diff --git a/.idea/inspectionProfiles/idea_default.xml b/.idea/inspectionProfiles/idea_default.xml
index ca6e2ba2d81..fe55a91a572 100644
--- a/.idea/inspectionProfiles/idea_default.xml
+++ b/.idea/inspectionProfiles/idea_default.xml
@@ -236,6 +236,11 @@
       <scope name="idea openapi" level="WARNING" enabled="true" />
       <scope name="runtime.classes" level="ERROR" enabled="true" />
     </inspection_tool>
+    <inspection_tool class="LoggerInitializedWithForeignClass" enabled="false" level="WARNING" enabled_by_default="false">
+      <option name="loggerClassName" value="org.apache.log4j.Logger,org.slf4j.LoggerFactory,org.apache.commons.logging.LogFactory,java.util.logging.Logger" />
+      <option name="loggerFactoryMethodName" value="getLogger,getLogger,getLog,getLogger" />
+    </inspection_tool>
+    <inspection_tool class="LoopToCallChain" enabled="false" level="INFO" enabled_by_default="false" />
     <inspection_tool class="MethodMayBeStatic" enabled="true" level="WARNING" enabled_by_default="true">
       <option name="m_onlyPrivateOrFinal" value="false" />
       <option name="m_ignoreEmptyMethods" value="true" />
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
index ccc82e2bb98..90daa68d620 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
@@ -16,10 +16,12 @@
 
 package org.jetbrains.kotlin.psi2ir.generators
 
+import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.ir.expressions.*
 import org.jetbrains.kotlin.psi.KtBlockExpression
 import org.jetbrains.kotlin.psi.KtExpression
+import org.jetbrains.kotlin.psi.KtFunctionLiteral
 import org.jetbrains.kotlin.psi.KtLoopExpression
 import org.jetbrains.kotlin.psi.psiUtil.endOffset
 import org.jetbrains.kotlin.psi.psiUtil.startOffset
@@ -30,8 +32,6 @@ class BodyGenerator(val scopeOwner: CallableDescriptor, override val context: Ge
     private val loopTable = HashMap<KtLoopExpression, IrLoop>()
 
     fun generateFunctionBody(ktBody: KtExpression): IrBody {
-        resetInternalContext()
-
         val statementGenerator = createStatementGenerator()
 
         val irBlockBody = IrBlockBodyImpl(ktBody.startOffset, ktBody.endOffset)
@@ -42,21 +42,17 @@ class BodyGenerator(val scopeOwner: CallableDescriptor, override val context: Ge
         }
         else {
             val irBodyExpression = statementGenerator.generateExpression(ktBody)
-            val irReturn = IrReturnImpl(ktBody.startOffset, ktBody.endOffset, context.builtIns.nothingType, scopeOwner, irBodyExpression)
-            irBlockBody.addStatement(irReturn)
+            irBlockBody.addStatement(irBodyExpression.wrapWithReturn())
         }
 
-        postprocessFunctionBody()
-
         return irBlockBody
     }
 
-    private fun resetInternalContext() {
-        loopTable.clear()
-    }
-
-    private fun postprocessFunctionBody() {
-    }
+    private fun IrExpression.wrapWithReturn() =
+            if (KotlinBuiltIns.isNothing(type))
+                this
+            else
+                IrReturnImpl(startOffset, endOffset, context.builtIns.nothingType, scopeOwner, this)
 
     fun generatePropertyInitializerBody(ktInitializer: KtExpression): IrBody =
             IrExpressionBodyImpl(ktInitializer.startOffset, ktInitializer.endOffset,
@@ -71,5 +67,24 @@ class BodyGenerator(val scopeOwner: CallableDescriptor, override val context: Ge
 
     fun getLoop(expression: KtExpression): IrLoop? =
             loopTable[expression]
+
+    fun generateLambdaBody(ktFun: KtFunctionLiteral): IrBody {
+        val statementGenerator = createStatementGenerator()
+
+        val ktBody = ktFun.bodyExpression!!
+        val irBlockBody = IrBlockBodyImpl(ktBody.startOffset, ktBody.endOffset)
+        if (ktBody is KtBlockExpression) {
+            for (ktStatement in ktBody.statements.subList(0, ktBody.statements.size - 1)) {
+                irBlockBody.addStatement(statementGenerator.generateStatement(ktStatement))
+            }
+            val ktReturnedValue = ktBody.statements.last()
+            irBlockBody.addStatement(statementGenerator.generateExpression(ktReturnedValue).wrapWithReturn())
+        }
+        else {
+            irBlockBody.addStatement(statementGenerator.generateExpression(ktBody).wrapWithReturn())
+        }
+
+        return irBlockBody
+    }
 }
 
