diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
index 058ffd30047..8fc68a71fe8 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
@@ -30669,6 +30669,12 @@ public class DiagnosisCompilerTestFE10TestdataTestGenerated extends AbstractDiag
                     runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedByNested.kt");
                 }
 
+                @Test
+                @TestMetadata("capturedLoopVariable.kt")
+                public void testCapturedLoopVariable() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt");
+                }
+
                 @Test
                 @TestMetadata("capturedWithControlJumps.kt")
                 public void testCapturedWithControlJumps() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
index 5528581ee09..aa653e18f7e 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
@@ -30765,6 +30765,12 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirDiagnosti
                     runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedByNested.kt");
                 }
 
+                @Test
+                @TestMetadata("capturedLoopVariable.kt")
+                public void testCapturedLoopVariable() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt");
+                }
+
                 @Test
                 @TestMetadata("capturedWithControlJumps.kt")
                 public void testCapturedWithControlJumps() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
index dd3499d386f..7c7797ea604 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
@@ -30669,6 +30669,12 @@ public class FirOldFrontendDiagnosticsWithLightTreeTestGenerated extends Abstrac
                     runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedByNested.kt");
                 }
 
+                @Test
+                @TestMetadata("capturedLoopVariable.kt")
+                public void testCapturedLoopVariable() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt");
+                }
+
                 @Test
                 @TestMetadata("capturedWithControlJumps.kt")
                 public void testCapturedWithControlJumps() throws Exception {
diff --git a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.fir.kt
new file mode 100644
index 00000000000..5f50f78d3ad
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.fir.kt
@@ -0,0 +1,99 @@
+// ISSUE: KT-55338
+
+fun test_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        s.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun test_2_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        s.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // unsafe call in K1 and K2
+        s = ""
+    }
+}
+
+fun test_2_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        s.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // unsafe call in K1 and K2
+        s = null
+    }
+}
+
+fun test_3_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        } else {
+            s = null
+        }
+        s<!UNSAFE_CALL!>.<!>length // unsafe call in K1 and K2
+        noInlineRun { s<!UNSAFE_CALL!>.<!>length } // unsafe call in K1 and K2
+    }
+}
+
+fun test_3_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        } else {
+            s = "world"
+        }
+        s.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun test_4_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = getString()
+        } else {
+            s = getNullableString()
+        }
+        s<!UNSAFE_CALL!>.<!>length // unsafe call in K1 and K2
+        noInlineRun { s<!UNSAFE_CALL!>.<!>length } // unsafe call in K1 and K2
+    }
+}
+
+fun test_4_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = getString()
+        } else {
+            s = getString()
+        }
+        s.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun getNullableString(): String? = null
+fun getString(): String = "hello"
+fun noInlineRun(block: () -> Unit) {}
diff --git a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt
new file mode 100644
index 00000000000..533d08ffc73
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt
@@ -0,0 +1,99 @@
+// ISSUE: KT-55338
+
+fun test_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        <!DEBUG_INFO_SMARTCAST!>s<!>.length // smartcast in K1 and K2
+        noInlineRun { <!DEBUG_INFO_SMARTCAST!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun test_2_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        <!DEBUG_INFO_SMARTCAST!>s<!>.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // unsafe call in K1 and K2
+        s = ""
+    }
+}
+
+fun test_2_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        }
+        <!DEBUG_INFO_SMARTCAST!>s<!>.length // smartcast in K1 and K2
+        noInlineRun { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // unsafe call in K1 and K2
+        s = null
+    }
+}
+
+fun test_3_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        } else {
+            s = null
+        }
+        s<!UNSAFE_CALL!>.<!>length // unsafe call in K1 and K2
+        noInlineRun { s<!UNSAFE_CALL!>.<!>length } // unsafe call in K1 and K2
+    }
+}
+
+fun test_3_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = "hello"
+        } else {
+            s = "world"
+        }
+        <!DEBUG_INFO_SMARTCAST!>s<!>.length // smartcast in K1 and K2
+        noInlineRun { <!DEBUG_INFO_SMARTCAST!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun test_4_1() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = getString()
+        } else {
+            s = getNullableString()
+        }
+        s<!UNSAFE_CALL!>.<!>length // unsafe call in K1 and K2
+        noInlineRun { s<!UNSAFE_CALL!>.<!>length } // unsafe call in K1 and K2
+    }
+}
+
+fun test_4_2() {
+    var s: String? = null
+
+    for (i in 1..10) {
+        if (s == null) {
+            s = getString()
+        } else {
+            s = getString()
+        }
+        <!DEBUG_INFO_SMARTCAST!>s<!>.length // smartcast in K1 and K2
+        noInlineRun { <!DEBUG_INFO_SMARTCAST!>s<!>.length } // smartcast in K1, unsafe call in K2   <------------
+    }
+}
+
+fun getNullableString(): String? = null
+fun getString(): String = "hello"
+fun noInlineRun(block: () -> Unit) {}
diff --git a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.txt b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.txt
new file mode 100644
index 00000000000..91f22a217ef
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.txt
@@ -0,0 +1,12 @@
+package
+
+public fun getNullableString(): kotlin.String?
+public fun getString(): kotlin.String
+public fun noInlineRun(/*0*/ block: () -> kotlin.Unit): kotlin.Unit
+public fun test_1(): kotlin.Unit
+public fun test_2_1(): kotlin.Unit
+public fun test_2_2(): kotlin.Unit
+public fun test_3_1(): kotlin.Unit
+public fun test_3_2(): kotlin.Unit
+public fun test_4_1(): kotlin.Unit
+public fun test_4_2(): kotlin.Unit
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 233d6378629..e6b69b252ab 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -30765,6 +30765,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                     runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedByNested.kt");
                 }
 
+                @Test
+                @TestMetadata("capturedLoopVariable.kt")
+                public void testCapturedLoopVariable() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/smartCasts/variables/capturedLoopVariable.kt");
+                }
+
                 @Test
                 @TestMetadata("capturedWithControlJumps.kt")
                 public void testCapturedWithControlJumps() throws Exception {