diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
index efc9006a3ee..be4d5292cbd 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/MethodInliner.kt
@@ -6,6 +6,7 @@
 package org.jetbrains.kotlin.codegen.inline
 
 import org.jetbrains.kotlin.backend.jvm.codegen.IrExpressionLambda
+import org.jetbrains.kotlin.builtins.isFunctionType
 import org.jetbrains.kotlin.codegen.AsmUtil
 import org.jetbrains.kotlin.codegen.ClosureCodegen
 import org.jetbrains.kotlin.codegen.StackValue
@@ -368,7 +369,14 @@ class MethodInliner(
         )
 
         val transformationVisitor = object : MethodVisitor(API, transformedNode) {
-            private val GENERATE_DEBUG_INFO = GENERATE_SMAP && inlineOnlySmapSkipper == null
+            /*
+                Ignore simple @InlineOnly functions such as 'error()' or 'assert()' without lambda parameters,
+                as we likely to want to have a line number from the call site in a stack trace.
+             */
+            private val GENERATE_LINE_NUMBERS = GENERATE_SMAP && (inlineOnlySmapSkipper == null || run {
+                val callableDescriptor = inliningContext.root.sourceCompilerForInline.callableDescriptor
+                callableDescriptor != null && callableDescriptor.valueParameters.any { it.type.isFunctionType }
+            })
 
             private val isInliningLambda = nodeRemapper.isInsideInliningLambda
 
@@ -400,7 +408,7 @@ class MethodInliner(
             }
 
             override fun visitLineNumber(line: Int, start: Label) {
-                if (isInliningLambda || GENERATE_DEBUG_INFO) {
+                if (isInliningLambda || GENERATE_LINE_NUMBERS) {
                     super.visitLineNumber(line, start)
                 }
             }
@@ -428,7 +436,7 @@ class MethodInliner(
             override fun visitLocalVariable(
                     name: String, desc: String, signature: String?, start: Label, end: Label, index: Int
             ) {
-                if (isInliningLambda || GENERATE_DEBUG_INFO) {
+                if (isInliningLambda || (GENERATE_SMAP && inlineOnlySmapSkipper == null)) {
                     val varSuffix = if (inliningContext.isRoot && !isFakeLocalVariableForInline(name)) INLINE_FUN_VAR_SUFFIX else ""
                     val varName = if (!varSuffix.isEmpty() && name == "this") name + "_" else name
                     super.visitLocalVariable(varName + varSuffix, desc, signature, start, end, getNewIndex(index))
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/SourceCompilerForInline.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/SourceCompilerForInline.kt
index 115bf9de262..9f73ff45e33 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/SourceCompilerForInline.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/SourceCompilerForInline.kt
@@ -46,6 +46,8 @@ interface SourceCompilerForInline {
 
     val callElement: Any
 
+    val callableDescriptor: CallableDescriptor?
+
     val lookupLocation: LookupLocation
 
     val callElementText: String
@@ -99,6 +101,8 @@ class PsiSourceCompilerForInline(private val codegen: ExpressionCodegen, overrid
 
     override val lookupLocation = KotlinLookupLocation(callElement)
 
+    override val callableDescriptor: CallableDescriptor?
+        get() = (this.context as? MethodContext)?.functionDescriptor
 
     override val callElementText by lazy {
         callElement.text
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
index 7b6b9644e1a..2a8f9acf08f 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/IrSourceCompilerForInline.kt
@@ -21,6 +21,7 @@ import org.jetbrains.kotlin.codegen.OwnerKind
 import org.jetbrains.kotlin.codegen.SourceInfo
 import org.jetbrains.kotlin.codegen.inline.*
 import org.jetbrains.kotlin.codegen.state.GenerationState
+import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
 import org.jetbrains.kotlin.descriptors.FunctionDescriptor
 import org.jetbrains.kotlin.incremental.components.LookupLocation
@@ -50,6 +51,9 @@ class IrSourceCompilerForInline(
     override val callElementText: String
         get() = callElement.toString()
 
