diff --git a/README.md b/README.md
index e94e0c7b..10b0b468 100644
--- a/README.md
+++ b/README.md
@@ -68,7 +68,8 @@ The available options are:
   --source-map-inline           Write base64-encoded source map to the end of js output.
   --in-source-map               Input source map, useful if you're compressing
                                 JS that was generated from some other original
-                                code.
+                                code. Specify "inline" if the source map is included
+                                inline with the sources.
   --screw-ie8                   Use this flag if you don't wish to support
                                 Internet Explorer 6/7/8.
                                 By default UglifyJS will not try to be IE-proof.
@@ -200,9 +201,10 @@ compressed JS by mapping every token in the compiled JS to its original
 location.
 
 To use this feature you need to pass `--in-source-map
-/path/to/input/source.map`.  Normally the input source map should also point
-to the file containing the generated JS, so if that's correct you can omit
-input files from the command line.
+/path/to/input/source.map` or `--in-source-map inline` if the source map is
+included inline with the sources. Normally the input source map should also
+point to the file containing the generated JS, so if that's correct you can
+omit input files from the command line.
 
 ## Mangler options
 
diff --git a/lib/ast.js b/lib/ast.js
index 428dbeaa..fabe7b40 100644
--- a/lib/ast.js
+++ b/lib/ast.js
@@ -1320,11 +1320,13 @@ TreeWalker.prototype = {
     push: function (node) {
         if (node instanceof AST_Lambda) {
             this.directives = Object.create(this.directives);
-        } else if (node instanceof AST_Directive) {
-            this.directives[node.value] = this.directives[node.value] ? "up" : true;
+        } else if (node instanceof AST_Directive && !this.directives[node.value]) {
+            this.directives[node.value] = node;
         } else if (node instanceof AST_Class) {
             this.directives = Object.create(this.directives);
-            this.directives["use strict"] = this.directives["use strict"] ? "up" : true;
+            if (!this.directives["use strict"]) {
+                this.directives["use strict"] = node;
+            }
         }
         this.stack.push(node);
     },
@@ -1352,7 +1354,7 @@ TreeWalker.prototype = {
             for (var i = 0; i < node.body.length; ++i) {
                 var st = node.body[i];
                 if (!(st instanceof AST_Directive)) break;
-                if (st.value == type) return true;
+                if (st.value == type) return st;
             }
         }
     },
diff --git a/lib/compress.js b/lib/compress.js
index 8c96f380..12b87dd2 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -99,10 +99,10 @@ function Compressor(options, false_by_default) {
         this.top_retain = function(def) {
             return top_retain.test(def.name);
         };
-    } else if (typeof top_retain === "function") {
+    } else if (typeof top_retain == "function") {
         this.top_retain = top_retain;
     } else if (top_retain) {
-        if (typeof top_retain === "string") {
+        if (typeof top_retain == "string") {
             top_retain = top_retain.split(/,/);
         }
         this.top_retain = function(def) {
@@ -152,14 +152,25 @@ merge(Compressor.prototype, {
             node = node.hoist_declarations(this);
             was_scope = true;
         }
+        // Before https://github.com/mishoo/UglifyJS2/pull/1602 AST_Node.optimize()
+        // would call AST_Node.transform() if a different instance of AST_Node is
+        // produced after OPT().
+        // This corrupts TreeWalker.stack, which cause AST look-ups to malfunction.
+        // Migrate and defer all children's AST_Node.transform() to below, which
+        // will now happen after this parent AST_Node has been properly substituted
+        // thus gives a consistent AST snapshot.
         descend(node, this);
-        node = node.optimize(this);
-        if (was_scope && node instanceof AST_Scope) {
-            node.drop_unused(this);
-            descend(node, this);
+        // Existing code relies on how AST_Node.optimize() worked, and omitting the
+        // following replacement call would result in degraded efficiency of both
+        // output and performance.
+        descend(node, this);
+        var opt = node.optimize(this);
+        if (was_scope && opt instanceof AST_Scope) {
+            opt.drop_unused(this);
+            descend(opt, this);
         }
-        node._squeezed = true;
-        return node;
+        if (opt === node) opt._squeezed = true;
+        return opt;
     }
 });
 
@@ -172,8 +183,7 @@ merge(Compressor.prototype, {
             if (compressor.has_directive("use asm")) return self;
             var opt = optimizer(self, compressor);
             opt._optimized = true;
-            if (opt === self) return opt;
-            return opt.transform(compressor);
+            return opt;
         });
     };
 
@@ -389,7 +399,7 @@ merge(Compressor.prototype, {
         return new ctor(props);
     };
 
-    function make_node_from_constant(compressor, val, orig) {
+    function make_node_from_constant(val, orig) {
         switch (typeof val) {
           case "string":
             return make_node(AST_String, orig, {
@@ -409,9 +419,9 @@ merge(Compressor.prototype, {
 
             return make_node(AST_Number, orig, { value: val });
           case "boolean":
-            return make_node(val ? AST_True : AST_False, orig).optimize(compressor);
+            return make_node(val ? AST_True : AST_False, orig);
           case "undefined":
-            return make_node(AST_Undefined, orig).transform(compressor);
+            return make_node(AST_Undefined, orig);
           default:
             if (val === null) {
                 return make_node(AST_Null, orig, { value: null });
@@ -524,6 +534,7 @@ merge(Compressor.prototype, {
 
             var self = compressor.self();
             var var_defs_removed = false;
+            var toplevel = compressor.option("toplevel");
             for (var stat_index = statements.length; --stat_index >= 0;) {
                 var stat = statements[stat_index];
                 if (stat instanceof AST_Definitions) continue;
@@ -561,7 +572,8 @@ merge(Compressor.prototype, {
 
                     // Only interested in cases with just one reference to the variable.
                     var def = self.find_variable && self.find_variable(var_name);
-                    if (!def || !def.references || def.references.length !== 1 || var_name == "arguments") {
+                    if (!def || !def.references || def.references.length !== 1
+                        || var_name == "arguments" || (!toplevel && def.global)) {
                         side_effects_encountered = true;
                         continue;
                     }
@@ -937,7 +949,7 @@ merge(Compressor.prototype, {
                     if (stat instanceof AST_LoopControl) {
                         var lct = compressor.loopcontrol_target(stat.label);
                         if ((stat instanceof AST_Break
-                             && lct instanceof AST_BlockStatement
+                             && !(lct instanceof AST_IterationStatement)
                              && loop_body(lct) === self) || (stat instanceof AST_Continue
                                                              && loop_body(lct) === self)) {
                             if (stat.label) {
@@ -1224,11 +1236,11 @@ merge(Compressor.prototype, {
                 }
             }
         });
-        function to_node(compressor, value, orig) {
+        function to_node(value, orig) {
             if (value instanceof AST_Node) return make_node(value.CTOR, orig, value);
             if (Array.isArray(value)) return make_node(AST_Array, orig, {
                 elements: value.map(function(value) {
-                    return to_node(compressor, value, orig);
+                    return to_node(value, orig);
                 })
             });
             if (value && typeof value == "object") {
@@ -1236,14 +1248,14 @@ merge(Compressor.prototype, {
                 for (var key in value) {
                     props.push(make_node(AST_ObjectKeyVal, orig, {
                         key: key,
-                        value: to_node(compressor, value[key], orig)
+                        value: to_node(value[key], orig)
                     }));
                 }
                 return make_node(AST_Object, orig, {
                     properties: props
                 });
             }
-            return make_node_from_constant(compressor, value, orig);
+            return make_node_from_constant(value, orig);
         }
         def(AST_Node, noop);
         def(AST_Dot, function(compressor, suffix){
@@ -1254,7 +1266,7 @@ merge(Compressor.prototype, {
             var name;
             var defines = compressor.option("global_defs");
             if (defines && HOP(defines, (name = this.name + suffix))) {
-                var node = to_node(compressor, defines[name], this);
+                var node = to_node(defines[name], this);
                 var top = compressor.find_parent(AST_Toplevel);
                 node.walk(new TreeWalker(function(node) {
                     if (node instanceof AST_SymbolRef) {
@@ -1269,45 +1281,40 @@ merge(Compressor.prototype, {
         node.DEFMETHOD("_find_defs", func);
     });
 
