diff --git a/lib/compress.js b/lib/compress.js
index 673426bfd0..6db9518729 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -8787,7 +8787,7 @@ merge(Compressor.prototype, {
         var can_inline = can_drop && compressor.option("inline") && !self.is_expr_pure(compressor);
         if (can_inline && stat instanceof AST_Return) {
             var value = stat.value;
-            if (exp === fn && (!value || value.is_constant_expression()) && safe_from_await_yield(fn)) {
+            if (exp === fn && !fn.name && (!value || value.is_constant_expression()) && safe_from_await_yield(fn)) {
                 return make_sequence(self, convert_args(value)).optimize(compressor);
             }
         }
diff --git a/test/compress/default-values.js b/test/compress/default-values.js
index d4e51750f6..2e85866e0e 100644
--- a/test/compress/default-values.js
+++ b/test/compress/default-values.js
@@ -1661,3 +1661,23 @@ issue_4588_2_evaluate: {
     expect_stdout: "1"
     node_version: ">=6"
 }
+
+issue_4817: {
+    options = {
+        ie8: true,
+        inline: true,
+        unused: true,
+    }
+    input: {
+        (function f(a = console.log(typeof f)) {
+            return 42;
+        })();
+    }
+    expect: {
+        (function f(a = console.log(typeof f)) {
+            return 42;
+        })();
+    }
+    expect_stdout: "function"
+    node_version: ">=6"
+}