diff --git a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/Async.cs b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/Async.cs
index 746925b6e..39ffaa55c 100644
--- a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/Async.cs
+++ b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/Async.cs
@@ -190,7 +190,11 @@ namespace ICSharpCode.Decompiler.Tests.TestCases.Pretty
 		{
 			return await Nested(1) + await Nested(2);
 
+#if CS80
+			static async Task<int> Nested(int i)
+#else
 			async Task<int> Nested(int i)
+#endif
 			{
 				await Task.Delay(i);
 				return i;
diff --git a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/CustomTaskType.cs b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/CustomTaskType.cs
index 966b26cb5..01b70b6c5 100644
--- a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/CustomTaskType.cs
+++ b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/CustomTaskType.cs
@@ -118,7 +118,11 @@ namespace ICSharpCode.Decompiler.Tests.TestCases.Pretty
 		{
 			return await Nested(1) + await Nested(2);
 
+#if CS80
+			static async ValueTask<int> Nested(int i)
+#else
 			async ValueTask<int> Nested(int i)
+#endif
 			{
 				await Task.Delay(i);
 				return i;
diff --git a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/DelegateConstruction.cs b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/DelegateConstruction.cs
index 86ec9d1cc..bb522de53 100644
--- a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/DelegateConstruction.cs
+++ b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/DelegateConstruction.cs
@@ -187,7 +187,11 @@ namespace ICSharpCode.Decompiler.Tests.TestCases.Pretty
 				Noop("M3", this.M3);
 				Noop("M3", M3);
 
