diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalClassGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalClassGenerator.kt
new file mode 100644
index 00000000000..b2713ab6655
--- /dev/null
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalClassGenerator.kt
@@ -0,0 +1,53 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.psi2ir.generators
+
+import org.jetbrains.kotlin.ir.IrStatement
+import org.jetbrains.kotlin.ir.expressions.IrBlockImpl
+import org.jetbrains.kotlin.ir.expressions.IrCallImpl
+import org.jetbrains.kotlin.ir.expressions.IrOperator
+import org.jetbrains.kotlin.psi.KtObjectLiteralExpression
+import org.jetbrains.kotlin.psi.psiUtil.endOffset
+import org.jetbrains.kotlin.psi.psiUtil.startOffset
+
+class LocalClassGenerator(statementGenerator: StatementGenerator): StatementGeneratorExtension(statementGenerator) {
+    fun generateObjectLiteral(expression: KtObjectLiteralExpression): IrStatement {
+        val objectLiteralType = getInferredTypeWithImplicitCastsOrFail(expression)
+        val irBlock = IrBlockImpl(expression.startOffset, expression.endOffset, objectLiteralType, IrOperator.OBJECT_LITERAL)
+
+        val irClass = DeclarationGenerator(statementGenerator.context).generateClassOrObjectDeclaration(expression.objectDeclaration)
+        irBlock.addStatement(irClass)
+
+        val objectConstructor = irClass.descriptor.unsubstitutedPrimaryConstructor ?:
+                                throw AssertionError("Object literal should have a primary constructor: ${irClass.descriptor}")
+        assert(objectConstructor.dispatchReceiverParameter == null) {
+            "Object literal constructor should have no dispatch receiver parameter: $objectConstructor"
+        }
+        assert(objectConstructor.extensionReceiverParameter == null) {
+            "Object literal constructor should have no extension receiver parameter: $objectConstructor"
+        }
+        assert(objectConstructor.valueParameters.size == 0) {
+            "Object literal constructor should have no value parameters: $objectConstructor"
+        }
+
+        irBlock.addStatement(IrCallImpl(expression.startOffset, expression.endOffset, objectLiteralType,
+                                        objectConstructor, IrOperator.OBJECT_LITERAL))
+
+        return irBlock
+    }
+
+}
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
index 2b15573fa89..e2d019f6267 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
@@ -336,6 +336,9 @@ class StatementGenerator(
 
     override fun visitNamedFunction(function: KtNamedFunction, data: Nothing?): IrStatement =
             LocalFunctionGenerator(this).generateFunction(function)
+
+    override fun visitObjectLiteralExpression(expression: KtObjectLiteralExpression, data: Nothing?): IrStatement =
+            LocalClassGenerator(this).generateObjectLiteral(expression)
 }
 
 abstract class StatementGeneratorExtension(val statementGenerator: StatementGenerator) : GeneratorWithScope {
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
index 8975cf7e29d..1594231ba8c 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
@@ -86,9 +86,9 @@ interface IrOperator {
 
     object LAMBDA : IrOperatorImpl("LAMBDA")
     object ANONYMOUS_FUNCTION : IrOperatorImpl("ANONYMOUS_FUNCTION")
+    object OBJECT_LITERAL : IrOperatorImpl("OBJECT_LITERAL")
 
     object SUPER_CONSTRUCTOR_CALL : IrOperatorImpl("SUPER_CONSTRUCTOR_CALL")
-    object DELEGATING_CONSTRUCTOR_CALL : IrOperatorImpl("DELEGATING_CONSTRUCTOR_CALL")
     object INITIALIZE_PROPERTY_FROM_PARAMETER : IrOperatorImpl("INITIALIZE_PROPERTY_FROM_PARAMETER")
     object ANONYMOUS_INITIALIZER : IrOperatorImpl("ANONYMOUS_INITIALIZER")
 
