diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
index eea31c958dc..300363218c9 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirBlackBoxCodegenBasedTestGenerated.java
@@ -6736,6 +6736,12 @@ public class LLFirBlackBoxCodegenBasedTestGenerated extends AbstractLLFirBlackBo
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
index c58fec48b8d..d0480d14d0f 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirReversedBlackBoxCodegenBasedTestGenerated.java
@@ -6736,6 +6736,12 @@ public class LLFirReversedBlackBoxCodegenBasedTestGenerated extends AbstractLLFi
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
index 1df37c52b42..b2e1704c941 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
@@ -6677,6 +6677,12 @@ public class FirLightTreeBlackBoxCodegenTestGenerated extends AbstractFirLightTr
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
index d2f118f364d..a6a9c69fc54 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated.java
@@ -6677,6 +6677,12 @@ public class FirLightTreeBlackBoxCodegenWithIrFakeOverrideGeneratorTestGenerated
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
index 577cb0ca588..c30bd9c3276 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
@@ -6677,6 +6677,12 @@ public class FirPsiBlackBoxCodegenTestGenerated extends AbstractFirPsiBlackBoxCo
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
index 6375cb0293d..d17e4618b41 100644
--- a/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
+++ b/compiler/ir/backend.common/src/org/jetbrains/kotlin/backend/common/lower/LocalDeclarationsLowering.kt
@@ -585,8 +585,14 @@ class LocalDeclarationsLowering(
                 rewriteFunctionBody(it.declaration, it)
             }
 
-            localClassConstructors.values.forEach {
-                rewriteFunctionBody(it.declaration, it)
+            localClassConstructors.values.forEach { constructorContext ->
+                rewriteFunctionBody(constructorContext.declaration, constructorContext)
+
+                if (!constructorContext.declaration.isPrimary) return@forEach
+
+                constructorContext.declaration.constructedClass.declarations
+                    .filterIsInstance<IrAnonymousInitializer>()
+                    .forEach { rewriteFunctionBody(it, constructorContext) }
             }
 
             localClasses.values.forEach {
diff --git a/compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt b/compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt
new file mode 100644
index 00000000000..5a5d53f7b51
--- /dev/null
+++ b/compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt
@@ -0,0 +1,28 @@
+// KT-61929
+// WITH_SDTLIB
+// EXPECTED_REACHABLE_NODES: 1301
+package foo
+
+fun doSomething(lambda: () -> Unit) { lambda() }
+
+class CompilerBug(result: String) {
+    var result: String = "Failed"
+
+    init {
+        run {
+            object {
+                init {
+                    doSomething { completed(result) }
+                }
+            }
+        }
+    }
+
+    fun completed(value: String) {
+        this.result = value
+    }
+}
+
+fun box(): String {
+    return CompilerBug("OK").result
+}
\ No newline at end of file
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
index a6c0fbf8407..5ff53ef60ef 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
@@ -6443,6 +6443,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
index 52c8f5b95e4..6055c9f2629 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
@@ -6677,6 +6677,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
index 6e29aa06d61..46beb8b412e 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
@@ -6677,6 +6677,12 @@ public class IrBlackBoxCodegenWithIrInlinerTestGenerated extends AbstractIrBlack
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 02903f91710..11cac190214 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -5830,6 +5830,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
             runTest("compiler/testData/codegen/box/classes/outerThis.kt");
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
index fa3aa047fa0..82da001b052 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsCodegenBoxTestGenerated.java
@@ -4901,6 +4901,12 @@ public class FirJsCodegenBoxTestGenerated extends AbstractFirJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
index e2d6d78b0fe..f25c1de051f 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/fir/FirJsES6CodegenBoxTestGenerated.java
@@ -4901,6 +4901,12 @@ public class FirJsES6CodegenBoxTestGenerated extends AbstractFirJsES6CodegenBoxT
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
index f77c7a9cabd..6ba0f02b8f7 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsCodegenBoxTestGenerated.java
@@ -4901,6 +4901,12 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
index c145775e36b..97d360b5f94 100644
--- a/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
+++ b/js/js.tests/tests-gen/org/jetbrains/kotlin/js/test/ir/IrJsES6CodegenBoxTestGenerated.java
@@ -4901,6 +4901,12 @@ public class IrJsES6CodegenBoxTestGenerated extends AbstractIrJsES6CodegenBoxTes
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
index 3428961e148..7e287e17e09 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestGenerated.java
@@ -5056,6 +5056,12 @@ public class FirNativeCodegenBoxTestGenerated extends AbstractNativeCodegenBoxTe
                 runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
             }
 
+            @Test
+            @TestMetadata("nestedInitBlocksWithLambda.kt")
+            public void testNestedInitBlocksWithLambda() throws Exception {
+                runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+            }
+
             @Test
             @TestMetadata("outerThis.kt")
             public void testOuterThis() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
index f0cb7a02a3f..d1045ec1dcb 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/FirNativeCodegenBoxTestNoPLGenerated.java
@@ -5170,6 +5170,12 @@ public class FirNativeCodegenBoxTestNoPLGenerated extends AbstractNativeCodegenB
                 runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
             }
 
+            @Test
+            @TestMetadata("nestedInitBlocksWithLambda.kt")
+            public void testNestedInitBlocksWithLambda() throws Exception {
+                runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+            }
+
             @Test
             @TestMetadata("outerThis.kt")
             public void testOuterThis() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
index bed176178db..7cbe8893b9a 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestGenerated.java
@@ -4942,6 +4942,12 @@ public class NativeCodegenBoxTestGenerated extends AbstractNativeCodegenBoxTest
                 runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
             }
 
+            @Test
+            @TestMetadata("nestedInitBlocksWithLambda.kt")
+            public void testNestedInitBlocksWithLambda() throws Exception {
+                runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+            }
+
             @Test
             @TestMetadata("outerThis.kt")
             public void testOuterThis() throws Exception {
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
index ee8c9e44f9c..ccc3511e65f 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/test/blackbox/NativeCodegenBoxTestNoPLGenerated.java
@@ -5057,6 +5057,12 @@ public class NativeCodegenBoxTestNoPLGenerated extends AbstractNativeCodegenBoxT
                 runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
             }
 
+            @Test
+            @TestMetadata("nestedInitBlocksWithLambda.kt")
+            public void testNestedInitBlocksWithLambda() throws Exception {
+                runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+            }
+
             @Test
             @TestMetadata("outerThis.kt")
             public void testOuterThis() throws Exception {
diff --git a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
index 39286305bca..81851768abe 100644
--- a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
+++ b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/FirWasmCodegenBoxTestGenerated.java
@@ -4883,6 +4883,12 @@ public class FirWasmCodegenBoxTestGenerated extends AbstractFirWasmCodegenBoxTes
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {
diff --git a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
index 2e9231448d2..7cada0216a8 100644
--- a/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
+++ b/wasm/wasm.tests/tests-gen/org/jetbrains/kotlin/wasm/test/K1WasmCodegenBoxTestGenerated.java
@@ -4883,6 +4883,12 @@ public class K1WasmCodegenBoxTestGenerated extends AbstractK1WasmCodegenBoxTest
             runTest("compiler/testData/codegen/box/classes/namedClassObject.kt");
         }
 
+        @Test
+        @TestMetadata("nestedInitBlocksWithLambda.kt")
+        public void testNestedInitBlocksWithLambda() throws Exception {
+            runTest("compiler/testData/codegen/box/classes/nestedInitBlocksWithLambda.kt");
+        }
+
         @Test
         @TestMetadata("outerThis.kt")
         public void testOuterThis() throws Exception {