+    override val callableDescriptor: CallableDescriptor
+        get() = callElement.descriptor
+
     override val callsiteFile: PsiFile?
         get() = TODO("not implemented")
 
diff --git a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault.kt b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault.kt
index 5641fb198b2..77ab330c0e0 100644
--- a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault.kt
+++ b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault.kt
@@ -87,22 +87,26 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
-+ 2 1.kt
-test/_1Kt
++ 2 Standard.kt
+kotlin/StandardKt__StandardKt
 + 3 1.kt
+test/_1Kt
++ 4 1.kt
 test/_1Kt$lParams$1
 *L
 1#1,10:1
-31#2,5:11
-29#2:17
-32#3:16
+34#2,4:11
+31#3,5:15
+29#3:21
+32#4:20
 *E
 *S KotlinDebug
 *F
 + 1 2.kt
 _2Kt
 *L
-5#1,5:11
-5#1:17
-5#1:16
+5#1,4:11
+5#1,5:15
+5#1:21
+5#1:20
 *E
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault2.kt b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault2.kt
index 376d09d84fe..de183eeea8b 100644
--- a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault2.kt
+++ b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlinInDefault2.kt
@@ -123,26 +123,30 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
-+ 2 1.kt
-test/_1Kt
++ 2 Standard.kt
+kotlin/StandardKt__StandardKt
 + 3 1.kt
+test/_1Kt
++ 4 1.kt
 test/_1Kt$lParams$1
 *L
 1#1,10:1
-31#2:11
-70#2,2:12
-29#2:15
-50#3:14
-68#3:16
+34#2,4:11
+31#3:15
+70#3,2:16
+29#3:19
+50#4:18
+68#4:20
 *E
 *S KotlinDebug
 *F
 + 1 2.kt
 _2Kt
 *L
-5#1:11
-5#1,2:12
+5#1,4:11
 5#1:15
-5#1:14
-5#1:16
+5#1,2:16
+5#1:19
+5#1:18
+5#1:20
 *E
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlineAnonymousInDefault2.kt b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlineAnonymousInDefault2.kt
index 482b8b2b318..4e81a01a0ff 100644
--- a/compiler/testData/codegen/boxInline/smap/defaultLambda/inlineAnonymousInDefault2.kt
+++ b/compiler/testData/codegen/boxInline/smap/defaultLambda/inlineAnonymousInDefault2.kt
@@ -112,24 +112,28 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
-+ 2 1.kt
-test/_1Kt
++ 2 Standard.kt
+kotlin/StandardKt__StandardKt
 + 3 1.kt
+test/_1Kt
++ 4 1.kt
 test/_1Kt$lParams$1
 *L
 1#1,10:1
-31#2,5:11
-29#2:17
-32#3:16
+34#2,4:11
+31#3,5:15
+29#3:21
+32#4:20
 *E
 *S KotlinDebug
 *F
 + 1 2.kt
 _2Kt
 *L
-5#1,5:11
-5#1:17
-5#1:16
+5#1,4:11
+5#1,5:15
+5#1:21
+5#1:20
 *E
 
 // FILE: 2.smap-separate-compilation
@@ -140,24 +144,28 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
-+ 2 1.kt
-test/_1Kt
++ 2 Standard.kt
+kotlin/StandardKt__StandardKt
 + 3 1.kt
+test/_1Kt
++ 4 1.kt
 test/_1Kt$lParams$1
 *L
 1#1,10:1
-31#2,5:11
-29#2:17
-32#3:16
+34#2,4:11
+31#3,5:15
+29#3:21
+32#4:20
 *E
 *S KotlinDebug
 *F
 + 1 2.kt
 _2Kt
 *L
-5#1,5:11
-5#1:17
-5#1:16
+5#1,4:11
+5#1,5:15
+5#1:21
+5#1:20
 *E
 