diff --git a/compiler/testData/ir/irText/classes/objectLiteralExpressions.kt b/compiler/testData/ir/irText/classes/objectLiteralExpressions.kt
new file mode 100644
index 00000000000..82f1fdd0700
--- /dev/null
+++ b/compiler/testData/ir/irText/classes/objectLiteralExpressions.kt
@@ -0,0 +1,28 @@
+interface IFoo {
+    fun foo()
+}
+
+val test1 = object {}
+
+val test2 = object : IFoo {
+    override fun foo() {
+        println("foo")
+    }
+}
+
+class Outer {
+    abstract inner class Inner : IFoo
+
+    fun test3() = object : Inner() {
+        override fun foo() {
+            println("foo")
+        }
+    }
+}
+
+fun Outer.test4() =
+        object : Outer.Inner() {
+            override fun foo() {
+                println("foo")
+            }
+        }
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/classes/objectLiteralExpressions.txt b/compiler/testData/ir/irText/classes/objectLiteralExpressions.txt
new file mode 100644
index 00000000000..31495b65017
--- /dev/null
+++ b/compiler/testData/ir/irText/classes/objectLiteralExpressions.txt
@@ -0,0 +1,55 @@
+FILE /objectLiteralExpressions.kt
+  CLASS INTERFACE IFoo
+    FUN public abstract fun foo(): kotlin.Unit
+  PROPERTY public val test1: kotlin.Any getter=null setter=null
+    EXPRESSION_BODY
+      BLOCK type=test1.<no name provided> operator=OBJECT_LITERAL
+        CLASS CLASS <no name provided>
+          FUN public constructor <no name provided>()
+            BLOCK_BODY
+        CALL .<init> type=test1.<no name provided> operator=OBJECT_LITERAL
+  PROPERTY public val test2: IFoo getter=null setter=null
+    EXPRESSION_BODY
+      BLOCK type=test2.<no name provided> operator=OBJECT_LITERAL
+        CLASS CLASS <no name provided>
+          FUN public constructor <no name provided>()
+            BLOCK_BODY
+          FUN public open override /*1*/ fun foo(): kotlin.Unit
+            BLOCK_BODY
+              CALL .println type=kotlin.Unit operator=null
+                message: CONST String type=kotlin.String value='foo'
+        CALL .<init> type=test2.<no name provided> operator=OBJECT_LITERAL
+  CLASS CLASS Outer
+    FUN public constructor Outer()
+      BLOCK_BODY
+    CLASS CLASS Inner
+      FUN public constructor Inner()
+        BLOCK_BODY
+    FUN public final fun test3(): Outer.Inner
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from=test3
+          BLOCK type=Outer.test3.<no name provided> operator=OBJECT_LITERAL
+            CLASS CLASS <no name provided>
+              FUN public constructor <no name provided>()
+                BLOCK_BODY
+                  CALL .<init> type=Outer.Inner operator=SUPER_CONSTRUCTOR_CALL
+                    $this: THIS public final class Outer type=Outer
+              FUN public open override /*1*/ fun foo(): kotlin.Unit
+                BLOCK_BODY
+                  CALL .println type=kotlin.Unit operator=null
+                    message: CONST String type=kotlin.String value='foo'
+            CALL .<init> type=Outer.test3.<no name provided> operator=OBJECT_LITERAL
+  FUN public fun Outer.test4(): Outer.Inner
+    BLOCK_BODY
+      RETURN type=kotlin.Nothing from=test4
+        BLOCK type=test4.<no name provided> operator=OBJECT_LITERAL
+          CLASS CLASS <no name provided>
+            FUN public constructor <no name provided>()
+              BLOCK_BODY
+                CALL .<init> type=Outer.Inner operator=SUPER_CONSTRUCTOR_CALL
+                  $this: $RECEIVER of: test4 type=Outer
+            FUN public open override /*1*/ fun foo(): kotlin.Unit
+              BLOCK_BODY
+                CALL .println type=kotlin.Unit operator=null
+                  message: CONST String type=kotlin.String value='foo'
+          CALL .<init> type=test4.<no name provided> operator=OBJECT_LITERAL
diff --git a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
index ca36396a494..a45e0aa3754 100644
--- a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
@@ -85,6 +85,12 @@ public class IrTextTestCaseGenerated extends AbstractIrTextTestCase {
             doTest(fileName);
         }
 
+        @TestMetadata("objectLiteralExpressions.kt")
+        public void testObjectLiteralExpressions() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/classes/objectLiteralExpressions.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("primaryConstructor.kt")
         public void testPrimaryConstructor() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/classes/primaryConstructor.kt");