diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/AsmUtil.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/AsmUtil.java
index c4e3acf11e0..d5869e937f6 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/AsmUtil.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/AsmUtil.java
@@ -118,6 +118,8 @@ public class AsmUtil {
     // For non-inlined callable references ('kotlin.jvm.internal.CallableReference' has a 'receiver' field)
     public static final String BOUND_REFERENCE_RECEIVER = "receiver";
 
+    public static final String LOCAL_FUNCTION_VARIABLE_PREFIX = "$fun$";
+
     private static final ImmutableMap<Integer, JvmPrimitiveType> primitiveTypeByAsmSort;
     private static final ImmutableMap<Type, Type> primitiveTypeByBoxedType;
 
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
index 4db53c6a9b8..5632271ba6f 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
@@ -1434,7 +1434,7 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
             String functionIndex = StringsKt.substringAfterLast(type.getInternalName(), '$', "");
             assert !functionIndex.isEmpty();
 
-            String localVariableName = "$fun$"
+            String localVariableName = AsmUtil.LOCAL_FUNCTION_VARIABLE_PREFIX
                     + VariableAsmNameManglingUtils.mangleNameIfNeeded(functionDescriptor.getName().asString())
                     + "$" + functionIndex;
 
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/VariableAsmNameManglingUtils.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/VariableAsmNameManglingUtils.kt
index 4dc07208fa6..9551dd2cf57 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/VariableAsmNameManglingUtils.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/VariableAsmNameManglingUtils.kt
@@ -10,11 +10,13 @@ import org.jetbrains.kotlin.descriptors.ValueParameterDescriptor
 import org.jetbrains.kotlin.descriptors.impl.ValueParameterDescriptorImpl
 import org.jetbrains.kotlin.resolve.jvm.checkers.isValidDalvikCharacter
 
+const val DESTRUCTURED_LAMBDA_ARGUMENT_VARIABLE_PREFIX = "\$dstr\$"
+
 fun getNameForDestructuredParameterOrNull(valueParameterDescriptor: ValueParameterDescriptor): String? {
     val variables = ValueParameterDescriptorImpl.getDestructuringVariablesOrNull(valueParameterDescriptor) ?: return null
 
