diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
index c4c7640f770..8f9af00ca19 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
@@ -619,8 +619,8 @@ public class FunctionCodegen extends ParentCodegenAware {
         CallGenerator generator = codegen.getOrCreateCallGenerator(functionDescriptor, function);
 
         InstructionAdapter iv = new InstructionAdapter(mv);
-        loadExplicitArgumentsOnStack(iv, OBJECT_TYPE, isStatic, signature);
-        generator.putHiddenParams();
+
+        loadExplicitArgumentsOnStack(iv, OBJECT_TYPE, isStatic, signature, generator);
 
         List<JvmMethodParameterSignature> mappedParameters = signature.getValueParameters();
         int capturedArgumentsCount = 0;
@@ -698,18 +698,19 @@ public class FunctionCodegen extends ParentCodegenAware {
             @NotNull InstructionAdapter iv,
             @NotNull Type ownerType,
             boolean isStatic,
-            @NotNull JvmMethodSignature signature
+            @NotNull JvmMethodSignature signature,
+            @NotNull CallGenerator callGenerator
     ) {
         int var = 0;
         if (!isStatic) {
-            iv.load(var, ownerType);
+            callGenerator.putValueIfNeeded(null, ownerType, StackValue.local(var, ownerType));
             var += ownerType.getSize();
         }
 
         for (JvmMethodParameterSignature parameterSignature : signature.getValueParameters()) {
             if (parameterSignature.getKind() != JvmMethodParameterKind.VALUE) {
                 Type type = parameterSignature.getAsmType();
-                iv.load(var, type);
+                callGenerator.putValueIfNeeded(null, type, StackValue.local(var, type));
                 var += type.getSize();
             }
         }
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlineCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlineCodegen.java
index 0183c738e5b..6f4a93234cf 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlineCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlineCodegen.java
@@ -183,7 +183,7 @@ public class InlineCodegen implements CallGenerator {
             MethodContext methodContext = context.getParentContext().intoFunction(functionDescriptor);
             MemberCodegen<?> parentCodegen = codegen.getParentCodegen();
             if (callDefault) {
-                boolean isStatic = isStatic(codegen.getContext().getContextKind());
+                boolean isStatic = isStatic(context.getContextKind());
                 FunctionCodegen.generateDefaultImplBody(
                         methodContext, jvmSignature, functionDescriptor, isStatic, maxCalcAdapter, DefaultParameterValueLoader.DEFAULT,
                         (JetNamedFunction) element, parentCodegen, state
diff --git a/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.1.kt b/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.1.kt
new file mode 100644
index 00000000000..501cd8b71ce
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.1.kt
@@ -0,0 +1,35 @@
+import test.*
+
+fun testExtensionInClass() : String {
+
+    var res = with(Z(1)) { "1".run("OK") }
+    if (res != "1OK") return "failed in class 1: $res"
+
+    res = with(Z(1)) { "1".run() }
+    if (res != "1null") return "failed in class 2: $res"
+
+    res = with(Z(2)) { "3".run("OK", {(a, b) -> a + b + value }, 1) }
+    if (res != "OK123") return "failed in class 3: $res"
+
+    res = with(Z(3)) { "4".run(lambda = {(a, b) -> a + b + value }) }
+    if (res != "034") return "failed in class 4: $res"
+
+    return "OK"
+}
+
+fun box(): String {
+
+    var res = "1".run("OK")
+    if (res != "1OK") return "failed 1: $res"
+
+    res = "1".run()
+    if (res != "1null") return "failed 2: $res"
+
+    res = "3".run("OK", {(a, b) -> a + b}, 1)
+    if (res != "OK13") return "failed 3: $res"
+
+    res = "4".run(lambda = {(a, b) -> a + b})
+    if (res != "04") return "failed 4: $res"
+
+    return testExtensionInClass()
+}
diff --git a/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.2.kt b/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.2.kt
new file mode 100644
index 00000000000..e2255174276
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.2.kt
@@ -0,0 +1,21 @@
+package test
+
+inline public fun String.run(p1: String? = null): String {
+    return this + p1
+}
+
+inline public fun String.run(p1: String = "", lambda: (a: String, b: Int) -> String, p2: Int = 0): String {
+    return lambda(p1, p2) + this
+}
+
+public class Z(val value: Int = 0) {
+
+    inline public fun String.run(p1: String? = null): String? {
+        return this + p1
+    }
+
+    inline public fun String.run(p1: String = "", lambda: (a: String, b: Int) -> String, p2: Int = 0): String {
+        return lambda(p1, p2) + this
+    }
+
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.1.kt b/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.1.kt
new file mode 100644
index 00000000000..f1822824496
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.1.kt
@@ -0,0 +1,13 @@
+import test.*
+
+fun box(): String {
+    if (Z().run() != "null0") return "fail 1: ${Z().run()}"
+
+    if (Z().run("OK") != "OK0") return "fail 2"
+
+    if (Z().run("OK", {(a, b) -> a + b }, 1) != "OK1") return "fail 3"
+
+    if (Z().run(lambda = {(a: String, b: Int) -> a + b }) != "0") return "fail 4"
+
+    return "OK"
+}
diff --git a/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.2.kt b/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.2.kt
new file mode 100644
index 00000000000..a881a5988db
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.2.kt
@@ -0,0 +1,13 @@
+package test
+
+public class Z(public val value: Int = 0) {
+
+    inline public fun run(p1: String? = null): String? {
+        return p1 + value
+    }
+
+
+    inline public fun run(p1: String = "", lambda: (a: String, b: Int) -> String, p2: Int = 0): String {
+        return lambda(p1, p2)
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.1.kt b/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.1.kt
index cb4936a747e..c48b5dedadc 100644
--- a/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.1.kt
+++ b/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.1.kt
@@ -18,5 +18,8 @@ fun box(): String {
     result = simple()
     if (result != "OK") return "fail2: ${result}"
 