+#if CS80
+				static void M3()
+#else
 				void M3()
+#endif
 				{
 
 				}
diff --git a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/LocalFunctions.cs b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/LocalFunctions.cs
index 91c58bacd..013111e78 100644
--- a/ICSharpCode.Decompiler.Tests/TestCases/Pretty/LocalFunctions.cs
+++ b/ICSharpCode.Decompiler.Tests/TestCases/Pretty/LocalFunctions.cs
@@ -23,12 +23,297 @@ namespace LocalFunctions
 {
 	internal class LocalFunctions
 	{
+		public class Generic<T1> where T1 : struct, ICloneable, IConvertible
+		{
+			public int MixedLocalFunction<T2>() where T2 : ICloneable, IConvertible
+			{
+				T2 t2 = default(T2);
+				object z = this;
+				for (int j = 0; j < 10; j++) {
+					int i = 0;
+					i += NonStaticMethod6<object>();
+					int NonStaticMethod6<T3>()
+					{
+						t2 = default(T2);
+						int l = 0;
+						return NonStaticMethod6_1<T1>() + NonStaticMethod6_1<T2>() + z.GetHashCode();
+						int NonStaticMethod6_1<T4>()
+						{
+							return i + l + NonStaticMethod6<T4>() + StaticMethod1<decimal>();
+						}
+					}
+				}
+				return MixedLocalFunction<T1>() + MixedLocalFunction<T2>() + StaticMethod1<decimal>() + StaticMethod1<int>() + NonStaticMethod3() + StaticMethod4<object>(null) + StaticMethod5<T1>();
+				int NonStaticMethod3()
+				{
+					return GetHashCode();
+				}
+#if CS80
+				static int StaticMethod1<T3>() where T3 : struct
+#else
+				int StaticMethod1<T3>() where T3 : struct
+#endif
+				{
+					return typeof(T1).Name.Length + typeof(T2).Name.Length + typeof(T3).Name.Length + StaticMethod1<float>() + StaticMethod1_1<T3, DayOfWeek>() + StaticMethod2_RepeatT2<T2, T3, DayOfWeek>();
+				}
+#if CS80
+				static int StaticMethod1_1<T3, T4>() where T3 : struct where T4 : Enum
+#else
+				int StaticMethod1_1<T3, T4>() where T3 : struct where T4 : Enum
+#endif
+				{
+					return typeof(T1).Name.Length + typeof(T2).Name.Length + typeof(T3).Name.Length + typeof(T4).Name.Length + StaticMethod1<float>() + StaticMethod1_1<T3, DayOfWeek>();
+				}
+#pragma warning disable CS8387
+#if CS80
+				static int StaticMethod2_RepeatT2<T2, T3, T4>() where T2 : IConvertible where T3 : struct where T4 : Enum
+#else
+				int StaticMethod2_RepeatT2<T2, T3, T4>() where T2 : IConvertible where T3 : struct where T4 : Enum
+#endif
+#pragma warning restore CS8387
+				{
+					return typeof(T2).Name.Length;
+				}
+#if CS80
+				static int StaticMethod4<T>(T dd)
+#else
+				int StaticMethod4<T>(T dd)
+#endif
+				{
+					return 0;
+				}
+#if CS80
+				static int StaticMethod5<T3>()
+#else
+				int StaticMethod5<T3>()
+#endif
+				{
+					int k = 0;
+					return k + NonStaticMethod5_1<T1>();
+					int NonStaticMethod5_1<T4>()
+					{
+						return k;
+					}
+				}
+			}
+
+			public int MixedLocalFunction2Delegate<T2>() where T2 : ICloneable, IConvertible
+			{
+				T2 t2 = default(T2);
+				object z = this;
+				for (int j = 0; j < 10; j++) {
+					int i = 0;
+					i += StaticInvokeAsFunc(NonStaticMethod6<object>);
+					int NonStaticMethod6<T3>()
+					{
+						t2 = default(T2);
+						int l = 0;
+						return StaticInvokeAsFunc(NonStaticMethod6_1<T1>) + StaticInvokeAsFunc(NonStaticMethod6_1<T2>) + z.GetHashCode();
+						int NonStaticMethod6_1<T4>()
+						{
+							return i + l + StaticInvokeAsFunc(NonStaticMethod6<T4>) + StaticInvokeAsFunc(StaticMethod1<decimal>);
+						}
+					}
+				}
+				return StaticInvokeAsFunc(MixedLocalFunction2Delegate<T1>) + StaticInvokeAsFunc(MixedLocalFunction2Delegate<T2>) + StaticInvokeAsFunc(StaticMethod1<decimal>) + StaticInvokeAsFunc(StaticMethod1<int>) + StaticInvokeAsFunc(NonStaticMethod3) + StaticInvokeAsFunc(StaticMethod5<T1>) + new Func<object, int>(StaticMethod4<object>)(null) + StaticInvokeAsFunc2<object>(StaticMethod4<object>) + new Func<Func<object, int>, int>(StaticInvokeAsFunc2<object>)(StaticMethod4<object>);
+				int NonStaticMethod3()
+				{
+					return GetHashCode();
+				}
+#if CS80
+				static int StaticInvokeAsFunc(Func<int> func)
+#else
+				int StaticInvokeAsFunc(Func<int> func)
+#endif
+				{
+					return func();
+				}
+#if CS80
+				static int StaticInvokeAsFunc2<T>(Func<T, int> func)
+#else
+				int StaticInvokeAsFunc2<T>(Func<T, int> func)
+#endif
+				{
+					return func(default(T));
+				}
+#if CS80
+				static int StaticMethod1<T3>() where T3 : struct
+#else
+				int StaticMethod1<T3>() where T3 : struct
+#endif
+				{
+					return typeof(T1).Name.Length + typeof(T2).Name.Length + typeof(T3).Name.Length + StaticInvokeAsFunc(StaticMethod1<float>) + StaticInvokeAsFunc(StaticMethod1_1<T3, DayOfWeek>) + StaticInvokeAsFunc(StaticMethod2_RepeatT2<T2, T3, DayOfWeek>);
+				}
+#if CS80
+				static int StaticMethod1_1<T3, T4>() where T3 : struct where T4 : Enum
+#else
+				int StaticMethod1_1<T3, T4>() where T3 : struct where T4 : Enum
+#endif
+				{
+					return typeof(T1).Name.Length + typeof(T2).Name.Length + typeof(T3).Name.Length + typeof(T4).Name.Length + StaticInvokeAsFunc(StaticMethod1<float>) + StaticInvokeAsFunc(StaticMethod1_1<T3, DayOfWeek>);
+				}
+#pragma warning disable CS8387
+#if CS80
+				static int StaticMethod2_RepeatT2<T2, T3, T4>() where T2 : IConvertible where T3 : struct where T4 : Enum
+#else
+				int StaticMethod2_RepeatT2<T2, T3, T4>() where T2 : IConvertible where T3 : struct where T4 : Enum
+#endif
+#pragma warning restore CS8387
+				{
+					return typeof(T2).Name.Length;
+				}
+#if CS80
+				static int StaticMethod4<T>(T dd)
+#else
+				int StaticMethod4<T>(T dd)
+#endif
+				{
+					return 0;
+				}
+#if CS80
+				static int StaticMethod5<T3>()
+#else
+				int StaticMethod5<T3>()
+#endif
+				{
+					int k = 0;
+					return k + StaticInvokeAsFunc(NonStaticMethod5_1<T1>);
+					int NonStaticMethod5_1<T4>()
+					{
+						return k;
+					}
+				}
+			}
+
+			public static void Test_CaptureT<T2>()
+			{
+				T2 t2 = default(T2);
+				Method1<int>();
+				void Method1<T3>()
+				{
+					t2 = default(T2);
+					T2 t2x = t2;
+					T3 t3 = default(T3);
+					Method1_1();
+					void Method1_1()
+					{
+						t2 = default(T2);
+						t2x = t2;
+						t3 = default(T3);
+					}
+				}
+			}
+
+			public void TestGenericArgs<T2>() where T2 : List<T2>
+			{
+				ZZ<T2>(null);
+				ZZ2<object>(null);
+#if CS80
+				static void Nop<T>(T data)
+#else
+				void Nop<T>(T data)
+#endif
+				{
+				}
+#if CS80
+				static void ZZ<T3>(T3 t3) where T3 : T2
+#else
+				void ZZ<T3>(T3 t3) where T3 : T2
+#endif
+				{
+					Nop<List<T2>>(t3);
+					ZZ1<T3>(t3);
+					ZZ3();
+					void ZZ3()
+					{
+						Nop<List<T2>>(t3);
+					}
+				}
+#if CS80
+				static void ZZ1<T3>(T3 t3)
+#else
+				void ZZ1<T3>(T3 t3)
+#endif
+				{
+					Nop<List<T2>>((List<T2>)(object)t3);
+				}
+#if CS80
+				static void ZZ2<T3>(T3 t3)
+#else
+				void ZZ2<T3>(T3 t3)
+#endif
+				{
+					Nop<List<T2>>((List<T2>)(object)t3);
+				}
+			}
+
+#if false
+			public void GenericArgsWithAnonymousType()
+			{
+				Method<int>();
+#if CS80
+				static void Method<T2>()
+#else
+				void Method<T2>()
+#endif
+				{
+					int i = 0;
+					var obj2 = new {
+						A = 1
+					};
+					Method2(obj2);
+					Method3(obj2);
+					void Method2<T3>(T3 obj1)
+					{
+						//keep nested
+						i = 0;
+					}
+#if CS80
+					static void Method3<T3>(T3 obj1)
+#else
+					void Method3<T3>(T3 obj1)
+#endif
+					{
+					}
+				}
+			}
+#if CS80
+			public void NameConflict()
+			{
+				int i = 0;
+				Method<int>();
+				void Method<T2>()
+				{
+					Method();
+					void Method()
+					{
+						Method<T2>();
+						i = 0;
+						void Method<T2>()
+						{
+							i = 0;
+							Method();
+							static void Method()
+							{
+							}
+						}
+					}
+				}
+			}
+#endif
+#endif
+		}
+
 		private int field;
 
