diff --git a/pkg/compiler/codegen.go b/pkg/compiler/codegen.go
index 5fd993f01..b7dd4611b 100644
--- a/pkg/compiler/codegen.go
+++ b/pkg/compiler/codegen.go
@@ -247,8 +247,24 @@ func getBaseOpcode(t varType) (opcode.Opcode, opcode.Opcode) {
 // emitLoadVar loads specified variable to the evaluation stack.
 func (c *codegen) emitLoadVar(pkg string, name string) {
 	vi := c.getVarIndex(pkg, name)
-	if vi.tv.Value != nil {
-		c.emitLoadConst(vi.tv)
+	if vi.ctx != nil && c.typeAndValueOf(vi.ctx.expr).Value != nil {
+		c.emitLoadConst(c.typeAndValueOf(vi.ctx.expr))
+		return
+	} else if vi.ctx != nil {
+		var oldScope []map[string]varInfo
+		oldMap := c.importMap
+		c.importMap = vi.ctx.importMap
+		if c.scope != nil {
+			oldScope = c.scope.vars.locals
+			c.scope.vars.locals = vi.ctx.scope
+		}
+
+		ast.Walk(c, vi.ctx.expr)
+
+		if c.scope != nil {
+			c.scope.vars.locals = oldScope
+		}
+		c.importMap = oldMap
 		return
 	} else if vi.index == unspecifiedVarIndex {
 		emit.Opcodes(c.prog.BinWriter, opcode.PUSHNULL)
@@ -853,12 +869,7 @@ func (c *codegen) Visit(node ast.Node) ast.Visitor {
 
 		switch fun := n.Fun.(type) {
 		case *ast.Ident:
-			var pkgName string
-			if len(c.pkgInfoInline) != 0 {
-				pkgName = c.pkgInfoInline[len(c.pkgInfoInline)-1].Pkg.Path()
-			}
-			f, ok = c.funcs[c.getIdentName(pkgName, fun.Name)]
-
+			f, ok = c.getFuncFromIdent(fun)
 			isBuiltin = isGoBuiltin(fun.Name)
 			if !ok && !isBuiltin {
 				name = fun.Name
@@ -1940,6 +1951,16 @@ func (c *codegen) newFunc(decl *ast.FuncDecl) *funcScope {
 	return f
 }
 
