diff --git a/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.kt b/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.kt
index d67bd824b90..f4226f1356e 100644
--- a/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.kt
+++ b/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.kt
@@ -18,6 +18,8 @@ suspend inline fun shouldNotHaveSuffix() {}
 
 suspend inline fun acceptsCrossinline(crossinline c: () -> Unit) {}
 
+private suspend inline fun privateInline() {}
+
 class Foo {
     suspend inline fun simple() {}
 
@@ -36,4 +38,6 @@ class Foo {
     suspend inline fun shouldNotHaveSuffix() {}
 
     suspend inline fun acceptsCrossinline(crossinline c: () -> Unit) {}
+
+    private suspend inline fun privateInline() {}
 }
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.txt b/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.txt
index 94d4812e130..2fe33969789 100644
--- a/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.txt
+++ b/compiler/testData/codegen/bytecodeListing/inline/simpleNamed.txt
@@ -8,6 +8,7 @@ public final class Foo {
     public final @org.jetbrains.annotations.Nullable method generic(p0: java.lang.Object, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final method genericWithReified(p0: java.lang.Object, p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final method genericWithReified(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
+    private synthetic final method privateInline(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final @kotlin.internal.InlineOnly method shouldNotHaveSuffix(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final @org.jetbrains.annotations.Nullable method simple$$forInline(@org.jetbrains.annotations.NotNull p0: kotlin.Unit, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final @org.jetbrains.annotations.Nullable method simple$$forInline(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
@@ -24,6 +25,7 @@ public final class SimpleNamedKt {
     public final static @org.jetbrains.annotations.Nullable method generic(p0: java.lang.Object, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final static method genericWithReified(p0: java.lang.Object, p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final static method genericWithReified(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
+    private synthetic final static method privateInline(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final static @kotlin.internal.InlineOnly method shouldNotHaveSuffix(p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final static @org.jetbrains.annotations.Nullable method simple$$forInline(@org.jetbrains.annotations.NotNull p0: kotlin.Unit, @org.jetbrains.annotations.NotNull p1: kotlin.coroutines.experimental.Continuation): java.lang.Object
     private final static @org.jetbrains.annotations.Nullable method simple$$forInline(@org.jetbrains.annotations.NotNull p0: kotlin.coroutines.experimental.Continuation): java.lang.Object
diff --git a/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/annotationUtil.kt b/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/annotationUtil.kt
index b9daccd2e8e..0cbe33166ab 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/annotationUtil.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/annotationUtil.kt
@@ -20,6 +20,7 @@ import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.descriptors.CallableMemberDescriptor
 import org.jetbrains.kotlin.descriptors.FunctionDescriptor
 import org.jetbrains.kotlin.descriptors.MemberDescriptor
+import org.jetbrains.kotlin.descriptors.Visibilities
 import org.jetbrains.kotlin.name.ClassId
 import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.name.Name
@@ -73,7 +74,8 @@ fun MemberDescriptor.isInlineOnlyOrReifiable(): Boolean =
         this is CallableMemberDescriptor && (isReifiable() || DescriptorUtils.getDirectMember(this).isReifiable() || isInlineOnly())
 
 fun MemberDescriptor.isEffectivelyInlineOnly(): Boolean =
-    isInlineOnlyOrReifiable() || (this is FunctionDescriptor && this.isSuspend && this.valueParameters.any { it.isCrossinline })
+    isInlineOnlyOrReifiable() || (this is FunctionDescriptor && isSuspend && isInline &&
+            (valueParameters.any { it.isCrossinline } || visibility == Visibilities.PRIVATE))
 
 fun MemberDescriptor.isInlineOnly(): Boolean {
     if (this !is FunctionDescriptor ||