diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/ir/Fir2IrTextTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/ir/Fir2IrTextTestGenerated.java
index 901bf858235..45d5d39ee04 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/ir/Fir2IrTextTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/ir/Fir2IrTextTestGenerated.java
@@ -1454,6 +1454,12 @@ public class Fir2IrTextTestGenerated extends AbstractFir2IrTextTest {
             runTest("compiler/testData/ir/irText/expressions/kt47450.kt");
         }
 
+        @Test
+        @TestMetadata("kt48708.kt")
+        public void testKt48708() throws Exception {
+            runTest("compiler/testData/ir/irText/expressions/kt48708.kt");
+        }
+
         @Test
         @TestMetadata("lambdaInCAO.kt")
         public void testLambdaInCAO() throws Exception {
diff --git a/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/ControlFlowInformationProviderImpl.kt b/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/ControlFlowInformationProviderImpl.kt
index a4830fce4fd..83714186531 100644
--- a/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/ControlFlowInformationProviderImpl.kt
+++ b/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/ControlFlowInformationProviderImpl.kt
@@ -797,15 +797,17 @@ class ControlFlowInformationProviderImpl private constructor(
     ////////////////////////////////////////////////////////////////////////////////
     // Statements
 
-    private fun markStatements() = pseudocode.traverse(TraversalOrder.FORWARD) { instruction ->
-        val value = (instruction as? InstructionWithValue)?.outputValue
-        val pseudocode = instruction.owner
-        val usages = pseudocode.getUsages(value)
-        val isUsedAsExpression = usages.isNotEmpty()
-        val isUsedAsResultOfLambda = isUsedAsResultOfLambda(usages)
-        for (element in pseudocode.getValueElements(value)) {
-            trace.record(USED_AS_EXPRESSION, element, isUsedAsExpression)
-            trace.record(USED_AS_RESULT_OF_LAMBDA, element, isUsedAsResultOfLambda)
+    private fun markStatements() {
+        pseudocode.traverseIncludingDeadCode { instruction ->
+            val value = (instruction as? InstructionWithValue)?.outputValue
+            val pseudocode = instruction.owner
+            val usages = pseudocode.getUsages(value)
+            val isUsedAsExpression = usages.isNotEmpty()
+            val isUsedAsResultOfLambda = isUsedAsResultOfLambda(usages)
+            for (element in pseudocode.getValueElements(value)) {
+                trace.record(USED_AS_EXPRESSION, element, isUsedAsExpression)
+                trace.record(USED_AS_RESULT_OF_LAMBDA, element, isUsedAsResultOfLambda)
+            }
         }
     }
 
diff --git a/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/PseudocodeTraverser.kt b/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/PseudocodeTraverser.kt
index d2be8fb0102..01938b90412 100644
--- a/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/PseudocodeTraverser.kt
+++ b/compiler/frontend/cfg/src/org/jetbrains/kotlin/cfg/PseudocodeTraverser.kt
@@ -54,6 +54,15 @@ fun <D> Pseudocode.traverse(
     }
 }
 