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalFunctionGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalFunctionGenerator.kt
new file mode 100644
index 00000000000..28913c3e6be
--- /dev/null
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/LocalFunctionGenerator.kt
@@ -0,0 +1,49 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.psi2ir.generators
+
+import org.jetbrains.kotlin.ir.IrStatement
+import org.jetbrains.kotlin.ir.declarations.IrDeclarationOrigin
+import org.jetbrains.kotlin.ir.declarations.IrFunctionImpl
+import org.jetbrains.kotlin.ir.expressions.IrBlockImpl
+import org.jetbrains.kotlin.ir.expressions.IrCallableReferenceImpl
+import org.jetbrains.kotlin.ir.expressions.IrOperator
+import org.jetbrains.kotlin.psi.KtLambdaExpression
+import org.jetbrains.kotlin.psi.psiUtil.endOffset
+import org.jetbrains.kotlin.psi.psiUtil.startOffset
+import org.jetbrains.kotlin.resolve.BindingContext
+
+class LocalFunctionGenerator(val statementGenerator: StatementGenerator) : GeneratorWithScope {
+    override val scope: Scope get() = statementGenerator.scope
+    override val context: GeneratorContext get() = statementGenerator.context
+
+    fun generateLambda(ktLambda: KtLambdaExpression): IrStatement {
+        val ktFun = ktLambda.functionLiteral
+        val lambdaExpressionType = getInferredTypeWithSmartcastsOrFail(ktLambda)
+        val lambdaDescriptor = getOrFail(BindingContext.FUNCTION, ktFun)
+        val irBlock = IrBlockImpl(ktLambda.startOffset, ktLambda.endOffset, lambdaExpressionType, IrOperator.LAMBDA)
+
+        val irFun = IrFunctionImpl(ktFun.startOffset, ktFun.endOffset, IrDeclarationOrigin.LOCAL_FUNCTION_FOR_LAMBDA, lambdaDescriptor)
+        irFun.body = BodyGenerator(lambdaDescriptor, statementGenerator.context).generateLambdaBody(ktFun)
+        irBlock.addStatement(irFun)
+
+        irBlock.addStatement(IrCallableReferenceImpl(ktLambda.startOffset, ktLambda.endOffset, lambdaExpressionType, lambdaDescriptor))
+
+        return irBlock
+    }
+
+}
\ No newline at end of file
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
index 51c6b2dad5f..12e302549cf 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
@@ -26,7 +26,9 @@ import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.endOffset
 import org.jetbrains.kotlin.psi.psiUtil.startOffset
 import org.jetbrains.kotlin.psi2ir.deparenthesize
-import org.jetbrains.kotlin.psi2ir.intermediate.*
+import org.jetbrains.kotlin.psi2ir.intermediate.IntermediateValue
+import org.jetbrains.kotlin.psi2ir.intermediate.createRematerializableOrTemporary
+import org.jetbrains.kotlin.psi2ir.intermediate.setExplicitReceiverValue
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.resolve.BindingContextUtils
 import org.jetbrains.kotlin.resolve.DescriptorUtils
@@ -40,10 +42,11 @@ import org.jetbrains.kotlin.resolve.constants.StringValue
 import org.jetbrains.kotlin.resolve.constants.evaluate.ConstantExpressionEvaluator
 import org.jetbrains.kotlin.resolve.descriptorUtil.classValueType
 import org.jetbrains.kotlin.types.expressions.ExpressionTypingUtils
+import java.lang.AssertionError
 
 class StatementGenerator(
         override val context: GeneratorContext,
-        val scopeOwner: DeclarationDescriptor,
+        val scopeOwner: CallableDescriptor,
         val bodyGenerator: BodyGenerator,
         override val scope: Scope
 ) : KtVisitor<IrStatement, Nothing?>(), GeneratorWithScope {
@@ -316,4 +319,7 @@ class StatementGenerator(
     override fun visitTryExpression(expression: KtTryExpression, data: Nothing?): IrStatement =
             TryCatchExpressionGenerator(this).generateTryCatch(expression)
 
