diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/AnalyzeTryCatchBlocks.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/AnalyzeTryCatchBlocks.kt
index ce3f1ef91be..109567613d3 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/AnalyzeTryCatchBlocks.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/AnalyzeTryCatchBlocks.kt
@@ -19,6 +19,7 @@ package org.jetbrains.kotlin.codegen.optimization.fixStack
 import org.jetbrains.kotlin.codegen.optimization.common.findNextOrNull
 import org.jetbrains.kotlin.codegen.optimization.common.hasOpcode
 import org.jetbrains.kotlin.codegen.pseudoInsns.PseudoInsn
+import org.jetbrains.kotlin.utils.SmartSet
 import org.jetbrains.org.objectweb.asm.Label
 import org.jetbrains.org.objectweb.asm.Opcodes
 import org.jetbrains.org.objectweb.asm.tree.AbstractInsnNode
@@ -117,6 +118,11 @@ private fun insertSaveRestoreStackMarkers(
 private fun collectDecompiledTryDescriptors(methodNode: MethodNode): Map<LabelNode, DecompiledTryDescriptor> {
     val decompiledTryDescriptorForStart: MutableMap<LabelNode, DecompiledTryDescriptor> = hashMapOf()
     val decompiledTryDescriptorForHandler: MutableMap<LabelNode, DecompiledTryDescriptor> = hashMapOf()
+
+    val defaultHandlers = methodNode.tryCatchBlocks.mapNotNullTo(SmartSet.create()) {
+        if (it.isDefaultHandlerNode()) it.handler else null
+    }
+
     for (tcb in methodNode.tryCatchBlocks) {
         if (tcb.isDefaultHandlerNode()) {
             assert(decompiledTryDescriptorForHandler.containsKey(tcb.start)) { "${methodNode.debugString(tcb)}: default handler should occur after some regular handler" }
@@ -127,9 +133,8 @@ private fun collectDecompiledTryDescriptors(methodNode: MethodNode): Map<LabelNo
                 DecompiledTryDescriptor(tcb.start)
             }
         }
-        with(decompiledTryDescriptor) {
-            handlerStartLabels.add(tcb.handler)
 
+        with(decompiledTryDescriptor) {
             if (tcb.isDefaultHandlerNode()) {
                 assert(defaultHandlerTcb == null) {
                     "${methodNode.debugString(tcb)}: default handler is already found: ${methodNode.debugString(defaultHandlerTcb!!)}"
@@ -137,6 +142,10 @@ private fun collectDecompiledTryDescriptors(methodNode: MethodNode): Map<LabelNo
 
                 defaultHandlerTcb = tcb
             }
+
+            if (tcb.handler !in defaultHandlers) {
+                handlerStartLabels.add(tcb.handler)
+            }
         }
     }
 
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/FixStackContext.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/FixStackContext.kt
index 71986dbadde..d7a2620cde6 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/FixStackContext.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/optimization/fixStack/FixStackContext.kt
@@ -33,14 +33,13 @@ internal class FixStackContext(val methodNode: MethodNode) {
     val fakeAlwaysFalseIfeqMarkers = arrayListOf<AbstractInsnNode>()
 
     val isThereAnyTryCatch: Boolean
-    val saveStackMarkerForRestoreMarker: Map<AbstractInsnNode, AbstractInsnNode>
+    val saveStackMarkerForRestoreMarker = insertTryCatchBlocksMarkers(methodNode)
     val restoreStackMarkersForSaveMarker = hashMapOf<AbstractInsnNode, MutableList<AbstractInsnNode>>()
 
     val openingInlineMethodMarker = hashMapOf<AbstractInsnNode, AbstractInsnNode>()
     var consistentInlineMarkers: Boolean = true; private set
 
     init {
-        saveStackMarkerForRestoreMarker = insertTryCatchBlocksMarkers(methodNode)
         isThereAnyTryCatch = saveStackMarkerForRestoreMarker.isNotEmpty()
         for ((restore, save) in saveStackMarkerForRestoreMarker) {
             restoreStackMarkersForSaveMarker.getOrPut(save) { SmartList() }.add(restore)
diff --git a/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt b/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt
new file mode 100644
index 00000000000..de1d0b45cbc
--- /dev/null
+++ b/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt
@@ -0,0 +1,6 @@
+fun zap(s: String) = s
+
+inline fun tryZap(string: String, fn: (String) -> String) =
+        fn(try { zap(string) } finally {})
+
+fun box(): String = tryZap("OK") { it }
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt b/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt
new file mode 100644
index 00000000000..e241aec5239
--- /dev/null
+++ b/compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt
@@ -0,0 +1,17 @@
+fun zap(s: String) = s
+
+inline fun tryZap1(string: String, fn: (String) -> String) =
+        fn(
+                try { zap(string) } finally {
+                    try { zap(string) } finally { }
+                }
+        )
+
+inline fun tryZap2(string: String, fn: (String) -> String) =
+        fn(
+                try { zap(string) } finally {
+                    try { zap(string) } catch (e: Exception) { }
+                }
+        )
+
+fun box(): String = tryZap1("O") { it } + tryZap2("K") { it }
\ No newline at end of file
diff --git a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 4253730625e..dbe87dc1f27 100644
--- a/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-ir-jvm/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -4810,6 +4810,18 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17573.kt")
+            public void testKt17573() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("kt17573_nested.kt")
+            public void testKt17573_nested() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt8608.kt")
             public void testKt8608() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt8608.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index ba266db2fce..a4dceae7f2e 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -4810,6 +4810,18 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17573.kt")
+            public void testKt17573() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("kt17573_nested.kt")
+            public void testKt17573_nested() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt8608.kt")
             public void testKt8608() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt8608.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index ca47e24ca37..5afd28373e9 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -4810,6 +4810,18 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17573.kt")
+            public void testKt17573() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("kt17573_nested.kt")
+            public void testKt17573_nested() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt8608.kt")
             public void testKt8608() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt8608.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index fde80488cf0..9aafb072d5f 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -5525,6 +5525,18 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt17573.kt")
+            public void testKt17573() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("kt17573_nested.kt")
+            public void testKt17573_nested() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt17573_nested.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt8608.kt")
             public void testKt8608() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/controlStructures/tryCatchInExpressions/kt8608.kt");