diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
index af73526cd7b..df2384b643f 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
@@ -186,18 +186,20 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
         }
     }
 
-    static class FinallyBlockStackElement extends BlockStackElement {
+    static class TryBlockStackElement extends BlockStackElement {
         List<Label> gaps = new ArrayList<>();
 
+        void addGapLabel(Label label){
+            gaps.add(label);
+        }
+    }
+
+    static class TryWithFinallyBlockStackElement extends TryBlockStackElement {
         final KtTryExpression expression;
 
-        FinallyBlockStackElement(KtTryExpression expression) {
+        TryWithFinallyBlockStackElement(KtTryExpression expression) {
             this.expression = expression;
         }
-
-        private void addGapLabel(Label label){
-            gaps.add(label);
-        }
     }
 
     @NotNull
@@ -701,19 +703,20 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
 
     @Override
     public StackValue visitBreakExpression(@NotNull KtBreakExpression expression, StackValue receiver) {
-        return generateBreakOrContinueExpression(expression, true, new Label());
+        return generateBreakOrContinueExpression(expression, true, new Label(), new ArrayList<>());
     }
 
     @Override
     public StackValue visitContinueExpression(@NotNull KtContinueExpression expression, StackValue receiver) {
-        return generateBreakOrContinueExpression(expression, false, new Label());
+        return generateBreakOrContinueExpression(expression, false, new Label(), new ArrayList<>());
     }
 
     @NotNull
     private StackValue generateBreakOrContinueExpression(
             @NotNull KtExpressionWithLabel expression,
             boolean isBreak,
-            @NotNull Label afterBreakContinueLabel
+            @NotNull Label afterBreakContinueLabel,
+            @NotNull List<TryBlockStackElement> nestedTryBlocksWithoutFinally
     ) {
         assert expression instanceof KtContinueExpression || expression instanceof KtBreakExpression;
 
@@ -723,9 +726,13 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
 
         BlockStackElement stackElement = blockStackElements.peek();
 
-        if (stackElement instanceof FinallyBlockStackElement) {
-            FinallyBlockStackElement finallyBlockStackElement = (FinallyBlockStackElement) stackElement;
-            genFinallyBlockOrGoto(finallyBlockStackElement, null, afterBreakContinueLabel);
+        if (stackElement instanceof TryWithFinallyBlockStackElement) {
+            TryWithFinallyBlockStackElement tryWithFinallyBlockStackElement = (TryWithFinallyBlockStackElement) stackElement;
+            genFinallyBlockOrGoto(tryWithFinallyBlockStackElement, null, afterBreakContinueLabel, nestedTryBlocksWithoutFinally);
+            nestedTryBlocksWithoutFinally.clear();
+        }
+        else if (stackElement instanceof TryBlockStackElement) {
+            nestedTryBlocksWithoutFinally.add((TryBlockStackElement) stackElement);
         }
         else if (stackElement instanceof LoopBlockStackElement) {
             LoopBlockStackElement loopBlockStackElement = (LoopBlockStackElement) stackElement;
@@ -748,7 +755,7 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
         }
 
         blockStackElements.pop();
-        StackValue result = generateBreakOrContinueExpression(expression, isBreak, afterBreakContinueLabel);
+        StackValue result = generateBreakOrContinueExpression(expression, isBreak, afterBreakContinueLabel, nestedTryBlocksWithoutFinally);
         blockStackElements.push(stackElement);
         return result;
     }
@@ -1508,12 +1515,16 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
         return myLastLineNumber;
     }
 
-    private void doFinallyOnReturn(@NotNull Label afterReturnLabel) {
+    private boolean doFinallyOnReturn(@NotNull Label afterReturnLabel, @NotNull List<TryBlockStackElement> nestedTryBlocksWithoutFinally) {
         if(!blockStackElements.isEmpty()) {
             BlockStackElement stackElement = blockStackElements.peek();
-            if (stackElement instanceof FinallyBlockStackElement) {
-                FinallyBlockStackElement finallyBlockStackElement = (FinallyBlockStackElement) stackElement;
-                genFinallyBlockOrGoto(finallyBlockStackElement, null, afterReturnLabel);
+            if (stackElement instanceof TryWithFinallyBlockStackElement) {
+                TryWithFinallyBlockStackElement tryWithFinallyBlockStackElement = (TryWithFinallyBlockStackElement) stackElement;
+                genFinallyBlockOrGoto(tryWithFinallyBlockStackElement, null, afterReturnLabel, nestedTryBlocksWithoutFinally);
+                nestedTryBlocksWithoutFinally.clear();
+            }
+            else if (stackElement instanceof TryBlockStackElement)  {
+                nestedTryBlocksWithoutFinally.add((TryBlockStackElement) stackElement);
             }
             else if (stackElement instanceof LoopBlockStackElement) {
 