 		private Lazy<object> nonCapturinglocalFunctionInLambda = new Lazy<object>(delegate {
 			return CreateValue();
 
+#if CS80
+			static object CreateValue()
+#else
 			object CreateValue()
+#endif
 			{
 				return null;
 			}
@@ -69,7 +354,11 @@ namespace LocalFunctions
 				LocalWrite("Hello " + i);
 			}
 
+#if CS80
+			static void LocalWrite(string s)
+#else
 			void LocalWrite(string s)
+#endif
 			{
 				Console.WriteLine(s);
 			}
@@ -105,7 +394,11 @@ namespace LocalFunctions
 				LocalWrite("Hello " + i);
 			}
 
+#if CS80
+			static void LocalWrite(string s)
+#else
 			void LocalWrite(string s)
+#endif
 			{
 				Console.WriteLine(s);
 			}
@@ -166,7 +459,11 @@ namespace LocalFunctions
 			Test(5);
 			LocalFunctions.Test(2);
 
+#if CS80
+			static void Test(int x)
+#else
 			void Test(int x)
+#endif
 			{
 				Console.WriteLine("x: {0}", x);
 			}
@@ -183,7 +480,11 @@ namespace LocalFunctions
 			Name();
 			action();
 
+#if CS80
+			static void Name()
+#else
 			void Name()
+#endif
 			{
 
 			}
@@ -194,12 +495,20 @@ namespace LocalFunctions
 			Use(Get(1), Get(2), Get(3));
 			Use(Get(1), c: Get(2), b: Get(3));
 
+#if CS80
+			static int Get(int i)
+#else
 			int Get(int i)
+#endif
 			{
 				return i;
 			}
 
+#if CS80
+			static void Use(int a, int b, int c)
+#else
 			void Use(int a, int b, int c)
+#endif
 			{
 				Console.WriteLine(a + b + c);
 			}
@@ -232,7 +541,11 @@ namespace LocalFunctions
 		{
 			return FibHelper(i);
 
+#if CS80
+			static int FibHelper(int n)
+#else
 			int FibHelper(int n)
+#endif
 			{
 				if (n <= 0) {
 					return 0;
@@ -245,7 +558,11 @@ namespace LocalFunctions
 		{
 			return B(4) + C(3);
 
+#if CS80
+			static int A(int i)
+#else
 			int A(int i)
+#endif
 			{
 				if (i > 0) {
 					return A(i - 1) + 2 * B(i - 1) + 3 * C(i - 1);
@@ -253,7 +570,11 @@ namespace LocalFunctions
 				return 1;
 			}
 
+#if CS80
+			static int B(int i)
+#else
 			int B(int i)
+#endif
 			{
 				if (i > 0) {
 					return 3 * A(i - 1) + B(i - 1);
@@ -261,7 +582,11 @@ namespace LocalFunctions
 				return 1;
 			}
 
