
-        aliasForThis = alias;
+        thisAliases.push(alias);
     }
 
-    public void removeAliasForThis() {
-        aliasForThis = null;
+    //NOTE: here we are passing alias to check that they are set and removed in consistent order.
+    public void removeAliasForThis(@NotNull JsName aliasToRemove) {
+        assert !thisAliases.empty() : "Error: removing alias, when it is not set.";
+        JsName lastAlias = thisAliases.pop();
+        assert lastAlias.equals(aliasToRemove) : "Error: inconsistent alias removing.";
     }
 
     public boolean hasAliasForThis() {
-        return (aliasForThis != null);
+        return (!thisAliases.empty());
     }
 
     public boolean hasAliasForDeclaration(@NotNull DeclarationDescriptor declaration) {
-        return aliases.containsKey(declaration.getOriginal());
+        return aliasesForDescriptors.containsKey(declaration.getOriginal());
     }
 
     @NotNull
     public JsName getAliasForDeclaration(@NotNull DeclarationDescriptor declaration) {
-        JsName alias = aliases.get(declaration.getOriginal());
+        JsName alias = aliasesForDescriptors.get(declaration.getOriginal());
         assert alias != null : "Use has alias for declaration to check.";
         return alias;
     }
 
     public void setAliasForDescriptor(@NotNull DeclarationDescriptor declaration, @NotNull JsName alias) {
         assert (!hasAliasForDeclaration(declaration.getOriginal())) : "This declaration already has an alias!";
-        aliases.put(declaration.getOriginal(), alias);
+        aliasesForDescriptors.put(declaration.getOriginal(), alias);
     }
 
     public void removeAliasForDescriptor(@NotNull DeclarationDescriptor declaration) {
         assert (hasAliasForDeclaration(declaration.getOriginal())) : "This declaration does not has an alias!";
-        aliases.remove(declaration.getOriginal());
+        aliasesForDescriptors.remove(declaration.getOriginal());
     }
 }
\ No newline at end of file
diff --git a/translator/src/org/jetbrains/k2js/translate/context/StandardClasses.java b/translator/src/org/jetbrains/k2js/translate/context/StandardClasses.java
index 393efa9faef..336de4d56da 100644
--- a/translator/src/org/jetbrains/k2js/translate/context/StandardClasses.java
+++ b/translator/src/org/jetbrains/k2js/translate/context/StandardClasses.java
@@ -128,7 +128,9 @@ public final class StandardClasses {
     }
 
     private void declareStandardTopLevelObject(@NotNull String fullQualifiedName, @NotNull String kotlinLibName) {
-        nameMap.put(fullQualifiedName, kotlinScope.declareName(kotlinLibName));
+        JsName declaredName = kotlinScope.declareName(kotlinLibName);
+        declaredName.setObfuscatable(false);
+        nameMap.put(fullQualifiedName, declaredName);
         scopeMap.put(fullQualifiedName, new JsScope(kotlinScope, "standard object " + kotlinLibName));
     }
 
@@ -143,7 +145,9 @@ public final class StandardClasses {
                                                  @NotNull String kotlinLibName) {
         JsScope classScope = scopeMap.get(fullQualifiedClassName);
         String fullQualifiedMethodName = fullQualifiedClassName + "." + shortMethodName;
-        nameMap.put(fullQualifiedMethodName, classScope.declareName(kotlinLibName));
+        JsName declaredName = classScope.declareName(kotlinLibName);
+        declaredName.setObfuscatable(false);
+        nameMap.put(fullQualifiedMethodName, declaredName);
     }
 
     public boolean isStandardObject(@NotNull DeclarationDescriptor descriptor) {
diff --git a/translator/src/org/jetbrains/k2js/translate/context/TemporaryVariable.java b/translator/src/org/jetbrains/k2js/translate/context/TemporaryVariable.java
index 59adc6780fc..acacd981de1 100644
--- a/translator/src/org/jetbrains/k2js/translate/context/TemporaryVariable.java
+++ b/translator/src/org/jetbrains/k2js/translate/context/TemporaryVariable.java
@@ -27,7 +27,7 @@ public final class TemporaryVariable {
     }
 
