diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/optimization/OptimizationMethodVisitor.java b/compiler/backend/src/org/jetbrains/jet/codegen/optimization/OptimizationMethodVisitor.java
index 14a29fe7002..1a3cde3710d 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/optimization/OptimizationMethodVisitor.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/optimization/OptimizationMethodVisitor.java
@@ -35,7 +35,8 @@ import java.util.List;
 public class OptimizationMethodVisitor extends MethodVisitor {
     private static final int MEMORY_LIMIT_BY_METHOD_MB = 50;
     private static final MethodTransformer[] TRANSFORMERS = new MethodTransformer[]{
-            new RedundantNullCheckMethodTransformer(), new RedundantBoxingMethodTransformer()
+            new RedundantNullCheckMethodTransformer(), new RedundantBoxingMethodTransformer(),
+            new RedundantGotoMethodTransformer()
     };
 
     private final MethodNode methodNode;
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/optimization/RedundantGotoMethodTransformer.kt b/compiler/backend/src/org/jetbrains/jet/codegen/optimization/RedundantGotoMethodTransformer.kt
new file mode 100644
index 00000000000..d13037550ce
--- /dev/null
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/optimization/RedundantGotoMethodTransformer.kt
@@ -0,0 +1,62 @@
+/*
+ * Copyright 2010-2014 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.jet.codegen.optimization
+
+import org.jetbrains.jet.codegen.optimization.transformer.MethodTransformer
+import org.jetbrains.org.objectweb.asm.tree.MethodNode
+import org.jetbrains.org.objectweb.asm.tree.AbstractInsnNode
+import org.jetbrains.org.objectweb.asm.tree.LabelNode
+import org.jetbrains.org.objectweb.asm.Opcodes
+import org.jetbrains.org.objectweb.asm.tree.JumpInsnNode
+
+
+public class RedundantGotoMethodTransformer : MethodTransformer() {
+    /**
+     * Removes redundant GOTO's, i.e. to subsequent labels
+     */
+    override fun transform(internalClassName: String, methodNode: MethodNode) {
+        val insns = methodNode.instructions.toArray()
+        val insnsToRemove = arrayListOf<AbstractInsnNode>()
+
+        val currentLabels = hashSetOf<LabelNode>()
+        for (insn in insns.reverse()) {
+            if (insn.isMeaningful) {
+                if (insn.getOpcode() == Opcodes.GOTO && (insn as JumpInsnNode).label in currentLabels) {
+                    insnsToRemove.add(insn)
+                }
+                else {
+                    currentLabels.clear()
+                }
+                continue
+            }
+
+            if (insn is LabelNode) {
+                currentLabels.add(insn)
+            }
+        }
+
+        for (insnToRemove in insnsToRemove) {
+            methodNode.instructions.remove(insnToRemove)
+        }
+    }
+}
+
+private val AbstractInsnNode.isMeaningful : Boolean get() =
+    when (this.getType()) {
+        AbstractInsnNode.LABEL, AbstractInsnNode.LINE, AbstractInsnNode.FRAME -> false
+        else -> true
+    }
diff --git a/compiler/testData/codegen/bytecodeText/boxingOptimization/severalInlines.kt b/compiler/testData/codegen/bytecodeText/boxingOptimization/severalInlines.kt
index 0c7f5a87ea7..53389d8e189 100644
--- a/compiler/testData/codegen/bytecodeText/boxingOptimization/severalInlines.kt
+++ b/compiler/testData/codegen/bytecodeText/boxingOptimization/severalInlines.kt
@@ -16,19 +16,19 @@ fun bar() {
 
 // 0 valueOf
 // 0 Value\s\(\)
-// 1 LOCALVARIABLE x I L6 L11 5
-// 1 LOCALVARIABLE y I L6 L11 4
-// 1 LOCALVARIABLE x J L19 L24 6
-// 1 LOCALVARIABLE y J L19 L24 4
-// 1 LOCALVARIABLE x F L32 L37 5
-// 1 LOCALVARIABLE y F L32 L37 4
-// 1 LOCALVARIABLE x D L45 L50 6
-// 1 LOCALVARIABLE y D L45 L50 4
-// 1 LOCALVARIABLE x B L58 L63 5
-// 1 LOCALVARIABLE y B L58 L63 4
-// 1 LOCALVARIABLE x S L71 L76 5
-// 1 LOCALVARIABLE y S L71 L76 4
-// 1 LOCALVARIABLE x C L84 L91 5
-// 1 LOCALVARIABLE y C L84 L91 4
-// 1 LOCALVARIABLE x Z L99 L106 5
-// 1 LOCALVARIABLE y Z L99 L106 4
+// 1 LOCALVARIABLE x I (.*) 5
+// 1 LOCALVARIABLE y I (.*) 4
+// 1 LOCALVARIABLE x J (.*) 6
+// 1 LOCALVARIABLE y J (.*) 4
+// 1 LOCALVARIABLE x F (.*) 5
+// 1 LOCALVARIABLE y F (.*) 4
+// 1 LOCALVARIABLE x D (.*) 6
+// 1 LOCALVARIABLE y D (.*) 4
+// 1 LOCALVARIABLE x B (.*) 5
+// 1 LOCALVARIABLE y B (.*) 4
+// 1 LOCALVARIABLE x S (.*) 5
+// 1 LOCALVARIABLE y S (.*) 4
+// 1 LOCALVARIABLE x C (.*) 5
+// 1 LOCALVARIABLE y C (.*) 4
+// 1 LOCALVARIABLE x Z (.*) 5
+// 1 LOCALVARIABLE y Z (.*) 4
diff --git a/compiler/testData/codegen/bytecodeText/redundantGotoRemoving.kt b/compiler/testData/codegen/bytecodeText/redundantGotoRemoving.kt
new file mode 100644
index 00000000000..afd0599ad0e
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/redundantGotoRemoving.kt
@@ -0,0 +1,12 @@
+
+inline fun calc<T, R>(value : T, fn: (T)->R) : R = fn(value)
+inline fun identity<T>(value : T) : T = calc(value) {
+    if (1 == 1) return it
+    it
+}
+
+fun foo() {
+    val x = identity(1)
+}
+
+// 1 GOTO
diff --git a/compiler/tests/org/jetbrains/jet/codegen/BytecodeTextTestGenerated.java b/compiler/tests/org/jetbrains/jet/codegen/BytecodeTextTestGenerated.java
index 4076fb3130b..a6da24aa337 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/BytecodeTextTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/BytecodeTextTestGenerated.java
@@ -171,6 +171,12 @@ public class BytecodeTextTestGenerated extends AbstractBytecodeTextTest {
         doTest(fileName);
     }
     
+    @TestMetadata("redundantGotoRemoving.kt")
+    public void testRedundantGotoRemoving() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/bytecodeText/redundantGotoRemoving.kt");
+        doTest(fileName);
+    }
+    
     @TestMetadata("topLevelFunWithDefaultArgs.kt")
     public void testTopLevelFunWithDefaultArgs() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/bytecodeText/topLevelFunWithDefaultArgs.kt");