diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
index 8f9424acf64..2343a383dba 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
@@ -20,7 +20,10 @@ import org.jetbrains.jet.lang.resolve.scopes.receivers.ExpressionReceiver;
 import org.jetbrains.jet.lang.resolve.scopes.receivers.TransientReceiver;
 import org.jetbrains.jet.lang.types.*;
 
-import java.util.*;
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.Collections;
+import java.util.List;
 
 import static org.jetbrains.jet.lang.diagnostics.Errors.*;
 import static org.jetbrains.jet.lang.resolve.BindingContext.*;
@@ -182,7 +185,14 @@ public class ControlStructureTypingVisitor extends ExpressionTypingVisitor {
         else if (body != null) {
             WritableScope writableScope = newWritableScopeImpl(context).setDebugName("do..while body scope");
             conditionScope = writableScope;
-            context.getServices().getBlockReturnedTypeWithWritableScope(writableScope, Collections.singletonList(body), CoercionStrategy.NO_COERCION, context);
+            List<JetElement> block;
+            if (body instanceof JetBlockExpression) {
+                block = ((JetBlockExpression)body).getStatements();
+            }
+            else {
+                block = Collections.<JetElement>singletonList(body);
+            }
+            context.getServices().getBlockReturnedTypeWithWritableScope(writableScope, block, CoercionStrategy.NO_COERCION, context);
         }
         JetExpression condition = expression.getCondition();
         checkCondition(conditionScope, condition, context);
diff --git a/compiler/testData/diagnostics/tests/scopes/kt1078.jet b/compiler/testData/diagnostics/tests/scopes/kt1078.jet
new file mode 100644
index 00000000000..2667028763e
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/scopes/kt1078.jet
@@ -0,0 +1,16 @@
+//KT-1078 Problem with visibility in do-while
+
+package kt1078
+
+fun test() : B {
+    do {
+        val x = foo()
+    } while(x.bar()) // x is not visible here!
+    return B()
+}
+
+class B() {
+    fun bar() = true
+}
+
+fun foo() = B()
\ No newline at end of file