-    function best_of(ast1, ast2) {
+    function best_of_expression(ast1, ast2) {
         return ast1.print_to_string().length >
             ast2.print_to_string().length
             ? ast2 : ast1;
     }
 
     function best_of_statement(ast1, ast2) {
-        return best_of(make_node(AST_SimpleStatement, ast1, {
+        return best_of_expression(make_node(AST_SimpleStatement, ast1, {
             body: ast1
         }), make_node(AST_SimpleStatement, ast2, {
             body: ast2
         })).body;
     }
 
+    function best_of(compressor, ast1, ast2) {
+        return (first_in_statement(compressor) ? best_of_statement : best_of_expression)(ast1, ast2);
+    }
+
     // methods to evaluate a constant expression
     (function (def){
-        // The evaluate method returns an array with one or two
-        // elements.  If the node has been successfully reduced to a
-        // constant, then the second element tells us the value;
-        // otherwise the second element is missing.  The first element
-        // of the array is always an AST_Node descendant; if
-        // evaluation was successful it's a node that represents the
-        // constant; otherwise it's the original or a replacement node.
+        // If the node has been successfully reduced to a constant,
+        // then its value is returned; otherwise the element itself
+        // is returned.
+        // They can be distinguished as constant value is never a
+        // descendant of AST_Node.
         AST_Node.DEFMETHOD("evaluate", function(compressor){
-            if (!compressor.option("evaluate")) return [ this ];
-            var val;
+            if (!compressor.option("evaluate")) return this;
             try {
-                val = this._eval(compressor);
+                var val = this._eval(compressor);
+                return !val || val instanceof RegExp || typeof val != "object" ? val : this;
             } catch(ex) {
                 if (ex !== def) throw ex;
-                return [ this ];
+                return this;
             }
-            var node;
-            try {
-                node = make_node_from_constant(compressor, val, this);
-            } catch(ex) {
-                return [ this ];
-            }
-            return [ best_of(node, this), val ];
         });
         var unaryPrefix = makePredicate("! ~ - +");
         AST_Node.DEFMETHOD("is_constant", function(){
@@ -1345,8 +1352,8 @@ merge(Compressor.prototype, {
                 }));
             }
             var result = this.evaluate(compressor);
-            if (result.length > 1) {
-                return result[1];
+            if (result !== this) {
+                return result;
             }
             throw new Error(string_template("Cannot evaluate constant [{file}:{line},{col}]", this.start));
         });
@@ -1518,9 +1525,9 @@ merge(Compressor.prototype, {
                 var stat = make_node(AST_SimpleStatement, alt, {
                     body: alt
                 });
-                return best_of(negated, stat) === stat ? alt : negated;
+                return best_of_expression(negated, stat) === stat ? alt : negated;
             }
-            return best_of(negated, alt);
+            return best_of_expression(negated, alt);
         }
         def(AST_Node, function(){
             return basic_negation(this);
@@ -1687,8 +1694,8 @@ merge(Compressor.prototype, {
         return thing && thing.aborts();
     };
     (function(def){
-        def(AST_Statement, function(){ return null });
-        def(AST_Jump, function(){ return this });
+        def(AST_Statement, return_null);
+        def(AST_Jump, return_this);
         function block_aborts(){
             var n = this.body.length;
             return n > 0 && aborts(this.body[n - 1]);
@@ -1706,7 +1713,7 @@ merge(Compressor.prototype, {
     /* -----[ optimizers ]----- */
 
     OPT(AST_Directive, function(self, compressor){
-        if (compressor.has_directive(self.value) === "up") {
+        if (compressor.has_directive(self.value) !== self) {
             return make_node(AST_EmptyStatement, self);
         }
         return self;
@@ -2102,7 +2109,7 @@ merge(Compressor.prototype, {
                                 vars.set(def.name.name, def);
                                 ++vars_found;
                             });
-                            var seq = node.to_assignments();
+                            var seq = node.to_assignments(compressor);
                             var p = tt.parent();
                             if (p instanceof AST_ForIn && p.init === node) {
                                 if (seq == null) {
@@ -2198,14 +2205,6 @@ merge(Compressor.prototype, {
     // drop_side_effect_free()
     // remove side-effect-free parts which only affects return value
     (function(def){
-        function return_this() {
-            return this;
-        }
-
-        function return_null() {
-            return null;
-        }
-
         // Drop side-effect-free elements from an array of expressions.
         // Returns an array of expressions with side-effects or null
         // if all elements were dropped. Note: original array may be
@@ -2362,27 +2361,24 @@ merge(Compressor.prototype, {
     });
 
     OPT(AST_DWLoop, function(self, compressor){
-        var cond = self.condition.evaluate(compressor);
-        self.condition = cond[0];
         if (!compressor.option("loops")) return self;
-        if (cond.length > 1) {
-            if (cond[1]) {
+        var cond = self.condition.evaluate(compressor);
+        if (cond !== self.condition) {
+            if (cond) {
                 return make_node(AST_For, self, {
                     body: self.body
                 });
-            } else if (self instanceof AST_While) {
-                if (compressor.option("dead_code")) {
-                    var a = [];
-                    extract_declarations_from_unreachable_code(compressor, self.body, a);
-                    return make_node(AST_BlockStatement, self, { body: a });
-                }
+            } else if (compressor.option("dead_code") && self instanceof AST_While) {
+                var a = [];
+                extract_declarations_from_unreachable_code(compressor, self.body, a);
+                return make_node(AST_BlockStatement, self, { body: a });
             } else {
-                // self instanceof AST_Do
-                return self;
+                cond = make_node_from_constant(cond, self.condition).transform(compressor);
+                self.condition = best_of_expression(cond, self.condition);
             }
         }
         if (self instanceof AST_While) {
-            return make_node(AST_For, self, self).transform(compressor);
+            return make_node(AST_For, self, self).optimize(compressor);
         }
         return self;
     });
@@ -2404,7 +2400,7 @@ merge(Compressor.prototype, {
         var first = self.body instanceof AST_BlockStatement ? self.body.body[0] : self.body;
         if (first instanceof AST_If) {
             if (first.body instanceof AST_Break
-                && compressor.loopcontrol_target(first.body.label) === self) {
+                && compressor.loopcontrol_target(first.body.label) === compressor.self()) {
                 if (self.condition) {
                     self.condition = make_node(AST_Binary, self.condition, {
                         left: self.condition,
@@ -2417,7 +2413,7 @@ merge(Compressor.prototype, {
                 drop_it(first.alternative);
             }
             else if (first.alternative instanceof AST_Break
-                     && compressor.loopcontrol_target(first.alternative.label) === self) {
+                     && compressor.loopcontrol_target(first.alternative.label) === compressor.self()) {
                 if (self.condition) {
                     self.condition = make_node(AST_Binary, self.condition, {
                         left: self.condition,
@@ -2433,27 +2429,25 @@ merge(Compressor.prototype, {
     };
 
