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 e9fe958d02a..9adde42a6e0 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
@@ -953,6 +953,8 @@ class LocalDeclarationsLowering(
                     super.visitConstructor(declaration, data)
 
                     if (!isScriptMode && !declaration.constructedClass.isLocalNotInner()) return
+                    // Inner classes in scripts are handled properly in the InnerClassesLowering
+                    if (isScriptMode && declaration.constructedClass.isInner) return
                     // LDL doesn't work on the enums because local enums are not allowed, so skipping them in scripts too
                     if (isScriptMode && declaration.constructedClass.kind == ClassKind.ENUM_CLASS) return
 
@@ -964,6 +966,8 @@ class LocalDeclarationsLowering(
                     super.visitClass(declaration, data.withCurrentClass(declaration))
 
                     if (!isScriptMode && !declaration.isLocalNotInner()) return
+                    // Inner classes in scripts are handled properly in the InnerClassesLowering
+                    if (isScriptMode && declaration.isInner) return
                     // LDL doesn't work on the enums because local enums are not allowed, so skipping them in scripts too
                     if (isScriptMode && declaration.kind == ClassKind.ENUM_CLASS) return
 
diff --git a/compiler/testData/codegen/script/innerClass.kts b/compiler/testData/codegen/script/innerClass.kts
new file mode 100644
index 00000000000..287b34c463a
--- /dev/null
+++ b/compiler/testData/codegen/script/innerClass.kts
@@ -0,0 +1,29 @@
+
+val b = "K"
+
+inner class InnerClass(val s: String) {
+    fun test1() = s + b
+
+    inner class C1 {
+        fun bar(c: String) = s + b + c
+    }
+
+    fun test2() = C1().bar("!")
+
+    inner class C2 {
+        fun bar(c: String) = s + b + c
+
+        fun test(): String {
+            var c = "?"
+            return object {
+                fun run() = s + b + c
+            }.run()
+        }
+    }
+
+    fun test3() = C2().test()
+}
+
+val rv = InnerClass("O").test1() + InnerClass("_O").test2() + InnerClass("__O").test3()
+
+// expected: rv: OK_OK!__OK?
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/ScriptCodegenTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/ScriptCodegenTestGenerated.java
index 946e6f41e4e..d66f2965798 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/ScriptCodegenTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/ScriptCodegenTestGenerated.java
@@ -64,6 +64,11 @@ public class ScriptCodegenTestGenerated extends AbstractScriptCodegenTest {
         runTest("compiler/testData/codegen/script/inline.kts");
     }
 
+    @TestMetadata("innerClass.kts")
+    public void testInnerClass() throws Exception {
+        runTest("compiler/testData/codegen/script/innerClass.kts");
+    }
+
     @TestMetadata("kt20707.kts")
     public void testKt20707() throws Exception {
         runTest("compiler/testData/codegen/script/kt20707.kts");
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/ir/IrScriptCodegenTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/ir/IrScriptCodegenTestGenerated.java
index c2b72d7b38a..f6c182292c8 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/ir/IrScriptCodegenTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/ir/IrScriptCodegenTestGenerated.java
@@ -65,6 +65,11 @@ public class IrScriptCodegenTestGenerated extends AbstractIrScriptCodegenTest {
         runTest("compiler/testData/codegen/script/inline.kts");
     }
 
+    @TestMetadata("innerClass.kts")
+    public void testInnerClass() throws Exception {
+        runTest("compiler/testData/codegen/script/innerClass.kts");
+    }
+
     @TestMetadata("kt20707.kts")
     public void testKt20707() throws Exception {
         runTest("compiler/testData/codegen/script/kt20707.kts");