diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/InlineDescriptorUtils.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/InlineDescriptorUtils.java
index b1a3968e56b..37ea298fed8 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/InlineDescriptorUtils.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/InlineDescriptorUtils.java
@@ -46,24 +46,7 @@ public class InlineDescriptorUtils {
         while (containingFunction instanceof JetFunctionLiteral && fromFunction != containingFunctionDescriptor) {
             //JetFunctionLiteralExpression
             containingFunction = containingFunction.getParent();
-            boolean allowsNonLocalReturns = false;
-            JetExpression call = JetPsiUtil.getParentCallIfPresent((JetFunctionLiteralExpression) containingFunction);
-            if (call != null) {
-                ResolvedCall<?> resolvedCall = CallUtilPackage.getResolvedCall(call, bindingContext);
-                CallableDescriptor resultingDescriptor = resolvedCall == null ? null : resolvedCall.getResultingDescriptor();
-                if (resultingDescriptor instanceof SimpleFunctionDescriptor &&
-                    ((SimpleFunctionDescriptor) resultingDescriptor).getInlineStrategy().isInline()) {
-                    ValueArgument argument = CallUtilPackage.getValueArgumentForExpression(
-                            resolvedCall.getCall(), (JetFunctionLiteralExpression) containingFunction);
-                    if (argument != null) {
-                        ArgumentMapping mapping = resolvedCall.getArgumentMapping(argument);
-                        if (mapping instanceof ArgumentMatch) {
-                            allowsNonLocalReturns = allowsNonLocalReturns(((ArgumentMatch) mapping).getValueParameter());
-                        }
-                    }
-                }
-            }
-            if (!allowsNonLocalReturns) {
+            if (!isInlineLambda((JetFunctionLiteralExpression) containingFunction, bindingContext, true)) {
                 return false;
             }
 
@@ -77,6 +60,32 @@ public class InlineDescriptorUtils {
         return fromFunction == containingFunctionDescriptor;
     }
 
+    public static boolean isInlineLambda(
+            @NotNull JetFunctionLiteralExpression lambdaExpression,
+            @NotNull BindingContext bindingContext,
+            boolean checkNonLocalReturn
+    ) {
+        JetExpression call = JetPsiUtil.getParentCallIfPresent(lambdaExpression);
+        if (call != null) {
+            ResolvedCall<?> resolvedCall = CallUtilPackage.getResolvedCall(call, bindingContext);
+            CallableDescriptor resultingDescriptor = resolvedCall == null ? null : resolvedCall.getResultingDescriptor();
+            if (resultingDescriptor instanceof SimpleFunctionDescriptor &&
+                ((SimpleFunctionDescriptor) resultingDescriptor).getInlineStrategy().isInline()) {
+                ValueArgument argument = CallUtilPackage.getValueArgumentForExpression(resolvedCall.getCall(), lambdaExpression);
+                if (argument != null) {
+                    ArgumentMapping mapping = resolvedCall.getArgumentMapping(argument);
+                    if (mapping instanceof ArgumentMatch) {
+                        ValueParameterDescriptor parameter = ((ArgumentMatch) mapping).getValueParameter();
+                        if (!InlineUtil.hasNoinlineAnnotation(parameter)) {
+                            return !checkNonLocalReturn || allowsNonLocalReturns(parameter);
+                        }
+                    }
+                }
+            }
+        }
+        return false;
+    }
+
     @Nullable
     public static DeclarationDescriptor getContainingClassOrFunctionDescriptor(@NotNull DeclarationDescriptor descriptor, boolean strict) {
         DeclarationDescriptor currentDescriptor = strict ? descriptor.getContainingDeclaration() : descriptor;
diff --git a/compiler/testData/diagnostics/tests/inline/nonLocalReturns/noInlineAnnotation.kt b/compiler/testData/diagnostics/tests/inline/nonLocalReturns/noInlineAnnotation.kt
new file mode 100644
index 00000000000..72c5bde1993
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/nonLocalReturns/noInlineAnnotation.kt
@@ -0,0 +1,10 @@
+// !DIAGNOSTICS: -NOTHING_TO_INLINE
+fun main(args: Array<String>) {
+    test {
+        <!RETURN_NOT_ALLOWED!>return<!>
+    }
+}
+
+inline fun test(noinline lambda: () -> Unit) {
+    lambda()
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 0027562f4ee..1852e4fff26 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -5667,6 +5667,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                     doTest(fileName);
                 }
                 
+                @TestMetadata("noInlineAnnotation.kt")
+                public void testNoInlineAnnotation() throws Exception {
+                    String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/nonLocalReturns/noInlineAnnotation.kt");
+                    doTest(fileName);
+                }
+                
                 @TestMetadata("noInlineLambda.kt")
                 public void testNoInlineLambda() throws Exception {
                     String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/nonLocalReturns/noInlineLambda.kt");