+    var result2 = simpleDoubleFun(2.0)
+    if (result2 != 2.0 + 1.0) return "fail3: ${result2}"
+
     return "OK"
 }
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.2.kt b/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.2.kt
index 71ed00adaf0..21a2c0430b8 100644
--- a/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.2.kt
+++ b/compiler/testData/codegen/boxInline/defaultValues/simpleDefaultMethod.2.kt
@@ -9,3 +9,9 @@ inline fun simpleFun(arg: String = "O"): String {
     return r;
 }
 
+
+inline fun simpleDoubleFun(arg: Double = 1.0): Double {
+    val r = arg + 1;
+    return r;
+}
+
diff --git a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxInlineCodegenTestGenerated.java b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
index 987b6dbd0de..8b7d284cb05 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
@@ -157,11 +157,21 @@ public class BlackBoxInlineCodegenTestGenerated extends AbstractBlackBoxCodegenT
             JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/boxInline/defaultValues"), Pattern.compile("^(.+)\\.1.kt$"), true);
         }
         
+        @TestMetadata("defaultInExtension.1.kt")
+        public void testDefaultInExtension() throws Exception {
+            doTestMultiFileWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.1.kt");
+        }
+        
         @TestMetadata("defaultMethod.1.kt")
         public void testDefaultMethod() throws Exception {
             doTestMultiFileWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultMethod.1.kt");
         }
         
+        @TestMetadata("defaultMethodInClass.1.kt")
+        public void testDefaultMethodInClass() throws Exception {
+            doTestMultiFileWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.1.kt");
+        }
+        
         @TestMetadata("inlineInDefaultParameter.1.kt")
         public void testInlineInDefaultParameter() throws Exception {
             doTestMultiFileWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/inlineInDefaultParameter.1.kt");
diff --git a/compiler/tests/org/jetbrains/jet/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java b/compiler/tests/org/jetbrains/jet/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
index 0b4700549a0..a5c2c5d55df 100644
--- a/compiler/tests/org/jetbrains/jet/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
@@ -157,11 +157,21 @@ public class CompileKotlinAgainstInlineKotlinTestGenerated extends AbstractCompi
             JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/boxInline/defaultValues"), Pattern.compile("^(.+)\\.1.kt$"), true);
         }
         
+        @TestMetadata("defaultInExtension.1.kt")
+        public void testDefaultInExtension() throws Exception {
+            doBoxTestWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultInExtension.1.kt");
+        }
+        
         @TestMetadata("defaultMethod.1.kt")
         public void testDefaultMethod() throws Exception {
             doBoxTestWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultMethod.1.kt");
         }
         
+        @TestMetadata("defaultMethodInClass.1.kt")
+        public void testDefaultMethodInClass() throws Exception {
+            doBoxTestWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/defaultMethodInClass.1.kt");
+        }
+        
         @TestMetadata("inlineInDefaultParameter.1.kt")
         public void testInlineInDefaultParameter() throws Exception {
             doBoxTestWithInlineCheck("compiler/testData/codegen/boxInline/defaultValues/inlineInDefaultParameter.1.kt");