diff --git a/compiler/testData/diagnostics/tests/inline/kt4869.kt b/compiler/testData/diagnostics/tests/inline/kt4869.kt
new file mode 100644
index 00000000000..30c39899275
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/kt4869.kt
@@ -0,0 +1,6 @@
+inline fun foo(f: () -> Unit) {
+    val ff = { f: () -> Unit ->
+
+    }
+    ff(<!USAGE_IS_NOT_INLINABLE!>f<!>)
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inline/kt4869.txt b/compiler/testData/diagnostics/tests/inline/kt4869.txt
new file mode 100644
index 00000000000..fc6e1c4f2f4
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/kt4869.txt
@@ -0,0 +1,3 @@
+package
+
+kotlin.inline() internal fun foo(/*0*/ f: () -> kotlin.Unit): kotlin.Unit
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index 7845640d26b..e25da311ef3 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -6624,6 +6624,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt4869.kt")
+            public void testKt4869() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/kt4869.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("labeled.kt")
             public void testLabeled() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/labeled.kt");