     OPT(AST_For, function(self, compressor){
-        var cond = self.condition;
-        if (cond) {
-            cond = cond.evaluate(compressor);
-            self.condition = cond[0];
-        }
         if (!compressor.option("loops")) return self;
-        if (cond) {
-            if (cond.length > 1 && !cond[1]) {
-                if (compressor.option("dead_code")) {
-                    var a = [];
-                    if (self.init instanceof AST_Statement) {
-                        a.push(self.init);
-                    }
-                    else if (self.init) {
-                        a.push(make_node(AST_SimpleStatement, self.init, {
-                            body: self.init
-                        }));
-                    }
-                    extract_declarations_from_unreachable_code(compressor, self.body, a);
-                    return make_node(AST_BlockStatement, self, { body: a });
+        if (self.condition) {
+            var cond = self.condition.evaluate(compressor);
+            if (compressor.option("dead_code") && !cond) {
+                var a = [];
+                if (self.init instanceof AST_Statement) {
+                    a.push(self.init);
                 }
+                else if (self.init) {
+                    a.push(make_node(AST_SimpleStatement, self.init, {
+                        body: self.init
+                    }));
+                }
+                extract_declarations_from_unreachable_code(compressor, self.body, a);
+                return make_node(AST_BlockStatement, self, { body: a });
+            }
+            if (cond !== self.condition) {
+                cond = make_node_from_constant(cond, self.condition).transform(compressor);
+                self.condition = best_of_expression(cond, self.condition);
             }
         }
         if_break_in_loop(self, compressor);
@@ -2469,9 +2463,8 @@ merge(Compressor.prototype, {
         // “has no side effects”; also it doesn't work for cases like
         // `x && true`, though it probably should.
         var cond = self.condition.evaluate(compressor);
-        self.condition = cond[0];
-        if (cond.length > 1) {
-            if (cond[1]) {
+        if (cond !== self.condition) {
+            if (cond) {
                 compressor.warn("Condition always true [{file}:{line},{col}]", self.condition.start);
                 if (compressor.option("dead_code")) {
                     var a = [];
@@ -2479,7 +2472,7 @@ merge(Compressor.prototype, {
                         extract_declarations_from_unreachable_code(compressor, self.alternative, a);
                     }
                     a.push(self.body);
-                    return make_node(AST_BlockStatement, self, { body: a }).transform(compressor);
+                    return make_node(AST_BlockStatement, self, { body: a }).optimize(compressor);
                 }
             } else {
                 compressor.warn("Condition always false [{file}:{line},{col}]", self.condition.start);
@@ -2487,9 +2480,11 @@ merge(Compressor.prototype, {
                     var a = [];
                     extract_declarations_from_unreachable_code(compressor, self.body, a);
                     if (self.alternative) a.push(self.alternative);
-                    return make_node(AST_BlockStatement, self, { body: a }).transform(compressor);
+                    return make_node(AST_BlockStatement, self, { body: a }).optimize(compressor);
                 }
             }
+            cond = make_node_from_constant(cond, self.condition).transform(compressor);
+            self.condition = best_of_expression(cond, self.condition);
         }
         var negated = self.condition.negate(compressor);
         var self_condition_length = self.condition.print_to_string().length;
@@ -2506,8 +2501,8 @@ merge(Compressor.prototype, {
         }
         if (is_empty(self.body) && is_empty(self.alternative)) {
             return make_node(AST_SimpleStatement, self.condition, {
-                body: self.condition
-            }).transform(compressor);
+                body: self.condition.clone()
+            }).optimize(compressor);
         }
         if (self.body instanceof AST_SimpleStatement
             && self.alternative instanceof AST_SimpleStatement) {
@@ -2517,7 +2512,7 @@ merge(Compressor.prototype, {
                     consequent  : statement_to_expression(self.body),
                     alternative : statement_to_expression(self.alternative)
                 })
-            }).transform(compressor);
+            }).optimize(compressor);
         }
         if (is_empty(self.alternative) && self.body instanceof AST_SimpleStatement) {
             if (self_condition_length === negated_length && !negated_is_best
@@ -2533,14 +2528,14 @@ merge(Compressor.prototype, {
                     left     : negated,
                     right    : statement_to_expression(self.body)
                 })
-            }).transform(compressor);
+            }).optimize(compressor);
             return make_node(AST_SimpleStatement, self, {
                 body: make_node(AST_Binary, self, {
                     operator : "&&",
                     left     : self.condition,
                     right    : statement_to_expression(self.body)
                 })
-            }).transform(compressor);
+            }).optimize(compressor);
         }
         if (self.body instanceof AST_EmptyStatement
             && self.alternative
@@ -2551,7 +2546,7 @@ merge(Compressor.prototype, {
                     left     : self.condition,
                     right    : statement_to_expression(self.alternative)
                 })
-            }).transform(compressor);
+            }).optimize(compressor);
         }
         if (self.body instanceof AST_Exit
             && self.alternative instanceof AST_Exit
@@ -2561,18 +2556,21 @@ merge(Compressor.prototype, {
                     condition   : self.condition,
                     consequent  : self.body.value || make_node(AST_Undefined, self.body),
                     alternative : self.alternative.value || make_node(AST_Undefined, self.alternative)
-                })
-            }).transform(compressor);
+                }).transform(compressor)
+            }).optimize(compressor);
         }
         if (self.body instanceof AST_If
             && !self.body.alternative
             && !self.alternative) {
-            self.condition = make_node(AST_Binary, self.condition, {
-                operator: "&&",
-                left: self.condition,
-                right: self.body.condition
-            }).transform(compressor);
-            self.body = self.body.body;
+            self = make_node(AST_If, self, {
+                condition: make_node(AST_Binary, self.condition, {
+                    operator: "&&",
+                    left: self.condition,
+                    right: self.body.condition
+                }),
+                body: self.body.body,
+                alternative: null
+            });
         }
         if (aborts(self.body)) {
             if (self.alternative) {
@@ -2580,7 +2578,7 @@ merge(Compressor.prototype, {
                 self.alternative = null;
                 return make_node(AST_BlockStatement, self, {
                     body: [ self, alt ]
-                }).transform(compressor);
+                }).optimize(compressor);
             }
         }
         if (aborts(self.alternative)) {
@@ -2590,7 +2588,7 @@ merge(Compressor.prototype, {
             self.alternative = null;
             return make_node(AST_BlockStatement, self, {
                 body: [ self, body ]
-            }).transform(compressor);
+            }).optimize(compressor);
         }
         return self;
     });
@@ -2614,12 +2612,12 @@ merge(Compressor.prototype, {
             }
             break;
         }
-        var exp = self.expression.evaluate(compressor);
-        out: if (exp.length == 2) try {
+        var value = self.expression.evaluate(compressor);
+        out: if (value !== self.expression) try {
             // constant expression
-            self.expression = exp[0];
+            var expression = make_node_from_constant(value, self.expression);
+            self.expression = best_of_expression(expression, self.expression);
             if (!compressor.option("dead_code")) break out;
-            var value = exp[1];
             var in_if = false;
             var in_block = false;
             var started = false;
@@ -2666,11 +2664,11 @@ merge(Compressor.prototype, {
                     if (stopped) return MAP.skip;
                     if (node instanceof AST_Case) {
                         var exp = node.expression.evaluate(compressor);
-                        if (exp.length < 2) {
+                        if (exp === node.expression) {
                             // got a case with non-constant expression, baling out
                             throw self;
                         }
-                        if (exp[1] === value || started) {
+                        if (exp === value || started) {
                             started = true;
                             if (aborts(node)) stopped = true;
                             descend(node, this);
@@ -2704,7 +2702,8 @@ merge(Compressor.prototype, {
         this.definitions.forEach(function(def){ def.value = null });
     });
 
