diff --git a/pkg/compiler/codegen.go b/pkg/compiler/codegen.go
index 3bb330422..4dceef1d1 100644
--- a/pkg/compiler/codegen.go
+++ b/pkg/compiler/codegen.go
@@ -2011,28 +2011,41 @@ func (c *codegen) writeJumps(b []byte) ([]byte, error) {
 			}
 		}
 	}
+
+	if c.deployEndOffset >= 0 {
+		_, end := correctRange(uint16(c.initEndOffset+1), uint16(c.deployEndOffset), offsets)
+		c.deployEndOffset = int(end)
+	}
+	if c.initEndOffset > 0 {
+		_, end := correctRange(0, uint16(c.initEndOffset), offsets)
+		c.initEndOffset = int(end)
+	}
+
 	// Correct function ip range.
 	// Note: indices are sorted in increasing order.
 	for _, f := range c.funcs {
-		start, end := f.rng.Start, f.rng.End
-	loop:
-		for _, ind := range offsets {
-			switch {
-			case ind > int(f.rng.End):
-				break loop
-			case ind < int(f.rng.Start):
-				start -= longToShortRemoveCount
-				end -= longToShortRemoveCount
-			case ind >= int(f.rng.Start):
-				end -= longToShortRemoveCount
-			}
-		}
-		f.rng.Start = start
-		f.rng.End = end
+		f.rng.Start, f.rng.End = correctRange(f.rng.Start, f.rng.End, offsets)
 	}
 	return shortenJumps(b, offsets), nil
 }
 
+func correctRange(start, end uint16, offsets []int) (uint16, uint16) {
+	newStart, newEnd := start, end
+loop:
+	for _, ind := range offsets {
+		switch {
+		case ind > int(end):
+			break loop
+		case ind < int(start):
+			newStart -= longToShortRemoveCount
+			newEnd -= longToShortRemoveCount
+		case ind >= int(start):
+			newEnd -= longToShortRemoveCount
+		}
+	}
+	return newStart, newEnd
+}
+
 func (c *codegen) replaceLabelWithOffset(ip int, arg []byte) (int, error) {
 	index := binary.LittleEndian.Uint16(arg)
 	if int(index) > len(c.l) {
diff --git a/pkg/compiler/function_call_test.go b/pkg/compiler/function_call_test.go
index 2f8d6ea01..ef2fd8c61 100644
--- a/pkg/compiler/function_call_test.go
+++ b/pkg/compiler/function_call_test.go
@@ -286,6 +286,16 @@ func TestVariadicMethod(t *testing.T) {
 
 func TestJumpOptimize(t *testing.T) {
 	src := `package foo
+	func init() {
+		if true {} else {}
+		var a int
+		_ = a
+	}
+	func _deploy(_ interface{}, upd bool) {
+		if true {} else {}
+		t := upd
+		_ = t
+	}
 	func Get1() int { return 1 }
 	func Get2() int { Get1(); Get1(); Get1(); Get1(); return Get1() }
 	func Get3() int { return Get2() }
@@ -294,6 +304,7 @@ func TestJumpOptimize(t *testing.T) {
 	}`
 	b, di, err := compiler.CompileWithDebugInfo("", strings.NewReader(src))
 	require.NoError(t, err)
+	require.Equal(t, 6, len(di.Methods))
 	for _, mi := range di.Methods {
 		require.Equal(t, b[mi.Range.Start], byte(opcode.INITSLOT))
 		require.Equal(t, b[mi.Range.End], byte(opcode.RET))
diff --git a/pkg/core/helper_test.go b/pkg/core/helper_test.go
index 3fc97d8ea..342678823 100644
--- a/pkg/core/helper_test.go
+++ b/pkg/core/helper_test.go
@@ -8,11 +8,13 @@ import (
 	"io/ioutil"
 	"math/big"
 	"os"
+	"strings"
 	"testing"
 	"time"
 
 	"github.com/nspcc-dev/neo-go/internal/testchain"
 	"github.com/nspcc-dev/neo-go/internal/testserdes"
+	"github.com/nspcc-dev/neo-go/pkg/compiler"
 	"github.com/nspcc-dev/neo-go/pkg/config"
 	"github.com/nspcc-dev/neo-go/pkg/core/block"
 	"github.com/nspcc-dev/neo-go/pkg/core/blockchainer"
@@ -27,6 +29,7 @@ import (
 	"github.com/nspcc-dev/neo-go/pkg/io"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract/callflag"
+	"github.com/nspcc-dev/neo-go/pkg/smartcontract/nef"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract/trigger"
 	"github.com/nspcc-dev/neo-go/pkg/util"
 	"github.com/nspcc-dev/neo-go/pkg/vm"
@@ -148,6 +151,35 @@ func (bc *Blockchain) genBlocks(n int) ([]*block.Block, error) {
 	return blocks, nil
 }
 
+func TestBug1728(t *testing.T) {
+	src := `package example
+	import "github.com/nspcc-dev/neo-go/pkg/interop/runtime"
+	func init() { if true { } else { } }
+	func _deploy(_ interface{}, isUpdate bool) {
+		runtime.Log("Deploy")
+	}`
+	b, di, err := compiler.CompileWithDebugInfo("foo", strings.NewReader(src))
+	require.NoError(t, err)
+	m, err := di.ConvertToManifest(&compiler.Options{Name: "TestContract"})
+	require.NoError(t, err)
+	nf, err := nef.NewFile(b)
+	require.NoError(t, err)
+	nf.CalculateChecksum()
+
+	rawManifest, err := json.Marshal(m)
+	require.NoError(t, err)
+	rawNef, err := nf.Bytes()
+	require.NoError(t, err)
+
+	bc := newTestChain(t)
+	defer bc.Close()
+
+	aer, err := invokeContractMethod(bc, 10000000000,
+		bc.contracts.Management.Hash, "deploy", rawNef, rawManifest)
+	require.NoError(t, err)
+	require.Equal(t, aer.VMState, vm.HaltState)
+}
+
 func getDecodedBlock(t *testing.T, i int) *block.Block {
 	data, err := getBlockData(i)
 	require.NoError(t, err)