+fun Pseudocode.traverseIncludingDeadCode(analyzeInstruction: (Instruction) -> Unit) {
+    for (instruction in instructionsIncludingDeadCode) {
+        if (instruction is LocalFunctionDeclarationInstruction) {
+            instruction.body.traverseIncludingDeadCode(analyzeInstruction)
+        }
+        analyzeInstruction(instruction)
+    }
+}
+
 fun <I : ControlFlowInfo<*, *, *>> Pseudocode.collectData(
     traversalOrder: TraversalOrder,
     mergeEdges: (Instruction, Collection<I>) -> Edges<I>,
diff --git a/compiler/testData/ir/irText/expressions/kt48708.fir.kt.txt b/compiler/testData/ir/irText/expressions/kt48708.fir.kt.txt
new file mode 100644
index 00000000000..d90d76d152a
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt48708.fir.kt.txt
@@ -0,0 +1,13 @@
+fun test(b: Boolean) {
+  val x: Int = when {
+    b -> 3
+    else -> { // BLOCK
+      throw Exception()
+      0
+    }
+  }
+  takeInt(x = x)
+}
+
+fun takeInt(x: Int) {
+}
diff --git a/compiler/testData/ir/irText/expressions/kt48708.fir.txt b/compiler/testData/ir/irText/expressions/kt48708.fir.txt
new file mode 100644
index 00000000000..d743bf64dfa
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt48708.fir.txt
@@ -0,0 +1,20 @@
+FILE fqName:<root> fileName:/kt48708.kt
+  FUN name:test visibility:public modality:FINAL <> (b:kotlin.Boolean) returnType:kotlin.Unit
+    VALUE_PARAMETER name:b index:0 type:kotlin.Boolean
+    BLOCK_BODY
+      VAR name:x type:kotlin.Int [val]
+        WHEN type=kotlin.Int origin=IF
+          BRANCH
+            if: GET_VAR 'b: kotlin.Boolean declared in <root>.test' type=kotlin.Boolean origin=null
+            then: CONST Int type=kotlin.Int value=3
+          BRANCH
+            if: CONST Boolean type=kotlin.Boolean value=true
+            then: BLOCK type=kotlin.Int origin=null
+              THROW type=kotlin.Nothing
+                CONSTRUCTOR_CALL 'public constructor <init> () declared in java.lang.Exception' type=java.lang.Exception origin=null
+              CONST Int type=kotlin.Int value=0
+      CALL 'public final fun takeInt (x: kotlin.Int): kotlin.Unit declared in <root>' type=kotlin.Unit origin=null
+        x: GET_VAR 'val x: kotlin.Int [val] declared in <root>.test' type=kotlin.Int origin=null
+  FUN name:takeInt visibility:public modality:FINAL <> (x:kotlin.Int) returnType:kotlin.Unit
+    VALUE_PARAMETER name:x index:0 type:kotlin.Int
+    BLOCK_BODY
diff --git a/compiler/testData/ir/irText/expressions/kt48708.kt b/compiler/testData/ir/irText/expressions/kt48708.kt
new file mode 100644
index 00000000000..5bc3d1b313e
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt48708.kt
@@ -0,0 +1,13 @@
+// ISSUE: KT-48708
+
+fun test(b: Boolean) {
+    val x = if (b) {
+        3
+    } else {
+        throw Exception()
+        0
+    }
+    takeInt(x)
+}
+
+fun takeInt(x: Int) {}
diff --git a/compiler/testData/ir/irText/expressions/kt48708.kt.txt b/compiler/testData/ir/irText/expressions/kt48708.kt.txt
new file mode 100644
index 00000000000..0a05a243d5d
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt48708.kt.txt
@@ -0,0 +1,15 @@
+fun test(b: Boolean) {
+  val x: Int = when {
+    b -> { // BLOCK
+      3
+    }
+    else -> { // BLOCK
+      throw Exception()
+      0
+    }
+  }
+  takeInt(x = x)
+}
+
+fun takeInt(x: Int) {
+}
diff --git a/compiler/testData/ir/irText/expressions/kt48708.txt b/compiler/testData/ir/irText/expressions/kt48708.txt
new file mode 100644
index 00000000000..85a887c41a6
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt48708.txt
@@ -0,0 +1,21 @@
+FILE fqName:<root> fileName:/kt48708.kt
+  FUN name:test visibility:public modality:FINAL <> (b:kotlin.Boolean) returnType:kotlin.Unit
+    VALUE_PARAMETER name:b index:0 type:kotlin.Boolean
+    BLOCK_BODY
+      VAR name:x type:kotlin.Int [val]
+        WHEN type=kotlin.Int origin=IF
+          BRANCH
+            if: GET_VAR 'b: kotlin.Boolean declared in <root>.test' type=kotlin.Boolean origin=null
+            then: BLOCK type=kotlin.Int origin=null
+              CONST Int type=kotlin.Int value=3
+          BRANCH
+            if: CONST Boolean type=kotlin.Boolean value=true
+            then: BLOCK type=kotlin.Int origin=null
+              THROW type=kotlin.Nothing
+                CONSTRUCTOR_CALL 'public constructor <init> () declared in java.lang.Exception' type=java.lang.Exception origin=null
+              CONST Int type=kotlin.Int value=0
+      CALL 'public final fun takeInt (x: kotlin.Int): kotlin.Unit declared in <root>' type=kotlin.Unit origin=null
+        x: GET_VAR 'val x: kotlin.Int [val] declared in <root>.test' type=kotlin.Int origin=null
+  FUN name:takeInt visibility:public modality:FINAL <> (x:kotlin.Int) returnType:kotlin.Unit
+    VALUE_PARAMETER name:x index:0 type:kotlin.Int
+    BLOCK_BODY
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/ir/IrTextTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/ir/IrTextTestGenerated.java
index 661f0de3980..418ba624ec3 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/ir/IrTextTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/ir/IrTextTestGenerated.java
@@ -1454,6 +1454,12 @@ public class IrTextTestGenerated extends AbstractIrTextTest {
             runTest("compiler/testData/ir/irText/expressions/kt47450.kt");
         }
 
+        @Test
+        @TestMetadata("kt48708.kt")
+        public void testKt48708() throws Exception {
+            runTest("compiler/testData/ir/irText/expressions/kt48708.kt");
+        }
+
         @Test
         @TestMetadata("lambdaInCAO.kt")
         public void testLambdaInCAO() throws Exception {
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/ir/KlibTextTestCaseGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/ir/KlibTextTestCaseGenerated.java
index 79c6fc43e0e..8c274e48c83 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/ir/KlibTextTestCaseGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/ir/KlibTextTestCaseGenerated.java
@@ -1128,6 +1128,11 @@ public class KlibTextTestCaseGenerated extends AbstractKlibTextTestCase {
             runTest("compiler/testData/ir/irText/expressions/kt47450.kt");
         }
 
+        @TestMetadata("kt48708.kt")
+        public void testKt48708() throws Exception {
+            runTest("compiler/testData/ir/irText/expressions/kt48708.kt");
+        }
+
         @TestMetadata("lambdaInCAO.kt")
         public void testLambdaInCAO() throws Exception {
             runTest("compiler/testData/ir/irText/expressions/lambdaInCAO.kt");