+func (c *codegen) getFuncFromIdent(fun *ast.Ident) (*funcScope, bool) {
+	var pkgName string
+	if len(c.pkgInfoInline) != 0 {
+		pkgName = c.pkgInfoInline[len(c.pkgInfoInline)-1].Pkg.Path()
+	}
+
+	f, ok := c.funcs[c.getIdentName(pkgName, fun.Name)]
+	return f, ok
+}
+
 // getFuncNameFromSelector returns fully-qualified function name from the selector expression.
 // Second return value is true iff this was a method call, not foreign package call.
 func (c *codegen) getFuncNameFromSelector(e *ast.SelectorExpr) (string, bool) {
diff --git a/pkg/compiler/inline.go b/pkg/compiler/inline.go
index 6c5b676ce..819b44af1 100644
--- a/pkg/compiler/inline.go
+++ b/pkg/compiler/inline.go
@@ -63,29 +63,18 @@ func (c *codegen) inlineCall(f *funcScope, n *ast.CallExpr) {
 			break
 		}
 		name := sig.Params().At(i).Name()
-		if tv := c.typeAndValueOf(n.Args[i]); tv.Value != nil {
+		if !c.hasCalls(n.Args[i]) {
+			// If argument contains no calls, we save context and traverse the expression
+			// when argument is emitted.
 			c.scope.vars.locals = newScope
-			c.scope.vars.addAlias(name, varLocal, unspecifiedVarIndex, tv)
+			c.scope.vars.addAlias(name, -1, unspecifiedVarIndex, &varContext{
+				importMap: c.importMap,
+				expr:      n.Args[i],
+				scope:     oldScope,
+			})
 			continue
 		}
-		if arg, ok := n.Args[i].(*ast.Ident); ok {
-			// When function argument is variable or const, we may avoid
-			// introducing additional variables for parameters.
-			// This is done by providing additional alias to variable.
-			if vi := c.scope.vars.getVarInfo(arg.Name); vi != nil {
-				c.scope.vars.locals = newScope
-				c.scope.vars.addAlias(name, vi.refType, vi.index, vi.tv)
-				continue
-			} else if arg.Name == "nil" {
-				c.scope.vars.locals = newScope
-				c.scope.vars.addAlias(name, varLocal, unspecifiedVarIndex, types.TypeAndValue{})
-				continue
-			} else if index, ok := c.globals[c.getIdentName("", arg.Name)]; ok {
-				c.scope.vars.locals = newScope
-				c.scope.vars.addAlias(name, varGlobal, index, types.TypeAndValue{})
-				continue
-			}
-		}
+
 		ast.Walk(c, n.Args[i])
 		c.scope.vars.locals = newScope
 		c.scope.newLocal(name)
@@ -144,3 +133,31 @@ func (c *codegen) processNotify(f *funcScope, args []ast.Expr) {
 		c.emittedEvents[name] = append(c.emittedEvents[name], params)
 	}
 }
+
+// hasCalls returns true if expression contains any calls.
+// We uses this as a rough heuristic to determine if expression calculation
+// has any side-effects.
+func (c *codegen) hasCalls(expr ast.Expr) bool {
+	var has bool
+	ast.Inspect(expr, func(n ast.Node) bool {
+		ce, ok := n.(*ast.CallExpr)
+		if !has && ok {
+			isFunc := true
+			fun, ok := ce.Fun.(*ast.Ident)
+			if ok {
+				_, isFunc = c.getFuncFromIdent(fun)
+			} else {
+				var sel *ast.SelectorExpr
+				sel, ok = ce.Fun.(*ast.SelectorExpr)
+				if ok {
+					name, _ := c.getFuncNameFromSelector(sel)
+					_, isFunc = c.funcs[name]
+					fun = sel.Sel
+				}
+			}
+			has = isFunc || fun.Obj != nil && (fun.Obj.Kind == ast.Var || fun.Obj.Kind == ast.Fun)
+		}
+		return !has
+	})
+	return has
+}
diff --git a/pkg/compiler/inline_test.go b/pkg/compiler/inline_test.go
index 46db2cece..2b67d46c4 100644
--- a/pkg/compiler/inline_test.go
+++ b/pkg/compiler/inline_test.go
@@ -11,19 +11,31 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-func checkCallCount(t *testing.T, src string, expectedCall, expectedInitSlot int) {
-	v := vmAndCompile(t, src)
+func checkCallCount(t *testing.T, src string, expectedCall, expectedInitSlot, expectedLocalsMain int) {
+	v, sp := vmAndCompileInterop(t, src)
+
+	mainStart := -1
+	for _, m := range sp.info.Methods {
+		if m.Name.Name == "main" {
+			mainStart = int(m.Range.Start)
+		}
+	}
+	require.True(t, mainStart >= 0)
+
 	ctx := v.Context()
 	actualCall := 0
 	actualInitSlot := 0
 
