diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
index d779ff5dae1..51b3ffac2d3 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
@@ -3021,10 +3021,17 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> implem
     }
 
     private StackValue invokeOperation(JetOperationExpression expression, FunctionDescriptor op, CallableMethod callable) {
+        //TODO: similar logic exists in visitSimpleNameExpression - extract common logic
         int functionLocalIndex = lookupLocalIndex(op);
         if (functionLocalIndex >= 0) {
             stackValueForLocal(op, functionLocalIndex).put(callable.getOwner(), v);
+        } else {
+            StackValue stackValue = context.lookupInContext(op, StackValue.local(0, OBJECT_TYPE), state, true);
+            if (stackValue != null) {
+                stackValue.put(callable.getOwner(), v);
+            }
         }
+
         ResolvedCall<? extends CallableDescriptor> resolvedCall =
                 bindingContext.get(BindingContext.RESOLVED_CALL, expression.getOperationReference());
         assert resolvedCall != null;
diff --git a/compiler/testData/codegen/box/functions/localFunctions/kt4119.kt b/compiler/testData/codegen/box/functions/localFunctions/kt4119.kt
new file mode 100644
index 00000000000..2231bb57f8b
--- /dev/null
+++ b/compiler/testData/codegen/box/functions/localFunctions/kt4119.kt
@@ -0,0 +1,12 @@
+fun foo(f: (Int?) -> Int): Int {
+    return f(0)
+}
+
+fun box() : String {
+    fun Int?.plus(a:Int) : Int = a!! + 2
+
+    if (foo { it + 1} != 3) return "Fail 1"
+    if (foo { it plus 1} != 3) return "Fail 2"
+
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/functions/localFunctions/kt4119_2.kt b/compiler/testData/codegen/box/functions/localFunctions/kt4119_2.kt
new file mode 100644
index 00000000000..30fe4a286dd
--- /dev/null
+++ b/compiler/testData/codegen/box/functions/localFunctions/kt4119_2.kt
@@ -0,0 +1,19 @@
+fun box(): String {
+    fun Int.foo(a: Int): Int = a + 2
+
+    val s = object {
+        fun test(): Int {
+            return 1 foo 1
+        }
+    }
+
+    fun local(): Int {
+        return 1 foo 1
+    }
+
+    if (s.test() != 3) return "Fail"
+
+    if (local() != 3) return "Fail"
+
+    return "OK"
+}
\ 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 6f03aefc53c..8bc94eb96c6 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
@@ -2506,6 +2506,16 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 doTest("compiler/testData/codegen/box/functions/localFunctions/kt3978.kt");
             }
             
+            @TestMetadata("kt4119.kt")
+            public void testKt4119() throws Exception {
+                doTest("compiler/testData/codegen/box/functions/localFunctions/kt4119.kt");
+            }
+            
+            @TestMetadata("kt4119_2.kt")
+            public void testKt4119_2() throws Exception {
+                doTest("compiler/testData/codegen/box/functions/localFunctions/kt4119_2.kt");
+            }
+            
             @TestMetadata("localFunctionInConstructor.kt")
             public void testLocalFunctionInConstructor() throws Exception {
                 doTest("compiler/testData/codegen/box/functions/localFunctions/localFunctionInConstructor.kt");