diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
index 9e5102c5530..3bd8a95e150 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
@@ -1339,7 +1339,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
     }
 
     private StackValue invokeFunction(JetCallExpression expression,
-            DeclarationDescriptor fd,
+            FunctionDescriptor fd,
             StackValue receiver,
             ResolvedCall<? extends CallableDescriptor> resolvedCall) {
         boolean superCall = false;
@@ -1357,7 +1357,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
                         while(c.getContextDescriptor() != enclosed) {
                             c = c.getParentContext();
                         }
-                        fd = c.getAccessor(fd);
+                        fd = (FunctionDescriptor) c.getAccessor(fd);
                         superCall = false;
                         receiver = StackValue.thisOrOuter(this, enclosed);
                     }
@@ -1365,13 +1365,27 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
             }
         }
 
-        Callable callable = resolveToCallable((FunctionDescriptor) fd, superCall);
+        if (fd.getVisibility() == Visibilities.PRIVATE
+                && !DescriptorUtils.isClassObject(fd.getContainingDeclaration())) {
+            if (context.getClassOrNamespaceDescriptor() != fd.getContainingDeclaration()) {
+                DeclarationDescriptor enclosed = fd.getContainingDeclaration();
+                if (enclosed != context.getThisDescriptor()) {
+                    CodegenContext c = context;
+                    while(c.getContextDescriptor() != enclosed) {
+                        c = c.getParentContext();
+                    }
+                    fd = (FunctionDescriptor) c.getAccessor(fd);
+                }
+            }
+        }
+
+        Callable callable = resolveToCallable(fd, superCall);
         if (callable instanceof CallableMethod) {
             final CallableMethod callableMethod = (CallableMethod) callable;
             invokeMethodWithArguments(callableMethod, expression, receiver);
 
             final Type callReturnType = callableMethod.getSignature().getAsmMethod().getReturnType();
-            return returnValueAsStackValue((FunctionDescriptor) fd, callReturnType);
+            return returnValueAsStackValue(fd, callReturnType);
         }
         else {
             receiver = StackValue.receiver(resolvedCall, receiver, this, null, state);
diff --git a/compiler/testData/codegen/classes/privateOuterFunctions.kt b/compiler/testData/codegen/classes/privateOuterFunctions.kt
new file mode 100644
index 00000000000..0487bd4cb7e
--- /dev/null
+++ b/compiler/testData/codegen/classes/privateOuterFunctions.kt
@@ -0,0 +1,31 @@
+class C {
+    private fun String.ext() : String = ""
+    private fun f() {}
+
+    public fun foo() : String {
+        {
+            "".ext()
+            f()
+        }.invoke()
+
+        object : Runnable {
+            public override fun run() {
+                "".ext()
+                f()
+            }
+        }.run()
+
+        Inner().innerFun()
+
+        return "OK"
+    }
+
+    private class Inner() {
+        fun innerFun() {
+            "".ext()
+            f()
+        }
+    }
+}
+
+fun box() = C().foo()
\ No newline at end of file
diff --git a/compiler/testData/codegen/classes/privateOuterProperty.kt b/compiler/testData/codegen/classes/privateOuterProperty.kt
new file mode 100644
index 00000000000..70afd19a592
--- /dev/null
+++ b/compiler/testData/codegen/classes/privateOuterProperty.kt
@@ -0,0 +1,27 @@
+class C{
+    private var v : Int = 0
+
+    public fun foo() : Int {
+        {
+            v = v + 1
+        }.invoke()
+
+        object : Runnable {
+            public override fun run() {
+                v = v + 1
+            }
+        }.run()
+
+        Inner().innerFun()
+
+        return v
+    }
+
+    private class Inner() {
+        fun innerFun() {
+            v = v + 1
+        }
+    }
+}
+
+fun box() = if (C().foo() == 3) "OK" else "NOT OK"
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/codegen/ClassGenTest.java b/compiler/tests/org/jetbrains/jet/codegen/ClassGenTest.java
index 01fa0fefcd6..d00dc4b1441 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/ClassGenTest.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/ClassGenTest.java
@@ -231,6 +231,16 @@ public class ClassGenTest extends CodegenTestCase {
         blackBox();
     }
 
+    public void testPrivateOuterProperty() throws Exception {
+        createEnvironmentWithMockJdkAndIdeaAnnotations(CompilerSpecialMode.JDK_HEADERS);
+        blackBoxFile("classes/privateOuterProperty.kt");
+    }
+
+    public void testPrivateOuterFunctions() throws Exception {
+        createEnvironmentWithMockJdkAndIdeaAnnotations(CompilerSpecialMode.JDK_HEADERS);
+        blackBoxFile("classes/privateOuterFunctions.kt");
+    }
+
     public void testKt249() throws Exception {
         createEnvironmentWithMockJdkAndIdeaAnnotations(CompilerSpecialMode.JDK_HEADERS);
         blackBoxFile("regressions/kt249.jet");