@@ -1522,14 +1533,18 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
             }
 
             blockStackElements.pop();
-            doFinallyOnReturn(afterReturnLabel);
-            blockStackElements.push(stackElement);
+            try {
+                return doFinallyOnReturn(afterReturnLabel, nestedTryBlocksWithoutFinally);
+            } finally {
+                blockStackElements.push(stackElement);
+            }
         }
+        return false;
     }
 
     public boolean hasFinallyBlocks() {
         for (BlockStackElement element : blockStackElements) {
-            if (element instanceof FinallyBlockStackElement) {
+            if (element instanceof TryWithFinallyBlockStackElement) {
                 return true;
             }
         }
@@ -1537,21 +1552,23 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
     }
 
     private void genFinallyBlockOrGoto(
-            @Nullable FinallyBlockStackElement finallyBlockStackElement,
+            @Nullable TryWithFinallyBlockStackElement tryWithFinallyBlockStackElement,
             @Nullable Label tryCatchBlockEnd,
-            @Nullable Label afterJumpLabel
+            @Nullable Label afterJumpLabel,
+            @NotNull List<TryBlockStackElement> nestedTryBlocksWithoutFinally
     ) {
-        if (finallyBlockStackElement != null) {
+        if (tryWithFinallyBlockStackElement != null) {
             finallyDepth++;
-            assert finallyBlockStackElement.gaps.size() % 2 == 0 : "Finally block gaps are inconsistent";
+            assert tryWithFinallyBlockStackElement.gaps.size() % 2 == 0 : "Finally block gaps are inconsistent";
 
             BlockStackElement topOfStack = blockStackElements.pop();
-            assert topOfStack == finallyBlockStackElement : "Top element of stack doesn't equals processing finally block";
+            assert topOfStack == tryWithFinallyBlockStackElement : "Top element of stack doesn't equals processing finally block";
 
-            KtTryExpression jetTryExpression = finallyBlockStackElement.expression;
+            KtTryExpression jetTryExpression = tryWithFinallyBlockStackElement.expression;
             Label finallyStart = new Label();
             v.mark(finallyStart);
-            finallyBlockStackElement.addGapLabel(finallyStart);
+            tryWithFinallyBlockStackElement.addGapLabel(finallyStart);
+            addGapLabelsForNestedTryCatchWithoutFinally(state, nestedTryBlocksWithoutFinally, finallyStart);
             if (isFinallyMarkerRequired(context)) {
                 generateFinallyMarker(v, finallyDepth, true);
             }
@@ -1564,22 +1581,35 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
         }
 
         if (tryCatchBlockEnd != null) {
-            if (finallyBlockStackElement != null) {
-                markLineNumber(finallyBlockStackElement.expression, true);
+            if (tryWithFinallyBlockStackElement != null) {
+                markLineNumber(tryWithFinallyBlockStackElement.expression, true);
             }
 
             v.goTo(tryCatchBlockEnd);
         }
 
-        if (finallyBlockStackElement != null) {
+        if (tryWithFinallyBlockStackElement != null) {
             finallyDepth--;
             Label finallyEnd = afterJumpLabel != null ? afterJumpLabel : new Label();
             if (afterJumpLabel == null) {
                 v.mark(finallyEnd);
             }
-            finallyBlockStackElement.addGapLabel(finallyEnd);
+            tryWithFinallyBlockStackElement.addGapLabel(finallyEnd);
+            addGapLabelsForNestedTryCatchWithoutFinally(state, nestedTryBlocksWithoutFinally, finallyEnd);
 