-	for op, _, err := ctx.Next(); ; op, _, err = ctx.Next() {
+	for op, param, err := ctx.Next(); ; op, param, err = ctx.Next() {
 		require.NoError(t, err)
 		switch op {
 		case opcode.CALL, opcode.CALLL:
 			actualCall++
 		case opcode.INITSLOT:
 			actualInitSlot++
+			if ctx.IP() == mainStart {
+				require.Equal(t, expectedLocalsMain, int(param[0]))
+			}
 		}
 		if ctx.IP() == ctx.LenInstr() {
 			break
@@ -36,6 +48,13 @@ func checkCallCount(t *testing.T, src string, expectedCall, expectedInitSlot int
 func TestInline(t *testing.T) {
 	srcTmpl := `package foo
 	import "github.com/nspcc-dev/neo-go/pkg/compiler/testdata/inline"
+	import "github.com/nspcc-dev/neo-go/pkg/compiler/testdata/foo"
+	var _ = foo.Dummy
+	type pair struct { a, b int }
+	type triple struct {
+		a int
+		b pair
+	}
 	// local alias
 	func sum(a, b int) int {
 		return 42
@@ -47,77 +66,115 @@ func TestInline(t *testing.T) {
 	t.Run("no return", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `inline.NoArgsNoReturn()
 			return 1`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(1))
 	})
 	t.Run("has return, dropped", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `inline.NoArgsReturn1()
 			return 2`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(2))
 	})
 	t.Run("drop twice", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `inline.DropInsideInline()
 			return 42`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(42))
 	})
 	t.Run("no args return 1", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.NoArgsReturn1()`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(1))
 	})
 	t.Run("sum", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.Sum(1, 2)`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(3))
 	})
 	t.Run("sum squared (nested inline)", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.SumSquared(1, 2)`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(9))
 	})
 	t.Run("inline function in inline function parameter", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.Sum(inline.SumSquared(1, 2), inline.Sum(3, 4))`)
-		checkCallCount(t, src, 0, 1)
+		checkCallCount(t, src, 0, 1, 2)
 		eval(t, src, big.NewInt(9+3+4))
 	})
 	t.Run("global name clash", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.GetSumSameName()`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(42))
 	})
 	t.Run("local name clash", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.Sum(inline.SumSquared(1, 2), sum(3, 4))`)
-		checkCallCount(t, src, 1, 2)
+		checkCallCount(t, src, 1, 2, 2)
 		eval(t, src, big.NewInt(51))
 	})
 	t.Run("var args, empty", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.VarSum(11)`)
-		checkCallCount(t, src, 0, 1)
+		checkCallCount(t, src, 0, 1, 3)
 		eval(t, src, big.NewInt(11))
 	})
 	t.Run("var args, direct", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.VarSum(11, 14, 17)`)
-		checkCallCount(t, src, 0, 1)
+		checkCallCount(t, src, 0, 1, 3)
 		eval(t, src, big.NewInt(42))
 	})
 	t.Run("var args, array", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `arr := []int{14, 17} 
 			return inline.VarSum(11, arr...)`)
-		checkCallCount(t, src, 0, 1)
+		checkCallCount(t, src, 0, 1, 3)
 		eval(t, src, big.NewInt(42))
 	})
 	t.Run("globals", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.Concat(Num)`)
-		checkCallCount(t, src, 0, 0)
+		checkCallCount(t, src, 0, 0, 0)
 		eval(t, src, big.NewInt(221))
 	})
 	t.Run("locals, alias", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `num := 1; return inline.Concat(num)`)
-		checkCallCount(t, src, 0, 1)
+		checkCallCount(t, src, 0, 1, 1)
 		eval(t, src, big.NewInt(221))
 	})
+	t.Run("selector, global", func(t *testing.T) {
+		src := fmt.Sprintf(srcTmpl, `return inline.Sum(inline.A, 2)`)
+		checkCallCount(t, src, 0, 0, 0)
+		eval(t, src, big.NewInt(3))
+	})
+	t.Run("selector, struct, simple", func(t *testing.T) {
+		src := fmt.Sprintf(srcTmpl, `x := pair{a: 1, b: 2}; return inline.Sum(x.b, 1)`)
+		checkCallCount(t, src, 0, 1, 1)
+		eval(t, src, big.NewInt(3))
+	})
+	t.Run("selector, struct, complex", func(t *testing.T) {
+		src := fmt.Sprintf(srcTmpl, `x := triple{a: 1, b: pair{a: 2, b: 3}}
+				return inline.Sum(x.b.a, 1)`)
+		checkCallCount(t, src, 0, 1, 1)
+		eval(t, src, big.NewInt(3))
+	})
+	t.Run("expression", func(t *testing.T) {
+		src := fmt.Sprintf(srcTmpl, `x, y := 1, 2
+				return inline.Sum(x+y, y*2)`)
+		checkCallCount(t, src, 0, 1, 2)
+		eval(t, src, big.NewInt(7))
+	})
+	t.Run("foreign package call", func(t *testing.T) {
+		src := fmt.Sprintf(srcTmpl, `return inline.Sum(foo.Bar(), foo.Dummy+1)`)
+		checkCallCount(t, src, 1, 1, 1)
+		eval(t, src, big.NewInt(3))
+	})
+}
+
+func TestIssue1879(t *testing.T) {
+	src := `package foo
+	import "github.com/nspcc-dev/neo-go/pkg/interop/runtime"
+	func Main() int {
+		data := "main is called"
+		runtime.Log("log " + string(data))
+		return 42
+	}`
+	checkCallCount(t, src, 0, 1, 1)
 }
 