-}
\ No newline at end of file
+    override fun visitLambdaExpression(expression: KtLambdaExpression, data: Nothing?): IrStatement =
+            LocalFunctionGenerator(this).generateLambda(expression)
+}
+
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/declarations/IrDeclaration.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/declarations/IrDeclaration.kt
index 0bdf6565813..1e39c2b2b68 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/declarations/IrDeclaration.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/declarations/IrDeclaration.kt
@@ -42,6 +42,7 @@ enum class IrDeclarationKind {
 
 enum class IrDeclarationOrigin {
     DEFINED,
+    LOCAL_FUNCTION_FOR_LAMBDA,
     IR_TEMPORARY_VARIABLE,
 }
 
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrCallableReference.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrCallableReference.kt
new file mode 100644
index 00000000000..7ed5e257425
--- /dev/null
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrCallableReference.kt
@@ -0,0 +1,53 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.ir.expressions
+
+import org.jetbrains.kotlin.descriptors.CallableDescriptor
+import org.jetbrains.kotlin.ir.IrElement
+import org.jetbrains.kotlin.ir.visitors.IrElementVisitor
+import org.jetbrains.kotlin.types.KotlinType
+
+
+interface IrCallableReference : IrDeclarationReference {
+    override val descriptor: CallableDescriptor
+
+    // TODO closure
+}
+
+class IrCallableReferenceImpl(
+        startOffset: Int,
+        endOffset: Int,
+        type: KotlinType,
+        descriptor: CallableDescriptor
+) : IrDeclarationReferenceBase<CallableDescriptor>(startOffset, endOffset, type, descriptor), IrCallableReference {
+    override fun <R, D> accept(visitor: IrElementVisitor<R, D>, data: D): R {
+        return visitor.visitCallableReference(this, data)
+    }
+
+    override fun <D> acceptChildren(visitor: IrElementVisitor<Unit, D>, data: D) {
+        // TODO
+    }
+
+    override fun getChild(slot: Int): IrElement? {
+        // TODO
+        return null
+    }
+
+    override fun replaceChild(slot: Int, newChild: IrElement) {
+        // TODO
+    }
+}
\ No newline at end of file
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
index 0aa2938845e..5b6dae85946 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
@@ -85,6 +85,9 @@ interface IrOperator {
     object FOR_LOOP_HAS_NEXT : IrOperatorImpl("FOR_LOOP_HAS_NEXT")
     object FOR_LOOP_NEXT : IrOperatorImpl("FOR_LOOP_NEXT")
 
+    object LAMBDA : IrOperatorImpl("LAMBDA")
+
+
     data class COMPONENT_N private constructor(val index: Int) : IrOperatorImpl("COMPONENT_$index") {
         companion object {
             private val precreatedComponents = Array(32) { i -> COMPONENT_N(i + 1) }
@@ -97,8 +100,6 @@ interface IrOperator {
         }
     }
 
-
-
 }
 
 fun IrOperator.isAssignmentOperatorWithResult() =
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
index 2760902b94d..20c13cea1fc 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
@@ -67,10 +67,10 @@ class RenderIrElementVisitor : IrElementVisitor<String, Nothing?> {
             "BLOCK_BODY"
 
     override fun visitExpression(expression: IrExpression, data: Nothing?): String =
-            "? ${expression.javaClass.simpleName} type=${expression.renderType()}"
+            "? ${expression.javaClass.simpleName} type=${expression.type.render()}"
 
     override fun <T> visitConst(expression: IrConst<T>, data: Nothing?): String =
-            "CONST ${expression.kind} type=${expression.renderType()} value='${expression.value}'"
+            "CONST ${expression.kind} type=${expression.type.render()} value='${expression.value}'"
 
     override fun visitVararg(expression: IrVararg, data: Nothing?): String =
             "VARARG type=${expression.type} varargElementType=${expression.varargElementType}"
@@ -79,35 +79,35 @@ class RenderIrElementVisitor : IrElementVisitor<String, Nothing?> {
             "SPREAD_ELEMENT"
 
     override fun visitBlock(expression: IrBlock, data: Nothing?): String =
-            "BLOCK type=${expression.renderType()} operator=${expression.operator}"
+            "BLOCK type=${expression.type.render()} operator=${expression.operator}"
 
     override fun visitReturn(expression: IrReturn, data: Nothing?): String =
-            "RETURN type=${expression.renderType()}"
+            "RETURN type=${expression.type.render()}"
 
