diff --git a/compiler/testData/codegen/box/localClasses/kt4174.kt b/compiler/testData/codegen/box/localClasses/kt4174.kt
new file mode 100644
index 00000000000..56a73053979
--- /dev/null
+++ b/compiler/testData/codegen/box/localClasses/kt4174.kt
@@ -0,0 +1,25 @@
+open class C(val s: String) {
+    fun test(): String {
+        return s
+    }
+}
+
+class B(var x: String) {
+    fun foo(): String {
+        var s = "OK"
+        class Z : C(s) {}
+        return Z().test()
+    }
+
+    fun foo2(): String {
+        class Y : C(x) {}
+        return Y().test()
+    }
+}
+
+
+fun box(): String {
+    val b = B("OK")
+    if (b.foo() != "OK") return "fail: ${b.foo()}"
+    return b.foo2()
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxCodegenTestGenerated.java
index c4e618092af..bacaa81cd32 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxCodegenTestGenerated.java
@@ -4441,6 +4441,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             doTest(fileName);
         }
 
+        @TestMetadata("kt4174.kt")
+        public void testKt4174() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/box/localClasses/kt4174.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("localClass.kt")
         public void testLocalClass() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/box/localClasses/localClass.kt");