diff --git a/lib/compress.js b/lib/compress.js
index 1dbe8054..dc761948 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -2264,11 +2264,14 @@ merge(Compressor.prototype, {
         def(AST_Constant, return_true);
         def(AST_Lambda, function(scope){
             var self = this;
-            if (self.inlined) return false;
             var result = true;
             self.walk(new TreeWalker(function(node) {
                 if (!result) return true;
                 if (node instanceof AST_SymbolRef) {
+                    if (self.inlined) {
+                        result = false;
+                        return true;
+                    }
                     var def = node.definition();
                     if (member(def, self.enclosed)
                         && !self.variables.has(def.name)) {