diff --git a/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/ic/IdSignatureHashCalculator.kt b/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/ic/IdSignatureHashCalculator.kt
index 0e67655d82e..0c029dd6542 100644
--- a/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/ic/IdSignatureHashCalculator.kt
+++ b/compiler/ir/backend.js/src/org/jetbrains/kotlin/ir/backend/js/ic/IdSignatureHashCalculator.kt
@@ -53,9 +53,9 @@ internal class IdSignatureHashCalculator {
     }
 
     private inner class InlineFunctionCallGraphBuilder : IrElementVisitor<Unit, MutableSet<IrFunction>> {
-        var inlineFunctionCallDepth: Int = 0
-
-        override fun visitElement(element: IrElement, data: MutableSet<IrFunction>) = element.acceptChildren(this, data)
+        override fun visitElement(element: IrElement, data: MutableSet<IrFunction>) {
+            element.acceptChildren(this, data)
+        }
 
         override fun visitSimpleFunction(declaration: IrSimpleFunction, data: MutableSet<IrFunction>) {
             if (declaration in inlineFunctionCallGraph) {
@@ -70,20 +70,13 @@ internal class IdSignatureHashCalculator {
             val callee = expression.symbol.owner
             if (callee.isInline) {
                 data += callee
-                inlineFunctionCallDepth += 1
             }
             expression.acceptChildren(this, data)
-            if (callee.isInline) {
-                inlineFunctionCallDepth -= 1
-                if (inlineFunctionCallDepth < 0) {
-                    icError("inline function calls depth inconsistent")
-                }
-            }
         }
 
         override fun visitFunctionReference(expression: IrFunctionReference, data: MutableSet<IrFunction>) {
             val reference = expression.symbol.owner
-            if (inlineFunctionCallDepth > 0 && reference.isInline) {
+            if (reference.isInline) {
                 // this if is fine, because fake overrides are not inlined as function reference calls even as inline function args
                 if (!reference.isFakeOverride) {
                     data += reference
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/incremental/InvalidationTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/incremental/InvalidationTestGenerated.java
index 7a3cae95d9c..2c00195a5eb 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/incremental/InvalidationTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/incremental/InvalidationTestGenerated.java
@@ -190,6 +190,11 @@ public class InvalidationTestGenerated extends AbstractInvalidationTest {
         runTest("js/js.translator/testData/incremental/invalidation/inlineBecomeNonInline/");
     }
 
+    @TestMetadata("inlineFunctionAsFunctionReference")
+    public void testInlineFunctionAsFunctionReference() throws Exception {
+        runTest("js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/");
+    }
+
     @TestMetadata("inlineFunctionAsParam")
     public void testInlineFunctionAsParam() throws Exception {
         runTest("js/js.translator/testData/incremental/invalidation/inlineFunctionAsParam/");
@@ -255,6 +260,11 @@ public class InvalidationTestGenerated extends AbstractInvalidationTest {
         runTest("js/js.translator/testData/incremental/invalidation/nonInlineBecomeInline/");
     }
 