+#if CS80
+			static int C(int i)
+#else
 			int C(int i)
+#endif
 			{
 				if (i > 0) {
 					return 2 * A(i - 1) + C(i - 1);
@@ -332,5 +657,67 @@ namespace LocalFunctions
 		//		}
 		//	}
 		//}
+
+		public void NestedCapture1()
+		{
+			Method1(null);
+
+#if CS80
+			static Action<object> Method1(Action<object> action)
+#else
+			Action<object> Method1(Action<object> action)
+#endif
+			{
+				return Method1_1;
+
+				void Method1_1(object containerBuilder)
+				{
+					Method1_2(containerBuilder);
+				}
+
+				void Method1_2(object containerBuilder)
+				{
+					action(containerBuilder);
+				}
+			}
+		}
+
+		public int NestedCapture2()
+		{
+			return Method();
+#if CS80
+			static int Method()
+#else
+			int Method()
+#endif
+			{
+				int t0 = 0;
+				return ZZZ_0();
+				int ZZZ_0()
+				{
+					t0 = 0;
+					int t2 = t0;
+					return new Func<int>(ZZZ_0_0)();
+					int ZZZ_0_0()
+					{
+						t0 = 0;
+						t2 = 0;
+						return ZZZ_1();
+					}
+				}
+				int ZZZ_1()
+				{
+					t0 = 0;
+					int t = t0;
+					return new Func<int>(ZZZ_1_0)();
+					int ZZZ_1_0()
+					{
+						t0 = 0;
+						t = 0;
+						return 0;
+					}
+				}
+			}
+		}
 	}
 }
diff --git a/ICSharpCode.Decompiler/CSharp/CallBuilder.cs b/ICSharpCode.Decompiler/CSharp/CallBuilder.cs
index 3a79c3504..267a757fe 100644
--- a/ICSharpCode.Decompiler/CSharp/CallBuilder.cs
+++ b/ICSharpCode.Decompiler/CSharp/CallBuilder.cs
@@ -194,9 +194,13 @@ namespace ICSharpCode.Decompiler.CSharp
 			TranslatedExpression target;
 			if (callOpCode == OpCode.NewObj) {
 				target = default(TranslatedExpression); // no target
-			} else if (method.IsLocalFunction && localFunction != null) {
-				target = new IdentifierExpression(localFunction.Name)
-					.WithoutILInstruction()
+			} else if (localFunction != null) {
+				var ide = new IdentifierExpression(localFunction.Name);
+				if (method.TypeArguments.Count > 0) {
+					int skipCount = localFunction.ReducedMethod.NumberOfCompilerGeneratedTypeParameters;
+					ide.TypeArguments.AddRange(method.TypeArguments.Skip(skipCount).Select(expressionBuilder.ConvertType));
+				}
+				target = ide.WithoutILInstruction()
 					.WithRR(ToMethodGroup(method, localFunction));
 			} else {
 				target = expressionBuilder.TranslateTarget(
@@ -225,7 +229,7 @@ namespace ICSharpCode.Decompiler.CSharp
 			var argumentList = BuildArgumentList(expectedTargetDetails, target.ResolveResult, method,
 				firstParamIndex, callArguments, argumentToParameterMap);
 
-			if (method.IsLocalFunction) {
+			if (localFunction != null) {
 				return new InvocationExpression(target, argumentList.GetArgumentExpressions())
 					.WithRR(new CSharpInvocationResolveResult(target.ResolveResult, method,
 						argumentList.GetArgumentResolveResults().ToList(), isExpandedForm: argumentList.IsExpandedForm));
@@ -1304,10 +1308,14 @@ namespace ICSharpCode.Decompiler.CSharp
 			// 2. add type arguments (represented as bit 1)
 			// 3. cast target (represented as bit 2)
 			int step;
+			ILFunction localFunction = null;
 			if (method.IsLocalFunction) {
-				step = 0;
+				localFunction = expressionBuilder.ResolveLocalFunction(method);
+				Debug.Assert(localFunction != null);
+			}
+			if (localFunction != null) {
+				step = 2;
 				requireTarget = false;
-				var localFunction = expressionBuilder.ResolveLocalFunction(method);
 				result = ToMethodGroup(method, localFunction);
 				target = default;
 				targetType = default;
@@ -1351,11 +1359,12 @@ namespace ICSharpCode.Decompiler.CSharp
 					memberDeclaringType: method.DeclaringType);
 				requireTarget = expressionBuilder.HidesVariableWithName(method.Name)
 					|| (method.IsStatic ? !expressionBuilder.IsCurrentOrContainingType(method.DeclaringTypeDefinition) : !(target.Expression is ThisReferenceExpression));
-
+				step = requireTarget ? 1 : 0;
 				var savedTarget = target;
-				for (step = requireTarget ? 1 : 0; step < 7; step++) {
+				for (; step < 7; step++) {
 					ResolveResult targetResolveResult;
-					if (!method.IsLocalFunction && (step & 1) != 0) {
+					//TODO: why there is an check for IsLocalFunction here, it should be unreachable in old code
+					if (localFunction == null && (step & 1) != 0) {
 						targetResolveResult = savedTarget.ResolveResult;
 						target = savedTarget;
 					} else {
@@ -1378,7 +1387,7 @@ namespace ICSharpCode.Decompiler.CSharp
 						break;
 				}
 			}
-			requireTarget = !method.IsLocalFunction && (step & 1) != 0;
+			requireTarget = localFunction == null && (step & 1) != 0;
 			ExpressionWithResolveResult targetExpression;
 			Debug.Assert(result != null);
 			if (requireTarget) {
@@ -1389,8 +1398,13 @@ namespace ICSharpCode.Decompiler.CSharp
 				targetExpression = mre.WithRR(result);
 			} else {
 				var ide = new IdentifierExpression(methodName);
-				if ((step & 2) != 0)
-					ide.TypeArguments.AddRange(method.TypeArguments.Select(expressionBuilder.ConvertType));
+				if ((step & 2) != 0) {
+					int skipCount = 0;
+					if (localFunction != null && method.TypeArguments.Count > 0) {
+						skipCount = localFunction.ReducedMethod.NumberOfCompilerGeneratedTypeParameters;
+					}
+					ide.TypeArguments.AddRange(method.TypeArguments.Skip(skipCount).Select(expressionBuilder.ConvertType));
+				}
 				targetExpression = ide.WithRR(result);
 			}
 			return targetExpression;
@@ -1448,7 +1462,7 @@ namespace ICSharpCode.Decompiler.CSharp
 						method.DeclaringType,
 						new IParameterizedMember[] { method }
 					)
-				}, EmptyList<IType>.Instance
+				}, method.TypeArguments.Skip(localFunction.ReducedMethod.NumberOfCompilerGeneratedTypeParameters).ToArray()
 			);
 		}
 