-            blockStackElements.push(finallyBlockStackElement);
+            blockStackElements.push(tryWithFinallyBlockStackElement);
+        }
+    }
+
+    private static void addGapLabelsForNestedTryCatchWithoutFinally(
+            @NotNull GenerationState state,
+            @NotNull List<TryBlockStackElement> nestedTryBlocksWithoutFinally,
+            @NotNull Label label
+    ) {
+        if (state.getLanguageVersionSettings().supportsFeature(LanguageFeature.ProperFinally)) {
+            for (TryBlockStackElement tryBlock : nestedTryBlocksWithoutFinally) {
+                tryBlock.addGapLabel(label);
+            }
         }
     }
 
@@ -1637,12 +1667,12 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
                 int returnValIndex = myFrameMap.enterTemp(returnType);
                 StackValue.Local localForReturnValue = StackValue.local(returnValIndex, returnType, returnKotlinType);
                 localForReturnValue.store(StackValue.onStack(returnType, returnKotlinType), v);
-                doFinallyOnReturn(afterReturnLabel);
+                doFinallyOnReturn(afterReturnLabel, new ArrayList<>());
                 localForReturnValue.put(returnType, null, v);
                 myFrameMap.leaveTemp(returnType);
             }
             else {
-                doFinallyOnReturn(afterReturnLabel);
+                doFinallyOnReturn(afterReturnLabel, new ArrayList<>());
             }
         }
     }
@@ -4703,10 +4733,16 @@ The "returned" value of try expression with no finally is either the last expres
 
         return StackValue.operation(expectedAsmType, expectedKotlinType, v -> {
             KtFinallySection finallyBlock = expression.getFinallyBlock();
-            FinallyBlockStackElement finallyBlockStackElement = null;
+            TryWithFinallyBlockStackElement tryWithFinallyBlockStackElement = null;
+            TryBlockStackElement element;
             if (finallyBlock != null) {
-                finallyBlockStackElement = new FinallyBlockStackElement(expression);
-                blockStackElements.push(finallyBlockStackElement);
+                tryWithFinallyBlockStackElement = new TryWithFinallyBlockStackElement(expression);
+                element = tryWithFinallyBlockStackElement;
+                blockStackElements.push(tryWithFinallyBlockStackElement);
+            }
+            else {
+                element = new TryBlockStackElement();
+                blockStackElements.push(element);
             }
 
             //PseudoInsnsPackage.saveStackBeforeTryExpr(v);
@@ -4727,11 +4763,11 @@ The "returned" value of try expression with no finally is either the last expres
             v.mark(tryEnd);
 
             //do it before finally block generation
-            List<Label> tryBlockRegions = getCurrentCatchIntervals(finallyBlockStackElement, tryStart, tryEnd);
+            List<Label> tryBlockRegions = getCurrentCatchIntervals(element, tryStart, tryEnd);
 
             Label end = new Label();
 
-            genFinallyBlockOrGoto(finallyBlockStackElement, end, null);
+            genFinallyBlockOrGoto(tryWithFinallyBlockStackElement, end, null, new ArrayList<>());
 
             List<KtCatchClause> clauses = expression.getCatchClauses();
             for (int i = 0, size = clauses.size(); i < size; i++) {
@@ -4769,7 +4805,7 @@ The "returned" value of try expression with no finally is either the last expres
                 v.visitLocalVariable(descriptor.getName().asString(), descriptorType.getDescriptor(), null,
                                      catchVariableStart, clauseEnd, index);
 
-                genFinallyBlockOrGoto(finallyBlockStackElement, i != size - 1 || finallyBlock != null ? end : null, null);
+                genFinallyBlockOrGoto(tryWithFinallyBlockStackElement, i != size - 1 || finallyBlock != null ? end : null, null, new ArrayList<>());
 
                 generateExceptionTable(clauseStart, tryBlockRegions, descriptorType.getInternalName());
             }
@@ -4787,10 +4823,10 @@ The "returned" value of try expression with no finally is either the last expres
 
                 //do it before finally block generation
                 //javac also generates entry in exception table for default catch clause too!!!! so defaultCatchEnd as end parameter
-                List<Label> defaultCatchRegions = getCurrentCatchIntervals(finallyBlockStackElement, tryStart, defaultCatchEnd);
+                List<Label> defaultCatchRegions = getCurrentCatchIntervals(tryWithFinallyBlockStackElement, tryStart, defaultCatchEnd);
 
