diff --git a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/Pseudocode.java b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/Pseudocode.java
index fb206a7b945..561f97f594f 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/Pseudocode.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/Pseudocode.java
@@ -66,4 +66,6 @@ public interface Pseudocode {
     List<? extends Instruction> getUsages(@Nullable PseudoValue value);
 
     boolean isSideEffectFree(@NotNull Instruction instruction);
+
+    Pseudocode copy();
 }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/PseudocodeImpl.java b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/PseudocodeImpl.java
index 533507e75aa..91aa44a7055 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/PseudocodeImpl.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/PseudocodeImpl.java
@@ -458,6 +458,41 @@ public class PseudocodeImpl implements Pseudocode {
         return mutableInstructionList.get(targetPosition);
     }
 
+    @Override
+    public PseudocodeImpl copy() {
+        PseudocodeImpl result = new PseudocodeImpl(correspondingElement);
+        result.repeatWhole(this);
+        return result;
+    }
+
+    private void repeatWhole(PseudocodeImpl originalPseudocode) {
+        Map<Label, Label> originalToCopy = Maps.newLinkedHashMap();
+        Multimap<Instruction, Label> originalLabelsForInstruction = HashMultimap.create();
+        int labelCount = 0;
+        for (PseudocodeLabel label : originalPseudocode.labels) {
+            originalToCopy.put(label, label.copy(labelCount++));
+            originalLabelsForInstruction.put(getJumpTarget(label), label);
+        }
+        for (Label label : originalToCopy.values()) {
+            labels.add((PseudocodeLabel) label);
+        }
+        for (Instruction originalInstruction : originalPseudocode.mutableInstructionList) {
+            repeatLabelsBindingForInstruction(originalInstruction, originalToCopy, originalLabelsForInstruction);
+            Instruction copy = copyInstruction(originalInstruction, originalToCopy);
+            addInstruction(copy);
+            if (originalInstruction == originalPseudocode.errorInstruction && copy instanceof SubroutineExitInstruction) {
+                errorInstruction = (SubroutineExitInstruction) copy;
+            }
+            if (originalInstruction == originalPseudocode.exitInstruction && copy instanceof SubroutineExitInstruction) {
+                exitInstruction = (SubroutineExitInstruction) copy;
+            }
+            if (originalInstruction == originalPseudocode.sinkInstruction && copy instanceof SubroutineSinkInstruction) {
+                sinkInstruction = (SubroutineSinkInstruction) copy;
+            }
+        }
+        parent = originalPseudocode.parent;
+    }
+
     public int repeatPart(@NotNull Label startLabel, @NotNull Label finishLabel, int labelCount) {
         PseudocodeImpl originalPseudocode = ((PseudocodeLabel) startLabel).getPseudocode();
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/instructions/special/LocalFunctionDeclarationInstruction.kt b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/instructions/special/LocalFunctionDeclarationInstruction.kt
index f923aa57cce..8069f779ece 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/instructions/special/LocalFunctionDeclarationInstruction.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/cfg/pseudocode/instructions/special/LocalFunctionDeclarationInstruction.kt
@@ -57,5 +57,5 @@ public class LocalFunctionDeclarationInstruction(
     override fun toString(): String = "d(${render(element)})"
 
     override fun createCopy(): InstructionImpl =
-            LocalFunctionDeclarationInstruction(element, body, lexicalScope)
+            LocalFunctionDeclarationInstruction(element, body.copy(), lexicalScope)
 }
diff --git a/compiler/testData/diagnostics/tests/regressions/kt10243.kt b/compiler/testData/diagnostics/tests/regressions/kt10243.kt
new file mode 100644
index 00000000000..fd5c9d63067
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt10243.kt
@@ -0,0 +1,16 @@
+val f: Boolean = true
+private fun doUpdateRegularTasks() {
+    try {
+        while (f) {
+            val xmlText = <!UNRESOLVED_REFERENCE!>getText<!>()
+            if (<!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>xmlText<!> <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>==<!> null) {}
+            else {
+                <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>xmlText<!>.<!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>value<!> = 0 // !!!
+            }
+        }
+
+    }
+    finally {
+        fun execute() {}
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/regressions/kt10243.txt b/compiler/testData/diagnostics/tests/regressions/kt10243.txt
new file mode 100644
index 00000000000..ef3ec620e55
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt10243.txt
@@ -0,0 +1,4 @@
+package
+
+public val f: kotlin.Boolean = true
+private fun doUpdateRegularTasks(): kotlin.Unit
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index ea17b9bd5be..f0aec570e1b 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -12552,6 +12552,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt10243.kt")
+            public void testKt10243() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/regressions/kt10243.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt127.kt")
             public void testKt127() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/regressions/kt127.kt");