-    AST_Definitions.DEFMETHOD("to_assignments", function(){
+    AST_Definitions.DEFMETHOD("to_assignments", function(compressor){
+        var reduce_vars = compressor.option("reduce_vars");
         var assignments = this.definitions.reduce(function(a, def){
             if (def.value && !(def.name instanceof AST_Destructuring)) {
                 var name = make_node(AST_SymbolRef, def.name, def.name);
@@ -2713,6 +2712,7 @@ merge(Compressor.prototype, {
                     left     : name,
                     right    : def.value
                 }));
+                if (reduce_vars) name.definition().fixed = false;
             } else if (def.value) {
                 // Because it's a destructuring, do not turn into an assignment.
                 var varDef = make_node(AST_VarDef, def, {
@@ -2903,15 +2903,14 @@ merge(Compressor.prototype, {
                 var separator;
                 if (self.args.length > 0) {
                     separator = self.args[0].evaluate(compressor);
-                    if (separator.length < 2) break EXIT; // not a constant
-                    separator = separator[1];
+                    if (separator === self.args[0]) break EXIT; // not a constant
                 }
                 var elements = [];
                 var consts = [];
                 exp.expression.elements.forEach(function(el) {
-                    el = el.evaluate(compressor);
-                    if (el.length > 1) {
-                        consts.push(el[1]);
+                    var value = el.evaluate(compressor);
+                    if (value !== el) {
+                        consts.push(value);
                     } else {
                         if (consts.length > 0) {
                             elements.push(make_node(AST_String, self, {
@@ -2919,7 +2918,7 @@ merge(Compressor.prototype, {
                             }));
                             consts.length = 0;
                         }
-                        elements.push(el[0]);
+                        elements.push(el);
                     }
                 });
                 if (consts.length > 0) {
@@ -2960,7 +2959,7 @@ merge(Compressor.prototype, {
                 node.expression = node.expression.clone();
                 node.expression.expression = node.expression.expression.clone();
                 node.expression.expression.elements = elements;
-                return best_of(self, node);
+                return best_of(compressor, self, node);
             }
         }
         if (exp instanceof AST_Function && !self.expression.is_generator) {
@@ -3106,8 +3105,7 @@ merge(Compressor.prototype, {
                     return e.expression;
                 }
                 if (e instanceof AST_Binary) {
-                    var statement = first_in_statement(compressor);
-                    self = (statement ? best_of_statement : best_of)(self, e.negate(compressor, statement));
+                    self = best_of(compressor, self, e.negate(compressor, first_in_statement(compressor)));
                 }
                 break;
               case "typeof":
@@ -3120,7 +3118,15 @@ merge(Compressor.prototype, {
                 }).optimize(compressor);
             }
         }
-        return self.evaluate(compressor)[0];
+        // avoids infinite recursion of numerals
+        if (self.operator != "-" || !(self.expression instanceof AST_Number)) {
+            var ev = self.evaluate(compressor);
+            if (ev !== self) {
+                ev = make_node_from_constant(ev, self).optimize(compressor);
+                return best_of(compressor, ev, self);
+            }
+        }
+        return self;
     });
 
     function has_side_effects_or_prop_access(node, compressor) {
@@ -3158,16 +3164,6 @@ merge(Compressor.prototype, {
     var commutativeOperators = makePredicate("== === != !== * & | ^");
 
     OPT(AST_Binary, function(self, compressor){
-        var lhs = self.left.evaluate(compressor);
-        var rhs = self.right.evaluate(compressor);
-        if (lhs.length > 1 && lhs[0].is_constant() !== self.left.is_constant()
-            || rhs.length > 1 && rhs[0].is_constant() !== self.right.is_constant()) {
-            return make_node(AST_Binary, self, {
-                operator: self.operator,
-                left: lhs[0],
-                right: rhs[0]
-            }).optimize(compressor);
-        }
         function reversible() {
             return self.left instanceof AST_Constant
                 || self.right instanceof AST_Constant
@@ -3252,48 +3248,48 @@ merge(Compressor.prototype, {
           case "&&":
             var ll = self.left.evaluate(compressor);
             var rr = self.right.evaluate(compressor);
-            if ((ll.length > 1 && !ll[1]) || (rr.length > 1 && !rr[1])) {
+            if (!ll || !rr) {
                 compressor.warn("Boolean && always false [{file}:{line},{col}]", self.start);
                 return make_node(AST_Seq, self, {
                     car: self.left,
                     cdr: make_node(AST_False, self)
                 }).optimize(compressor);
             }
-            if (ll.length > 1 && ll[1]) {
-                return rr[0];
+            if (ll !== self.left && ll) {
+                return self.right.optimize(compressor);
             }
-            if (rr.length > 1 && rr[1]) {
-                return ll[0];
+            if (rr !== self.right && rr) {
+                return self.left.optimize(compressor);
             }
             break;
           case "||":
             var ll = self.left.evaluate(compressor);
             var rr = self.right.evaluate(compressor);
-            if ((ll.length > 1 && ll[1]) || (rr.length > 1 && rr[1])) {
+            if (ll !== self.left && ll || rr !== self.right && rr) {
                 compressor.warn("Boolean || always true [{file}:{line},{col}]", self.start);
                 return make_node(AST_Seq, self, {
                     car: self.left,
                     cdr: make_node(AST_True, self)
                 }).optimize(compressor);
             }
-            if (ll.length > 1 && !ll[1]) {
-                return rr[0];
+            if (!ll) {
+                return self.right.optimize(compressor);
             }
-            if (rr.length > 1 && !rr[1]) {
-                return ll[0];
+            if (!rr) {
+                return self.left.optimize(compressor);
             }
             break;
           case "+":
             var ll = self.left.evaluate(compressor);
             var rr = self.right.evaluate(compressor);
-            if (ll.length > 1 && ll[0] instanceof AST_String && ll[1]) {
+            if (ll && typeof ll == "string") {
                 compressor.warn("+ in boolean context always true [{file}:{line},{col}]", self.start);
                 return make_node(AST_Seq, self, {
                     car: self.right,
                     cdr: make_node(AST_True, self)
                 }).optimize(compressor);
             }
-            if (rr.length > 1 && rr[0] instanceof AST_String && rr[1]) {
+            if (rr && typeof rr == "string") {
                 compressor.warn("+ in boolean context always true [{file}:{line},{col}]", self.start);
                 return make_node(AST_Seq, self, {
                     car: self.left,
@@ -3305,12 +3301,11 @@ merge(Compressor.prototype, {
         if (compressor.option("comparisons") && self.is_boolean()) {
             if (!(compressor.parent() instanceof AST_Binary)
                 || compressor.parent() instanceof AST_Assign) {
-                var statement = first_in_statement(compressor);
                 var negated = make_node(AST_UnaryPrefix, self, {
                     operator: "!",
-                    expression: self.negate(compressor, statement)
+                    expression: self.negate(compressor, first_in_statement(compressor))
                 });
-                self = (statement ? best_of_statement : best_of)(self, negated);
+                self = best_of(compressor, self, negated);
             }
             if (compressor.option("unsafe_comps")) {
                 switch (self.operator) {
@@ -3462,9 +3457,9 @@ merge(Compressor.prototype, {
                     });
                     if (self.right instanceof AST_Constant
                         && !(self.left instanceof AST_Constant)) {
-                        self = best_of(reversed, self);
+                        self = best_of(compressor, reversed, self);
                     } else {
-                        self = best_of(self, reversed);
+                        self = best_of(compressor, self, reversed);
                     }
                 }
                 if (associative && self.is_number(compressor)) {
@@ -3561,7 +3556,12 @@ merge(Compressor.prototype, {
             self.right = self.right.right;
             return self.transform(compressor);
         }
-        return self.evaluate(compressor)[0];
+        var ev = self.evaluate(compressor);
+        if (ev !== self) {
+            ev = make_node_from_constant(ev, self).optimize(compressor);
+            return best_of(compressor, ev, self);
+        }
+        return self;
     });
 