diff --git a/ICSharpCode.Decompiler/CSharp/ExpressionBuilder.cs b/ICSharpCode.Decompiler/CSharp/ExpressionBuilder.cs
index 75e6841ef..08506d1ee 100644
--- a/ICSharpCode.Decompiler/CSharp/ExpressionBuilder.cs
+++ b/ICSharpCode.Decompiler/CSharp/ExpressionBuilder.cs
@@ -73,7 +73,7 @@ namespace ICSharpCode.Decompiler.CSharp
 		internal readonly ILFunction currentFunction;
 		internal readonly ICompilation compilation;
 		internal readonly CSharpResolver resolver;
-		readonly TypeSystemAstBuilder astBuilder;
+		internal readonly TypeSystemAstBuilder astBuilder;
 		internal readonly TypeInference typeInference;
 		internal readonly DecompilerSettings settings;
 		readonly CancellationToken cancellationToken;
@@ -217,9 +217,9 @@ namespace ICSharpCode.Decompiler.CSharp
 		internal ILFunction ResolveLocalFunction(IMethod method)
 		{
 			Debug.Assert(method.IsLocalFunction);
-			method = method.ReducedFrom;
+			method = (IMethod)((IMethod)method.MemberDefinition).ReducedFrom.MemberDefinition;
 			foreach (var parent in currentFunction.Ancestors.OfType<ILFunction>()) {
-				var definition = parent.LocalFunctions.FirstOrDefault(f => f.Method.Equals(method));
+				var definition = parent.LocalFunctions.FirstOrDefault(f => f.Method.MemberDefinition.Equals(method));
 				if (definition != null) {
 					return definition;
 				}
diff --git a/ICSharpCode.Decompiler/CSharp/StatementBuilder.cs b/ICSharpCode.Decompiler/CSharp/StatementBuilder.cs
index 659e5490a..656ba8394 100644
--- a/ICSharpCode.Decompiler/CSharp/StatementBuilder.cs
+++ b/ICSharpCode.Decompiler/CSharp/StatementBuilder.cs
@@ -992,9 +992,22 @@ namespace ICSharpCode.Decompiler.CSharp
 				stmt.Parameters.AddRange(exprBuilder.MakeParameters(function.Parameters, function));
 				stmt.ReturnType = exprBuilder.ConvertType(function.Method.ReturnType);
 				stmt.Body = nestedBuilder.ConvertAsBlock(function.Body);
+				if (function.Method.TypeParameters.Count > 0) {
+					var astBuilder = exprBuilder.astBuilder;
+					if (astBuilder.ShowTypeParameters) {
+						int skipCount = function.ReducedMethod.NumberOfCompilerGeneratedTypeParameters;
+						stmt.TypeParameters.AddRange(function.Method.TypeParameters.Skip(skipCount).Select(t => astBuilder.ConvertTypeParameter(t)));
+						if (astBuilder.ShowTypeParameterConstraints) {
+							stmt.Constraints.AddRange(function.Method.TypeParameters.Skip(skipCount).Select(t => astBuilder.ConvertTypeParameterConstraint(t)).Where(c => c != null));
+						}
+					}
+				}
 				if (function.IsAsync) {
 					stmt.Modifiers |= Modifiers.Async;
 				}
+				if (settings.StaticLocalFunctions && function.ReducedMethod.IsStaticLocalFunction) {
+					stmt.Modifiers |= Modifiers.Static;
+				}
 				stmt.AddAnnotation(new MemberResolveResult(null, function.ReducedMethod));
 				return stmt;
 			}
diff --git a/ICSharpCode.Decompiler/CSharp/Syntax/TypeSystemAstBuilder.cs b/ICSharpCode.Decompiler/CSharp/Syntax/TypeSystemAstBuilder.cs
index e948ce27c..ddb950d0a 100644
--- a/ICSharpCode.Decompiler/CSharp/Syntax/TypeSystemAstBuilder.cs
+++ b/ICSharpCode.Decompiler/CSharp/Syntax/TypeSystemAstBuilder.cs
@@ -1807,7 +1807,7 @@ namespace ICSharpCode.Decompiler.CSharp.Syntax
 		#endregion
 		
 		#region Convert Type Parameter
-		TypeParameterDeclaration ConvertTypeParameter(ITypeParameter tp)
+		internal TypeParameterDeclaration ConvertTypeParameter(ITypeParameter tp)
 		{
 			TypeParameterDeclaration decl = new TypeParameterDeclaration();
 			decl.Variance = tp.Variance;
@@ -1817,7 +1817,7 @@ namespace ICSharpCode.Decompiler.CSharp.Syntax
 			return decl;
 		}
 		
