diff --git a/pkg/compiler/codegen.go b/pkg/compiler/codegen.go
index 5fd993f01..5abf00ec0 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)
diff --git a/pkg/compiler/inline.go b/pkg/compiler/inline.go
index 6c5b676ce..e339dad2d 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 +133,18 @@ 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 {
+		_, ok := n.(*ast.CallExpr)
+		if ok {
+			has = true
+		}
+		return !has
+	})
+	return has
+}
diff --git a/pkg/compiler/inline_test.go b/pkg/compiler/inline_test.go
index 644476731..87ab89197 100644
--- a/pkg/compiler/inline_test.go
+++ b/pkg/compiler/inline_test.go
@@ -137,24 +137,24 @@ func TestInline(t *testing.T) {
 	})
 	t.Run("selector, global", func(t *testing.T) {
 		src := fmt.Sprintf(srcTmpl, `return inline.Sum(inline.A, 2)`)
-		checkCallCount(t, src, 0, 1, 1)
+		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, 2)
+		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, 2)
+		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, 4)
+		checkCallCount(t, src, 0, 1, 2)
 		eval(t, src, big.NewInt(7))
 	})
 }
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,
 	}
 }