 
-                genFinallyBlockOrGoto(finallyBlockStackElement, null, null);
+                genFinallyBlockOrGoto(tryWithFinallyBlockStackElement, null, null, new ArrayList<>());
 
                 v.load(savedException, JAVA_THROWABLE_TYPE);
                 myFrameMap.leaveTemp(JAVA_THROWABLE_TYPE);
@@ -4808,9 +4844,9 @@ The "returned" value of try expression with no finally is either the last expres
                 myFrameMap.leaveTemp(expectedAsmType);
             }
 
-            if (finallyBlock != null) {
-                blockStackElements.pop();
-            }
+
+            blockStackElements.pop();
+
             return Unit.INSTANCE;
         });
     }
@@ -4830,7 +4866,7 @@ The "returned" value of try expression with no finally is either the last expres
 
     @NotNull
     private static List<Label> getCurrentCatchIntervals(
-            @Nullable FinallyBlockStackElement finallyBlockStackElement,
+            @Nullable TryBlockStackElement finallyBlockStackElement,
             @NotNull Label blockStart,
             @NotNull Label blockEnd
     ) {
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
index 158fa595906..b9f23331cc4 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ExpressionCodegen.kt
@@ -26,6 +26,7 @@ import org.jetbrains.kotlin.codegen.pseudoInsns.fakeAlwaysFalseIfeq
 import org.jetbrains.kotlin.codegen.pseudoInsns.fixStackAndJump
 import org.jetbrains.kotlin.codegen.signature.BothSignatureWriter
 import org.jetbrains.kotlin.config.ApiVersion
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.config.isReleaseCoroutines
 import org.jetbrains.kotlin.config.languageVersionSettings
 import org.jetbrains.kotlin.descriptors.ClassDescriptor
@@ -59,17 +60,19 @@ sealed class ExpressionInfo
 
 class LoopInfo(val loop: IrLoop, val continueLabel: Label, val breakLabel: Label) : ExpressionInfo()
 
-class TryInfo(val onExit: IrExpression) : ExpressionInfo() {
+open class TryInfo : ExpressionInfo() {
     // Regions corresponding to copy-pasted contents of the `finally` block.
     // These should not be covered by `catch` clauses.
     val gaps = mutableListOf<Pair<Label, Label>>()
 }
 
+class TryWithFinallyInfo(val onExit: IrExpression) : TryInfo()
+
 class BlockInfo(val parent: BlockInfo? = null) {
     val variables = mutableListOf<VariableInfo>()
     private val infos: Stack<ExpressionInfo> = parent?.infos ?: Stack()
 
-    fun hasFinallyBlocks(): Boolean = infos.firstIsInstanceOrNull<TryInfo>() != null
+    fun hasFinallyBlocks(): Boolean = infos.firstIsInstanceOrNull<TryWithFinallyInfo>() != null
 
     internal inline fun <T : ExpressionInfo, R> withBlock(info: T, f: (T) -> R): R {
         infos.add(info)
@@ -735,11 +738,20 @@ class ExpressionCodegen(
         return immaterialUnitValue
     }
 
-    private fun unwindBlockStack(endLabel: Label, data: BlockInfo, stop: (ExpressionInfo) -> Boolean = { false }): ExpressionInfo? {
+    private fun unwindBlockStack(
+        endLabel: Label,
+        data: BlockInfo,
+        nestedTryWithoutFinally: MutableList<TryInfo> = arrayListOf(),
+        stop: (ExpressionInfo) -> Boolean = { false }
+    ): ExpressionInfo? {
         return data.handleBlock {
-            if (it is TryInfo)
-                genFinallyBlock(it, null, endLabel, data)
-            return if (stop(it)) it else unwindBlockStack(endLabel, data, stop)
+            if (it is TryWithFinallyInfo) {
+                genFinallyBlock(it, null, endLabel, data, nestedTryWithoutFinally)
+                nestedTryWithoutFinally.clear()
+            } else if (it is TryInfo) {
+                nestedTryWithoutFinally.add(it)
+            }
+            return if (stop(it)) it else unwindBlockStack(endLabel, data, nestedTryWithoutFinally, stop)
         }
     }
 