-		Constraint ConvertTypeParameterConstraint(ITypeParameter tp)
+		internal Constraint ConvertTypeParameterConstraint(ITypeParameter tp)
 		{
 			if (!tp.HasDefaultConstructorConstraint && !tp.HasReferenceTypeConstraint && !tp.HasValueTypeConstraint && tp.NullabilityConstraint != Nullability.NotNullable && tp.DirectBaseTypes.All(IsObjectOrValueType)) {
 				return null;
diff --git a/ICSharpCode.Decompiler/DecompilerSettings.cs b/ICSharpCode.Decompiler/DecompilerSettings.cs
index 2b177db3f..95eb3fcb7 100644
--- a/ICSharpCode.Decompiler/DecompilerSettings.cs
+++ b/ICSharpCode.Decompiler/DecompilerSettings.cs
@@ -111,12 +111,13 @@ namespace ICSharpCode.Decompiler
 				readOnlyMethods = false;
 				asyncUsingAndForEachStatement = false;
 				asyncEnumerator = false;
+				staticLocalFunctions = false;
 			}
 		}
 
 		public CSharp.LanguageVersion GetMinimumRequiredVersion()
 		{
-			if (nullableReferenceTypes || readOnlyMethods || asyncEnumerator || asyncUsingAndForEachStatement)
+			if (nullableReferenceTypes || readOnlyMethods || asyncEnumerator || asyncUsingAndForEachStatement || staticLocalFunctions)
 				return CSharp.LanguageVersion.CSharp8_0;
 			if (introduceUnmanagedConstraint || tupleComparisons || stackAllocInitializers || patternBasedFixedStatement)
 				return CSharp.LanguageVersion.CSharp7_3;
@@ -1082,6 +1083,23 @@ namespace ICSharpCode.Decompiler
 			}
 		}
 
+		bool staticLocalFunctions = true;
+
+		/// <summary>
+		/// Gets/Sets whether C# 8.0 static local functions should be transformed.
+		/// </summary>
+		[Category("C# 8.0 / VS 2019")]
+		[Description("DecompilerSettings.IntroduceStaticLocalFunctions")]
+		public bool StaticLocalFunctions {
+			get { return staticLocalFunctions; }
+			set {
+				if (staticLocalFunctions != value) {
+					staticLocalFunctions = value;
+					OnPropertyChanged();
+				}
+			}
+		}
+
 		bool nullableReferenceTypes = true;
 
 		/// <summary>
diff --git a/ICSharpCode.Decompiler/IL/ILReader.cs b/ICSharpCode.Decompiler/IL/ILReader.cs
index 2bea3eb93..0fdb11d5d 100644
--- a/ICSharpCode.Decompiler/IL/ILReader.cs
+++ b/ICSharpCode.Decompiler/IL/ILReader.cs
@@ -100,7 +100,6 @@ namespace ICSharpCode.Decompiler.IL
 				this.method = this.method.Specialize(genericContext.ToSubstitution());
 			}
 			this.genericContext = genericContext;
-			var methodDefinition = metadata.GetMethodDefinition(methodDefinitionHandle);
 			this.body = body;
 			this.reader = body.GetILReader();
 			this.currentStack = ImmutableStack<ILVariable>.Empty;
diff --git a/ICSharpCode.Decompiler/IL/Transforms/DelegateConstruction.cs b/ICSharpCode.Decompiler/IL/Transforms/DelegateConstruction.cs
index 4d723a0b6..07da7dd7b 100644
--- a/ICSharpCode.Decompiler/IL/Transforms/DelegateConstruction.cs
+++ b/ICSharpCode.Decompiler/IL/Transforms/DelegateConstruction.cs
@@ -95,7 +95,7 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 			return false;
 		}
 		
-		internal static GenericContext? GenericContextFromTypeArguments(TypeParameterSubstitution subst)
+		static GenericContext? GenericContextFromTypeArguments(TypeParameterSubstitution subst)
 		{
 			var classTypeParameters = new List<ITypeParameter>();
 			var methodTypeParameters = new List<ITypeParameter>();
diff --git a/ICSharpCode.Decompiler/IL/Transforms/LocalFunctionDecompiler.cs b/ICSharpCode.Decompiler/IL/Transforms/LocalFunctionDecompiler.cs
index e79d30e86..0b2e882e7 100644
--- a/ICSharpCode.Decompiler/IL/Transforms/LocalFunctionDecompiler.cs
+++ b/ICSharpCode.Decompiler/IL/Transforms/LocalFunctionDecompiler.cs
@@ -53,18 +53,28 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 		/// 
 		/// <para>
 		/// local functions can either be used in method calls, i.e., call and callvirt instructions,
-		/// or can be used as part of the "delegate construction" pattern, i.e., <c>newobj Delegate(&lt;target-expression&gt;, ldftn &lt;method&gt;)</c>.
+		/// or can be used as part of the "delegate construction" pattern, i.e.,
+		/// <c>newobj Delegate(&lt;target-expression&gt;, ldftn &lt;method&gt;)</c>.
 		/// </para>
-		/// As local functions can be declared practically anywhere, we have to take a look at all use-sites and infer the declaration location from that. Use-sites can be call, callvirt and ldftn instructions.
-		/// After all use-sites are collected we construct the ILAst of the local function and add it to the parent function.
-		/// Then all use-sites of the local-function are transformed to a call to the <c>LocalFunctionMethod</c> or a ldftn of the <c>LocalFunctionMethod</c>.
+		/// As local functions can be declared practically anywhere, we have to take a look at
+		/// all use-sites and infer the declaration location from that. Use-sites can be call,
+		/// callvirt and ldftn instructions.
+		/// After all use-sites are collected we construct the ILAst of the local function
+		/// and add it to the parent function.
+		/// Then all use-sites of the local-function are transformed to a call to the 
+		/// <c>LocalFunctionMethod</c> or a ldftn of the <c>LocalFunctionMethod</c>.
 		/// In a next step we handle all nested local functions.
-		/// After all local functions are transformed, we move all local functions that capture any variables to their respective declaration scope.
+		/// After all local functions are transformed, we move all local functions that capture
+		/// any variables to their respective declaration scope.
 		/// </summary>
 		public void Run(ILFunction function, ILTransformContext context)
 		{
 			if (!context.Settings.LocalFunctions)
 				return;
+			// Disable the transform if we are decompiling a display-class or local function method:
+			// This happens if a local function or display class is selected in the ILSpy tree view.
+			if (IsLocalFunctionMethod(function.Method, context) || IsLocalFunctionDisplayClass(function.Method.ParentModule.PEFile, (TypeDefinitionHandle)function.Method.DeclaringTypeDefinition.MetadataToken, context))
+				return;
 			this.context = context;
 			this.resolveContext = new SimpleTypeResolveContext(function.Method);
 			var localFunctions = new Dictionary<MethodDefinitionHandle, LocalFunctionInfo>();
@@ -78,25 +88,28 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 					continue;
 				}
 