     @NotNull
-        /*package*/ JsName name() {
+    public JsName name() {
         return variableName;
     }
 
diff --git a/translator/src/org/jetbrains/k2js/translate/context/TranslationContext.java b/translator/src/org/jetbrains/k2js/translate/context/TranslationContext.java
index c8f630b2333..98736c5a35f 100644
--- a/translator/src/org/jetbrains/k2js/translate/context/TranslationContext.java
+++ b/translator/src/org/jetbrains/k2js/translate/context/TranslationContext.java
@@ -157,13 +157,13 @@ public final class TranslationContext {
 
     @NotNull
     public TemporaryVariable newAliasForThis() {
-        TemporaryVariable aliasForThis = dynamicContext.declareTemporaryWithName("that", new JsThisRef());
+        TemporaryVariable aliasForThis = dynamicContext.declareTemporary(new JsThisRef());
         aliaser().setAliasForThis(aliasForThis.name());
         return aliasForThis;
     }
 
-    public void removeAliasForThis() {
-        aliaser().removeAliasForThis();
+    public void removeAliasForThis(@NotNull JsName aliasToRemove) {
+        aliaser().removeAliasForThis(aliasToRemove);
     }
 
     @NotNull
diff --git a/translator/src/org/jetbrains/k2js/translate/expression/FunctionTranslator.java b/translator/src/org/jetbrains/k2js/translate/expression/FunctionTranslator.java
index 22997d2e730..0f00c5f2710 100644
--- a/translator/src/org/jetbrains/k2js/translate/expression/FunctionTranslator.java
+++ b/translator/src/org/jetbrains/k2js/translate/expression/FunctionTranslator.java
@@ -25,6 +25,15 @@ import static org.jetbrains.k2js.translate.utils.TranslationUtils.functionWithSc
  */
 public final class FunctionTranslator extends AbstractTranslator {
 
+    @NotNull
+    public static FunctionTranslator newInstance(@NotNull JetDeclarationWithBody function,
+                                                 @NotNull TranslationContext context) {
+        return new FunctionTranslator(function, context);
+    }
+
+    //TODO: implement more generic and safe way
+    private static final String RECEIVER_PARAMETER_NAME = "receiver";
+
     @NotNull
     private final JetDeclarationWithBody functionDeclaration;
     @NotNull
@@ -32,11 +41,6 @@ public final class FunctionTranslator extends AbstractTranslator {
     @NotNull
     private final TranslationContext functionBodyContext;
 
-    @NotNull
-    public static FunctionTranslator newInstance(@NotNull JetDeclarationWithBody function,
-                                                 @NotNull TranslationContext context) {
-        return new FunctionTranslator(function, context);
-    }
 
     private FunctionTranslator(@NotNull JetDeclarationWithBody functionDeclaration,
                                @NotNull TranslationContext context) {
@@ -58,7 +62,7 @@ public final class FunctionTranslator extends AbstractTranslator {
     public JsExpression translateAsLiteral() {
         TemporaryVariable aliasForThis = context().newAliasForThis();
         JsFunction function = generateFunctionObject();
-        context().removeAliasForThis();
+        context().removeAliasForThis(aliasForThis.name());
         return AstUtil.newSequence(aliasForThis.assignmentExpression(), function);
     }
 
@@ -72,7 +76,8 @@ public final class FunctionTranslator extends AbstractTranslator {
 
     private void restoreContext() {
         if (isExtensionFunction()) {
-            functionBodyContext.removeAliasForThis();
+            JsName receiverAlias = functionBodyContext.jsScope().findExistingName(RECEIVER_PARAMETER_NAME);
+            functionBodyContext.removeAliasForThis(receiverAlias);
         }
     }
 
