diff --git a/idea/jvm-debugger/jvm-debugger-core/src/org/jetbrains/kotlin/idea/debugger/stepping/smartStepInto/KotlinMethodSmartStepIntoTarget.kt b/idea/jvm-debugger/jvm-debugger-core/src/org/jetbrains/kotlin/idea/debugger/stepping/smartStepInto/KotlinMethodSmartStepIntoTarget.kt
index e191b722030..c7c3465e6af 100644
--- a/idea/jvm-debugger/jvm-debugger-core/src/org/jetbrains/kotlin/idea/debugger/stepping/smartStepInto/KotlinMethodSmartStepIntoTarget.kt
+++ b/idea/jvm-debugger/jvm-debugger-core/src/org/jetbrains/kotlin/idea/debugger/stepping/smartStepInto/KotlinMethodSmartStepIntoTarget.kt
@@ -11,6 +11,7 @@ import com.intellij.util.Range
 import org.jetbrains.kotlin.builtins.functions.FunctionInvokeDescriptor
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.idea.KotlinIcons
+import org.jetbrains.kotlin.idea.decompiler.navigation.SourceNavigationHelper
 import org.jetbrains.kotlin.idea.util.IdeDescriptorRenderers
 import org.jetbrains.kotlin.load.java.JvmAbi
 import org.jetbrains.kotlin.psi.KtDeclaration
@@ -21,11 +22,13 @@ import javax.swing.Icon
 
 class KotlinMethodSmartStepTarget(
     descriptor: CallableMemberDescriptor,
-    val declaration: KtDeclaration?,
+    declaration: KtDeclaration?,
     label: String,
     highlightElement: PsiElement,
     lines: Range<Int>
 ) : SmartStepTarget(label, highlightElement, false, lines) {
+    val declaration = declaration?.let(SourceNavigationHelper::getNavigationElement)
+
     val isInvoke = descriptor is FunctionInvokeDescriptor
 
     init {
diff --git a/idea/jvm-debugger/jvm-debugger-test/test/org/jetbrains/kotlin/idea/debugger/test/KotlinSteppingTestGenerated.java b/idea/jvm-debugger/jvm-debugger-test/test/org/jetbrains/kotlin/idea/debugger/test/KotlinSteppingTestGenerated.java
index 4d3270cfeb8..255e08dc743 100644
--- a/idea/jvm-debugger/jvm-debugger-test/test/org/jetbrains/kotlin/idea/debugger/test/KotlinSteppingTestGenerated.java
+++ b/idea/jvm-debugger/jvm-debugger-test/test/org/jetbrains/kotlin/idea/debugger/test/KotlinSteppingTestGenerated.java
@@ -1261,6 +1261,11 @@ public class KotlinSteppingTestGenerated extends AbstractKotlinSteppingTest {
             runTest("idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/smartStepIntoWithOverrides.kt");
         }
 
+        @TestMetadata("stepIntoLibWithSources.kt")
+        public void testStepIntoLibWithSources() throws Exception {
+            runTest("idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.kt");
+        }
+
         @TestMetadata("stepIntoStdlibInlineFun2step.kt")
         public void testStepIntoStdlibInlineFun2step() throws Exception {
             runTest("idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoStdlibInlineFun2step.kt");
diff --git a/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.kt b/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.kt
new file mode 100644
index 00000000000..47c41a8d542
--- /dev/null
+++ b/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.kt
@@ -0,0 +1,10 @@
+package stepIntoLibWithSources
+
+import java.io.StringReader
+
+fun main() {
+    //Breakpoint!
+    val text = StringReader("OK").readText()
+}
+
+// SMART_STEP_INTO_BY_INDEX: 2
\ No newline at end of file
diff --git a/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.out b/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.out
new file mode 100644
index 00000000000..e9f55f375a6
--- /dev/null
+++ b/idea/jvm-debugger/jvm-debugger-test/testData/stepping/custom/stepIntoLibWithSources.out
@@ -0,0 +1,8 @@
+LineBreakpoint created at stepIntoLibWithSources.kt:7
+Run Java
+Connected to the target VM
+stepIntoLibWithSources.kt:7
+ReadWrite.!EXT!
+Disconnected from the target VM
+
+Process finished with exit code 0