diff --git a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ControlStructureTypingVisitor.java b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ControlStructureTypingVisitor.java
index 7c17bfbc858..c571fbeae46 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ControlStructureTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ControlStructureTypingVisitor.java
@@ -460,7 +460,7 @@ public class ControlStructureTypingVisitor extends ExpressionTypingVisitor {
 
             if (containingFunctionDescriptor != null) {
                 if (!InlineDescriptorUtils.checkNonLocalReturnUsage(containingFunctionDescriptor, expression, context.trace) ||
-                    containingFunctionDescriptor instanceof ConstructorDescriptor) {
+                    isClassInitializer(containingFunInfo)) {
                     // Unqualified, in a function literal
                     context.trace.report(RETURN_NOT_ALLOWED.on(expression));
                     resultType = ErrorUtils.createErrorType(RETURN_NOT_ALLOWED_MESSAGE);
@@ -504,6 +504,11 @@ public class ControlStructureTypingVisitor extends ExpressionTypingVisitor {
         return DataFlowUtils.checkType(resultType, expression, context, context.dataFlowInfo);
     }
 
+    private static boolean isClassInitializer(@NotNull Pair<FunctionDescriptor, PsiElement> containingFunInfo) {
+        return containingFunInfo.getFirst() instanceof ConstructorDescriptor &&
+               !(containingFunInfo.getSecond() instanceof JetSecondaryConstructor);
+    }
+
     @Override
     public JetTypeInfo visitBreakExpression(@NotNull JetBreakExpression expression, ExpressionTypingContext context) {
         LabelResolver.INSTANCE.resolveControlLabel(expression, context);
@@ -523,7 +528,10 @@ public class ControlStructureTypingVisitor extends ExpressionTypingVisitor {
             @NotNull ExpressionTypingContext context
     ) {
         JetType expectedType;
-        if (function instanceof JetFunction) {
+        if (function instanceof JetSecondaryConstructor) {
+            expectedType = KotlinBuiltIns.getInstance().getUnitType();
+        }
+        else if (function instanceof JetFunction) {
             JetFunction jetFunction = (JetFunction) function;
             expectedType = context.trace.get(EXPECTED_RETURN_TYPE, jetFunction);
 
diff --git a/compiler/testData/diagnostics/tests/secondaryConstructors/return.kt b/compiler/testData/diagnostics/tests/secondaryConstructors/return.kt
new file mode 100644
index 00000000000..71181bbfe91
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/secondaryConstructors/return.kt
@@ -0,0 +1,17 @@
+
+class A {
+    init {
+        <!RETURN_NOT_ALLOWED!>return<!>
+        <!RETURN_NOT_ALLOWED!>return 1<!>
+    }
+    constructor() {
+        if (1 == 1) {
+            return
+            return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>1<!>
+        }
+        return
+        return <!TYPE_MISMATCH!>foo()<!>
+    }
+
+    fun foo(): Int = 1
+}
diff --git a/compiler/testData/diagnostics/tests/secondaryConstructors/return.txt b/compiler/testData/diagnostics/tests/secondaryConstructors/return.txt
new file mode 100644
index 00000000000..7516980f633
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/secondaryConstructors/return.txt
@@ -0,0 +1,9 @@
+package
+
+internal final class A {
+    public constructor A()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    internal final fun foo(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index 21ed3380b49..8cf6400d741 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -10439,6 +10439,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("return.kt")
+            public void testReturn() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/secondaryConstructors/return.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("superAnyNonEmpty.kt")
             public void testSuperAnyNonEmpty() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/secondaryConstructors/superAnyNonEmpty.kt");