     override fun visitGetExtensionReceiver(expression: IrGetExtensionReceiver, data: Nothing?): String =
-            "\$RECEIVER of: ${expression.descriptor.containingDeclaration.name} type=${expression.renderType()}"
+            "\$RECEIVER of: ${expression.descriptor.containingDeclaration.name} type=${expression.type.render()}"
 
     override fun visitThisReference(expression: IrThisReference, data: Nothing?): String =
-            "THIS ${expression.classDescriptor.render()} type=${expression.renderType()}"
+            "THIS ${expression.classDescriptor.render()} type=${expression.type.render()}"
 
     override fun visitCall(expression: IrCall, data: Nothing?): String =
             "CALL .${expression.descriptor.name} " +
-            "type=${expression.renderType()} operator=${expression.operator}"
+            "type=${expression.type.render()} operator=${expression.operator}"
 
     override fun visitGetVariable(expression: IrGetVariable, data: Nothing?): String =
-            "GET_VAR ${expression.descriptor.name} type=${expression.renderType()} operator=${expression.operator}"
+            "GET_VAR ${expression.descriptor.name} type=${expression.type.render()} operator=${expression.operator}"
 
     override fun visitSetVariable(expression: IrSetVariable, data: Nothing?): String =
-            "SET_VAR ${expression.descriptor.name} type=${expression.renderType()} operator=${expression.operator}"
+            "SET_VAR ${expression.descriptor.name} type=${expression.type.render()} operator=${expression.operator}"
 
     override fun visitGetObjectValue(expression: IrGetObjectValue, data: Nothing?): String =
-            "GET_OBJECT ${expression.descriptor.name} type=${expression.renderType()}"
+            "GET_OBJECT ${expression.descriptor.name} type=${expression.type.render()}"
 
     override fun visitGetEnumValue(expression: IrGetEnumValue, data: Nothing?): String =
-            "GET_ENUM_VALUE ${expression.descriptor.name} type=${expression.renderType()}"
+            "GET_ENUM_VALUE ${expression.descriptor.name} type=${expression.type.render()}"
 
     override fun visitStringConcatenation(expression: IrStringConcatenation, data: Nothing?): String =
-            "STRING_CONCATENATION type=${expression.renderType()}"
+            "STRING_CONCATENATION type=${expression.type.render()}"
 
     override fun visitTypeOperator(expression: IrTypeOperatorCall, data: Nothing?): String =
             "TYPE_OP operator=${expression.operator} typeOperand=${expression.typeOperand.render()}"
@@ -128,16 +128,19 @@ class RenderIrElementVisitor : IrElementVisitor<String, Nothing?> {
             "CONTINUE label=${jump.label} depth=${jump.getDepth()}"
 
     override fun visitThrow(expression: IrThrow, data: Nothing?): String =
-            "THROW type=${expression.renderType()}"
+            "THROW type=${expression.type.render()}"
+
+    override fun visitCallableReference(expression: IrCallableReference, data: Nothing?): String =
+            "CALLABLE_REFERENCE ${expression.descriptor.render()} type=${expression.type.render()}"
 
     override fun visitTryCatch(tryCatch: IrTryCatch, data: Nothing?): String =
-            "TRY_CATCH type=${tryCatch.renderType()}"
+            "TRY_CATCH type=${tryCatch.type.render()}"
 
     override fun visitDummyDeclaration(declaration: IrDummyDeclaration, data: Nothing?): String =
             "DUMMY ${declaration.descriptor.javaClass.simpleName} ${declaration.descriptor.name}"
 
     override fun visitDummyExpression(expression: IrDummyExpression, data: Nothing?): String =
-            "DUMMY ${expression.description} type=${expression.renderType()}"
+            "DUMMY ${expression.description} type=${expression.type.render()}"
 
     companion object {
         private val DESCRIPTOR_RENDERER = DescriptorRenderer.withOptions {
@@ -155,9 +158,6 @@ class RenderIrElementVisitor : IrElementVisitor<String, Nothing?> {
         internal fun DeclarationDescriptor?.render(): String =
                 this?.let { DESCRIPTOR_RENDERER.render(it) } ?: "<none>"
 
