diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
index e1b141e7187..8c976c488ac 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/BodyGenerator.kt
@@ -70,11 +70,17 @@ class BodyGenerator(val scopeOwner: DeclarationDescriptor, override val context:
         val ktBody = ktFun.bodyExpression!!
         val irBlockBody = IrBlockBodyImpl(ktBody.startOffset, ktBody.endOffset)
         if (ktBody is KtBlockExpression) {
-            for (ktStatement in ktBody.statements.subList(0, ktBody.statements.size - 1)) {
-                irBlockBody.addStatement(statementGenerator.generateStatement(ktStatement))
+            val ktBodyStatements = ktBody.statements
+            if (ktBodyStatements.isNotEmpty()) {
+                for (ktStatement in ktBodyStatements.dropLast(1)) {
+                    irBlockBody.addStatement(statementGenerator.generateStatement(ktStatement))
+                }
+                val ktReturnedValue = ktBodyStatements.last()
+                statementGenerator.generateReturnExpression(ktReturnedValue, irBlockBody)
+            }
+            else {
+                irBlockBody.addStatement(generateReturnExpression(ktBody.startOffset, ktBody.endOffset, null))
             }
-            val ktReturnedValue = ktBody.statements.last()
-            statementGenerator.generateReturnExpression(ktReturnedValue, irBlockBody)
         }
 
         return irBlockBody
@@ -100,12 +106,15 @@ class BodyGenerator(val scopeOwner: DeclarationDescriptor, override val context:
             if (KotlinBuiltIns.isNothing(type))
                 this
             else {
-                val returnTarget = (scopeOwner as? CallableDescriptor) ?:
-                                   throw AssertionError("'return' in a non-callable: $scopeOwner")
-                IrReturnImpl(startOffset, endOffset, context.builtIns.nothingType,
-                             returnTarget, this)
+                generateReturnExpression(startOffset, endOffset, this)
             }
 
+    private fun generateReturnExpression(startOffset: Int, endOffset: Int, returnValue: IrExpression?): IrReturnImpl {
+        val returnTarget = (scopeOwner as? CallableDescriptor) ?:
+                           throw AssertionError("'return' in a non-callable: $scopeOwner")
+        return IrReturnImpl(startOffset, endOffset, context.builtIns.nothingType, returnTarget, returnValue)
+    }
+
 
     fun generateSecondaryConstructorBody(ktConstructor: KtSecondaryConstructor): IrBody {
         val irBlockBody = IrBlockBodyImpl(ktConstructor.startOffset, ktConstructor.endOffset)
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/ErrorExpressionGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/ErrorExpressionGenerator.kt
index 695a0bbf7fa..5224119063b 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/ErrorExpressionGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/ErrorExpressionGenerator.kt
@@ -27,17 +27,20 @@ import org.jetbrains.kotlin.types.ErrorUtils
 class ErrorExpressionGenerator(statementGenerator: StatementGenerator) : StatementGeneratorExtension(statementGenerator) {
     private val ignoreErrors: Boolean get() = context.configuration.ignoreErrors
 
-    private inline fun generateErrorExpression(message: String? = null, body: () -> IrExpression) =
-            if (ignoreErrors) body() else throw RuntimeException(message)
+    private inline fun generateErrorExpression(ktElement: KtElement, e: Exception? = null, body: () -> IrExpression) =
+            if (ignoreErrors)
+                body()
+            else
+                throw RuntimeException("${e?.message}: ${ktElement.javaClass.simpleName}:\n${ktElement.text}", e)
 
-    fun generateErrorExpression(ktElement: KtElement, message: String?): IrExpression =
-            generateErrorExpression {
+    fun generateErrorExpression(ktElement: KtElement, e: Exception): IrExpression =
+            generateErrorExpression(ktElement, e) {
                 IrErrorExpressionImpl(ktElement.startOffset, ktElement.endOffset,
                                       if (ktElement is KtExpression) getErrorExpressionType(ktElement) else ErrorUtils.createErrorType(""),
-                                      message ?: "")
+                                      e.message ?: "")
             }
 
-    fun generateErrorCall(ktCall: KtCallExpression): IrExpression = generateErrorExpression {
+    fun generateErrorCall(ktCall: KtCallExpression): IrExpression = generateErrorExpression(ktCall) {
         val type = getErrorExpressionType(ktCall)
 
         val irErrorCall = IrErrorCallExpressionImpl(ktCall.startOffset, ktCall.endOffset, type, "") // TODO problem description?
@@ -62,7 +65,7 @@ class ErrorExpressionGenerator(statementGenerator: StatementGenerator) : Stateme
     private fun getErrorExpressionType(ktExpression: KtExpression) =
             getInferredTypeWithImplicitCasts(ktExpression) ?: ErrorUtils.createErrorType("")
 
-    fun generateErrorSimpleName(ktName: KtSimpleNameExpression): IrExpression = generateErrorExpression {
+    fun generateErrorSimpleName(ktName: KtSimpleNameExpression): IrExpression = generateErrorExpression(ktName) {
         val type = getErrorExpressionType(ktName)
 
         val irErrorCall = IrErrorCallExpressionImpl(ktName.startOffset, ktName.endOffset, type, "") // TODO problem description?
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
index 6d7a2ab5e24..54bf6cbf113 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
@@ -60,7 +60,7 @@ class StatementGenerator(
                 deparenthesize().accept(this@StatementGenerator, null)
             }
             catch (e: Exception) {
-                ErrorExpressionGenerator(this@StatementGenerator).generateErrorExpression(this, e.message)
+                ErrorExpressionGenerator(this@StatementGenerator).generateErrorExpression(this, e)
             }
 
     private fun KtElement.genExpr(): IrExpression =
diff --git a/compiler/testData/ir/irText/lambdas/justLambda.kt b/compiler/testData/ir/irText/lambdas/justLambda.kt
index 201939c11a3..3fb4136b231 100644
--- a/compiler/testData/ir/irText/lambdas/justLambda.kt
+++ b/compiler/testData/ir/irText/lambdas/justLambda.kt
@@ -1 +1,3 @@
-val lambda = { 42 }
\ No newline at end of file
+val test1 = { 42 }
+
+val test2 = { }
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/lambdas/justLambda.txt b/compiler/testData/ir/irText/lambdas/justLambda.txt
index 1d7b4c1b1f3..9b401cc4a04 100644
--- a/compiler/testData/ir/irText/lambdas/justLambda.txt
+++ b/compiler/testData/ir/irText/lambdas/justLambda.txt
@@ -1,5 +1,5 @@
 FILE /justLambda.kt
-  PROPERTY public val lambda: () -> kotlin.Int
+  PROPERTY public val test1: () -> kotlin.Int
     EXPRESSION_BODY
       BLOCK type=() -> kotlin.Int operator=LAMBDA
         FUN local final fun <anonymous>(): kotlin.Int
@@ -7,3 +7,10 @@ FILE /justLambda.kt
             RETURN type=kotlin.Nothing from=<anonymous>
               CONST Int type=kotlin.Int value='42'
         CALLABLE_REFERENCE <anonymous> type=() -> kotlin.Int operator=LAMBDA
+  PROPERTY public val test2: () -> kotlin.Unit
+    EXPRESSION_BODY
+      BLOCK type=() -> kotlin.Unit operator=LAMBDA
+        FUN local final fun <anonymous>(): kotlin.Unit
+          BLOCK_BODY
+            RETURN type=kotlin.Nothing from=<anonymous>
+        CALLABLE_REFERENCE <anonymous> type=() -> kotlin.Unit operator=LAMBDA