diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
index 857d1471935..007ddd3579e 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
@@ -2222,7 +2222,8 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> implem
         boolean isInline = state.isInlineEnabled() &&
                            descriptor instanceof SimpleFunctionDescriptor &&
                            ((SimpleFunctionDescriptor) descriptor).getInlineStrategy().isInline();
-        if (!isInline) return defaultCallGenerator;
+        //TODO: support local fun inlining
+        if (!isInline || isLocalNamedFun(descriptor)) return defaultCallGenerator;
 
         SimpleFunctionDescriptor original = DescriptorUtils.unwrapFakeOverride((SimpleFunctionDescriptor) descriptor.getOriginal());
         return new InlineCodegen(this, state, original, callElement);
diff --git a/compiler/testData/codegen/box/functions/localFunctions/disabledInline.kt b/compiler/testData/codegen/box/functions/localFunctions/disabledInline.kt
new file mode 100644
index 00000000000..7f45e448def
--- /dev/null
+++ b/compiler/testData/codegen/box/functions/localFunctions/disabledInline.kt
@@ -0,0 +1,9 @@
+fun box(): String {
+    val s = "OK"
+
+    [inline] fun localFun(): String {
+        return s
+    }
+
+    return localFun()
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
index 3a8b685689d..5657c063c42 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
@@ -3493,6 +3493,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/functions/localFunctions"), Pattern.compile("^(.+)\\.kt$"), true);
             }
             
+            @TestMetadata("disabledInline.kt")
+            public void testDisabledInline() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/box/functions/localFunctions/disabledInline.kt");
+                doTest(fileName);
+            }
+            
             @TestMetadata("kt2895.kt")
             public void testKt2895() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/box/functions/localFunctions/kt2895.kt");