     @Suppress("SpellCheckingInspection")
-    return "\$dstr\$" + variables.joinToString(separator = "$") { descriptor ->
+    return DESTRUCTURED_LAMBDA_ARGUMENT_VARIABLE_PREFIX + variables.joinToString(separator = "$") { descriptor ->
         val name = descriptor.name
         mangleNameIfNeeded(
             when {
diff --git a/idea/idea-jvm/src/org/jetbrains/kotlin/idea/debugger/KotlinStackFrame.kt b/idea/idea-jvm/src/org/jetbrains/kotlin/idea/debugger/KotlinStackFrame.kt
index cc8befc9e14..8350dba2353 100644
--- a/idea/idea-jvm/src/org/jetbrains/kotlin/idea/debugger/KotlinStackFrame.kt
+++ b/idea/idea-jvm/src/org/jetbrains/kotlin/idea/debugger/KotlinStackFrame.kt
@@ -30,6 +30,7 @@ import com.sun.jdi.ReferenceType
 import com.sun.jdi.Type
 import com.sun.jdi.Value
 import org.jetbrains.kotlin.codegen.AsmUtil
+import org.jetbrains.kotlin.codegen.DESTRUCTURED_LAMBDA_ARGUMENT_VARIABLE_PREFIX
 import org.jetbrains.kotlin.codegen.coroutines.CONTINUATION_PARAMETER_NAME
 import org.jetbrains.kotlin.codegen.inline.INLINE_FUN_VAR_SUFFIX
 import org.jetbrains.kotlin.codegen.inline.isFakeLocalVariableForInline
@@ -206,6 +207,8 @@ class KotlinStackFrame(frame: StackFrameProxyImpl) : JavaStackFrame(StackFrameDe
     private fun isHidden(variable: LocalVariableProxyImpl, inlineDepth: Int): Boolean {
         val name = variable.name()
         return isFakeLocalVariableForInline(name)
+                || name.startsWith(DESTRUCTURED_LAMBDA_ARGUMENT_VARIABLE_PREFIX)
+                || name.startsWith(AsmUtil.LOCAL_FUNCTION_VARIABLE_PREFIX)
                 || VariableFinder.getInlineDepth(variable.name()) != inlineDepth
                 || name == CONTINUATION_VARIABLE_NAME
     }
diff --git a/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.kt b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.kt
new file mode 100644
index 00000000000..452ba28f760
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.kt
@@ -0,0 +1,20 @@
+package lambdaParameterMangling
+
+private data class Foo(val a: String, val b: Int)
+
+private fun foo(foo: Foo, block: (Foo) -> Unit) {
+    block(foo)
+}
+
+fun main() {
+    foo(Foo("a", 5)) { (a, b) ->
+        //Breakpoint!
+        val c = 5
+    }
+}
+
+// SHOW_KOTLIN_VARIABLES
+// PRINT_FRAME
+
+// EXPRESSION: a.length + b
+// RESULT: 6: I
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.out b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.out
new file mode 100644
index 00000000000..c05e4514f75
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.out
@@ -0,0 +1,14 @@
+LineBreakpoint created at lambdaParameterMangling.kt:12
+Run Java
+Connected to the target VM
+lambdaParameterMangling.kt:12
+Compile bytecode for a.length + b
+ frame    = invoke:12, LambdaParameterManglingKt$main$1 {lambdaParameterMangling}
+   local    = a: java.lang.String = a (sp = lambdaParameterMangling.kt, 10)
+     field    = value: char[] = {char[1]@uniqueID} (sp = String.!EXT!)
+       element  = 0 = 'a' 97
+     field    = hash: int = 0 (sp = String.!EXT!)
+   local    = b: int = 5 (sp = lambdaParameterMangling.kt, 10)
+Disconnected from the target VM
+
+Process finished with exit code 0
diff --git a/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.kt b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.kt
new file mode 100644
index 00000000000..e8eb76a1ab8
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.kt
@@ -0,0 +1,14 @@
+package localFunctionMangling
+
+fun main() {
+    fun foo() {}
+
+    //Breakpoint!
+    val a = 5
+}
+
+// SHOW_KOTLIN_VARIABLES
+// PRINT_FRAME
+
+// EXPRESSION: 1
+// RESULT: 1: I
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.out b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.out
new file mode 100644
index 00000000000..73cb3a56300
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.out
@@ -0,0 +1,9 @@
+LineBreakpoint created at localFunctionMangling.kt:7
+Run Java
+Connected to the target VM
+localFunctionMangling.kt:7
+Compile bytecode for 1
+ frame    = main:7, LocalFunctionManglingKt {localFunctionMangling}
+Disconnected from the target VM
+
+Process finished with exit code 0
diff --git a/idea/tests/org/jetbrains/kotlin/idea/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
index da430e6654c..3b0824994c0 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/debugger/evaluate/KotlinEvaluateExpressionTestGenerated.java
@@ -745,6 +745,16 @@ public class KotlinEvaluateExpressionTestGenerated extends AbstractKotlinEvaluat
                 runTest("idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/hideSyntheticThis.kt");
             }
 
+            @TestMetadata("lambdaParameterMangling.kt")
+            public void testLambdaParameterMangling() throws Exception {
+                runTest("idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/lambdaParameterMangling.kt");
+            }
+
+            @TestMetadata("localFunctionMangling.kt")
+            public void testLocalFunctionMangling() throws Exception {
+                runTest("idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/localFunctionMangling.kt");
+            }
+
             @TestMetadata("remapThis.kt")
             public void testRemapThis() throws Exception {
                 runTest("idea/testData/debugger/tinyApp/src/evaluate/singleBreakpoint/frame/remapThis.kt");