@@ -755,13 +767,13 @@ class ExpressionCodegen(
 
     override fun visitTry(aTry: IrTry, data: BlockInfo): PromisedValue {
         aTry.markLineNumber(startOffset = true)
-        return if (aTry.finallyExpression != null)
-            data.withBlock(TryInfo(aTry.finallyExpression!!)) { visitTryWithInfo(aTry, data, it) }
-        else
-            visitTryWithInfo(aTry, data, null)
+        return data.withBlock(if (aTry.finallyExpression != null) TryWithFinallyInfo(aTry.finallyExpression!!) else TryInfo()) {
+            visitTryWithInfo(aTry, data, it)
+        }
+
     }
 
-    private fun visitTryWithInfo(aTry: IrTry, data: BlockInfo, tryInfo: TryInfo?): PromisedValue {
+    private fun visitTryWithInfo(aTry: IrTry, data: BlockInfo, tryInfo: TryInfo): PromisedValue {
         val tryBlockStart = markNewLabel()
         mv.nop()
         val tryAsmType = aTry.asmType
@@ -777,9 +789,9 @@ class ExpressionCodegen(
         }
 
         val tryBlockEnd = markNewLabel()
-        val tryBlockGaps = tryInfo?.gaps?.toList() ?: listOf()
+        val tryBlockGaps = tryInfo.gaps.toList()
         val tryCatchBlockEnd = Label()
-        if (tryInfo != null) {
+        if (tryInfo is TryWithFinallyInfo) {
             data.handleBlock { genFinallyBlock(tryInfo, tryCatchBlockEnd, null, data) }
         } else {
             mv.goTo(tryCatchBlockEnd)
@@ -812,7 +824,7 @@ class ExpressionCodegen(
                 index
             )
 
-            if (tryInfo != null) {
+            if (tryInfo is TryWithFinallyInfo) {
                 data.handleBlock { genFinallyBlock(tryInfo, tryCatchBlockEnd, null, data) }
             } else if (clause != catches.last()) {
                 mv.goTo(tryCatchBlockEnd)
@@ -821,7 +833,7 @@ class ExpressionCodegen(
             genTryCatchCover(clauseStart, tryBlockStart, tryBlockEnd, tryBlockGaps, descriptorType.internalName)
         }
 
-        if (tryInfo != null) {
+        if (tryInfo is TryWithFinallyInfo) {
             // Generate `try { ... } catch (e: Any?) { <finally>; throw e }` around every part of
             // the try-catch that is not a copy-pasted `finally` block.
             val defaultCatchStart = markNewLabel()
@@ -860,22 +872,34 @@ class ExpressionCodegen(
         mv.visitTryCatchBlock(lastRegionStart, tryEnd, catchStart, type)
     }
 
-    private fun genFinallyBlock(tryInfo: TryInfo, tryCatchBlockEnd: Label?, afterJumpLabel: Label?, data: BlockInfo) {
+    private fun genFinallyBlock(
+        tryWithFinallyInfo: TryWithFinallyInfo,
+        tryCatchBlockEnd: Label?,
+        afterJumpLabel: Label?,
+        data: BlockInfo,
+        nestedTryWithoutFinally: MutableList<TryInfo> = arrayListOf()
+    ) {
         val gapStart = markNewLabel()
         finallyDepth++
         if (isFinallyMarkerRequired()) {
             generateFinallyMarker(mv, finallyDepth, true)
         }
-        tryInfo.onExit.accept(this, data).discard()
+        tryWithFinallyInfo.onExit.accept(this, data).discard()
         if (isFinallyMarkerRequired()) {
             generateFinallyMarker(mv, finallyDepth, false)
         }
         finallyDepth--
         if (tryCatchBlockEnd != null) {
-            tryInfo.onExit.markLineNumber(startOffset = false)
+            tryWithFinallyInfo.onExit.markLineNumber(startOffset = false)
             mv.goTo(tryCatchBlockEnd)
         }
-        tryInfo.gaps.add(gapStart to (afterJumpLabel ?: markNewLabel()))
+        val gapEnd = afterJumpLabel ?: markNewLabel()
+        tryWithFinallyInfo.gaps.add(gapStart to gapEnd)
+        if (state.languageVersionSettings.supportsFeature(LanguageFeature.ProperFinally)) {
+            for (it in nestedTryWithoutFinally) {
+                it.gaps.add(gapStart to gapEnd)
+            }
+        }
     }
 
