diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/Devirtualization.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/Devirtualization.kt
index b42a56d8d81..1532a88e7ed 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/Devirtualization.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/Devirtualization.kt
@@ -97,7 +97,9 @@ internal object Devirtualization {
                 moduleDFG.symbolTable.functionMap.values.filter { it.explicitlyExported } +
                 externalModulesDFG.functionDFGs.keys.filter { it.explicitlyExported }
 
-        // Conservatively assume each associated object could be instantiated.
+        // Conservatively assume each associated object could be called.
+        // Note: for constructors there is additional parameter (<this>) and its type will be added
+        // to instantiating classes since all objects are final types.
         val associatedObjects = mutableListOf<DataFlowIR.FunctionSymbol>()
         context.irModule!!.acceptChildrenVoid(object: IrElementVisitorVoid {
             override fun visitElement(element: IrElement) {
@@ -898,6 +900,8 @@ internal object Devirtualization {
                 }
                 if (entryPoint == null) {
                     // For library assume all public non-abstract classes could be instantiated.
+                    // Note: for constructors there is additional parameter (<this>) and for associated objects
+                    // its type will be added to instantiating classes since all objects are final types.
                     symbolTable.classMap.values
                             .filterIsInstance<DataFlowIR.Type.Public>()
                             .filter { !it.isAbstract }
@@ -907,20 +911,6 @@ internal object Devirtualization {
                     addInstantiatingClass(symbolTable.mapType(context.irBuiltIns.stringType).resolved())
                     addEdge(concreteClass(symbolTable.mapType(context.irBuiltIns.stringType).resolved()),
                             fieldNode(constraintGraph.arrayItemField))
-                    // Conservatively assume each associated object could be instantiated.
-                    context.irModule!!.acceptChildrenVoid(object: IrElementVisitorVoid {
-                        override fun visitElement(element: IrElement) {
-                            element.acceptChildrenVoid(this)
-                        }
-
-                        override fun visitClass(declaration: IrClass) {
-                            context.getLayoutBuilder(declaration).associatedObjects.values.forEach {
-                                assert (it.kind == ClassKind.OBJECT) { "An object expected but was ${it.dump()}" }
-                                addInstantiatingClass(symbolTable.mapType(it.defaultType).resolved())
-                            }
-                            super.visitClass(declaration)
-                        }
-                    })
                 }
                 rootSet.forEach { createFunctionConstraintGraph(it, true) }
                 while (stack.isNotEmpty()) {
diff --git a/backend.native/tests/objcexport/expectedLazy.h b/backend.native/tests/objcexport/expectedLazy.h
index a90ae1b33ce..a233bc6e11c 100644
--- a/backend.native/tests/objcexport/expectedLazy.h
+++ b/backend.native/tests/objcexport/expectedLazy.h
@@ -204,6 +204,12 @@ __attribute__((swift_name("GH4002Argument")))
 + (instancetype)new __attribute__((availability(swift, unavailable, message="use object initializers instead")));
 @end;
 
+__attribute__((objc_subclassing_restricted))
+__attribute__((swift_name("Kt35940Kt")))
+@interface KtKt35940Kt : KtBase
++ (NSString *)testKt35940 __attribute__((swift_name("testKt35940()")));
+@end;
+
 __attribute__((objc_subclassing_restricted))
 __attribute__((swift_name("LibraryKt")))
 @interface KtLibraryKt : KtBase
diff --git a/backend.native/tests/objcexport/kt35940.kt b/backend.native/tests/objcexport/kt35940.kt
new file mode 100644
index 00000000000..7a032bfcdcf
--- /dev/null
+++ b/backend.native/tests/objcexport/kt35940.kt
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2010-2020 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * that can be found in the LICENSE file.
+ */
+
+package kt35940
+
+import kotlin.reflect.*
+
+@OptIn(ExperimentalAssociatedObjects::class)
+@AssociatedObjectKey
+@Retention(AnnotationRetention.BINARY)
+annotation class Associated(val kClass: KClass<*>)
+
+private interface I1 {
+    val s: String
+}
+
+private class I1Impl : I1 {
+    override val s = "zzz"
+}
+
+private class C(var i1: I1?)
+
+private interface I2 {
+    fun bar(c: C)
+}
+
+private object I2Impl : I2 {
+    override fun bar(c: C) {
+        c.i1 = I1Impl()
+    }
+}
+
+@Associated(I2Impl::class)
+private class I2ImplHolder
+
+@OptIn(ExperimentalAssociatedObjects::class)
+fun testKt35940(): String {
+    val i2 = I2ImplHolder::class.findAssociatedObject<Associated>()!! as I2
+    val c = C(null)
+    i2.bar(c)
+    return c.i1!!.s
+}
diff --git a/backend.native/tests/objcexport/kt35940.swift b/backend.native/tests/objcexport/kt35940.swift
new file mode 100644
index 00000000000..6fba9a53182
--- /dev/null
+++ b/backend.native/tests/objcexport/kt35940.swift
@@ -0,0 +1,18 @@
+/*
+ * Copyright 2010-2020 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * that can be found in the LICENSE file.
+ */
+
+import Kt
+
+private func test1() throws {
+    try assertEquals(actual: Kt35940Kt.testKt35940(), expected: "zzz")
+}
+
+class Kt35940Tests : SimpleTestProvider {
+    override init() {
+        super.init()
+
+        test("Test1", test1)
+    }
+}
\ No newline at end of file