diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
index 1d1df588374..ba5d664b652 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
@@ -793,6 +793,14 @@ public class JetPsiUtil {
         return getEnclosingElementForLocalDeclaration(declaration, true);
     }
 
+    private static boolean isMemberOfObjectExpression(@NotNull JetCallableDeclaration propertyOrFunction) {
+        PsiElement parent = PsiTreeUtil.getStubOrPsiParent(propertyOrFunction);
+        if (!(parent instanceof JetClassBody)) return false;
+        PsiElement grandparent = PsiTreeUtil.getStubOrPsiParent(parent);
+        if (!(grandparent instanceof JetObjectDeclaration)) return false;
+        return PsiTreeUtil.getStubOrPsiParent(grandparent) instanceof JetObjectLiteralExpression;
+    }
+
     @Nullable
     public static JetElement getEnclosingElementForLocalDeclaration(@NotNull JetDeclaration declaration, boolean skipParameters) {
         if (declaration instanceof JetTypeParameter && skipParameters) {
@@ -819,10 +827,12 @@ public class JetPsiUtil {
             if (current instanceof JetClassInitializer) {
                 return ((JetClassInitializer) current).getBody();
             }
-            if (current instanceof JetBlockExpression ||
-                current instanceof JetProperty ||
-                current instanceof JetParameter ||
-                current instanceof JetFunction) {
+            if (current instanceof JetProperty || current instanceof JetFunction) {
+                if (parent instanceof JetFile || (parent instanceof JetClassBody && !isMemberOfObjectExpression((JetCallableDeclaration) current))) {
+                    return (JetElement) current;
+                }
+            }
+            if (current instanceof JetBlockExpression || current instanceof JetParameter) {
                 return (JetElement) current;
             }
 
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.0.kt b/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.0.kt
new file mode 100644
index 00000000000..e42f9973b0d
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.0.kt
@@ -0,0 +1,12 @@
+// PSI_ELEMENT: org.jetbrains.kotlin.psi.JetNamedFunction
+// OPTIONS: usages
+package anonymousUnused
+
+fun main(args: Array<String>) {
+    class LocalClass {
+        fun <caret>f() {
+        }
+    }
+
+    LocalClass().f()
+}
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.results.txt b/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.results.txt
new file mode 100644
index 00000000000..8bce9f71188
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.results.txt
@@ -0,0 +1 @@
+Function call (11: 18) LocalClass().f()
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.0.kt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.0.kt
new file mode 100644
index 00000000000..d73c6e80b94
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.0.kt
@@ -0,0 +1,15 @@
+// PSI_ELEMENT: org.jetbrains.kotlin.psi.JetProperty
+// OPTIONS: usages
+package anonymousUnused
+
+fun main(args: Array<String>) {
+    val a = object {
+        val b = object {
+            val c = object {
+                val <caret>d = 5
+            }
+        }
+    }
+
+    a.b.c.d
+}
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.results.txt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.results.txt
new file mode 100644
index 00000000000..afa35e6d7c3
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.results.txt
@@ -0,0 +1 @@
+Value read (14: 11) a.b.c.d
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.0.kt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.0.kt
new file mode 100644
index 00000000000..9e3ce698382
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.0.kt
@@ -0,0 +1,12 @@
+// PSI_ELEMENT: org.jetbrains.kotlin.psi.JetNamedFunction
+// OPTIONS: usages
+package anonymousUnused
+
+fun main(args: Array<String>) {
+    val localObject = object : Any() {
+        fun <caret>f() {
+        }
+    }
+
+    localObject.f()
+}
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.results.txt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.results.txt
new file mode 100644
index 00000000000..82353d58d0a
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.results.txt
@@ -0,0 +1 @@
+Function call (11: 17) localObject.f()
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.0.kt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.0.kt
new file mode 100644
index 00000000000..e55c4687fa0
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.0.kt
@@ -0,0 +1,12 @@
+// PSI_ELEMENT: org.jetbrains.kotlin.psi.JetNamedFunction
+// OPTIONS: usages
+package anonymousUnused
+
+fun main(args: Array<String>) {
+    fun localObject() = object : Any() {
+        fun <caret>f() {
+        }
+    }
+
+    localObject().f()
+}
\ No newline at end of file
diff --git a/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.results.txt b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.results.txt
new file mode 100644
index 00000000000..49fe2eb71c8
--- /dev/null
+++ b/idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.results.txt
@@ -0,0 +1 @@
+Function call (11: 19) localObject().f()
diff --git a/idea/testData/inspections/unusedSymbol/function/localMember.kt b/idea/testData/inspections/unusedSymbol/function/localMember.kt
new file mode 100644
index 00000000000..eeaa39a1522
--- /dev/null
+++ b/idea/testData/inspections/unusedSymbol/function/localMember.kt
@@ -0,0 +1,45 @@
+fun main(args: Array<String>) {
+    val localObject = object {
+        fun f() {
+        }
+
+        val p = 5
+    }
+
+    localObject.f()
+    localObject.p
+
+
+    fun localObject2() = object {
+        fun f() {
+        }
+
+        val p = 5
+    }
+
+    localObject2().f()
+    localObject2().p
+
+
+    val a = object {
+        val b = object {
+            val c = object {
+                val d = 5
+            }
+        }
+    }
+
+    a.b.c.d
+
+
+    class LocalClass {
+        fun f() {
+        }
+
+        val p = 5
+    }
+
+
+    LocalClass().f()
+    LocalClass().p
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/findUsages/JetFindUsagesTestGenerated.java b/idea/tests/org/jetbrains/kotlin/findUsages/JetFindUsagesTestGenerated.java
index ffbfec37e0e..ad73597e13f 100644
--- a/idea/tests/org/jetbrains/kotlin/findUsages/JetFindUsagesTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/findUsages/JetFindUsagesTestGenerated.java
@@ -618,6 +618,30 @@ public class JetFindUsagesTestGenerated extends AbstractJetFindUsagesTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("localClassMember.0.kt")
+            public void testLocalClassMember() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("idea/testData/findUsages/kotlin/findFunctionUsages/localClassMember.0.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("objectExpressionDeepMember.0.kt")
+            public void testObjectExpressionDeepMember() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionDeepMember.0.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("objectExpressionMember.0.kt")
+            public void testObjectExpressionMember() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember.0.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("objectExpressionMember2.0.kt")
+            public void testObjectExpressionMember2() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("idea/testData/findUsages/kotlin/findFunctionUsages/objectExpressionMember2.0.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("synthesizedFunction.0.kt")
             public void testSynthesizedFunction() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("idea/testData/findUsages/kotlin/findFunctionUsages/synthesizedFunction.0.kt");