diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/inline/FieldRemapper.java b/compiler/backend/src/org/jetbrains/jet/codegen/inline/FieldRemapper.java
index 39ff97d369e..1f69245ba50 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/inline/FieldRemapper.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/inline/FieldRemapper.java
@@ -122,4 +122,8 @@ public class FieldRemapper {
         CapturedParamInfo field = MethodInliner.findCapturedField(node, this);
         return field.getRemapValue();
     }
+
+    public boolean isInsideInliningLambda() {
+        return !isRoot() && parent.isInsideInliningLambda();
+    }
 }
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlinedLambdaRemapper.java b/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlinedLambdaRemapper.java
index 0aa19f63a0d..28b1aae1a26 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlinedLambdaRemapper.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/inline/InlinedLambdaRemapper.java
@@ -47,4 +47,9 @@ public class InlinedLambdaRemapper extends FieldRemapper {
         return parent.findField(fieldInsnNode, captured);
     }
 
+
+    @Override
+    public boolean isInsideInliningLambda() {
+        return true;
+    }
 }
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/inline/MethodInliner.java b/compiler/backend/src/org/jetbrains/jet/codegen/inline/MethodInliner.java
index 66683d98131..122e9b548d0 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/inline/MethodInliner.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/inline/MethodInliner.java
@@ -229,6 +229,8 @@ public class MethodInliner {
         node.instructions.resetLabels();
         MethodNode transformedNode = new MethodNode(node.access, node.name, Type.getMethodDescriptor(returnType, allTypes), node.signature, null) {
 
+            private final boolean keepLineNumbers = nodeRemapper.isInsideInliningLambda();
+
             @Override
             public void visitVarInsn(int opcode, int var) {
                 int newIndex;
@@ -255,6 +257,13 @@ public class MethodInliner {
             public void visitMaxs(int maxStack, int maxLocals) {
                 super.visitMaxs(maxStack, maxLocals + capturedParamsSize);
             }
+
+            @Override
+            public void visitLineNumber(int line, Label start) {
+                if(keepLineNumbers) {
+                    super.visitLineNumber(line, start);
+                }
+            }
         };
 
         node.accept(transformedNode);
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/inline/RemapVisitor.java b/compiler/backend/src/org/jetbrains/jet/codegen/inline/RemapVisitor.java
index f556da2431c..0577bd5e29c 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/inline/RemapVisitor.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/inline/RemapVisitor.java
@@ -33,7 +33,13 @@ public class RemapVisitor extends InstructionAdapter {
     private final boolean remapReturn;
     private FieldRemapper nodeRemapper;
 
-    protected RemapVisitor(MethodVisitor mv, Label end, VarRemapper.ParamRemapper remapper, boolean remapReturn, FieldRemapper nodeRemapper) {
+    protected RemapVisitor(
+            MethodVisitor mv,
+            Label end,
+            VarRemapper.ParamRemapper remapper,
+            boolean remapReturn,
+            FieldRemapper nodeRemapper
+    ) {
         super(InlineCodegenUtil.API, mv);
         this.end = end;
         this.remapper = remapper;
@@ -106,9 +112,4 @@ public class RemapVisitor extends InstructionAdapter {
         return null;
     }
 
-    //TODO not skip for lambdas
-    @Override
-    public void visitLineNumber(int line, Label start) {
-
-    }
 }
diff --git a/compiler/testData/lineNumber/inlineSimpleCall.kt b/compiler/testData/lineNumber/inlineSimpleCall.kt
new file mode 100644
index 00000000000..db31de8fbb8
--- /dev/null
+++ b/compiler/testData/lineNumber/inlineSimpleCall.kt
@@ -0,0 +1,21 @@
+inline fun inlineFun(s: () -> Unit) {
+    s()
+}
+
+fun main(args: Array<String>) {
+    inlineFun ({
+                   test.lineNumber()
+               })
+
+    inlineFun {
+        test.lineNumber()
+    }
+
+    inlineFun {
+        test.lineNumber()
+
+        inlineFun {
+            test.lineNumber()
+        }
+    }
+}
diff --git a/compiler/tests/org/jetbrains/jet/codegen/LineNumberTest.java b/compiler/tests/org/jetbrains/jet/codegen/LineNumberTest.java
index 62dbfd9bd7d..6804b348f99 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/LineNumberTest.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/LineNumberTest.java
@@ -293,6 +293,10 @@ public class LineNumberTest extends TestCaseWithTmpdir {
         doTest();
     }
 
+    public void testInlineSimpleCall() {
+        doTest();
+    }
+
     public void testCompileTimeConstant() {
         doTestCustom();
     }