diff --git a/lib/compress.js b/lib/compress.js
index 17c3bdb3..7dbb9290 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -291,7 +291,7 @@ merge(Compressor.prototype, {
         self.transform(tt);
     });
 
-    AST_Node.DEFMETHOD("reset_opt_flags", function(compressor) {
+    AST_Toplevel.DEFMETHOD("reset_opt_flags", function(compressor) {
         var reduce_vars = compressor.option("reduce_vars");
         var unused = compressor.option("unused");
         // Stack of look-up tables to keep track of whether a `SymbolDef` has been
@@ -322,12 +322,18 @@ merge(Compressor.prototype, {
                         d.fixed = false;
                     } else if (d.fixed) {
                         var value = node.fixed_value();
-                        if (unused && !compressor.exposed(d)) {
-                            d.single_use = value
-                                && d.references.length == 1
-                                && loop_ids[d.id] === in_loop
-                                && d.scope === node.scope
-                                && value.is_constant_expression();
+                        if (unused && !compressor.exposed(d) && value && d.references.length == 1) {
+                            if (value instanceof AST_Lambda) {
+                                d.single_use = d.scope === node.scope
+                                        && !(d.orig[0] instanceof AST_SymbolFunarg)
+                                    || value.is_constant_expression(node.scope);
+                            } else {
+                                d.single_use = d.scope === node.scope
+                                    && loop_ids[d.id] === in_loop
+                                    && value.is_constant_expression();
+                                }
+                        } else {
+                            d.single_use = false;
                         }
                         if (is_modified(node, value, 0, is_immutable(value))) {
                             if (d.single_use) {
@@ -390,6 +396,10 @@ merge(Compressor.prototype, {
                     } else {
                         d.fixed = node;
                         mark(d, true);
+                        if (unused && d.references.length == 1) {
+                            d.single_use = d.scope === d.references[0].scope
+                                || node.is_constant_expression(d.references[0].scope);
+                        }
                     }
                     var save_ids = safe_ids;
                     safe_ids = Object.create(null);
@@ -542,6 +552,7 @@ merge(Compressor.prototype, {
                 }
                 return true;
             }
+            return def.fixed instanceof AST_Defun;
         }
 
         function safe_to_assign(def, value) {
@@ -580,7 +591,10 @@ merge(Compressor.prototype, {
         }
 
         function is_immutable(value) {
-            return value && (value.is_constant() || value instanceof AST_Lambda);
+            if (!value) return false;
+            return value.is_constant()
+                || value instanceof AST_Lambda
+                || value instanceof AST_This;
         }
 