-				var firstUseSite = info.UseSites[0];
 				context.StepStartGroup($"Transform " + info.Definition.Name, info.Definition);
 				try {
 					var localFunction = info.Definition;
 					if (!localFunction.Method.IsStatic) {
-						var target = firstUseSite.Arguments[0];
-						context.Step($"Replace 'this' with {target}", localFunction);
 						var thisVar = localFunction.Variables.SingleOrDefault(VariableKindExtensions.IsThis);
+						var target = info.UseSites.Where(us => us.Arguments[0].MatchLdLoc(out _)).FirstOrDefault()?.Arguments[0];
+						if (target == null) {
+							target = info.UseSites[0].Arguments[0];
+							if (target.MatchLdFld(out var target1, out var field) && thisVar.Type.Equals(field.Type) && field.Type.Kind == TypeKind.Class && TransformDisplayClassUsage.IsPotentialClosure(context, field.Type.GetDefinition())) {
+								var variable = function.Descendants.OfType<ILFunction>().SelectMany(f => f.Variables).Where(v => !v.IsThis() && TransformDisplayClassUsage.IsClosure(context, v, null, out var varType, out _) && varType.Equals(field.Type)).OnlyOrDefault();
+								if (variable != null) {
+									target = new LdLoc(variable);
+									HandleArgument(localFunction, 1, 0, target);
+								}
+							}
+						}
+						context.Step($"Replace 'this' with {target}", localFunction);
 						localFunction.AcceptVisitor(new DelegateConstruction.ReplaceDelegateTargetVisitor(target, thisVar));
 					}
 
 					foreach (var useSite in info.UseSites) {
-						context.Step($"Transform use site at IL_{useSite.StartILOffset:x4}", useSite);
-						if (useSite.OpCode == OpCode.NewObj) {
-							TransformToLocalFunctionReference(localFunction, useSite);
-						} else {
-							DetermineCaptureAndDeclarationScope(localFunction, useSite);
-							TransformToLocalFunctionInvocation(localFunction.ReducedMethod, useSite);
-						}
+						DetermineCaptureAndDeclarationScope(localFunction, useSite);
 
 						if (function.Method.IsConstructor && localFunction.DeclarationScope == null) {
 							localFunction.DeclarationScope = BlockContainer.FindClosestContainer(useSite);
@@ -109,12 +122,68 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 						function.LocalFunctions.Remove(localFunction);
 						declaringFunction.LocalFunctions.Add(localFunction);
 					}
+
+					if (TryValidateSkipCount(info, out int skipCount) && skipCount != localFunction.ReducedMethod.NumberOfCompilerGeneratedTypeParameters) {
+						Debug.Assert(false);
+						function.Warnings.Add($"Could not decode local function '{info.Method}'");
+						if (localFunction.DeclarationScope != function.Body && localFunction.DeclarationScope.Parent is ILFunction declaringFunction) {
+							declaringFunction.LocalFunctions.Remove(localFunction);
+						}
+						continue;
+					}
+
+					foreach (var useSite in info.UseSites) {
+						context.Step($"Transform use site at IL_{useSite.StartILOffset:x4}", useSite);
+						if (useSite.OpCode == OpCode.NewObj) {
+							TransformToLocalFunctionReference(localFunction, useSite);
+						} else {
+							TransformToLocalFunctionInvocation(localFunction.ReducedMethod, useSite);
+						}
+					}
 				} finally {
 					context.StepEndGroup();
 				}
 			}
 		}
 