 SMAP
diff --git a/compiler/testData/codegen/boxInline/smap/defaultLambda/kt21827.kt b/compiler/testData/codegen/boxInline/smap/defaultLambda/kt21827.kt
index cefd819aeb6..409f714f259 100644
--- a/compiler/testData/codegen/boxInline/smap/defaultLambda/kt21827.kt
+++ b/compiler/testData/codegen/boxInline/smap/defaultLambda/kt21827.kt
@@ -76,20 +76,24 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
-+ 2 1.kt
-test/_1Kt
++ 2 Standard.kt
+kotlin/StandardKt__StandardKt
 + 3 1.kt
+test/_1Kt
++ 4 1.kt
 test/_1Kt$lParams$1
 *L
 1#1,10:1
-30#2,5:11
-31#3:16
+34#2,4:11
+30#3,5:15
+31#4:20
 *E
 *S KotlinDebug
 *F
 + 1 2.kt
 _2Kt
 *L
-5#1,5:11
-5#1:16
+5#1,4:11
+5#1,5:15
+5#1:20
 *E
\ No newline at end of file
diff --git a/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmap.kt b/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmap.kt
index 8ee31295455..e8ca584b863 100644
--- a/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmap.kt
+++ b/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmap.kt
@@ -20,6 +20,16 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
++ 2 _Strings.kt
+kotlin/text/StringsKt___StringsKt
 *L
 1#1,7:1
+498#2:8
+*E
+*S KotlinDebug
+*F
++ 1 2.kt
+_2Kt
+*L
+4#1:8
 *E
diff --git a/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmapWithProperty.kt b/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmapWithProperty.kt
index c749d0b31cf..a0f96bffae9 100644
--- a/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmapWithProperty.kt
+++ b/compiler/testData/codegen/boxInline/smap/inlineOnly/noSmapWithProperty.kt
@@ -25,6 +25,16 @@ Kotlin
 *F
 + 1 2.kt
 _2Kt
++ 2 1.kt
+test/_1Kt
 *L
 1#1,8:1
+10#2:9
+*E
+*S KotlinDebug
+*F
++ 1 2.kt
+_2Kt
+*L
+5#1:9
 *E
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.kt b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.kt
new file mode 100644
index 00000000000..5531e023ab3
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.kt
@@ -0,0 +1,49 @@
+package inlineOnlyLambdas
+
+class Test
+fun test() {}
+
+fun main(args: Array<String>) {
+    val data = Test()
+
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.onelinerApply { test() }
+
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.multiLineApply { test() }
+
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.onelinerApply2 { test() }
+
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.multiLineApply2 { test() }
+
+    //Breakpoint!
+    data.withoutLambdaParams()
+}
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+@kotlin.internal.InlineOnly
+inline fun <T> T.withoutLambdaParams(): T {
+    return this
+}
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+@kotlin.internal.InlineOnly
+inline fun <T> T.onelinerApply(block: T.() -> Unit): T { block(); return this }
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+@kotlin.internal.InlineOnly
+inline fun <T> T.multiLineApply(block: T.() -> Unit): T {
+    block();
+    return this
+}
+
+inline fun <T> T.onelinerApply2(block: T.() -> Unit): T { block(); return this }
+
+inline fun <T> T.multiLineApply2(block: T.() -> Unit): T {
+    block();
+    return this
+}
+
+// RESUME: 5
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.out b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.out
new file mode 100644
index 00000000000..fbd9acbed3f
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.out
@@ -0,0 +1,15 @@
+LineBreakpoint created at inlineOnlyLambdas.kt:10 lambdaOrdinal = 1
+LineBreakpoint created at inlineOnlyLambdas.kt:13 lambdaOrdinal = 1
+LineBreakpoint created at inlineOnlyLambdas.kt:16 lambdaOrdinal = 1
+LineBreakpoint created at inlineOnlyLambdas.kt:19 lambdaOrdinal = 1
+LineBreakpoint created at inlineOnlyLambdas.kt:22
+Run Java
+Connected to the target VM
+inlineOnlyLambdas.kt:10
+inlineOnlyLambdas.kt:13
+inlineOnlyLambdas.kt:16
+inlineOnlyLambdas.kt:19
+inlineOnlyLambdas.kt:22
+Disconnected from the target VM
+
+Process finished with exit code 0
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.kt b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.kt
new file mode 100644
index 00000000000..fd142227e65
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.kt
@@ -0,0 +1,38 @@
+package inlineOnlyLambdasStepping
+
+class Test
+fun test() {}
+
+fun main(args: Array<String>) {
+    val data = Test()
+
+    // STEP_OVER: 2
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.onelinerApply { test() }
+
+    data.multiLineApply { test() }
+
+    // STEP_OVER: 3
+    //Breakpoint! (lambdaOrdinal = 1)
+    data.onelinerApply2 { test() }
+
+    data.multiLineApply2 { test() }
+}
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+@kotlin.internal.InlineOnly
+inline fun <T> T.onelinerApply(block: T.() -> Unit): T { block(); return this }
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+@kotlin.internal.InlineOnly
+inline fun <T> T.multiLineApply(block: T.() -> Unit): T {
+    block();
+    return this
+}
+
+inline fun <T> T.onelinerApply2(block: T.() -> Unit): T { block(); return this }
+
+inline fun <T> T.multiLineApply2(block: T.() -> Unit): T {
+    block();
+    return this
+}
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.out b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.out
new file mode 100644
index 00000000000..57572118ad1
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.out
@@ -0,0 +1,13 @@
+LineBreakpoint created at inlineOnlyLambdasStepping.kt:11 lambdaOrdinal = 1
+LineBreakpoint created at inlineOnlyLambdasStepping.kt:17 lambdaOrdinal = 1
+Run Java
+Connected to the target VM
+inlineOnlyLambdasStepping.kt:11
+inlineOnlyLambdasStepping.kt:13
+inlineOnlyLambdasStepping.kt:17
+inlineOnlyLambdasStepping.kt:17
+inlineOnlyLambdasStepping.kt:19
+inlineOnlyLambdasStepping.kt:20
+Disconnected from the target VM
+
+Process finished with exit code 0
diff --git a/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.kt b/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.kt
index 737db2ba756..e173c7b6c4d 100644
--- a/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.kt
+++ b/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.kt
@@ -27,5 +27,5 @@ inline fun forEach(s: () -> Unit) {
     }
 }
 
