diff --git a/compiler/testData/codegen/box/closures/localReturn.kt b/compiler/testData/codegen/box/closures/localReturn.kt
new file mode 100644
index 00000000000..2cdd072774f
--- /dev/null
+++ b/compiler/testData/codegen/box/closures/localReturn.kt
@@ -0,0 +1,19 @@
+fun box(): String {
+    val a = 1
+    val explicitlyReturned = run1 @f{(): String ->
+        if (a > 0)
+          return@f "OK"
+        else "Fail 1"
+    }
+    if (explicitlyReturned != "OK") return explicitlyReturned
+
+    val implicitlyReturned = run1 @f{(): String ->
+        if (a < 0)
+          return@f "Fail 2"
+        else "OK"
+    }
+    if (implicitlyReturned != "OK") return implicitlyReturned
+    return "OK"
+}
+
+fun run1<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
index 5aeae6d89a8..f32e86f7732 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/generated/BlackBoxCodegenTestGenerated.java
@@ -1199,6 +1199,11 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             doTest("compiler/testData/codegen/box/closures/localFunctionInInitializer.kt");
         }
         
+        @TestMetadata("localReturn.kt")
+        public void testLocalReturn() throws Exception {
+            doTest("compiler/testData/codegen/box/closures/localReturn.kt");
+        }
+        
         @TestMetadata("recursiveClosure.kt")
         public void testRecursiveClosure() throws Exception {
             doTest("compiler/testData/codegen/box/closures/recursiveClosure.kt");