     fun generateFinallyBlocksIfNeeded(returnType: Type, afterReturnLabel: Label, data: BlockInfo) {
diff --git a/compiler/testData/codegen/box/finally/breakAndOuterFinally.kt b/compiler/testData/codegen/box/finally/breakAndOuterFinally.kt
new file mode 100644
index 00000000000..4002a0e9353
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/breakAndOuterFinally.kt
@@ -0,0 +1,31 @@
+// IGNORE_BACKEND_FIR: JVM_IR
+var result = ""
+
+fun test() {
+    try {
+        for (z in 1..2) {
+
+            try {
+                result += "try"
+                break
+            } catch (fail: Throwable) {
+                result += " catch"
+            }
+        }
+        result += " after loop"
+    } finally {
+        result += " finally"
+        throw RuntimeException()
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try after loop finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/continueAndOuterFinally.kt b/compiler/testData/codegen/box/finally/continueAndOuterFinally.kt
new file mode 100644
index 00000000000..cbe77f58f88
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/continueAndOuterFinally.kt
@@ -0,0 +1,31 @@
+// IGNORE_BACKEND_FIR: JVM_IR
+var result = ""
+
+fun test() {
+    try {
+        for (z in 1..2) {
+
+            try {
+                result += "try "
+                continue
+            } catch (fail: Throwable) {
+                result += " catch"
+            }
+        }
+        result += "after loop"
+    } finally {
+        result += " finally"
+        throw RuntimeException()
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try try after loop finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/kt31923_break.kt b/compiler/testData/codegen/box/finally/kt31923_break.kt
new file mode 100644
index 00000000000..c93431c6dad
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/kt31923_break.kt
@@ -0,0 +1,30 @@
+// !LANGUAGE: +ProperFinally
+// IGNORE_BACKEND_FIR: JVM_IR
+var result = ""
+
+fun test() {
+    for (z in 1..2) {
+        try {
+            try {
+                result += "try"
+                break
+            } catch (fail: Throwable) {
+                result += " catch"
+            }
+        } finally {
+            result += " finally"
+            throw RuntimeException()
+        }
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/kt31923_continue.kt b/compiler/testData/codegen/box/finally/kt31923_continue.kt
new file mode 100644
index 00000000000..a8742e9a542
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/kt31923_continue.kt
@@ -0,0 +1,30 @@
+// !LANGUAGE: +ProperFinally
+// IGNORE_BACKEND_FIR: JVM_IR
+var result = ""
+
+fun test() {
+    for (z in 1..2) {
+        try {
+            try {
+                result += "try"
+                continue
+            } catch (fail: Throwable) {
+                result += "catch"
+            }
+        } finally {
+            result += " finally"
+            throw RuntimeException()
+        }
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/kt31923_return.kt b/compiler/testData/codegen/box/finally/kt31923_return.kt
new file mode 100644
index 00000000000..149e60cdda1
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/kt31923_return.kt
@@ -0,0 +1,27 @@
+// !LANGUAGE: +ProperFinally
+var result = ""
+
+fun test() {
+    try {
+        try {
+            result += "try"
+            return
+        } catch (fail: Throwable) {
+            result += " catch"
+        }
+    } finally {
+        result += " finally"
+        throw RuntimeException()
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/kt31923_wrong.kt b/compiler/testData/codegen/box/finally/kt31923_wrong.kt
new file mode 100644
index 00000000000..3d82d47cad0
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/kt31923_wrong.kt
@@ -0,0 +1,28 @@
+// !LANGUAGE: -ProperFinally
+// TARGET_BACKEND: JVM
+var result = ""
+
+fun test() {
+    try {
+        try {
+            result += "try"
+            return
+        } catch (fail: Throwable) {
+            result += " catch"
+        }
+    } finally {
+        result += " finally"
+        throw RuntimeException()
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+
+    }
+
+    return if (result == "try finally catch finally") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt
new file mode 100644
index 00000000000..68146c53e21
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt
@@ -0,0 +1,32 @@
+// !LANGUAGE: +ProperFinally
+var result = ""
+
+fun test() {
+    try {
+        try {
+            try {
+                result += "try"
+                return
+            } catch (fail: Throwable) {
+                result += " catch"
+            }
+        } finally {
+            result += " finally 1"
+            throw RuntimeException("Fail 1")
+        }
+    } finally {
+        result += " finally 2"
+        throw RuntimeException("Fail 2")
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+        if (e.message != "Fail 2") return "wrong exception: ${e.message}"
+    }
+
+    return if (result == "try finally 1 finally 2") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt
new file mode 100644
index 00000000000..9a918f721ff
