diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/coroutines/CoroutineTransformationClassBuilder.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/coroutines/CoroutineTransformationClassBuilder.kt
index 377c3d5bcf6..c05174d2d3a 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/coroutines/CoroutineTransformationClassBuilder.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/coroutines/CoroutineTransformationClassBuilder.kt
@@ -229,6 +229,18 @@ class CoroutineTransformerMethodVisitor(
                             }
 
             for ((index, basicValue) in variablesToSpill) {
+                if (basicValue === StrictBasicValue.NULL_VALUE) {
+                    postponedActions.add {
+                        with(instructions) {
+                            insert(suspension.tryCatchBlockEndLabelAfterSuspensionCall, withInstructionAdapter {
+                                aconst(null)
+                                store(index, AsmTypes.OBJECT_TYPE)
+                            })
+                        }
+                    }
+                    continue
+                }
+
                 val type = basicValue.type
                 val normalizedType = type.normalize()
 
diff --git a/compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt b/compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt
new file mode 100644
index 00000000000..e3f75d35f15
--- /dev/null
+++ b/compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt
@@ -0,0 +1,45 @@
+// WITH_RUNTIME
+// WITH_COROUTINES
+import kotlin.coroutines.experimental.*
+import kotlin.coroutines.experimental.intrinsics.*
+
+suspend fun foo(value: String): String = suspendCoroutineOrReturn { x ->
+    x.resume(value)
+    COROUTINE_SUSPENDED
+}
+
+fun bar(x: String?, y: String, z: String): String {
+    if (x != null) throw RuntimeException("fail 0")
+    return y + z
+}
+
+suspend fun baz1(): String {
+    return bar(null, foo("O"), foo("K"))
+}
+
+suspend fun baz2(): String {
+    var x = null
+
+    for (i in 1..3) {
+        x = null
+    }
+
+    return bar(x, foo("O"), foo("K"))
+}
+
+fun builder(c: suspend () -> Unit) {
+    c.startCoroutine(EmptyContinuation)
+}
+
+fun box(): String {
+    var result = ""
+
+    builder {
+        result = baz1()
+
+        if (result != "OK") throw RuntimeException("fail 1")
+        result = baz2()
+    }
+
+    return result
+}
diff --git a/compiler/testData/codegen/light-analysis/coroutines/varSpilling/nullSpilling.txt b/compiler/testData/codegen/light-analysis/coroutines/varSpilling/nullSpilling.txt
new file mode 100644
index 00000000000..3940f0ef38a
--- /dev/null
+++ b/compiler/testData/codegen/light-analysis/coroutines/varSpilling/nullSpilling.txt
@@ -0,0 +1,34 @@
+@kotlin.Metadata
+public final class CoroutineUtilKt {
+    public final static @org.jetbrains.annotations.NotNull method handleExceptionContinuation(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): kotlin.coroutines.experimental.Continuation
+    public final static @org.jetbrains.annotations.NotNull method handleResultContinuation(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): kotlin.coroutines.experimental.Continuation
+}
+
+@kotlin.Metadata
+public class EmptyContinuation {
+    public final static field Companion: EmptyContinuation.Companion
+    private final @org.jetbrains.annotations.NotNull field context: kotlin.coroutines.experimental.CoroutineContext
+    inner class EmptyContinuation/Companion
+    public @synthetic.kotlin.jvm.GeneratedByJvmOverloads method <init>(): void
+    public method <init>(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.experimental.CoroutineContext): void
+    public synthetic method <init>(p0: kotlin.coroutines.experimental.CoroutineContext, p1: int, p2: kotlin.jvm.internal.DefaultConstructorMarker): void
+    public @org.jetbrains.annotations.NotNull method getContext(): kotlin.coroutines.experimental.CoroutineContext
+    public method resume(@org.jetbrains.annotations.Nullable p0: java.lang.Object): void
+    public method resumeWithException(@org.jetbrains.annotations.NotNull p0: java.lang.Throwable): void
+}
+
+@kotlin.Metadata
+public final static class EmptyContinuation/Companion {
+    inner class EmptyContinuation/Companion
+    private method <init>(): void
+}
+
+@kotlin.Metadata
+public final class NullSpillingKt {
+    public final static @org.jetbrains.annotations.NotNull method bar(@org.jetbrains.annotations.Nullable p0: java.lang.String, @org.jetbrains.annotations.NotNull p1: java.lang.String, @org.jetbrains.annotations.NotNull p2: java.lang.String): java.lang.String
+    public final static @org.jetbrains.annotations.Nullable method baz1(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
+    public final static @org.jetbrains.annotations.Nullable method baz2(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
+    public final static @org.jetbrains.annotations.NotNull method box(): java.lang.String
+    public final static method builder(@org.jetbrains.annotations.NotNull p0: kotlin.jvm.functions.Function1): void
+    public final static @org.jetbrains.annotations.Nullable method foo(@org.jetbrains.annotations.NotNull p0: java.lang.String, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
+}
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 1d87044f2ad..f809a1081d3 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
@@ -5359,6 +5359,21 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
                 doTest(fileName);
             }
         }
+
+        @TestMetadata("compiler/testData/codegen/box/coroutines/varSpilling")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class VarSpilling extends AbstractIrBlackBoxCodegenTest {
+            public void testAllFilesPresentInVarSpilling() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/coroutines/varSpilling"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
+            }
+
+            @TestMetadata("nullSpilling.kt")
+            public void testNullSpilling() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt");
+                doTest(fileName);
+            }
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/box/dataClasses")
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index a937719911d..ea4f7aa9fc7 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -5359,6 +5359,21 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 doTest(fileName);
             }
         }
+
+        @TestMetadata("compiler/testData/codegen/box/coroutines/varSpilling")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class VarSpilling extends AbstractBlackBoxCodegenTest {
+            public void testAllFilesPresentInVarSpilling() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/coroutines/varSpilling"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
+            }
+
+            @TestMetadata("nullSpilling.kt")
+            public void testNullSpilling() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt");
+                doTest(fileName);
+            }
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/box/dataClasses")
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
index 029e884dabd..40ddbc8f34e 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeCodegenTestGenerated.java
@@ -5359,6 +5359,21 @@ public class LightAnalysisModeCodegenTestGenerated extends AbstractLightAnalysis
                 doTest(fileName);
             }
         }
+
+        @TestMetadata("compiler/testData/codegen/box/coroutines/varSpilling")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class VarSpilling extends AbstractLightAnalysisModeCodegenTest {
+            public void testAllFilesPresentInVarSpilling() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/coroutines/varSpilling"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
+            }
+
+            @TestMetadata("nullSpilling.kt")
+            public void testNullSpilling() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt");
+                doTest(fileName);
+            }
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/box/dataClasses")
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 3b140c4b0ca..b9f067573d1 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
@@ -6062,6 +6062,21 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
                 doTest(fileName);
             }
         }
+
+        @TestMetadata("compiler/testData/codegen/box/coroutines/varSpilling")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class VarSpilling extends AbstractJsCodegenBoxTest {
+            public void testAllFilesPresentInVarSpilling() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/coroutines/varSpilling"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JS, true);
+            }
+
+            @TestMetadata("nullSpilling.kt")
+            public void testNullSpilling() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/coroutines/varSpilling/nullSpilling.kt");
+                doTest(fileName);
+            }
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/box/dataClasses")