         function read_property(obj, key) {
@@ -608,7 +622,7 @@ merge(Compressor.prototype, {
                 || !immutable
                     && parent instanceof AST_Call
                     && parent.expression === node
-                    && (!(value instanceof AST_Function) || value.contains_this())) {
+                    && (!(value instanceof AST_Function) || value.contains_this(parent))) {
                 return true;
             } else if (parent instanceof AST_Array || parent instanceof AST_Object) {
                 return is_modified(parent, parent, level + 1);
@@ -848,6 +862,7 @@ merge(Compressor.prototype, {
         function collapse(statements, compressor) {
             var scope = compressor.find_parent(AST_Scope).get_defun_scope();
             if (scope.uses_eval || scope.uses_with) return statements;
+            var args;
             var candidates = [];
             var stat_index = statements.length;
             while (--stat_index >= 0) {
@@ -868,7 +883,7 @@ merge(Compressor.prototype, {
                     var one_off = lhs instanceof AST_Symbol && lhs.definition().references.length == 1;
                     var side_effects = value_has_side_effects(candidate);
                     var hit = candidate.name instanceof AST_SymbolFunarg;
-                    var abort = false, replaced = false;
+                    var abort = false, replaced = false, can_replace = !args || !hit;
                     var tt = new TreeTransformer(function(node, descend) {
                         if (abort) return node;
                         // Skip nodes before `candidate` as quickly as possible
@@ -895,7 +910,8 @@ merge(Compressor.prototype, {
                             return node;
                         }
                         // Replace variable with assignment when found
-                        if (!(node instanceof AST_SymbolDeclaration)
+                        if (can_replace
+                            && !(node instanceof AST_SymbolDeclaration)
                             && !is_lhs(node, parent)
                             && lhs.equivalent_to(node)) {
                             CHANGED = replaced = abort = true;
@@ -946,6 +962,12 @@ merge(Compressor.prototype, {
                         // Skip (non-executed) functions and (leading) default case in switch statements
                         if (node instanceof AST_Default || node instanceof AST_Scope) return node;
                     });
+                    if (!can_replace) {
+                        for (var j = compressor.self().argnames.lastIndexOf(candidate.__name || candidate.name) + 1; j < args.length; j++) {
+                            args[j].transform(tt);
+                        }
+                        can_replace = true;
+                    }
                     for (var i = stat_index; !abort && i < statements.length; i++) {
                         statements[i].transform(tt);
                     }
@@ -991,9 +1013,16 @@ merge(Compressor.prototype, {
                     })) {
                     var fn_strict = compressor.has_directive("use strict");
                     if (fn_strict && fn.body.indexOf(fn_strict) < 0) fn_strict = false;
+                    var len = fn.argnames.length;
+                    args = iife.args.slice(len);
                     var names = Object.create(null);
-                    for (var i = fn.argnames.length; --i >= 0;) {
+                    for (var i = len; --i >= 0;) {
                         var sym = fn.argnames[i];
+                        var arg = iife.args[i];
+                        args.unshift(make_node(AST_VarDef, sym, {
+                            name: sym,
+                            value: arg
+                        }));
                         if (sym.name in names) continue;
                         names[sym.name] = true;
                         if (sym instanceof AST_Expansion) {
@@ -1007,9 +1036,9 @@ merge(Compressor.prototype, {
                                         elements: elements
                                     })
                                 }));
+                                candidates[0].__name = sym;
                             }
                         } else {
-                            var arg = iife.args[i];
                             if (!arg) arg = make_node(AST_Undefined, sym).transform(compressor);
                             else if (has_overlapping_symbol(fn, arg, fn_strict)) arg = null;
                             if (arg) candidates.unshift(make_node(AST_VarDef, sym, {
@@ -2265,18 +2294,22 @@ merge(Compressor.prototype, {
         }
         def(AST_Node, return_false);
         def(AST_Constant, return_true);
-        def(AST_Function, function(){
+        def(AST_Lambda, function(scope){
             var self = this;
             var result = true;
             self.walk(new TreeWalker(function(node) {
