diff --git a/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java b/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
index fb9e0d8798f..73c53fa77e6 100644
--- a/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
+++ b/js/js.tests/test/org/jetbrains/k2js/test/semantics/ClosureTest.java
@@ -43,4 +43,8 @@ public final class ClosureTest extends SingleFileTranslationTest {
     public void testClosureInNestedFunctionsWhichMixedWithObject() throws Exception {
         fooBoxTest();
     }
+
+    public void testClosureInNestedFunctionsInMethod() throws Exception {
+        checkFooBoxIsOk();
+    }
 }
diff --git a/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsInMethod.kt b/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsInMethod.kt
new file mode 100644
index 00000000000..cd88db811b5
--- /dev/null
+++ b/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsInMethod.kt
@@ -0,0 +1,98 @@
+package foo
+
+fun run<T>(f:()->T) = f()
+
+class Fail(val message: String) : RuntimeException(message) {
+    val isFail = true // workaround for exception handling
+}
+
+
+class A {
+    var testName = ""
+    fun assertEquals(actual: Int, expected: Int, message: String) =
+            if (actual != expected) throw Fail("$message in $testName test.")
+
+    val a = 12
+    var b = 1
+
+    fun boo(c: Int) = c
+
+    fun litlit() {
+        testName = "litlit"
+        run {
+            run {
+                assertEquals(a, 12, "a != 12")
+
+                assertEquals(b, 1, "b != 1")
+                b = 23
+                assertEquals(b, 23, "b != 23")
+
+                assertEquals(boo(34), 34, "boo(34) != 34")
+            }
+        }
+    }
+
+    fun funfun() {
+        testName = "funfun"
+        fun foo() {
+            fun bar() {
+                assertEquals(a, 12, "a != 12")
+
+                assertEquals(b, 1, "b != 1")
+                b = 23
+                assertEquals(b, 23, "b != 23")
+
+                assertEquals(boo(34), 34, "boo(34) != 34")
+            }
+            bar()
+        }
+        foo()
+    }
+
+    fun litfun() {
+        testName = "litfun"
+        run {
+            fun bar() {
+                assertEquals(a, 12, "a != 12")
+
+                assertEquals(b, 1, "b != 1")
+                b = 23
+                assertEquals(b, 23, "b != 23")
+
+                assertEquals(boo(34), 34, "boo(34) != 34")
+            }
+            bar()
+        }
+    }
+
+    fun funlit() {
+        testName = "funlit"
+        fun foo() {
+            run {
+                assertEquals(a, 12, "a != 12")
+
+                assertEquals(b, 1, "b != 1")
+                b = 23
+                assertEquals(b, 23, "b != 23")
+
+                assertEquals(boo(34), 34, "boo(34) != 34")
+            }
+        }
+        foo()
+    }
+}
+
+fun box(): String {
+    try {
+        A().litlit()
+        A().funfun()
+        A().litfun()
+        A().funlit()
+    }
+    catch(f: Fail) {
+        if (!f.isFail) throw f
+        return f.message
+    }
+
+    return "OK"
+}
\ No newline at end of file