     OPT(AST_SymbolRef, function(self, compressor){
@@ -3576,11 +3576,11 @@ merge(Compressor.prototype, {
             && (!self.scope.uses_with || !compressor.find_parent(AST_With))) {
             switch (self.name) {
               case "undefined":
-                return make_node(AST_Undefined, self).transform(compressor);
+                return make_node(AST_Undefined, self).optimize(compressor);
               case "NaN":
-                return make_node(AST_NaN, self).transform(compressor);
+                return make_node(AST_NaN, self).optimize(compressor);
               case "Infinity":
-                return make_node(AST_Infinity, self).transform(compressor);
+                return make_node(AST_Infinity, self).optimize(compressor);
             }
         }
         if (compressor.option("evaluate") && compressor.option("reduce_vars")) {
@@ -3588,18 +3588,20 @@ merge(Compressor.prototype, {
             if (d.fixed) {
                 if (d.should_replace === undefined) {
                     var init = d.fixed.evaluate(compressor);
-                    if (init.length > 1) {
-                        var value = init[0].print_to_string().length;
+                    if (init !== d.fixed) {
+                        init = make_node_from_constant(init, d.fixed).optimize(compressor);
+                        init = best_of_expression(init, d.fixed);
+                        var value = init.print_to_string().length;
                         var name = d.name.length;
                         var freq = d.references.length;
                         var overhead = d.global || !freq ? 0 : (name + 2 + value) / freq;
-                        d.should_replace = value <= name + overhead ? init[0] : false;
+                        d.should_replace = value <= name + overhead ? init : false;
                     } else {
                         d.should_replace = false;
                     }
                 }
                 if (d.should_replace) {
-                    return d.should_replace;
+                    return d.should_replace.clone(true);
                 }
             }
         }
@@ -3663,10 +3665,11 @@ merge(Compressor.prototype, {
         var evaluateRight = self.right.evaluate(compressor);
 
         // `[x = undefined] = foo` ---> `[x] = foo`
-        if (evaluateRight.length > 1 && evaluateRight[1] === undefined) {
+        if (evaluateRight === undefined) {
             self = self.left;
-        } else {
-            self.right = evaluateRight[0];
+        } else if (evaluateRight !== self.right) {
+            evaluateRight = make_node_from_constant(evaluateRight, self.right);
+            self.right = best_of_expression(evaluateRight, self.right);
         }
 
         return self;
@@ -3680,8 +3683,8 @@ merge(Compressor.prototype, {
             return AST_Seq.cons(car, self);
         }
         var cond = self.condition.evaluate(compressor);
-        if (cond.length > 1) {
-            if (cond[1]) {
+        if (cond !== self.condition) {
+            if (cond) {
                 compressor.warn("Condition always true [{file}:{line},{col}]", self.start);
                 return maintain_this_binding(compressor.parent(), self, self.consequent);
             } else {
@@ -3689,9 +3692,8 @@ merge(Compressor.prototype, {
                 return maintain_this_binding(compressor.parent(), self, self.alternative);
             }
         }
-        var statement = first_in_statement(compressor);
-        var negated = cond[0].negate(compressor, statement);
-        if ((statement ? best_of_statement : best_of)(cond[0], negated) === negated) {
+        var negated = cond.negate(compressor, first_in_statement(compressor));
+        if (best_of(compressor, cond, negated) === negated) {
             self = make_node(AST_Conditional, self, {
                 condition: negated,
                 consequent: self.alternative,
@@ -3871,7 +3873,12 @@ merge(Compressor.prototype, {
                 });
             }
         }
-        return self.evaluate(compressor)[0];
+        var ev = self.evaluate(compressor);
+        if (ev !== self) {
+            ev = make_node_from_constant(ev, self).optimize(compressor);
+            return best_of(compressor, ev, self);
+        }
+        return self;
     });
 
     OPT(AST_Dot, function(self, compressor){
@@ -3910,13 +3917,17 @@ merge(Compressor.prototype, {
                 break;
             }
         }
-        return self.evaluate(compressor)[0];
+        var ev = self.evaluate(compressor);
+        if (ev !== self) {
+            ev = make_node_from_constant(ev, self).optimize(compressor);
+            return best_of(compressor, ev, self);
+        }
+        return self;
     });
 
     function literals_in_boolean_context(self, compressor) {
         if (compressor.option("booleans") && compressor.in_boolean_context()) {
-            var best = first_in_statement(compressor) ? best_of_statement : best_of;
-            return best(self, make_node(AST_Seq, self, {
+            return best_of(compressor, self, make_node(AST_Seq, self, {
                 car: self,
                 cdr: make_node(AST_True, self)
             }).optimize(compressor));
@@ -3962,23 +3973,18 @@ merge(Compressor.prototype, {
 
         var segments = [];
         for (var i = 0; i < self.segments.length; i++) {
-            if (self.segments[i] instanceof AST_Node) {
-                var result = self.segments[i].evaluate(compressor);
-                // No result[1] means nothing to stringify
-                if (result.length === 1) {
-                    segments.push(result[0]);
+            var segment = self.segments[i];
+            if (segment instanceof AST_Node) {
+                var result = segment.evaluate(compressor);
+                // Evaluate to constant value
+                // Constant value shorter than ${segment}
+                if (result !== segment && (result + "").length <= segment.print_to_string().length + "${}".length) {
+                    // There should always be a previous and next segment if segment is a node
+                    segments[segments.length - 1].value = segments[segments.length - 1].value + result + self.segments[++i].value;
                     continue;
                 }
-                // Evaluate length
-                if (result[0].print_to_string().length + 3 /* ${} */ < (result[1]+"").length) {
-                    segments.push(result[0]);
-                    continue;
-                }
-                // There should always be a previous and next segment if segment is a node
-                segments[segments.length - 1].value = segments[segments.length - 1].value + result[1] + self.segments[++i].value;
-            } else {
-                segments.push(self.segments[i]);
             }
+            segments.push(segment);
         }
         self.segments = segments;
 
diff --git a/lib/scope.js b/lib/scope.js
index e8ec5de3..87a56e0c 100644
--- a/lib/scope.js
+++ b/lib/scope.js
@@ -279,7 +279,7 @@ AST_Toplevel.DEFMETHOD("figure_out_scope", function(options){
             if (node instanceof AST_SymbolCatch) {
                 var name = node.name;
                 var refs = node.thedef.references;
-                var scope = node.thedef.scope.parent_scope;
+                var scope = node.thedef.scope.parent_scope.parent_scope;
                 var def = scope.find_variable(name) || self.globals.get(name) || scope.def_variable(node);
                 refs.forEach(function(ref) {
                     ref.thedef = def;
diff --git a/lib/utils.js b/lib/utils.js
index da663546..fdb20471 100644
--- a/lib/utils.js
+++ b/lib/utils.js
@@ -126,9 +126,11 @@ function merge(obj, ext) {
     return count;
 };
 