                 if (!result) return true;
                 if (node instanceof AST_SymbolRef) {
                     var def = node.definition();
-                    if (self.enclosed.indexOf(def) >= 0
-                        && self.variables.get(def.name) !== def) {
+                    if (member(def, self.enclosed)
+                        && !self.variables.has(def.name)) {
+                        if (scope) {
+                            var scope_def = scope.find_variable(node);
+                            if (def.undeclared ? !scope_def : scope_def === def) return true;
+                        }
                         result = false;
-                        return true;
                     }
+                    return true;
                 }
             }));
             return result;
@@ -2439,8 +2472,11 @@ merge(Compressor.prototype, {
                     });
                     return true;
                 }
-                if (assign_as_unused(node) instanceof AST_SymbolRef && scope === self
-                    && !is_ref_of(node.left, AST_SymbolBlockDeclaration)) {
+                var sym;
+                if (scope === self
+                    && (sym = assign_as_unused(node)) instanceof AST_SymbolRef
+                    && !is_ref_of(node.left, AST_SymbolBlockDeclaration)
+                    && self.variables.get(sym.name) === sym.definition()) {
                     if (node instanceof AST_Assign) node.right.walk(tw);
                     return true;
                 }
@@ -2526,9 +2562,11 @@ merge(Compressor.prototype, {
                     }
                 }
                 if ((node instanceof AST_Defun || node instanceof AST_DefClass) && node !== self) {
-                    var keep = (node.name.definition().id in in_use_ids) || !drop_funcs && node.name.definition().global;
+                    var def = node.name.definition();
+                    var keep = (def.id in in_use_ids) || !drop_funcs && def.global;
                     if (!keep) {
                         compressor[node.name.unreferenced() ? "warn" : "info"]("Dropping unused function {name} [{file}:{line},{col}]", template(node.name));
+                        drop_decl(def, node.name);
                         return make_node(AST_EmptyStatement, node);
                     }
                     return node;
@@ -2553,7 +2591,7 @@ merge(Compressor.prototype, {
                                 if (var_defs.length > 1 && !def.value) {
                                     compressor.warn("Dropping duplicated definition of variable {name} [{file}:{line},{col}]", template(def.name));
                                     remove(var_defs, def);
-                                    remove(sym.orig, def.name);
+                                    drop_decl(sym, def.name);
                                     return;
                                 }
                             }
@@ -2586,7 +2624,7 @@ merge(Compressor.prototype, {
                             } else {
                                 compressor[def.name.unreferenced() ? "warn" : "info"]("Dropping unused variable {name} [{file}:{line},{col}]", template(def.name));
                             }
-                            remove(sym.orig, def.name);
+                            drop_decl(sym, def.name);
                         }
                     });
                     if (head.length == 0 && tail.length == 1 && tail[0].name instanceof AST_SymbolVar) {
@@ -2595,7 +2633,7 @@ merge(Compressor.prototype, {
                             var def = tail.pop();
                             compressor.warn("Converting duplicated definition of variable {name} to assignment [{file}:{line},{col}]", template(def.name));
                             remove(var_defs, def);
-                            remove(def.name.definition().orig, def.name);
+                            drop_decl(def.name.definition(), def.name);
                             side_effects.unshift(make_node(AST_Assign, def, {
                                 operator: "=",
                                 left: make_node(AST_SymbolRef, def.name, def.name),
@@ -2627,8 +2665,7 @@ merge(Compressor.prototype, {
                     var def = assign_as_unused(node);
                     if (def instanceof AST_SymbolRef
                         && !((def = def.definition()).id in in_use_ids)
-                        && (drop_vars || !def.global)
-                        && self.variables.get(def.name) === def) {
+                        && (drop_vars || !def.global)) {
                         if (node instanceof AST_Assign) {
                             return maintain_this_binding(parent, node, node.right.transform(tt));
                         }
@@ -2685,6 +2722,14 @@ merge(Compressor.prototype, {
                         col  : sym.start.col
                     };
                 }
+
+                function drop_decl(def, decl) {