@@ -165,19 +170,14 @@ public final class FunctionTranslator extends AbstractTranslator {
     }
 
     private void mayBeAddThisParameterForExtensionFunction(@NotNull List<JsParameter> jsParameters) {
-        boolean isExtensionFunction = isExtensionFunction();
-        if (isExtensionFunction) {
-            JsName receiver = functionBodyContext.jsScope().declareName("receiver");
+        if (isExtensionFunction()) {
+            JsName receiver = functionBodyContext.jsScope().declareName(RECEIVER_PARAMETER_NAME);
             context().aliaser().setAliasForThis(receiver);
             jsParameters.add(new JsParameter(receiver));
         }
     }
 
     private boolean isExtensionFunction() {
-//        if (!(functionDeclaration instanceof JetNamedFunction)) {
-//            return false;
-//        }
-
         FunctionDescriptor functionDescriptor = getFunctionDescriptor(context().bindingContext(), functionDeclaration);
         return DescriptorUtils.isExtensionFunction(functionDescriptor);
     }
diff --git a/translator/src/org/jetbrains/k2js/translate/general/Translation.java b/translator/src/org/jetbrains/k2js/translate/general/Translation.java
index ce2a390b98d..8b6609582a0 100644
--- a/translator/src/org/jetbrains/k2js/translate/general/Translation.java
+++ b/translator/src/org/jetbrains/k2js/translate/general/Translation.java
@@ -1,5 +1,7 @@
 package org.jetbrains.k2js.translate.general;
 
+import com.google.dart.compiler.backend.js.JsNamer;
+import com.google.dart.compiler.backend.js.JsPrettyNamer;
 import com.google.dart.compiler.backend.js.ast.*;
 import com.google.dart.compiler.util.AstUtil;
 import com.intellij.openapi.project.Project;
@@ -98,6 +100,10 @@ public final class Translation {
         JsBlock block = staticContext.getProgram().getFragmentBlock(0);
         TranslationContext context = TranslationContext.rootContext(staticContext);
         block.addStatement(Translation.translateNamespace(namespace, context));
+
+        JsNamer namer = new JsPrettyNamer();
+        namer.exec(context.program());
+
         return context.program();
     }
 
diff --git a/translator/test/org/jetbrains/k2js/test/ExtensionFunctionTest.java b/translator/test/org/jetbrains/k2js/test/ExtensionFunctionTest.java
index 040555e9de7..c6855d5e876 100644
--- a/translator/test/org/jetbrains/k2js/test/ExtensionFunctionTest.java
+++ b/translator/test/org/jetbrains/k2js/test/ExtensionFunctionTest.java
@@ -47,4 +47,9 @@ public final class ExtensionFunctionTest extends TranslationTest {
     public void extensionLiteralPassedToFunction() throws Exception {
         testFooBoxIsTrue("extensionLiteralPassedToFunction.kt");
     }
+
+    @Test
+    public void extensionInsideFunctionLiteral() throws Exception {
+        testFooBoxIsTrue("extensionInsideFunctionLiteral.kt");
+    }
 }
diff --git a/translator/testFiles/extensionFunction/cases/extensionInsideFunctionLiteral.kt b/translator/testFiles/extensionFunction/cases/extensionInsideFunctionLiteral.kt
new file mode 100644
index 00000000000..26d2a07b437
--- /dev/null
+++ b/translator/testFiles/extensionFunction/cases/extensionInsideFunctionLiteral.kt
@@ -0,0 +1,22 @@
+namespace foo
+
+class M() {
+    var m = 0
+
+    fun eval() {
+        var d = {
+            var c = {Int.() => this + 3}
+            m += 3.c()
+        }
+        d();
+    }
+}
+
+fun box() : Boolean {
+    var a = M()
+    if (a.m != 0) return false;
+    a.eval()
+    if (a.m != 6) return false;
+
+    return true;
+}
\ No newline at end of file