-function noop() {};
+function noop() {}
 function return_false() { return false; }
 function return_true() { return true; }
+function return_this() { return this; }
+function return_null() { return null; }
 
 var MAP = (function(){
     function MAP(a, f, backwards) {
diff --git a/package.json b/package.json
index 2ba24c7c..34b1674a 100644
--- a/package.json
+++ b/package.json
@@ -4,7 +4,7 @@
   "homepage": "http://lisperator.net/uglifyjs",
   "author": "Mihai Bazon <mihai.bazon@gmail.com> (http://lisperator.net/)",
   "license": "BSD-2-Clause",
-  "version": "2.8.12",
+  "version": "2.8.13",
   "engines": {
     "node": ">=0.8.0"
   },
diff --git a/test/compress/collapse_vars.js b/test/compress/collapse_vars.js
index d526170e..f46175dd 100644
--- a/test/compress/collapse_vars.js
+++ b/test/compress/collapse_vars.js
@@ -1152,7 +1152,8 @@ collapse_vars_arguments: {
     options = {
         collapse_vars:true, sequences:true, properties:true, dead_code:true, conditionals:true,
         comparisons:true, evaluate:true, booleans:true, loops:true, unused:true, hoist_funs:true,
-        keep_fargs:true, if_return:true, join_vars:true, cascade:true, side_effects:true
+        keep_fargs:true, if_return:true, join_vars:true, cascade:true, side_effects:true,
+        toplevel:true
     }
     input: {
         var outer = function() {
@@ -1321,6 +1322,7 @@ collapse_vars_regexp: {
 issue_1537: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var k = '';
@@ -1335,6 +1337,7 @@ issue_1537: {
 issue_1537_for_of: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var k = '';
@@ -1349,6 +1352,7 @@ issue_1537_for_of: {
 issue_1537_destructuring_1: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var x = 1, y = 2;
@@ -1363,6 +1367,7 @@ issue_1537_destructuring_1: {
 issue_1537_destructuring_2: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var x = foo();
@@ -1377,6 +1382,7 @@ issue_1537_destructuring_2: {
 issue_1537_destructuring_3: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var x = Math.random();
@@ -1391,6 +1397,7 @@ issue_1537_destructuring_3: {
 issue_1537_destructuring_for_in: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var x = 1, y = 2;
@@ -1409,6 +1416,7 @@ issue_1537_destructuring_for_in: {
 issue_1537_destructuring_for_of: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var x = 1, y = 2;
@@ -1427,6 +1435,7 @@ issue_1537_destructuring_for_of: {
 issue_1562: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     }
     input: {
         var v = 1, B = 2;
@@ -1455,3 +1464,46 @@ issue_1562: {
         for (; f(z + 2) ;) bar(30);
     }
 }
+
+issue_1605_1: {
+    options = {
+        collapse_vars: true,
+        toplevel: false,
+    }
+    input: {
+        function foo(x) {
+            var y = x;
+            return y;
+        }
+        var o = new Object;
+        o.p = 1;
+    }
+    expect: {
+        function foo(x) {
+            return x;
+        }
+        var o = new Object;
+        o.p = 1;
+    }
+}
+
+issue_1605_2: {
+    options = {
+        collapse_vars: true,
+        toplevel: "vars",
+    }
+    input: {
+        function foo(x) {
+            var y = x;
+            return y;
+        }
+        var o = new Object;
+        o.p = 1;
+    }
+    expect: {
+        function foo(x) {
+            return x;
+        }
+        (new Object).p = 1;
+    }
+}
diff --git a/test/compress/issue-1202.js b/test/compress/issue-1202.js
index 136515fd..27bc4248 100644
--- a/test/compress/issue-1202.js
+++ b/test/compress/issue-1202.js
@@ -49,4 +49,3 @@ mangle_keep_fnames_true: {
         }
     }
 }
-
diff --git a/test/compress/issue-1588.js b/test/compress/issue-1588.js
new file mode 100644
index 00000000..fce9ba54
--- /dev/null
+++ b/test/compress/issue-1588.js
@@ -0,0 +1,99 @@
+screw_ie8: {
+    options = {
+        screw_ie8: true,
+    }
+    mangle = {
+        screw_ie8: true,
+    }
+    input: {
+        try { throw "foo"; } catch (x) { console.log(x); }
+    }
+    expect_exact: 'try{throw"foo"}catch(o){console.log(o)}'
+    expect_stdout: [
+        "foo"
+    ]
+}
+
+support_ie8: {
+    options = {
+        screw_ie8: false,
+    }
+    mangle = {
+        screw_ie8: false,
+    }
+    input: {
+        try { throw "foo"; } catch (x) { console.log(x); }
+    }
+    expect_exact: 'try{throw"foo"}catch(x){console.log(x)}'
+    expect_stdout: "foo"
+}
+
+safe_undefined: {
+    options = {
+        conditionals: true,
+        if_return: true,
+        unsafe: false,
+    }
+    mangle = {}
+    input: {
+        var a, c;
+        console.log(function(undefined) {
+            return function() {
+                if (a)
+                    return b;
+                if (c)
+                    return d;
+            };
+        }(1)());
+    }
+    expect: {
+        var a, c;
+        console.log(function(n) {
+            return function() {
+                return a ? b : c ? d : void 0;
+            };
+        }(1)());
+    }
+    expect_stdout: true
+}
+
+unsafe_undefined: {
+    options = {
+        conditionals: true,
+        if_return: true,
+        unsafe: true,
+    }
+    mangle = {}
+    input: {
+        var a, c;
+        console.log(function(undefined) {
+            return function() {
+                if (a)
+                    return b;
+                if (c)
+                    return d;
+            };
+        }()());
+    }
+    expect: {
+        var a, c;
+        console.log(function(n) {
+            return function() {
+                return a ? b : c ? d : n;
+            };
+        }()());
+    }
+    expect_stdout: true
+}
+
+runtime_error: {
+    input: {
+        const a = 1;
+        console.log(a++);
+    }
+    expect: {
+        const a = 1;
+        console.log(a++);
+    }
+    expect_stdout: true
+}
diff --git a/test/compress/issue-1609.js b/test/compress/issue-1609.js
new file mode 100644
index 00000000..577a3ee1
--- /dev/null
+++ b/test/compress/issue-1609.js
@@ -0,0 +1,56 @@
+chained_evaluation_1: {
+    options = {
+        collapse_vars: true,
+        evaluate: true,
+        reduce_vars: true,
+        unused: true,
+    }
+    input: {
+        (function() {
+            var a = 1;
+            (function() {
+                var b = a, c;
+                c = f(b);
+                c.bar = b;
+            })();
+        })();
+    }
+    expect: {
+        (function() {
+            (function() {
+                var c;
+                c = f(1);
+                c.bar = 1;
+            })();
+        })();
+    }
+}
+
+chained_evaluation_2: {
+    options = {
+        collapse_vars: true,
+        evaluate: true,
+        reduce_vars: true,
+        unused: true,
+    }
+    input: {
+        (function() {
+            var a = "long piece of string";
+            (function() {
+                var b = a, c;
+                c = f(b);
+                c.bar = b;
+            })();
+        })();
+    }
+    expect: {
+        (function() {
+            var a = "long piece of string";
+            (function() {
+                var c;
+                c = f(a);
+                c.bar = a;
+            })();
+        })();
+    }
+}
diff --git a/test/compress/issue-973.js b/test/compress/issue-973.js
index 0e040922..30f886a8 100644
--- a/test/compress/issue-973.js
+++ b/test/compress/issue-973.js
@@ -50,6 +50,7 @@ this_binding_conditionals: {
 this_binding_collapse_vars: {
     options = {
         collapse_vars: true,
+        toplevel: true,
     };
     input: {
         var c = a; c();
diff --git a/test/compress/object.js b/test/compress/object.js
index a9f6b3cb..19ee2adc 100644
--- a/test/compress/object.js
+++ b/test/compress/object.js
@@ -157,16 +157,20 @@ computed_property_names_evaluated_2: {
 