+                    remove(def.orig, decl);
+                    if (!def.orig.length) {
+                        def.scope.functions.del(def.name);
+                        def.scope.variables.del(def.name);
+                    }
+                }
             }
         );
         self.transform(tt);
@@ -4456,46 +4501,53 @@ merge(Compressor.prototype, {
             if (compressor.option("unused")
                 && fixed
                 && d.references.length == 1
-                && (d.single_use || is_func_expr(fixed)
-                    && !(d.scope.uses_arguments && d.orig[0] instanceof AST_SymbolFunarg)
-                    && !d.scope.uses_eval
-                    && compressor.find_parent(AST_Scope) === fixed.parent_scope)) {
+                && d.single_use) {
                 var value = fixed.optimize(compressor);
                 return value === fixed ? fixed.clone(true) : value;
             }
-            if (compressor.option("evaluate") && fixed) {
-                if (d.should_replace === undefined) {
-                    var init = fixed.evaluate(compressor);
-                    if (init !== fixed && (compressor.option("unsafe_regexp") || !(init instanceof RegExp))) {
-                        init = make_node_from_constant(init, fixed);
-                        var value_length = init.optimize(compressor).print_to_string().length;
-                        var fn;
-                        if (has_symbol_ref(fixed)) {
-                            fn = function() {
-                                var result = init.optimize(compressor);
-                                return result === init ? result.clone(true) : result;
-                            };
-                        } else {
-                            value_length = Math.min(value_length, fixed.print_to_string().length);
-                            fn = function() {
-                                var result = best_of_expression(init.optimize(compressor), fixed);
-                                return result === init || result === fixed ? result.clone(true) : result;
-                            };
-                        }
-                        var name_length = d.name.length;
-                        var overhead = 0;
-                        if (compressor.option("unused") && !compressor.exposed(d)) {
-                            overhead = (name_length + 2 + value_length) / d.references.length;
-                        }
-                        d.should_replace = value_length <= name_length + overhead ? fn : false;
-                    } else {
-                        d.should_replace = false;
+            if (fixed && d.should_replace === undefined) {
+                var init;
+                if (fixed instanceof AST_This) {
+                    if (!(d.orig[0] instanceof AST_SymbolFunarg)
+                        && all(d.references, function(ref) {
+                            return d.scope === ref.scope;
+                        })) {
+                        init = fixed;
+                    }
+                } else {
+                    var ev = fixed.evaluate(compressor);
+                    if (ev !== fixed && (compressor.option("unsafe_regexp") || !(ev instanceof RegExp))) {
+                        init = make_node_from_constant(ev, fixed);
                     }
                 }
-                if (d.should_replace) {
-                    return d.should_replace();
+                if (init) {
+                    var value_length = init.optimize(compressor).print_to_string().length;
+                    var fn;
+                    if (has_symbol_ref(fixed)) {
+                        fn = function() {
+                            var result = init.optimize(compressor);
+                            return result === init ? result.clone(true) : result;
+                        };
+                    } else {
+                        value_length = Math.min(value_length, fixed.print_to_string().length);
+                        fn = function() {
+                            var result = best_of_expression(init.optimize(compressor), fixed);
+                            return result === init || result === fixed ? result.clone(true) : result;
+                        };
+                    }
+                    var name_length = d.name.length;
+                    var overhead = 0;
+                    if (compressor.option("unused") && !compressor.exposed(d)) {
+                        overhead = (name_length + 2 + value_length) / d.references.length;
+                    }
+                    d.should_replace = value_length <= name_length + overhead ? fn : false;
+                } else {
+                    d.should_replace = false;
                 }
             }
+            if (d.should_replace) {
+                return d.should_replace();
+            }
         }
         return self;
 
