diff --git a/compiler/testData/checkerWithErrorTypes/quick/regressions/kt398.jet b/compiler/testData/checkerWithErrorTypes/quick/regressions/kt398.jet
new file mode 100644
index 00000000000..1babedaf8f4
--- /dev/null
+++ b/compiler/testData/checkerWithErrorTypes/quick/regressions/kt398.jet
@@ -0,0 +1,11 @@
+// KT-398 Internal error when property initializes with function
+
+class X<T>() {
+    val check = { (a : Any) => a is T }
+}
+
+fun box() : String {
+    if(X<String>().check(10)) return "fail"
+    if(!X<String>().check("lala")) return "fail"
+    return "OK"
+}
\ No newline at end of file