diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ClosureAnnotator.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ClosureAnnotator.kt
index b60b2840bbd..7d3c16694c4 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ClosureAnnotator.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/ClosureAnnotator.kt
@@ -20,6 +20,7 @@ import org.jetbrains.kotlin.backend.common.ir.ir2string
 import org.jetbrains.kotlin.backend.common.peek
 import org.jetbrains.kotlin.backend.common.pop
 import org.jetbrains.kotlin.backend.common.push
+import org.jetbrains.kotlin.descriptors.Visibilities
 import org.jetbrains.kotlin.ir.IrElement
 import org.jetbrains.kotlin.ir.declarations.*
 import org.jetbrains.kotlin.ir.expressions.IrFunctionAccessExpression
@@ -189,7 +190,7 @@ class ClosureAnnotator(irFile: IrFile) {
 
         private fun processMemberAccess(declaration: IrDeclaration) {
             if (declaration.isLocal) {
-                if (declaration is IrSimpleFunction && declaration.parent is IrClass) {
+                if (declaration is IrSimpleFunction && declaration.visibility != Visibilities.LOCAL) {
                     return
                 }
 
diff --git a/compiler/testData/codegen/box/closures/localFunInInit.kt b/compiler/testData/codegen/box/closures/localFunInInit.kt
new file mode 100644
index 00000000000..0f81d73138b
--- /dev/null
+++ b/compiler/testData/codegen/box/closures/localFunInInit.kt
@@ -0,0 +1,10 @@
+// IGNORE_BACKEND_FIR: JVM_IR
+class A {
+    val result: String
+    init {
+        val flag = "OK"
+        fun getFlag(): String = flag
+        result = { getFlag() } ()
+    }
+}
+fun box(): String = A().result
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 982be1fd81a..e63b36e3f2f 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -3966,6 +3966,11 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 43857c3b40f..ceb50fab7df 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -3966,6 +3966,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
index 5990373fadc..818dabe3363 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
@@ -3946,6 +3946,11 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index af8cf518445..17a810b2b91 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -3946,6 +3946,11 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
index b72c26bcad0..f9631ffdc68 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
@@ -3291,6 +3291,11 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.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 0307d176924..cd6d6491c13 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
@@ -3291,6 +3291,11 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/closures/localClassLambdaClosure.kt");
         }
 
+        @TestMetadata("localFunInInit.kt")
+        public void testLocalFunInInit() throws Exception {
+            runTest("compiler/testData/codegen/box/closures/localFunInInit.kt");
+        }
+
         @TestMetadata("localFunctionInFunction.kt")
         public void testLocalFunctionInFunction() throws Exception {
             runTest("compiler/testData/codegen/box/closures/localFunctionInFunction.kt");