@@ -4832,11 +4884,11 @@ merge(Compressor.prototype, {
             }
         }
         if (is_lhs(self, compressor.parent())) return self;
-        if (compressor.option("properties") && key !== prop) {
-            var node = self.flatten_object(property, compressor);
-            if (node) {
-                expr = self.expression = node.expression;
-                prop = self.property = node.property;
+        if (key !== prop) {
+            var sub = self.flatten_object(property, compressor);
+            if (sub) {
+                expr = self.expression = sub.expression;
+                prop = self.property = sub.property;
             }
         }
         if (compressor.option("properties") && compressor.option("side_effects")
@@ -4882,7 +4934,8 @@ merge(Compressor.prototype, {
         return self;
     });
 
-    AST_Lambda.DEFMETHOD("contains_this", function() {
+    AST_Lambda.DEFMETHOD("contains_this", function(grandparent) {
+        if (grandparent instanceof AST_New) return false;
         var result;
         var self = this;
         self.walk(new TreeWalker(function(node) {
@@ -4894,6 +4947,7 @@ merge(Compressor.prototype, {
     });
 
     AST_PropAccess.DEFMETHOD("flatten_object", function(key, compressor) {
+        if (!compressor.option("properties")) return;
         var arrows = compressor.option("unsafe_arrows") && compressor.option("ecma") >= 6;
         var expr = this.expression;
         if (expr instanceof AST_Object) {
@@ -4907,7 +4961,7 @@ merge(Compressor.prototype, {
                     })) break;
                     var value = prop.value;
                     if ((value instanceof AST_Accessor || value instanceof AST_Function)
-                        && value.contains_this()) break;
+                        && value.contains_this(compressor.parent())) break;
                     return make_node(AST_Sub, this, {
                         expression: make_node(AST_Array, expr, {
                             elements: props.map(function(prop) {
@@ -4957,10 +5011,8 @@ merge(Compressor.prototype, {
             }
         }
         if (is_lhs(self, compressor.parent())) return self;
-        if (compressor.option("properties")) {
-            var node = self.flatten_object(self.property, compressor);
-            if (node) return node.optimize(compressor);
-        }
+        var sub = self.flatten_object(self.property, compressor);
+        if (sub) return sub.optimize(compressor);
         var ev = self.evaluate(compressor);
         if (ev !== self) {
             ev = make_node_from_constant(ev, self).optimize(compressor);
diff --git a/package.json b/package.json
index 2b30d251..46740497 100644
--- a/package.json
+++ b/package.json
@@ -4,7 +4,7 @@
   "homepage": "https://github.com/mishoo/UglifyJS2/tree/harmony",
   "author": "Mihai Bazon <mihai.bazon@gmail.com> (http://lisperator.net/)",
   "license": "BSD-2-Clause",
-  "version": "3.1.6",
+  "version": "3.1.7",
   "engines": {
     "node": ">=0.8.0"
   },
diff --git a/test/compress/collapse_vars.js b/test/compress/collapse_vars.js
index 38dadb0f..5939943b 100644
--- a/test/compress/collapse_vars.js
+++ b/test/compress/collapse_vars.js
@@ -3223,3 +3223,69 @@ conditional_2: {
     }
     expect_stdout: "5 5"
 }
+
+issue_2425_1: {
+    options = {
+        collapse_vars: true,
+        unused: true,
+    }
+    input: {
+        var a = 8;
+        (function(b) {
+            b.toString();
+        })(--a, a |= 10);
+        console.log(a);
+    }
+    expect: {
+        var a = 8;
+        (function(b) {
+            b.toString();
+        })(--a, a |= 10);
+        console.log(a);
+    }
+    expect_stdout: "15"
+}
+
+issue_2425_2: {
+    options = {
+        collapse_vars: true,
+        unused: true,
+    }
+    input: {
+        var a = 8;
+        (function(b, c) {
+            b.toString();
+        })(--a, a |= 10);
+        console.log(a);
+    }
+    expect: {
+        var a = 8;
+        (function(b, c) {
+            b.toString();
+        })(--a, a |= 10);
+        console.log(a);
+    }
+    expect_stdout: "15"
+}
+
+issue_2425_3: {
+    options = {
+        collapse_vars: true,
+        unused: true,
+    }
+    input: {
+        var a = 8;
+        (function(b, b) {
+            b.toString();
+        })(--a, a |= 10);
+        console.log(a);
+    }
+    expect: {
+        var a = 8;
+        (function(b, b) {
+            (a |= 10).toString();
+        })(--a);
+        console.log(a);
+    }
+    expect_stdout: "15"
+}
diff --git a/test/compress/drop-unused.js b/test/compress/drop-unused.js
index 0a88220d..e6cc94fe 100644
--- a/test/compress/drop-unused.js
+++ b/test/compress/drop-unused.js
@@ -1294,11 +1294,11 @@ issue_2063: {
     }
 }
 