-        internal fun IrExpression.renderType(): String =
-                type.render()
-
         internal fun KotlinType?.render(): String =
                 this?.let { DESCRIPTOR_RENDERER.renderType(it) } ?: "<no-type>"
     }
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/visitors/IrElementVisitor.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/visitors/IrElementVisitor.kt
index 6063f67c0d0..9b9c5ca1ec0 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/visitors/IrElementVisitor.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/visitors/IrElementVisitor.kt
@@ -58,6 +58,7 @@ interface IrElementVisitor<out R, in D> {
     fun visitSetVariable(expression: IrSetVariable, data: D) = visitDeclarationReference(expression, data)
     fun visitGetExtensionReceiver(expression: IrGetExtensionReceiver, data: D) = visitDeclarationReference(expression, data)
     fun visitCall(expression: IrCall, data: D) = visitDeclarationReference(expression, data)
+    fun visitCallableReference(expression: IrCallableReference, data: D) = visitDeclarationReference(expression, data)
 
     fun visitTypeOperator(expression: IrTypeOperatorCall, data: D) = visitExpression(expression, data)
 
diff --git a/compiler/testData/ir/irText/expressions/variableAsFunctionCall.txt b/compiler/testData/ir/irText/expressions/variableAsFunctionCall.txt
index fed6af9f412..9fd58a066af 100644
--- a/compiler/testData/ir/irText/expressions/variableAsFunctionCall.txt
+++ b/compiler/testData/ir/irText/expressions/variableAsFunctionCall.txt
@@ -2,7 +2,12 @@ FILE /variableAsFunctionCall.kt
   FUN public fun kotlin.String.k(): () -> kotlin.String
     BLOCK_BODY
       RETURN type=kotlin.Nothing
-        DUMMY KtLambdaExpression type=() -> kotlin.String
+        BLOCK type=() -> kotlin.String operator=LAMBDA
+          FUN local final fun <anonymous>(): kotlin.String
+            BLOCK_BODY
+              RETURN type=kotlin.Nothing
+                $RECEIVER of: k type=kotlin.String
+          CALLABLE_REFERENCE local final fun <anonymous>(): kotlin.String type=() -> kotlin.String
   FUN public fun test1(/*0*/ f: () -> kotlin.Unit): kotlin.Unit
     BLOCK_BODY
       RETURN type=kotlin.Nothing
diff --git a/compiler/testData/ir/irText/lambdas/extensionLambda.kt b/compiler/testData/ir/irText/lambdas/extensionLambda.kt
new file mode 100644
index 00000000000..2c3825f12a3
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/extensionLambda.kt
@@ -0,0 +1 @@
+fun test1() = "42".run { length }
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/lambdas/extensionLambda.txt b/compiler/testData/ir/irText/lambdas/extensionLambda.txt
new file mode 100644
index 00000000000..d9d07c53a3d
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/extensionLambda.txt
@@ -0,0 +1,13 @@
+FILE /extensionLambda.kt
+  FUN public fun test1(): kotlin.Int
+    BLOCK_BODY
+      RETURN type=kotlin.Nothing
+        CALL .run type=kotlin.Int operator=null
+          $receiver: CONST String type=kotlin.String value='42'
+          block: BLOCK type=kotlin.String.() -> kotlin.Int operator=LAMBDA
+            FUN local final fun kotlin.String.<anonymous>(): kotlin.Int
+              BLOCK_BODY
+                RETURN type=kotlin.Nothing
+                  CALL .<get-length> type=kotlin.Int operator=GET_PROPERTY
+                    $this: $RECEIVER of: <anonymous> type=kotlin.String
+            CALLABLE_REFERENCE local final fun kotlin.String.<anonymous>(): kotlin.Int type=kotlin.String.() -> kotlin.Int
diff --git a/compiler/testData/ir/irText/lambdas/justLambda.kt b/compiler/testData/ir/irText/lambdas/justLambda.kt
new file mode 100644
index 00000000000..201939c11a3
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/justLambda.kt
@@ -0,0 +1 @@
+val lambda = { 42 }
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/lambdas/justLambda.txt b/compiler/testData/ir/irText/lambdas/justLambda.txt
new file mode 100644
index 00000000000..cfc2a70ab88
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/justLambda.txt
@@ -0,0 +1,9 @@
+FILE /justLambda.kt
+  PROPERTY public val lambda: () -> kotlin.Int getter=null setter=null
+    EXPRESSION_BODY
+      BLOCK type=() -> kotlin.Int operator=LAMBDA
+        FUN local final fun <anonymous>(): kotlin.Int
+          BLOCK_BODY
+            RETURN type=kotlin.Nothing
+              CONST Int type=kotlin.Int value='42'
+        CALLABLE_REFERENCE local final fun <anonymous>(): kotlin.Int type=() -> kotlin.Int