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt
@@ -0,0 +1,34 @@
+// !LANGUAGE: +ProperFinally
+var result = ""
+
+fun test() {
+    try {
+        try {
+            try {
+                result += "try"
+                return
+            } catch (fail: Throwable) {
+                result += " catch"
+            }
+        } catch (e: Throwable) {
+            result += " finally_catch"
+        } finally {
+            result += " finally 1"
+            throw RuntimeException("Fail 1")
+        }
+    } finally {
+        result += " finally 2"
+        throw RuntimeException("Fail 2")
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+        if (e.message != "Fail 2") return "wrong exception: ${e.message}"
+    }
+
+    return if (result == "try finally 1 finally 2") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt
new file mode 100644
index 00000000000..18ff9a526e3
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt
@@ -0,0 +1,37 @@
+// !LANGUAGE: +ProperFinally
+var result = ""
+
+fun test() {
+    try {
+        try {
+            try {
+                try {
+                    result += "try"
+                    return
+                } catch (fail: Throwable) {
+                    result += " catch"
+                }
+            } finally {
+                result += " finally 1"
+                throw RuntimeException(" exception from finally 1")
+            }
+        } catch (e: Throwable) {
+            result += " catch 2"
+            result += e.message
+        }
+    } finally {
+        result += " finally 2"
+        throw RuntimeException("Fail 2")
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+        if (e.message != "Fail 2") return "wrong exception: ${e.message}"
+    }
+
+    return if (result == "try finally 1 catch 2 exception from finally 1 finally 2") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt
new file mode 100644
index 00000000000..6f729f1bc46
--- /dev/null
+++ b/compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt
@@ -0,0 +1,36 @@
+// !LANGUAGE: +ProperFinally
+var result = ""
+
+fun test() {
+    try {
+        try {
+            try {
+                try {
+                    result += "try"
+                    return
+                } catch (fail: Throwable) {
+                    result += " catch"
+                }
+            } finally {
+                result += " finally 1"
+            }
+        } catch (e: Throwable) {
+            result += " catch 2"
+            result += e.message
+        }
+    } finally {
+        result += " finally 2"
+        throw RuntimeException("Fail 2")
+    }
+}
+
+fun box(): String {
+    try {
+        test()
+        return "fail: expected exception"
+    } catch (e: RuntimeException) {
+        if (e.message != "Fail 2") return "wrong exception: ${e.message}"
+    }
+
+    return if (result == "try finally 1 finally 2") "OK" else "fail: $result"
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index d08b896d524..982be1fd81a 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -11239,11 +11239,41 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
+        @TestMetadata("kt31923_wrong.kt")
+        public void testKt31923_wrong() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_wrong.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -11279,6 +11309,26 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 98062f8d9d4..43857c3b40f 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -11239,11 +11239,41 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
+        @TestMetadata("kt31923_wrong.kt")
+        public void testKt31923_wrong() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_wrong.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -11279,6 +11309,26 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
index 2ab873c530e..5990373fadc 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
@@ -10089,11 +10089,41 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM_IR, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
+        @TestMetadata("kt31923_wrong.kt")
+        public void testKt31923_wrong() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_wrong.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -10129,6 +10159,26 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 89177191754..af8cf518445 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -10089,11 +10089,41 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM_IR, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
+        @TestMetadata("kt31923_wrong.kt")
+        public void testKt31923_wrong() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_wrong.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -10129,6 +10159,26 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
index d3e5024f815..d80e2d10d19 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrCompileKotlinAgainstInlineKotlinTestGenerated.java
@@ -2433,6 +2433,16 @@ public class IrCompileKotlinAgainstInlineKotlinTestGenerated extends AbstractIrC
                     KotlinTestUtils.runTestWithCustomIgnoreDirective(this::doTest, TargetBackend.JVM_IR, testDataFilePath, "// IGNORE_BACKEND_MULTI_MODULE: ");
                 }
 