 shorthand_properties: {
     mangle = true;
-    input: (function() {
-        var prop = 1;
-        const value = {prop};
-        return value;
-    })();
-    expect: (function() {
-        var n = 1;
-        const r = {prop:n};
-        return r;
-    })();
+    input: {
+        (function() {
+            var prop = 1;
+            const value = {prop};
+            return value;
+        })();
+    }
+    expect: {
+        (function() {
+            var n = 1;
+            const r = {prop:n};
+            return r;
+        })();
+    }
 }
 
 concise_methods: {
@@ -233,9 +237,7 @@ concise_methods_with_computed_property2: {
         };
         doSomething(foo[[1]]());
     }
-    expect_exact: {
-        'var foo={[[1]](){return"success"}};doSomething(foo[[1]]());'
-    }
+    expect_exact: 'var foo={[[1]](){return"success"}};doSomething(foo[[1]]());'
 }
 
 concise_methods_with_various_property_names: {
@@ -507,4 +509,4 @@ variable_as_computed_property: {
         }
     }
     expect_exact: "function getLine(header){return{[header]:{}}}"
-}
\ No newline at end of file
+}
diff --git a/test/compress/reduce_vars.js b/test/compress/reduce_vars.js
index a5ab59f9..bc6c72d4 100644
--- a/test/compress/reduce_vars.js
+++ b/test/compress/reduce_vars.js
@@ -1327,3 +1327,27 @@ issue_1595_4: {
         })(3, 4, 5);
     }
 }
+
+issue_1606: {
+    options = {
+        evaluate: true,
+        hoist_vars: true,
+        reduce_vars: true,
+    }
+    input: {
+        function f() {
+            var a;
+            function g(){};
+            var b = 2;
+            x(b);
+        }
+    }
+    expect: {
+        function f() {
+            var a, b;
+            function g(){};
+            b = 2;
+            x(b);
+        }
+    }
+}
diff --git a/test/compress/screw-ie8.js b/test/compress/screw-ie8.js
index 4fbb95c8..0fb68c25 100644
--- a/test/compress/screw-ie8.js
+++ b/test/compress/screw-ie8.js
@@ -1,20 +1,29 @@
 do_screw: {
-    options = { screw_ie8: true };
+    options = {
+        screw_ie8: true,
+    }
     beautify = {
         screw_ie8: true,
-        ascii_only: true
-    };
-
-    input: f("\v");
-    expect_exact: 'f("\\v");';
+        ascii_only: true,
+    }
+    input: {
+        f("\v");
+    }
+    expect_exact: 'f("\\v");'
 }
 
 dont_screw: {
-    options = { screw_ie8: false };
-    beautify = { screw_ie8: false, ascii_only: true };
-
-    input: f("\v");
-    expect_exact: 'f("\\x0B");';
+    options = {
+        screw_ie8: false,
+    }
+    beautify = {
+        screw_ie8: false,
+        ascii_only: true,
+    }
+    input: {
+        f("\v");
+    }
+    expect_exact: 'f("\\x0B");'
 }
 
 do_screw_constants: {
diff --git a/test/compress/transform.js b/test/compress/transform.js
new file mode 100644
index 00000000..7b616e40
--- /dev/null
+++ b/test/compress/transform.js
@@ -0,0 +1,129 @@
+booleans_evaluate: {
+    options = {
+        booleans: true,
+        evaluate: true,
+    }
+    input: {
+        console.log(typeof void 0 != "undefined");
+        console.log(1 == 1, 1 === 1)
+        console.log(1 != 1, 1 !== 1)
+    }
+    expect: {
+        console.log(!1);
+        console.log(!0, !0);
+        console.log(!1, !1);
+    }
+}
+
+booleans_global_defs: {
+    options = {
+        booleans: true,
+        evaluate: true,
+        global_defs: {
+            A: true,
+        },
+    }
+    input: {
+        console.log(A == 1);
+    }
+    expect: {
+        console.log(!0);
+    }
+}
+
+condition_evaluate: {
+    options = {
+        booleans: true,
+        dead_code: false,
+        evaluate: true,
+        loops: false,
+    }
+    input: {
+        while (1 === 2);
+        for (; 1 == true;);
+        if (void 0 == null);
+    }
+    expect: {
+        while (!1);
+        for (; !0;);
+        if (!0);
+    }
+}
+
+if_else_empty: {
+    options = {
+        conditionals: true,
+    }
+    input: {
+        if ({} ? a : b); else {}
+    }
+    expect: {
+        !{} ? b : a;
+    }
+}
+
+label_if_break: {
+    options = {
+        conditionals: true,
+        dead_code: true,
+        evaluate: true,
+    }
+    input: {
+        L: if (true) {
+            a;
+            break L;
+        }
+    }
+    expect: {
+        a;
+    }
+}
+
+while_if_break: {
+    options = {
+        conditionals: true,
+        loops: true,
+        sequences: true,
+    }
+    input: {
+        while (a) {
+            if (b) if(c) d;
+            if (e) break;
+        }
+    }
+    expect: {
+        for(; a && (b && c && d, !e););
+    }
+}
+
+if_return: {
+    options = {
+        booleans: true,
+        conditionals: true,
+        if_return: true,
+        sequences: true,
+    }
+    input: {
+        function f(w, x, y, z) {
+            if (x) return;
+            if (w) {
+                if (y) return;
+            } else if (z) return;
+            if (x == y) return true;
+
+            if (x) w();
+            if (y) z();
+            return true;
+        }
+    }
+    expect: {
+        function f(w, x, y, z) {
+            if (!x) {
+                if (w) {
+                    if (y) return;
+                } else if (z) return;
+                return x == y || (x && w(), y && z(), !0);
+            }
+        }
+    }
+}
diff --git a/test/mocha/cli.js b/test/mocha/cli.js
index fa952d91..2b44c901 100644
--- a/test/mocha/cli.js
+++ b/test/mocha/cli.js
@@ -152,7 +152,7 @@ describe("bin/uglifyjs", function () {
        });
     });
     it("Should process inline source map", function(done) {
-        var command = uglifyjscmd + ' test/input/issue-520/input.js -cm toplevel --in-source-map inline --source-map-inline';
+        var command = uglifyjscmd + ' test/input/issue-520/input.js -mc toplevel --in-source-map inline --source-map-inline';
 
