diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index 740ad589eb6..33adc17588d 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -29170,6 +29170,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/tests/script/SimpleScript.kts");
             }
 
+            @Test
+            @TestMetadata("topLevelInlineFun.kts")
+            public void testTopLevelInlineFun() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/script/topLevelInlineFun.kts");
+            }
+
             @Test
             @TestMetadata("topLevelPropertiesWithGetSet.kts")
             public void testTopLevelPropertiesWithGetSet() throws Exception {
diff --git a/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/FirJvmInlineCheckerComponent.kt b/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/FirJvmInlineCheckerComponent.kt
index 9c5db159d66..a02d6f18e28 100644
--- a/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/FirJvmInlineCheckerComponent.kt
+++ b/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/FirJvmInlineCheckerComponent.kt
@@ -22,7 +22,7 @@ import org.jetbrains.kotlin.fir.symbols.impl.FirValueParameterSymbol
 class FirJvmInlineCheckerComponent : FirInlineCheckerPlatformSpecificComponent() {
     override fun isGenerallyOk(declaration: FirDeclaration, context: CheckerContext, reporter: DiagnosticReporter): Boolean {
         // local inline functions are prohibited
-        return if (declaration.isLocalMember) {
+        return if (declaration.isLocalMember && context.containingDeclarations.lastOrNull() !is FirScript) {
             reporter.reportOn(declaration.source, FirErrors.NOT_YET_SUPPORTED_IN_INLINE, "Local inline functions", context)
             false
         } else {
diff --git a/compiler/testData/codegen/script/inline.kts b/compiler/testData/codegen/script/inline.kts
index c071392a371..036cdf8514c 100644
--- a/compiler/testData/codegen/script/inline.kts
+++ b/compiler/testData/codegen/script/inline.kts
@@ -1,4 +1,3 @@
-// IGNORE_BACKEND_K2: JVM_IR
 
 // expected: rv: 2
 inline fun foo(l: (Int) -> Int ): Int {
diff --git a/compiler/testData/diagnostics/tests/script/topLevelInlineFun.kts b/compiler/testData/diagnostics/tests/script/topLevelInlineFun.kts
new file mode 100644
index 00000000000..b79c2ece814
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/script/topLevelInlineFun.kts
@@ -0,0 +1,5 @@
+// FIR_IDENTICAL
+
+inline fun foo(f: () -> Unit) {
+    f()
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 18560d21b3e..e2bb5a0e0a0 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -30008,6 +30008,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/script/SimpleScript.kts");
             }
 
+            @Test
+            @TestMetadata("topLevelInlineFun.kts")
+            public void testTopLevelInlineFun() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/script/topLevelInlineFun.kts");
+            }
+
             @Test
             @TestMetadata("topLevelPropertiesWithGetSet.kts")
             public void testTopLevelPropertiesWithGetSet() throws Exception {