diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/captured/CapturedVarsOptimizationMethodTransformer.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/captured/CapturedVarsOptimizationMethodTransformer.kt
index a6194d3bdd0..6525870e03d 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/captured/CapturedVarsOptimizationMethodTransformer.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/captured/CapturedVarsOptimizationMethodTransformer.kt
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.codegen.optimization.captured
 
 import org.jetbrains.kotlin.builtins.PrimitiveType
+import org.jetbrains.kotlin.codegen.optimization.common.InsnSequence
 import org.jetbrains.kotlin.codegen.optimization.common.removeEmptyCatchBlocks
 import org.jetbrains.kotlin.codegen.optimization.common.removeUnusedLocalVariables
 import org.jetbrains.kotlin.codegen.optimization.fixStack.peek
@@ -63,6 +64,7 @@ class CapturedVarsOptimizationMethodTransformer : MethodTransformer() {
         val stackInsns: MutableCollection<AbstractInsnNode> = LinkedHashSet()
         val getFieldInsns: MutableCollection<FieldInsnNode> = LinkedHashSet()
         val putFieldInsns: MutableCollection<FieldInsnNode> = LinkedHashSet()
+        var cleanVarInstruction: VarInsnNode? = null
 
         fun canRewrite(): Boolean =
                 !hazard &&
@@ -198,6 +200,7 @@ class CapturedVarsOptimizationMethodTransformer : MethodTransformer() {
             for (refValue in refValues) {
                 if (refValue.hazard) continue
                 val localVar = refValue.localVar ?: continue
+                val oldVarIndex = localVar.index
 
                 if (refValue.valueType.size != 1) {
                     refValue.localVarIndex = methodNode.maxLocals
@@ -214,9 +217,30 @@ class CapturedVarsOptimizationMethodTransformer : MethodTransformer() {
                     refValue.hazard = true
                     continue
                 }
+
+                val cleanInstructions = findCleanInstructions(refValue, oldVarIndex, methodNode.instructions)
+                if (cleanInstructions.size > 1 ) {
+                    refValue.hazard = true
+                    continue
+                }
+                refValue.cleanVarInstruction = cleanInstructions.firstOrNull()
             }
         }
 
+        private fun findCleanInstructions(refValue: CapturedVarDescriptor, oldVarIndex: Int, instructions: InsnList): List<VarInsnNode> {
+            val cleanInstructions =
+                InsnSequence(instructions).filterIsInstance<VarInsnNode>().filter {
+                    it.`var` == oldVarIndex
+                }.filter {
+                    it.previous?.opcode == Opcodes.ACONST_NULL
+                }.filter {
+                    val operationIndex = instructions.indexOf(it)
+                    val localVariableNode = refValue.localVar!!
+                    instructions.indexOf(localVariableNode.start) < operationIndex && operationIndex < instructions.indexOf(localVariableNode.end)
+                }.toList()
+            return cleanInstructions
+        }
+
         private fun rewrite() {
             for (refValue in refValues) {
                 if (!refValue.canRewrite()) continue
@@ -248,6 +272,13 @@ class CapturedVarsOptimizationMethodTransformer : MethodTransformer() {
                 capturedVar.putFieldInsns.forEach {
                     set(it, VarInsnNode(capturedVar.valueType.getOpcode(Opcodes.ISTORE), capturedVar.localVarIndex))
                 }
+
+                //after visiting block codegen tries to delete all allocated references:
+                // see ExpressionCodegen.addLeaveTaskToRemoveLocalVariableFromFrameMap
+                capturedVar.cleanVarInstruction?.let {
+                    remove(it.previous)
+                    remove(it)
+                }
             }
         }
     }
diff --git a/compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt b/compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt
new file mode 100644
index 00000000000..0d223fc9f97
--- /dev/null
+++ b/compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt
@@ -0,0 +1,26 @@
+inline fun inlineCall(action: () -> Unit) {
+    action()
+}
+
+fun test() {
+    var width = 1
+    inlineCall {
+        width += width
+    }
+}
+
+fun test2() {
+    var width = 1L
+    val newValue = 1;
+    val newValue2 = "123";
+    val newValue3 = 2.0;
+    inlineCall {
+        width += width
+    }
+}
+
+fun box(): String {
+    test()
+    test2()
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 771fc2a6df4..b448753c750 100644
--- a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -3859,6 +3859,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17200.kt")
+            public void testKt17200() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("sharedSlotsWithCapturedVars.kt")
             public void testSharedSlotsWithCapturedVars() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/sharedSlotsWithCapturedVars.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 39a84f7fc2b..6dbe21991cc 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -3859,6 +3859,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17200.kt")
+            public void testKt17200() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("sharedSlotsWithCapturedVars.kt")
             public void testSharedSlotsWithCapturedVars() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/sharedSlotsWithCapturedVars.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index c6991898fd2..0e9151b72bc 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -3859,6 +3859,12 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17200.kt")
+            public void testKt17200() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("sharedSlotsWithCapturedVars.kt")
             public void testSharedSlotsWithCapturedVars() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/sharedSlotsWithCapturedVars.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index fae7c286951..1df82a0d024 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -4532,6 +4532,12 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17200.kt")
+            public void testKt17200() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/kt17200.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("sharedSlotsWithCapturedVars.kt")
             public void testSharedSlotsWithCapturedVars() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/closures/capturedVarsOptimization/sharedSlotsWithCapturedVars.kt");