         exec(command, function (err, stdout) {
             if (err) throw err;
diff --git a/test/mocha/directives.js b/test/mocha/directives.js
index c9970d63..2e9df8cb 100644
--- a/test/mocha/directives.js
+++ b/test/mocha/directives.js
@@ -397,7 +397,7 @@ describe("Directives", function() {
             if (node instanceof uglify.AST_Symbol && node.name === "_check_") {
                 checked = true;
                 for (var j = 0; j < tests[i].directives.length; j++) {
-                    assert.equal(checkWalker.has_directive(tests[i].directives[j]), true,
+                    assert.ok(checkWalker.has_directive(tests[i].directives[j]),
                         "Did not found directive '" + tests[i].directives[j] +  "' in test " + tests[i].input)
                 }
                 for (var k = 0; k < tests[i].non_directives.length; k++) {
diff --git a/test/mocha/minify.js b/test/mocha/minify.js
index 51c46b28..a4587cb7 100644
--- a/test/mocha/minify.js
+++ b/test/mocha/minify.js
@@ -78,6 +78,7 @@ describe("minify", function() {
         });
         it("Should process inline source map", function() {
             var code = Uglify.minify("./test/input/issue-520/input.js", {
+                compress: { toplevel: true },
                 inSourceMap: "inline",
                 sourceMapInline: true
             }).code + "\n";
diff --git a/test/run-tests.js b/test/run-tests.js
index 36d26ef7..7f3256e0 100755
--- a/test/run-tests.js
+++ b/test/run-tests.js
@@ -6,6 +6,7 @@ var U = require("../tools/node");
 var path = require("path");
 var fs = require("fs");
 var assert = require("assert");
+var vm = require("vm");
 
 var tests_dir = path.dirname(module.filename);
 var failures = 0;
@@ -71,10 +72,15 @@ function test_directory(dir) {
 }
 
 function as_toplevel(input, mangle_options) {
-    if (input instanceof U.AST_BlockStatement) input = input.body;
-    else if (input instanceof U.AST_Statement) input = [ input ];
-    else throw new Error("Unsupported input syntax");
-    var toplevel = new U.AST_Toplevel({ body: input });
+    if (!(input instanceof U.AST_BlockStatement))
+        throw new Error("Unsupported input syntax");
+    for (var i = 0; i < input.body.length; i++) {
+        var stat = input.body[i];
+        if (stat instanceof U.AST_SimpleStatement && stat.body instanceof U.AST_String)
+            input.body[i] = new U.AST_Directive(stat.body);
+        else break;
+    }
+    var toplevel = new U.AST_Toplevel(input);
     toplevel.figure_out_scope(mangle_options);
     return toplevel;
 }
@@ -165,6 +171,36 @@ function run_compress_tests() {
                         failed_files[file] = 1;
                     }
                 }
+                if (test.expect_stdout) {
+                    var stdout = run_code(input_code);
+                    if (test.expect_stdout === true) {
+                        test.expect_stdout = stdout;
+                    }
+                    if (!same_stdout(test.expect_stdout, stdout)) {
+                        log("!!! Invalid input or expected stdout\n---INPUT---\n{input}\n---EXPECTED {expected_type}---\n{expected}\n---ACTUAL {actual_type}---\n{actual}\n\n", {
+                            input: input_code,
+                            expected_type: typeof test.expect_stdout == "string" ? "STDOUT" : "ERROR",
+                            expected: test.expect_stdout,
+                            actual_type: typeof stdout == "string" ? "STDOUT" : "ERROR",
+                            actual: stdout,
+                        });
+                        failures++;
+                        failed_files[file] = 1;
+                    } else {
+                        stdout = run_code(output);
+                        if (!same_stdout(test.expect_stdout, stdout)) {
+                            log("!!! failed\n---INPUT---\n{input}\n---EXPECTED {expected_type}---\n{expected}\n---ACTUAL {actual_type}---\n{actual}\n\n", {
+                                input: input_code,
+                                expected_type: typeof test.expect_stdout == "string" ? "STDOUT" : "ERROR",
+                                expected: test.expect_stdout,
+                                actual_type: typeof stdout == "string" ? "STDOUT" : "ERROR",
+                                actual: stdout,
+                            });
+                            failures++;
+                            failed_files[file] = 1;
+                        }
+                    }
+                }
             }
         }
         var tests = parse_test(path.resolve(dir, file));
@@ -215,9 +251,9 @@ function parse_test(file) {
     }
 
     function read_string(stat) {
-        if (stat.TYPE === "SimpleStatement") {
+        if (stat.TYPE == "SimpleStatement") {
             var body = stat.body;
-            out: switch(body.TYPE) {
+            switch(body.TYPE) {
               case "String":
                 return body.value;
               case "Array":
@@ -243,23 +279,26 @@ function parse_test(file) {
                 return true;
             }
             if (node instanceof U.AST_LabeledStatement) {
+                var label = node.label;
                 assert.ok(
-                    ["input", "expect", "expect_exact", "expect_warnings"].indexOf(node.label.name) >= 0,
+                    ["input", "expect", "expect_exact", "expect_warnings", "expect_stdout"].indexOf(label.name) >= 0,
                     tmpl("Unsupported label {name} [{line},{col}]", {
-                        name: node.label.name,
-                        line: node.label.start.line,
-                        col: node.label.start.col
+                        name: label.name,
+                        line: label.start.line,
+                        col: label.start.col
                     })
                 );
                 var stat = node.body;
-                if (stat instanceof U.AST_BlockStatement) {
-                    if (stat.body.length == 1) stat = stat.body[0];
-                    else if (stat.body.length == 0) stat = new U.AST_EmptyStatement();
-                }
-                if (node.label.name === "expect_exact") {
-                    test[node.label.name] = read_string(stat);
+                if (label.name == "expect_exact") {
+                    test[label.name] = read_string(stat);
+                } else if (label.name == "expect_stdout") {
+                    if (stat.TYPE == "SimpleStatement" && stat.body instanceof U.AST_Boolean) {
+                        test[label.name] = stat.body.value;
+                    } else {
+                        test[label.name] = read_string(stat) + "\n";
+                    }
                 } else {
-                    test[node.label.name] = stat;
+                    test[label.name] = stat;
                 }
                 return true;
             }
@@ -281,3 +320,23 @@ function evaluate(code) {
         code = make_code(code, { beautify: true });
     return new Function("return(" + code + ")")();
 }
+
+function run_code(code) {
+    var stdout = "";
+    var original_write = process.stdout.write;
+    process.stdout.write = function(chunk) {
+        stdout += chunk;
+    };
+    try {
+        new vm.Script(code).runInNewContext({ console: console }, { timeout: 5000 });
+        return stdout;
+    } catch (ex) {
+        return ex;
+    } finally {
+        process.stdout.write = original_write;
+    }
+}
+
+function same_stdout(expected, actual) {
+    return typeof expected == typeof actual && expected.toString() == actual.toString();
+}