-issue_2105: {
+issue_2105_1: {
     options = {
         collapse_vars: true,
         inline: true,
-        passes: 3,
+        passes: 2,
         reduce_vars: true,
         side_effects: true,
         unused: true,
@@ -1324,17 +1324,50 @@ issue_2105: {
         });
     }
     expect: {
-        (function() {
-            var quux = function() {
+        ({
+            prop: function() {
+                console.log;
                 console.log("PASS");
-            };
-            return {
-                prop: function() {
-                    console.log;
-                    quux();
+            }
+        }).prop();
+    }
+    expect_stdout: "PASS"
+}
+
+issue_2105_2: {
+    options = {
+        collapse_vars: true,
+        inline: true,
+        passes: 2,
+        properties: true,
+        pure_getters: "strict",
+        reduce_vars: true,
+        side_effects: true,
+        unsafe: true,
+        unused: true,
+    }
+    input: {
+        !function(factory) {
+            factory();
+        }( function() {
+            return function(fn) {
+                fn()().prop();
+            }( function() {
+                function bar() {
+                    var quux = function() {
+                        console.log("PASS");
+                    }, foo = function() {
+                        console.log;
+                        quux();
+                    };
+                    return { prop: foo };
                 }
-            };
-        })().prop();
+                return bar;
+            } );
+        });
+    }
+    expect: {
+        console.log("PASS");
     }
     expect_stdout: "PASS"
 }
diff --git a/test/compress/hoist_props.js b/test/compress/hoist_props.js
index 2c9bc155..b2925af6 100644
--- a/test/compress/hoist_props.js
+++ b/test/compress/hoist_props.js
@@ -483,3 +483,31 @@ hoist_function_with_call: {
     }
     expect_stdout: "Foo true 10 20"
 }
+
+new_this: {
+    options = {
+        evaluate: true,
+        hoist_props: true,
+        inline: true,
+        passes: 2,
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        var o = {
+            a: 1,
+            b: 2,
+            f: function(a) {
+                this.b = a;
+            }
+        };
+        console.log(new o.f(o.a).b, o.b);
+    }
+    expect: {
+        console.log(new function(a) {
+            this.b = a;
+        }(1).b, 2);
+    }
+    expect_stdout: "1 2"
+}
diff --git a/test/compress/properties.js b/test/compress/properties.js
index b69ee692..410352f9 100644
--- a/test/compress/properties.js
+++ b/test/compress/properties.js
@@ -1282,3 +1282,22 @@ computed_property: {
     ]
     node_version: ">=4"
 }
+
+new_this: {
+    options = {
+        properties: true,
+        side_effects: true,
+    }
+    input: {
+        new {
+            f: function(a) {
+                this.a = a;
+            }
+        }.f(42);
+    }
+    expect: {
+        new function(a) {
+            this.a = a;
+        }(42);
+    }
+}
diff --git a/test/compress/reduce_vars.js b/test/compress/reduce_vars.js
index aca453b8..f0b1264f 100644
--- a/test/compress/reduce_vars.js
+++ b/test/compress/reduce_vars.js
@@ -3537,3 +3537,250 @@ escaped_prop: {
     }
     expect_stdout: "2"
 }
+
+issue_2420_1: {
+    options = {
+        reduce_vars: true,
+        unused: true,
+    }
+    input: {
+        function run() {
+            var self = this;
+            if (self.count++)
+                self.foo();
+            else
+                self.bar();
+        }
+        var o = {
+            count: 0,
+            foo: function() { console.log("foo"); },
+            bar: function() { console.log("bar"); },
+        };
+        run.call(o);
+        run.call(o);
+    }
+    expect: {
+        function run() {
+            if (this.count++)
+                this.foo();
+            else
+                this.bar();
+        }
+        var o = {
+            count: 0,
+            foo: function() { console.log("foo"); },
+            bar: function() { console.log("bar"); },
+        };
+        run.call(o);
+        run.call(o);
+    }
+    expect_stdout: [
+        "bar",
+        "foo",
+    ]
+}
+
+issue_2420_2: {
+    options = {
+        reduce_vars: true,
+        unused: true,
+    }
+    input: {
+        function f() {
+            var that = this;
+            if (that.bar)
+                that.foo();
+            else
+                !function(that, self) {
+                    console.log(this === that, self === this, that === self);
+                }(that, this);
+        }
+        f.call({
+            bar: 1,
+            foo: function() { console.log("foo", this.bar); },
+        });
+        f.call({});
+    }
+    expect: {
+        function f() {
+            if (this.bar)
+                this.foo();
+            else
+                !function(that, self) {
+                    console.log(this === that, self === this, that === self);
+                }(this, this);
+        }
+        f.call({
+            bar: 1,
+            foo: function() { console.log("foo", this.bar); },
+        });
+        f.call({});
+    }
+    expect_stdout: [
+        "foo 1",
+        "false false true",
+    ]
+}
+
+issue_2423_1: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function c() { return 1; }
+        function p() { console.log(c()); }
+        p();
+        p();
+    }
+    expect: {
+        function p() { console.log(function() { return 1; }()); }
+        p();
+        p();
+    }
+    expect_stdout: [
+        "1",
+        "1",
+    ]
+}
+
+issue_2423_2: {
+    options = {
+        inline: true,
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function c() { return 1; }
+        function p() { console.log(c()); }
+        p();
+        p();
+    }
+    expect: {
+        function p() { console.log(1); }
+        p();
+        p();
+    }
+    expect_stdout: [
+        "1",
+        "1",
+    ]
+}
+
+issue_2423_3: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function c() { return 1; }
+        function p() { console.log(c()); }
+        p();
+    }
+    expect: {
+        (function() { console.log(function() { return 1; }()); })();
+    }
+    expect_stdout: "1"
+}
+
+issue_2423_4: {
+    options = {
+        inline: true,
+        reduce_vars: true,
+        side_effects: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function c() { return 1; }
+        function p() { console.log(c()); }
+        p();
+    }
+    expect: {
+        console.log(1);
+    }
+    expect_stdout: "1"
+}
+
+issue_2423_5: {
+    options = {
+        inline: true,
+        passes: 2,
+        reduce_vars: true,
+        side_effects: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function x() {
+            y();
+        }
+        function y() {
+            console.log(1);
+        }
+        function z() {
+            function y() {
+                console.log(2);
+            }
+            x();
+        }
+        z();
+        z();
+    }
+    expect: {
+        function z() {
+            console.log(1);
+        }
+        z();
+        z();
+    }
+    expect_stdout: [
+        "1",
+        "1",
+    ]
+}
+
+issue_2423_6: {
+    options = {
+        inline: true,
+        passes: 2,
+        reduce_vars: true,
+        side_effects: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        function x() {
+            y();
+        }
+        function y() {
+            console.log(1);
+        }
+        function z() {
+            function y() {
+                console.log(2);
+            }
+            x();
+            y();
+        }
+        z();
+        z();
+    }
+    expect: {
+        function z(){
+            console.log(1);
+            console.log(2);
+        }
+        z();
+        z();
+    }
+    expect_stdout: [
+        "1",
+        "2",
+        "1",
+        "2",
+    ]
+}
diff --git a/test/ufuzz.js b/test/ufuzz.js
index e38ffa2f..578103e8 100644
--- a/test/ufuzz.js
+++ b/test/ufuzz.js
@@ -162,6 +162,7 @@ var VALUES = [
     '"object"',
     '"number"',
     '"function"',
+    'this',
 ];
 
