diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InternalFinallyBlockInliner.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InternalFinallyBlockInliner.java
index 75e48d3b981..f57d10f40e9 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InternalFinallyBlockInliner.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InternalFinallyBlockInliner.java
@@ -143,7 +143,7 @@ public class InternalFinallyBlockInliner extends CoveringTryCatchNodeProcessor {
 
             AbstractInsnNode markedReturn = curIns;
             AbstractInsnNode instrInsertFinallyBefore = markedReturn.getPrevious();
-            AbstractInsnNode nextPrev = instrInsertFinallyBefore.getPrevious().getPrevious();
+            AbstractInsnNode nextPrev = instrInsertFinallyBefore.getPrevious();
             assert markedReturn.getNext() instanceof LabelNode : "Label should be occurred after non-local return";
             LabelNode newFinallyEnd = (LabelNode) markedReturn.getNext();
             Type nonLocalReturnType = InlineCodegenUtil.getReturnType(markedReturn.getOpcode());
@@ -166,6 +166,8 @@ public class InternalFinallyBlockInliner extends CoveringTryCatchNodeProcessor {
                 List<TryCatchBlockNodeInfo> clusterBlocks = clusterToFindFinally.getBlocks();
                 TryCatchBlockNodeInfo nodeWithDefaultHandlerIfExists = clusterBlocks.get(clusterBlocks.size() - 1);
 
+                FinallyBlockInfo finallyInfo = findFinallyBlockBody(nodeWithDefaultHandlerIfExists, getTryBlocksMetaInfo().getAllIntervals());
+                if (finallyInfo == null) continue;
 
                 if (nodeWithDefaultHandlerIfExists.getOnlyCopyNotProcess()) {
                     //lambdas finally generated before non-local return instruction,
@@ -173,9 +175,6 @@ public class InternalFinallyBlockInliner extends CoveringTryCatchNodeProcessor {
                     throw new RuntimeException("Lambda try blocks should be skipped");
                 }
 
-                FinallyBlockInfo finallyInfo = findFinallyBlockBody(nodeWithDefaultHandlerIfExists, getTryBlocksMetaInfo().getAllIntervals());
-                if (finallyInfo == null) continue;
-
                 originalDepthIndex++;
 
                 instructions.resetLabels();
diff --git a/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.1.kt b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.1.kt
new file mode 100644
index 00000000000..23474b1dd63
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.1.kt
@@ -0,0 +1,13 @@
+import test.*
+
+fun box(): String {
+    foo {
+        try {
+            return "OK"
+        } catch(e: Exception) {
+            return "fail 1"
+        }
+    }
+
+    return "fail 2"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.2.kt b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.2.kt
new file mode 100644
index 00000000000..9c48b772152
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.2.kt
@@ -0,0 +1,9 @@
+package test
+
+inline fun foo(f: () -> Unit) {
+    try {
+        f()
+    }
+    finally {
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.1.kt b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.1.kt
new file mode 100644
index 00000000000..fe525e1341d
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.1.kt
@@ -0,0 +1,21 @@
+import test.*
+
+var p = "fail"
+
+fun test() {
+    foo {
+        try {
+            p = "O"
+            return
+        } catch(e: Exception) {
+            return
+        } finally {
+            p += "K"
+        }
+    }
+}
+
+fun box(): String {
+    test()
+    return p
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.2.kt b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.2.kt
new file mode 100644
index 00000000000..c776f4ee115
--- /dev/null
+++ b/compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.2.kt
@@ -0,0 +1,10 @@
+package test
+
+inline fun foo(f: () -> Unit) {
+    try {
+        f()
+    }
+    finally {
+        1
+    }
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxInlineCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
index c9b132e29d0..ff9992cc3aa 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxInlineCodegenTestGenerated.java
@@ -481,6 +481,18 @@ public class BlackBoxInlineCodegenTestGenerated extends AbstractBlackBoxInlineCo
             doTestMultiFileWithInlineCheck(fileName);
         }
 
+        @TestMetadata("kt8948.1.kt")
+        public void testKt8948() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.1.kt");
+            doTestMultiFileWithInlineCheck(fileName);
+        }
+
+        @TestMetadata("kt8948v2.1.kt")
+        public void testKt8948v2() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.1.kt");
+            doTestMultiFileWithInlineCheck(fileName);
+        }
+
         @TestMetadata("nestedNonLocals.1.kt")
         public void testNestedNonLocals() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/nestedNonLocals.1.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
index 9b55099e8f8..ca11728bd63 100644
--- a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstInlineKotlinTestGenerated.java
@@ -481,6 +481,18 @@ public class CompileKotlinAgainstInlineKotlinTestGenerated extends AbstractCompi
             doBoxTestWithInlineCheck(fileName);
         }
 
+        @TestMetadata("kt8948.1.kt")
+        public void testKt8948() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/kt8948.1.kt");
+            doBoxTestWithInlineCheck(fileName);
+        }
+
+        @TestMetadata("kt8948v2.1.kt")
+        public void testKt8948v2() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/kt8948v2.1.kt");
+            doBoxTestWithInlineCheck(fileName);
+        }
+
         @TestMetadata("nestedNonLocals.1.kt")
         public void testNestedNonLocals() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxInline/nonLocalReturns/nestedNonLocals.1.kt");