+                @TestMetadata("31929.kt")
+                public void test31929() throws Exception {
+                    runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/31929.kt");
+                }
+
+                @TestMetadata("31929_2.kt")
+                public void test31929_2() throws Exception {
+                    runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/31929_2.kt");
+                }
+
                 public void testAllFilesPresentInExceptionTable() throws Exception {
                     KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM_IR, true);
                 }
@@ -2472,6 +2482,16 @@ public class IrCompileKotlinAgainstInlineKotlinTestGenerated extends AbstractIrC
                     runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/innerAndExternalSimple.kt");
                 }
 
+                @TestMetadata("kt31923.kt")
+                public void testKt31923() throws Exception {
+                    runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/kt31923.kt");
+                }
+
+                @TestMetadata("kt31923_2.kt")
+                public void testKt31923_2() throws Exception {
+                    runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/kt31923_2.kt");
+                }
+
                 @TestMetadata("nested.kt")
                 public void testNested() throws Exception {
                     runTest("compiler/testData/codegen/boxInline/nonLocalReturns/tryFinally/exceptionTable/nested.kt");
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 7e06ebb0f23..14094eadce5 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -115,6 +115,7 @@ enum class LanguageFeature(
     ProhibitInvisibleAbstractMethodsInSuperclasses(KOTLIN_1_4, kind = BUG_FIX),
     ProhibitNonReifiedArraysAsReifiedTypeArguments(KOTLIN_1_4, kind = BUG_FIX),
     ProhibitProtectedCallFromInline(KOTLIN_1_4, kind = BUG_FIX),
+    ProperFinally(KOTLIN_1_4, kind = BUG_FIX),
 
     ProperVisibilityForCompanionObjectInstanceField(sinceVersion = null, kind = BUG_FIX),
     // Temporarily disabled, see KT-27084/KT-22379
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 ec47d57bd7a..b72c26bcad0 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
@@ -8754,11 +8754,36 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JS_IR, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -8794,6 +8819,26 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.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 70235fea987..0307d176924 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
@@ -9829,11 +9829,36 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/finally"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JS, true);
         }
 
+        @TestMetadata("breakAndOuterFinally.kt")
+        public void testBreakAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/breakAndOuterFinally.kt");
+        }
+
+        @TestMetadata("continueAndOuterFinally.kt")
+        public void testContinueAndOuterFinally() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/continueAndOuterFinally.kt");
+        }
+
         @TestMetadata("finallyAndFinally.kt")
         public void testFinallyAndFinally() throws Exception {
             runTest("compiler/testData/codegen/box/finally/finallyAndFinally.kt");
         }
 
+        @TestMetadata("kt31923_break.kt")
+        public void testKt31923_break() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_break.kt");
+        }
+
+        @TestMetadata("kt31923_continue.kt")
+        public void testKt31923_continue() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_continue.kt");
+        }
+
+        @TestMetadata("kt31923_return.kt")
+        public void testKt31923_return() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/kt31923_return.kt");
+        }
+
         @TestMetadata("kt3549.kt")
         public void testKt3549() throws Exception {
             runTest("compiler/testData/codegen/box/finally/kt3549.kt");
@@ -9869,6 +9894,26 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/finally/loopAndFinally.kt");
         }
 
+        @TestMetadata("nestedFinallyAndNonFinallyTry.kt")
+        public void testNestedFinallyAndNonFinallyTry() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry2.kt")
+        public void testNestedFinallyAndNonFinallyTry2() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry2.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry3.kt")
+        public void testNestedFinallyAndNonFinallyTry3() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry3.kt");
+        }
+
+        @TestMetadata("nestedFinallyAndNonFinallyTry4.kt")
+        public void testNestedFinallyAndNonFinallyTry4() throws Exception {
+            runTest("compiler/testData/codegen/box/finally/nestedFinallyAndNonFinallyTry4.kt");
+        }
+
         @TestMetadata("notChainCatch.kt")
         public void testNotChainCatch() throws Exception {
             runTest("compiler/testData/codegen/box/finally/notChainCatch.kt");