diff --git a/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.kt b/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.kt
new file mode 100644
index 00000000000..1e86fffb2d4
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.kt
@@ -0,0 +1,20 @@
+object A
+object B
+
+interface IFoo {
+    val A.foo: B get() = B
+}
+
+interface IInvoke {
+    operator fun B.invoke() = 42
+}
+
+fun test(fooImpl: IFoo, invokeImpl: IInvoke) {
+    with(A) {
+        with(fooImpl) {
+            with(invokeImpl) {
+                foo()
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.txt b/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.txt
new file mode 100644
index 00000000000..4f6f7b7edb6
--- /dev/null
+++ b/compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.txt
@@ -0,0 +1,42 @@
+FILE /multipleImplicitReceivers.kt
+  CLASS OBJECT A
+  CLASS OBJECT B
+  CLASS INTERFACE IFoo
+    PROPERTY public open val A.foo: B getter=<get-foo> setter=null
+    PROPERTY_GETTER public open fun A.<get-foo>(): B property=foo
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing
+          GET_OBJECT B type=B
+  CLASS INTERFACE IInvoke
+    FUN public open operator fun B.invoke(): kotlin.Int
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing
+          CONST Int type=kotlin.Int value='42'
+  FUN public fun test(/*0*/ fooImpl: IFoo, /*1*/ invokeImpl: IInvoke): kotlin.Unit
+    BLOCK_BODY
+      CALL .with type=kotlin.Int operator=null
+        receiver: GET_OBJECT A type=A
+        block: BLOCK type=A.() -> kotlin.Int operator=LAMBDA
+          FUN local final fun A.<anonymous>(): kotlin.Int
+            BLOCK_BODY
+              RETURN type=kotlin.Nothing
+                CALL .with type=kotlin.Int operator=null
+                  receiver: GET_VAR fooImpl type=IFoo operator=null
+                  block: BLOCK type=IFoo.() -> kotlin.Int operator=LAMBDA
+                    FUN local final fun IFoo.<anonymous>(): kotlin.Int
+                      BLOCK_BODY
+                        RETURN type=kotlin.Nothing
+                          CALL .with type=kotlin.Int operator=null
+                            receiver: GET_VAR invokeImpl type=IInvoke operator=null
+                            block: BLOCK type=IInvoke.() -> kotlin.Int operator=LAMBDA
+                              FUN local final fun IInvoke.<anonymous>(): kotlin.Int
+                                BLOCK_BODY
+                                  RETURN type=kotlin.Nothing
+                                    CALL .invoke type=kotlin.Int operator=INVOKE
+                                      $this: $RECEIVER of: <anonymous> type=IInvoke
+                                      $receiver: CALL .<get-foo> type=B operator=GET_PROPERTY
+                                        $this: $RECEIVER of: <anonymous> type=IFoo
+                                        $receiver: $RECEIVER of: <anonymous> type=A
+                              CALLABLE_REFERENCE local final fun IInvoke.<anonymous>(): kotlin.Int type=IInvoke.() -> kotlin.Int
+                    CALLABLE_REFERENCE local final fun IFoo.<anonymous>(): kotlin.Int type=IFoo.() -> kotlin.Int
+          CALLABLE_REFERENCE local final fun A.<anonymous>(): kotlin.Int type=A.() -> kotlin.Int
diff --git a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
index 0a91c993a17..1f7daee9b03 100644
--- a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
@@ -352,4 +352,31 @@ public class IrTextTestCaseGenerated extends AbstractIrTextTestCase {
             doTest(fileName);
         }
     }
+
+    @TestMetadata("compiler/testData/ir/irText/lambdas")
+    @TestDataPath("$PROJECT_ROOT")
+    @RunWith(JUnit3RunnerWithInners.class)
+    public static class Lambdas extends AbstractIrTextTestCase {
+        public void testAllFilesPresentInLambdas() throws Exception {
+            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/ir/irText/lambdas"), Pattern.compile("^(.+)\\.kt$"), true);
+        }
+
+        @TestMetadata("extensionLambda.kt")
+        public void testExtensionLambda() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/lambdas/extensionLambda.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("justLambda.kt")
+        public void testJustLambda() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/lambdas/justLambda.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("multipleImplicitReceivers.kt")
+        public void testMultipleImplicitReceivers() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/lambdas/multipleImplicitReceivers.kt");
+            doTest(fileName);
+        }
+    }
 }