diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/FirLocalVariableAssignmentAnalyzer.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/FirLocalVariableAssignmentAnalyzer.kt
index c67ff73a02b..54c744585f3 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/FirLocalVariableAssignmentAnalyzer.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/FirLocalVariableAssignmentAnalyzer.kt
@@ -255,6 +255,15 @@ internal class FirLocalVariableAssignmentAnalyzer {
                 element.acceptChildren(this, data)
             }
 
+            private fun visitRepeatableElement(element: FirElement, data: MiniCfgData): Set<FirProperty> {
+                // Detach the flow so that variables declared inside the structure do not leak into the outside.
+                val flow = MiniFlow.start()
+                val freeVariables = data.variableDeclarations.flatMapTo(mutableSetOf()) { it.values }
+                data.flow = flow
+                element.acceptChildren(this, data)
+                return flow.assignedLater.apply { retainAll(freeVariables) }
+            }
+
             override fun visitAnonymousFunction(anonymousFunction: FirAnonymousFunction, data: MiniCfgData) =
                 visitFunction(anonymousFunction, data)
 
@@ -262,18 +271,13 @@ internal class FirLocalVariableAssignmentAnalyzer {
                 visitFunction(simpleFunction, data)
 
             override fun visitFunction(function: FirFunction, data: MiniCfgData) {
-                val freeVariables = data.variableDeclarations.flatMapTo(mutableSetOf()) { it.values }
                 val flow = data.flow
-                // Detach the function flow so that variables declared inside don't leak into the outside.
-                val flowInto = MiniFlow.start()
-                data.flow = flowInto
-                function.acceptChildren(this, data)
-                flowInto.assignedLater.retainAll(freeVariables)
+                val assignedInside = visitRepeatableElement(function, data)
                 // Now that the inner variables have been discarded, the rest can be propagated to prevent smartcasts
                 // in lambdas declared before this one.
-                flow.recordAssignments(flowInto.assignedLater)
+                flow.recordAssignments(assignedInside)
                 data.flow = flow.fork()
-                data.functionForks[function.symbol] = FunctionFork(data.flow.assignedLater, flowInto.assignedLater)
+                data.functionForks[function.symbol] = FunctionFork(data.flow.assignedLater, assignedInside)
             }
 
             override fun visitWhenExpression(whenExpression: FirWhenExpression, data: MiniCfgData) {
@@ -302,24 +306,21 @@ internal class FirLocalVariableAssignmentAnalyzer {
             private fun Set<MiniFlow>.join(): MiniFlow =
                 singleOrNull() ?: MiniFlow(this)
 
-            override fun visitWhileLoop(whileLoop: FirWhileLoop, data: MiniCfgData) {
-                // Loop entry is a merge point, so need a new node.
-                val start = data.flow.fork()
-                data.flow = start
-                whileLoop.condition.accept(this, data)
-                whileLoop.block.accept(this, data)
+            override fun visitLoop(loop: FirLoop, data: MiniCfgData) {
+                val entry = data.flow
+                val assignedInside = visitRepeatableElement(loop, data)
                 // All forks in the loop should have the same set of variables assigned later, equal to the set
                 // at the start of the loop.
-                data.flow.recordAssignments(start.assignedLater)
+                data.flow.recordAssignments(assignedInside)
+                // The loop flows are detached from the entry flow, so we need to re-join them.
+                data.flow = setOf(entry, data.flow).join()
             }
 
-            override fun visitDoWhileLoop(doWhileLoop: FirDoWhileLoop, data: MiniCfgData) {
-                val start = data.flow.fork()
-                data.flow = start
-                doWhileLoop.block.accept(this, data)
-                doWhileLoop.condition.accept(this, data)
-                data.flow.recordAssignments(start.assignedLater)
-            }
+            override fun visitWhileLoop(whileLoop: FirWhileLoop, data: MiniCfgData) =
+                visitLoop(whileLoop, data)
+
+            override fun visitDoWhileLoop(doWhileLoop: FirDoWhileLoop, data: MiniCfgData) =
+                visitLoop(doWhileLoop, data)
 
             // TODO: liveness analysis - return/throw/break/continue terminate the flow.
             //   This is somewhat problematic though because try-catch and loops can restore it.
diff --git a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.fir.kt b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.fir.kt
index df1af1c21aa..a7cc3691112 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.fir.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.fir.kt
@@ -66,3 +66,20 @@ fun test5() {
     }
     lambda?.invoke()
 }
+
+fun test6() {
+    var lambda: () -> Unit = { }
+    for (x in 1..10) {
+        var s: String? = null
+        for (y in 1..10) {
+            s = null
+            lambda()
+            s = ""
+            lambda = { <!SMARTCAST_IMPOSSIBLE!>s<!>.length } // bad - next iteration will assign s = null
+        }
+
+        if (s != null) {
+            lambda = { s.length } // ok - s about to go out of scope
+        }
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.kt b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.kt
index 4fca0321721..3ef42679c26 100644
--- a/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.kt
+++ b/compiler/testData/diagnostics/tests/smartCasts/variables/capturedWithControlJumps.kt
@@ -66,3 +66,20 @@ fun test5() {
     }
     lambda?.invoke()
 }
+
+fun test6() {
+    var lambda: () -> Unit = { }
+    for (x in 1..10) {
+        var s: String? = null
+        for (y in 1..10) {
+            s = null
+            lambda()
+            s = ""
+            lambda = { <!DEBUG_INFO_SMARTCAST!>s<!>.length } // bad - next iteration will assign s = null
+        }
+
+        if (s != null) {
+            lambda = { <!DEBUG_INFO_SMARTCAST!>s<!>.length } // ok - s about to go out of scope
+        }
+    }
+}