+    @TestMetadata("privateDeclarationLeakThroughDefaultParam")
+    public void testPrivateDeclarationLeakThroughDefaultParam() throws Exception {
+        runTest("js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/");
+    }
+
     @TestMetadata("privateInlineFunction1")
     public void testPrivateInlineFunction1() throws Exception {
         runTest("js/js.translator/testData/incremental/invalidation/privateInlineFunction1/");
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.0.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.0.kt
new file mode 100644
index 00000000000..6c0a5c1ee22
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.0.kt
@@ -0,0 +1,2 @@
+inline fun bar() = "0"
+
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.1.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.1.kt
new file mode 100644
index 00000000000..ce9d458c7ab
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.1.kt
@@ -0,0 +1 @@
+inline fun bar() = "1"
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.3.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.3.kt
new file mode 100644
index 00000000000..57f093f4be3
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l1.3.kt
@@ -0,0 +1 @@
+inline fun bar() = "2"
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.0.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.0.kt
new file mode 100644
index 00000000000..c001565ecc2
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.0.kt
@@ -0,0 +1,3 @@
+inline fun foo(callableReference: () -> String = ::bar): String {
+    return callableReference()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.2.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.2.kt
new file mode 100644
index 00000000000..f55c77d3779
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/l2.2.kt
@@ -0,0 +1,4 @@
+inline fun foo(): String {
+    val callableReference: () -> String = ::bar
+    return (callableReference().toInt() + 1).toString()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/module.info b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/module.info
new file mode 100644
index 00000000000..9c60e497b0f
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/lib1/module.info
@@ -0,0 +1,19 @@
+STEP 0:
+    modifications:
+        U : l1.0.kt -> l1.kt
+        U : l2.0.kt -> l2.kt
+    added file: l1.kt, l2.kt
+STEP 1:
+    modifications:
+        U : l1.1.kt -> l1.kt
+    modified ir: l1.kt
+    updated imports: l2.kt
+STEP 2:
+    modifications:
+        U : l2.2.kt -> l2.kt
+    modified ir: l2.kt
+STEP 3:
+    modifications:
+        U : l1.3.kt -> l1.kt
+    modified ir: l1.kt
+    updated imports: l2.kt
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/m.kt b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/m.kt
new file mode 100644
index 00000000000..0d5a619cb73
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/m.kt
@@ -0,0 +1,7 @@
+fun box(stepId: Int): String {
+    val x = foo().toInt()
+    if (x != stepId) {
+        return "Fail $x != $stepId"
+    }
+    return "OK"
+}
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/module.info b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/module.info
new file mode 100644
index 00000000000..b2d2c0ddf9d
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/main/module.info
@@ -0,0 +1,12 @@
+STEP 0:
+    dependencies: lib1
+    added file: m.kt
+STEP 1:
+    dependencies: lib1
+    updated imports: m.kt
+STEP 2:
+    dependencies: lib1
+    modified ir: m.kt
+STEP 3:
+    dependencies: lib1
+    updated imports: m.kt
diff --git a/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/project.info b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/project.info
new file mode 100644
index 00000000000..c8d9369c64b
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/inlineFunctionAsFunctionReference/project.info
@@ -0,0 +1,5 @@
+MODULES: lib1, main
+
+STEP 0..3:
+    libs: lib1, main
+    dirty js: lib1, main
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.0.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.0.kt
new file mode 100644
index 00000000000..7578f160042
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.0.kt
@@ -0,0 +1,5 @@
+private val prop = "0"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.1.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.1.kt
new file mode 100644
index 00000000000..10e15dc3186
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.1.kt
@@ -0,0 +1,5 @@
+private val prop = "1"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.10.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.10.kt
new file mode 100644
index 00000000000..b3f7c0936df
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.10.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    val x = "10"
+}
+
+private inline fun bar() = Obj.x
+
+internal inline fun foo(lambda: () -> String = ::bar): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.11.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.11.kt
new file mode 100644
index 00000000000..c36bd6e7d12
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.11.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    val x = "11"
+}
+
+private inline fun bar() = Obj.x
+
+internal inline fun foo(lambda: () -> String = ::bar): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.12.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.12.kt
new file mode 100644
index 00000000000..06f1bc71266
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.12.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    inline val x get() = "12"
+}
+
+private inline fun bar() = Obj.x
+
+internal inline fun foo(lambda: () -> String = ::bar): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.13.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.13.kt
new file mode 100644
index 00000000000..e159ea16518
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.13.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    inline val x get() = "13"
+}
+
+private inline fun bar() = Obj.x
+
+internal inline fun foo(lambda: () -> String = ::bar): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.2.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.2.kt
new file mode 100644
index 00000000000..5e07d33d07e
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.2.kt
@@ -0,0 +1,5 @@
+private val prop get() = "2"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.3.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.3.kt
new file mode 100644
index 00000000000..0e1b6433349
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.3.kt
@@ -0,0 +1,5 @@
+private fun prop() = "3"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.4.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.4.kt
new file mode 100644
index 00000000000..5c7d1b8274e
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.4.kt
@@ -0,0 +1,5 @@
+private fun prop() = "3"
+
+internal inline fun foo(lambda: () -> String = { "4" }): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.5.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.5.kt
new file mode 100644
index 00000000000..c0a7d8f5058
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.5.kt
@@ -0,0 +1,3 @@
+internal inline fun foo(lambda: () -> String = { "5" }): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.6.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.6.kt
new file mode 100644
index 00000000000..0b6cb19b9ba
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.6.kt
@@ -0,0 +1,5 @@
+private inline fun prop() = "6"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.7.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.7.kt
new file mode 100644
index 00000000000..7f99e92fe50
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.7.kt
@@ -0,0 +1,5 @@
+private inline fun prop() = "7"
+
+internal inline fun foo(lambda: () -> String = ::prop): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.8.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.8.kt
new file mode 100644
index 00000000000..febce4e59cc
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.8.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    val x = "8"
+
+    override fun toString() = x
+}
+
+internal inline fun foo(lambda: () -> String = { "$Obj" } ): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.9.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.9.kt
new file mode 100644
index 00000000000..ba0503d5664
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/f.9.kt
@@ -0,0 +1,9 @@
+private object Obj {
+    val x = "9"
+
+    override fun toString() = x
+}
+
+internal inline fun foo(lambda: () -> String = { "$Obj" } ): String {
+    return lambda()
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/m.kt b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/m.kt
new file mode 100644
index 00000000000..0d5a619cb73
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/m.kt
@@ -0,0 +1,7 @@
+fun box(stepId: Int): String {
+    val x = foo().toInt()
+    if (x != stepId) {
+        return "Fail $x != $stepId"
+    }
+    return "OK"
+}
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/module.info b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/module.info
new file mode 100644
index 00000000000..d97d4b815b6
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/main/module.info
@@ -0,0 +1,65 @@
+STEP 0:
+    modifications:
+        U : f.0.kt -> f.kt
+    added file: m.kt, f.kt
+STEP 1:
+    modifications:
+        U : f.1.kt -> f.kt
+    modified ir: f.kt
+STEP 2:
+    modifications:
+        U : f.2.kt -> f.kt
+    modified ir: f.kt
+STEP 3:
+    modifications:
+        U : f.3.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 4:
+    modifications:
+        U : f.4.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 5:
+    modifications:
+        U : f.5.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 6:
+    modifications:
+        U : f.6.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 7:
+    modifications:
+        U : f.7.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 8:
+    modifications:
+        U : f.8.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 9:
+    modifications:
+        U : f.9.kt -> f.kt
+    modified ir: f.kt
+STEP 10:
+    modifications:
+        U : f.10.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 11:
+    modifications:
+        U : f.11.kt -> f.kt
+    modified ir: f.kt
+STEP 12:
+    modifications:
+        U : f.12.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
+STEP 13:
+    modifications:
+        U : f.13.kt -> f.kt
+    modified ir: f.kt
+    updated imports: m.kt
diff --git a/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/project.info b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/project.info
new file mode 100644
index 00000000000..93c47432020
--- /dev/null
+++ b/js/js.translator/testData/incremental/invalidation/privateDeclarationLeakThroughDefaultParam/project.info
@@ -0,0 +1,5 @@
+MODULES: main
+
+STEP 0..13:
+    libs: main
+    dirty js: main