 func TestInlineInLoop(t *testing.T) {
diff --git a/pkg/compiler/testdata/foo/foo.go b/pkg/compiler/testdata/foo/foo.go
index ca98105ac..ee4aef007 100644
--- a/pkg/compiler/testdata/foo/foo.go
+++ b/pkg/compiler/testdata/foo/foo.go
@@ -5,6 +5,9 @@ func NewBar() int {
 	return 10
 }
 
+// Dummy is dummy constant.
+var Dummy = 1
+
 // Foo is a type.
 type Foo struct{}
 
diff --git a/pkg/compiler/vars.go b/pkg/compiler/vars.go
index 7b21151a4..a12aa1459 100644
--- a/pkg/compiler/vars.go
+++ b/pkg/compiler/vars.go
@@ -1,7 +1,7 @@
 package compiler
 
 import (
-	"go/types"
+	"go/ast"
 )
 
 type varScope struct {
@@ -10,10 +10,18 @@ type varScope struct {
 	locals    []map[string]varInfo
 }
 
+type varContext struct {
+	importMap map[string]string
+	expr      ast.Expr
+	scope     []map[string]varInfo
+}
+
 type varInfo struct {
 	refType varType
 	index   int
-	tv      types.TypeAndValue
+	// ctx is set for inline arguments and contains
+	// context for expression traversal.
+	ctx *varContext
 }
 
 const unspecifiedVarIndex = -1
@@ -32,11 +40,11 @@ func (c *varScope) dropScope() {
 	c.locals = c.locals[:len(c.locals)-1]
 }
 
-func (c *varScope) addAlias(name string, vt varType, index int, tv types.TypeAndValue) {
+func (c *varScope) addAlias(name string, vt varType, index int, ctx *varContext) {
 	c.locals[len(c.locals)-1][name] = varInfo{
 		refType: vt,
 		index:   index,
-		tv:      tv,
+		ctx:     ctx,
 	}
 }
 
diff --git a/pkg/compiler/vm_test.go b/pkg/compiler/vm_test.go
index 6545dcf73..694975b86 100644
--- a/pkg/compiler/vm_test.go
+++ b/pkg/compiler/vm_test.go
@@ -69,6 +69,7 @@ func vmAndCompileInterop(t *testing.T, src string) (*vm.VM, *storagePlugin) {
 	b, di, err := compiler.CompileWithDebugInfo("foo.go", strings.NewReader(src))
 	require.NoError(t, err)
 
+	storePlugin.info = di
 	invokeMethod(t, testMainIdent, b, vm, di)
 	return vm, storePlugin
 }
@@ -93,6 +94,7 @@ func invokeMethod(t *testing.T, method string, script []byte, v *vm.VM, di *comp
 }
 
 type storagePlugin struct {
+	info     *compiler.DebugInfo
 	mem      map[string][]byte
 	interops map[uint32]func(v *vm.VM) error
 	events   []state.NotificationEvent