-// STEP_INTO: 9
+// STEP_INTO: 15
 // TRACING_FILTERS_ENABLED: false
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.out b/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.out
index edb5a34b1b8..414710bf588 100644
--- a/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.out
+++ b/idea/testData/debugger/tinyApp/src/stepping/stepInto/inlineOnly.out
@@ -3,14 +3,20 @@ Run Java
 Connected to the target VM
 inlineOnly.kt:5
 inlineOnly.kt:7
-inlineOnly.kt:13
-inlineOnly.kt:14
+inlineOnly.kt:25
+inlineOnly.kt:26
 inlineOnly.kt:7
 inlineOnly.kt:13
 inlineOnly.kt:14
 inlineOnly.kt:7
-inlineOnly.kt:9
-PrintStream.!EXT!
+inlineOnly.kt:25
+inlineOnly.kt:26
+inlineOnly.kt:7
+inlineOnly.kt:13
+inlineOnly.kt:14
+inlineOnly.kt:7
+inlineOnly.kt:25
+inlineOnly.kt:28
 Disconnected from the target VM
 
 Process finished with exit code 0
diff --git a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
index 01e30f44c64..f781ee0f1de 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
@@ -1218,6 +1218,18 @@ public class KotlinSteppingTestGenerated extends AbstractKotlinSteppingTest {
             doCustomTest(fileName);
         }
 
+        @TestMetadata("inlineOnlyLambdas.kt")
+        public void testInlineOnlyLambdas() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdas.kt");
+            doCustomTest(fileName);
+        }
+
+        @TestMetadata("inlineOnlyLambdasStepping.kt")
+        public void testInlineOnlyLambdasStepping() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/inlineOnlyLambdasStepping.kt");
+            doCustomTest(fileName);
+        }
+
         @TestMetadata("inlineProperties.kt")
         public void testInlineProperties() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/inlineProperties.kt");