 var BINARY_OPS_NO_COMMA = [
@@ -349,10 +350,10 @@ function createParams() {
     return params.join(', ');
 }
 
-function createArgs() {
+function createArgs(recurmax, stmtDepth, canThrow) {
     var args = [];
     for (var n = rng(4); --n >= 0;) {
-        args.push(createValue());
+        args.push(rng(2) ? createValue() : createExpression(recurmax - 1, COMMA_OK, stmtDepth, canThrow));
     }
     return args.join(', ');
 }
@@ -390,9 +391,10 @@ function createFunction(recurmax, inGlobal, noDecl, canThrow, stmtDepth) {
 
     VAR_NAMES.length = namesLenBefore;
 
-    if (noDecl) s = 'var ' + createVarName(MANDATORY) + ' = ' + s + '(' + createExpression(recurmax, COMMA_OK, stmtDepth, canThrow) + ');';
+    if (noDecl) s = 'var ' + createVarName(MANDATORY) + ' = ' + s;
     // avoid "function statements" (decl inside statements)
-    else if (inGlobal || rng(10) > 0) s += 'var ' + createVarName(MANDATORY) + ' = ' + name + '(' + createArgs() + ');';
+    else if (inGlobal || rng(10) > 0) s += 'var ' + createVarName(MANDATORY) + ' = ' + name;
+    s += '(' + createArgs(recurmax, stmtDepth, canThrow) + ');';
 
     return s;
 }
@@ -626,6 +628,9 @@ function _createExpression(recurmax, noComma, stmtDepth, canThrow) {
       case p++:
       case p++:
         return createValue();
+      case p++:
+      case p++:
+        return getVarName();
       case p++:
         return createExpression(recurmax, COMMA_OK, stmtDepth, canThrow);
       case p++: