diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/InventNamesForLocalClasses.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/InventNamesForLocalClasses.kt
index 0eb8612d89f..92126bb5437 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/InventNamesForLocalClasses.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/InventNamesForLocalClasses.kt
@@ -108,12 +108,6 @@ class InventNamesForLocalClasses(private val context: JvmBackendContext) : FileL
                         localFunctionNames[(declaration as IrFunction).symbol] = name
                     }
                 }
-                declaration is IrFunction && declaration.parent !is IrClass -> {
-                    // In the old backend, only names of non-local functions are stored in names of anonymous classes. All other names
-                    // are replaced with indices. For example, a local class `L` in a top-level function `f` will have the name `...$f$L`,
-                    // but inside a local function `g` (which is in `f`) it will have the name `...$f$1$L` (_not_ `...$f$g$L`).
-                    inventName(null, data)
-                }
                 enclosingName != null -> "$enclosingName$$simpleName"
                 else -> simpleName
             }
diff --git a/compiler/testData/checkLocalVariablesTable/itInReturnedLambda.kt b/compiler/testData/checkLocalVariablesTable/itInReturnedLambda.kt
index 23478ff5561..e69b36b2a8a 100644
--- a/compiler/testData/checkLocalVariablesTable/itInReturnedLambda.kt
+++ b/compiler/testData/checkLocalVariablesTable/itInReturnedLambda.kt
@@ -6,6 +6,14 @@ fun foo() {
     }
 }
 
+// Names of local functions are used in names of local classes for IR, but only indices are used for non-IR.
+
+// JVM_TEMPLATES
 // METHOD : ItInReturnedLambdaKt$foo$1$1.invoke(I)V
 // VARIABLE : NAME=this TYPE=LItInReturnedLambdaKt$foo$1$1; INDEX=0
 // VARIABLE : NAME=it TYPE=I INDEX=1
+
+// JVM_IR_TEMPLATES
+// METHOD : ItInReturnedLambdaKt$foo$bar$1.invoke(I)V
+// VARIABLE : NAME=this TYPE=LItInReturnedLambdaKt$foo$bar$1; INDEX=0
+// VARIABLE : NAME=it TYPE=I INDEX=1
diff --git a/compiler/testData/codegen/box/reflection/classes/localClassSimpleName.kt b/compiler/testData/codegen/box/reflection/classes/localClassSimpleName.kt
index 03823437f35..f31333fd816 100644
--- a/compiler/testData/codegen/box/reflection/classes/localClassSimpleName.kt
+++ b/compiler/testData/codegen/box/reflection/classes/localClassSimpleName.kt
@@ -1,5 +1,4 @@
 // IGNORE_BACKEND_FIR: JVM_IR
-// IGNORE_BACKEND: JVM_IR
 // IGNORE_BACKEND: NATIVE
 // WITH_RUNTIME