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 78bc7bac66d..fb9e0d8798f 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
@@ -36,11 +36,11 @@ public final class ClosureTest extends SingleFileTranslationTest {
         fooBoxTest();
     }
 
-    public void testLocalParameterInLocalNamedFunction() throws Exception {
-        fooBoxTest();
+    public void testClosureInNestedFunctions() throws Exception {
+        checkFooBoxIsOk();
     }
 
-    public void testObjectAsConstructorParameter() throws Exception {
+    public void testClosureInNestedFunctionsWhichMixedWithObject() throws Exception {
         fooBoxTest();
     }
 }
diff --git a/js/js.translator/testFiles/closure/cases/closureInNestedFunctions.kt b/js/js.translator/testFiles/closure/cases/closureInNestedFunctions.kt
new file mode 100644
index 00000000000..ba2b384830a
--- /dev/null
+++ b/js/js.translator/testFiles/closure/cases/closureInNestedFunctions.kt
@@ -0,0 +1,50 @@
+package foo
+
+fun run<T>(f: ()->T) = f()
+
+fun funfun(): Boolean {
+    val result = true
+
+    fun foo(): Boolean {
+        fun bar() = result
+        return bar()
+    }
+
+    return foo()
+}
+
+fun litlit(): Boolean {
+    val result = true
+
+    return run {
+        run { result }
+    }
+}
+
+fun funlit(): Boolean {
+    val result = true
+
+    fun foo(): Boolean {
+        return run { result }
+    }
+
+    return foo()
+}
+
+fun litfun(): Boolean {
+    val result = true
+
+    return run {
+        fun bar() = result
+        bar()
+    }
+}
+
+fun box(): String {
+    if (!funfun()) "funfun failed"
+    if (!litlit()) "litlit failed"
+    if (!funlit()) "funlit failed"
+    if (!litfun()) "litfun failed"
+
+    return "OK"
+}
\ No newline at end of file
diff --git a/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsWhichMixedWithObject.kt b/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsWhichMixedWithObject.kt
new file mode 100644
index 00000000000..ca79c958bef
--- /dev/null
+++ b/js/js.translator/testFiles/closure/cases/closureInNestedFunctionsWhichMixedWithObject.kt
@@ -0,0 +1,15 @@
+package foo
+
+fun run<T>(f: ()->T) = f()
+
+fun box(): Boolean {
+    val t = run {
+                object {
+                    fun boo(param: String): String {
+                      return run { param }
+                    }
+                }
+            }
+
+    return t.boo("OK") == "OK"
+}
diff --git a/js/js.translator/testFiles/closure/cases/localParameterInLocalNamedFunction.kt b/js/js.translator/testFiles/closure/cases/localParameterInLocalNamedFunction.kt
deleted file mode 100644
index 1fbd4546d46..00000000000
--- a/js/js.translator/testFiles/closure/cases/localParameterInLocalNamedFunction.kt
+++ /dev/null
@@ -1,27 +0,0 @@
-package foo
-
-fun getLastFocused(callback:(window:Any?)->Unit) {
-    callback(null)
-}
-
-fun box(): Boolean {
-    var result = "no"
-    createTab(true) {
-        result = it
-    }
-    return result == "yes"
-}
-
-fun createTab(focusWindow:Boolean, callback:((String)->Unit)?) {
-    getLastFocused {
-        fun createTab() {
-            if (focusWindow && callback != null) {
-                callback("yes")
-            }
-        }
-
-        if (it == null) {
-            createTab()
-        }
-    }
-}
diff --git a/js/js.translator/testFiles/closure/cases/objectAsConstructorParameter.kt b/js/js.translator/testFiles/closure/cases/objectAsConstructorParameter.kt
deleted file mode 100644
index f07c97c0d3c..00000000000
--- a/js/js.translator/testFiles/closure/cases/objectAsConstructorParameter.kt
+++ /dev/null
@@ -1,28 +0,0 @@
-package foo
-
-fun getLastFocused(callback: (window: Any?)->Unit) {
-    callback(null)
-}
-
-abstract class TabService(val ctorParam: String) {
-    abstract fun query(callback: (tabs: String)->Unit)
-}
-
-abstract class PageManager(val tabService: TabService)
-
-class ChromePageManager(val expected: String) : PageManager(object : TabService(expected) {
-    override fun query(callback: (tabs: String)->Unit) {
-        getLastFocused {
-            callback(expected)
-        }
-    }
-})
-
-fun box(): Boolean {
-    var result = ""
-    val tabService = ChromePageManager("result").tabService
-    tabService.query {
-       result = it
-    }
-    return result == "result" && tabService.ctorParam == "result"
-}