diff --git a/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/lazy/resolve/LLFirPhaseUpdater.kt b/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/lazy/resolve/LLFirPhaseUpdater.kt
index 95a945fc48c..280b679b91d 100644
--- a/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/lazy/resolve/LLFirPhaseUpdater.kt
+++ b/analysis/low-level-api-fir/src/org/jetbrains/kotlin/analysis/low/level/api/fir/lazy/resolve/LLFirPhaseUpdater.kt
@@ -42,6 +42,8 @@ internal object LLFirPhaseUpdater {
                         statement.accept(PhaseUpdatingTransformer, newPhase)
                     }
                 }
+
+                is FirCodeFragment -> target.block.accept(PhaseUpdatingTransformer, newPhase)
             }
         }
     }
diff --git a/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localClass.txt b/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localClass.txt
index 23e0b8e5bfe..da67d274ace 100644
--- a/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localClass.txt
+++ b/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localClass.txt
@@ -1,14 +1,14 @@
 BEFORE MODIFICATION:
 CODE FRAGMENT: {
-    local final [ResolvedTo(RAW_FIR)] class Foo : R|kotlin/Any| {
-        public [ResolvedTo(RAW_FIR)] [ContainingClassKey=Foo] constructor([ResolvedTo(RAW_FIR)] [CorrespondingProperty=<local>/x] x: R|kotlin/Int|): R|<local>/Foo| {
+    local final [ResolvedTo(BODY_RESOLVE)] class Foo : R|kotlin/Any| {
+        public [ResolvedTo(BODY_RESOLVE)] [ContainingClassKey=Foo] constructor([ResolvedTo(BODY_RESOLVE)] [CorrespondingProperty=<local>/x] x: R|kotlin/Int|): R|<local>/Foo| {
             super<R|kotlin/Any|>()
         }
 
-        public final [ResolvedTo(RAW_FIR)] [IsFromPrimaryConstructor=true] val x: R|kotlin/Int| = R|<local>/x|
-            public [ResolvedTo(RAW_FIR)] [ContainingClassKey=Foo] get(): R|kotlin/Int|
+        public final [ResolvedTo(BODY_RESOLVE)] [IsFromPrimaryConstructor=true] val x: R|kotlin/Int| = R|<local>/x|
+            public [ResolvedTo(BODY_RESOLVE)] [ContainingClassKey=Foo] get(): R|kotlin/Int|
 
-        public final [ResolvedTo(RAW_FIR)] fun foo(): R|kotlin/Unit| {
+        public final [ResolvedTo(BODY_RESOLVE)] fun foo(): R|kotlin/Unit| {
             this@R|<local>/Foo|.R|<local>/foo|()
         }
 
diff --git a/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localFunction.txt b/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localFunction.txt
index 9d891c1ba01..9519ae223ab 100644
--- a/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localFunction.txt
+++ b/analysis/low-level-api-fir/testData/inBlockModification/codeFragments/localFunction.txt
@@ -1,9 +1,9 @@
 BEFORE MODIFICATION:
 CODE FRAGMENT: {
-    local final [ResolvedTo(RAW_FIR)] fun foo([ResolvedTo(RAW_FIR)] a: R|kotlin/Int|, [ResolvedTo(RAW_FIR)] b: R|kotlin/String|): R|kotlin/Unit| {
+    local final [ResolvedTo(BODY_RESOLVE)] fun foo([ResolvedTo(BODY_RESOLVE)] a: R|kotlin/Int|, [ResolvedTo(BODY_RESOLVE)] b: R|kotlin/String|): R|kotlin/Unit| {
     }
 
-    local final [ResolvedTo(RAW_FIR)] fun bar(): R|kotlin/Unit| {
+    local final [ResolvedTo(BODY_RESOLVE)] fun bar(): R|kotlin/Unit| {
         R|/foo|(Int(1), String(foo))
     }