+		bool TryValidateSkipCount(LocalFunctionInfo info, out int skipCount)
+		{
+			skipCount = 0;
+			var localFunction = info.Definition;
+			if (localFunction.Method.TypeParameters.Count == 0)
+				return true;
+			var parentMethod = ((ILFunction)localFunction.Parent).Method;
+			var method = localFunction.Method;
+			skipCount = parentMethod.DeclaringType.TypeParameterCount - method.DeclaringType.TypeParameterCount;
+
+			if (skipCount > 0)
+				return false;
+			skipCount += parentMethod.TypeParameters.Count;
+			if (skipCount < 0 || skipCount > method.TypeArguments.Count)
+				return false;
+
+			if (skipCount > 0) {
+#if DEBUG
+				foreach (var useSite in info.UseSites) {
+					var callerMethod = useSite.Ancestors.OfType<ILFunction>().First().Method;
+					callerMethod = callerMethod.ReducedFrom ?? callerMethod;
+					IMethod method0;
+					if (useSite.OpCode == OpCode.NewObj) {
+						method0 = ((LdFtn)useSite.Arguments[1]).Method;
+					} else {
+						method0 = useSite.Method;
+					}
+					var totalSkipCount = skipCount + method0.DeclaringType.TypeParameterCount;
+					var methodSkippedArgs = method0.DeclaringType.TypeArguments.Concat(method0.TypeArguments).Take(totalSkipCount);
+					Debug.Assert(methodSkippedArgs.SequenceEqual(callerMethod.DeclaringType.TypeArguments.Concat(callerMethod.TypeArguments).Take(totalSkipCount)));
+					Debug.Assert(methodSkippedArgs.All(p => p.Kind == TypeKind.TypeParameter));
+					Debug.Assert(methodSkippedArgs.Select(p => p.Name).SequenceEqual(method0.DeclaringType.TypeParameters.Concat(method0.TypeParameters).Take(totalSkipCount).Select(p => p.Name)));
+				}
+#endif
+			}
+			return true;
+		}
+
 		void FindUseSites(ILFunction function, ILTransformContext context, Dictionary<MethodDefinitionHandle, LocalFunctionInfo> localFunctions)
 		{
 			foreach (var inst in function.Body.Descendants) {
@@ -132,9 +201,11 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 					context.StepStartGroup($"Read local function '{targetMethod.Name}'", inst);
 					info = new LocalFunctionInfo() {
 						UseSites = new List<CallInstruction>() { inst },
-						Method = targetMethod,
-						Definition = ReadLocalFunctionDefinition(context.Function, targetMethod)
+						Method = (IMethod)targetMethod.MemberDefinition,
 					};
+					var rootFunction = context.Function;
+					int skipCount = GetSkipCount(rootFunction, targetMethod);
+					info.Definition = ReadLocalFunctionDefinition(rootFunction, targetMethod, skipCount);
 					localFunctions.Add((MethodDefinitionHandle)targetMethod.MetadataToken, info);
 					if (info.Definition != null) {
 						FindUseSites(info.Definition, context, localFunctions);
@@ -146,17 +217,17 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 			}
 		}
 
-		ILFunction ReadLocalFunctionDefinition(ILFunction rootFunction, IMethod targetMethod)
+		ILFunction ReadLocalFunctionDefinition(ILFunction rootFunction, IMethod targetMethod, int skipCount)
 		{
 			var methodDefinition = context.PEFile.Metadata.GetMethodDefinition((MethodDefinitionHandle)targetMethod.MetadataToken);
 			if (!methodDefinition.HasBody())
 				return null;
-			var genericContext = DelegateConstruction.GenericContextFromTypeArguments(targetMethod.Substitution);
-			if (genericContext == null)
-				return null;
 			var ilReader = context.CreateILReader();
 			var body = context.PEFile.Reader.GetMethodBody(methodDefinition.RelativeVirtualAddress);
-			var function = ilReader.ReadIL((MethodDefinitionHandle)targetMethod.MetadataToken, body, genericContext.Value, ILFunctionKind.LocalFunction, context.CancellationToken);
+			var genericContext = GenericContextFromTypeArguments(targetMethod, skipCount);
+			if (genericContext == null)
+				return null;
+			var function = ilReader.ReadIL((MethodDefinitionHandle)targetMethod.MetadataToken, body, genericContext.GetValueOrDefault(), ILFunctionKind.LocalFunction, context.CancellationToken);
 			// Embed the local function into the parent function's ILAst, so that "Show steps" can show
 			// how the local function body is being transformed.
 			rootFunction.LocalFunctions.Add(function);
@@ -165,10 +236,66 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 			var nestedContext = new ILTransformContext(context, function);
 			function.RunTransforms(CSharpDecompiler.GetILTransforms().TakeWhile(t => !(t is LocalFunctionDecompiler)), nestedContext);
 			function.DeclarationScope = null;
-			function.ReducedMethod = ReduceToLocalFunction(targetMethod);
+			function.ReducedMethod = ReduceToLocalFunction(function.Method, skipCount);
 			return function;
 		}
 
+		int GetSkipCount(ILFunction rootFunction, IMethod targetMethod)
+		{
+			targetMethod = (IMethod)targetMethod.MemberDefinition;
+			var skipCount = rootFunction.Method.DeclaringType.TypeParameters.Count + rootFunction.Method.TypeParameters.Count - targetMethod.DeclaringType.TypeParameters.Count;
+			if (skipCount < 0) {
+				skipCount = 0;
+			}
+			if (targetMethod.TypeParameters.Count > 0) {
+				var lastParams = targetMethod.Parameters.Where(p => IsClosureParameter(p, this.resolveContext)).SelectMany(p => UnwrapByRef(p.Type).TypeArguments)
+					.Select(pt => (int?)targetMethod.TypeParameters.IndexOf(pt)).DefaultIfEmpty().Max();
+				if (lastParams != null && lastParams.GetValueOrDefault() + 1 > skipCount)
+					skipCount = lastParams.GetValueOrDefault() + 1;
+			}
+			return skipCount;
+		}
+
+		static TypeSystem.GenericContext? GenericContextFromTypeArguments(IMethod targetMethod, int skipCount)
+		{
+			if (skipCount < 0 || skipCount > targetMethod.TypeParameters.Count) {
+				Debug.Assert(false);
+				return null;
+			}
+			int total = targetMethod.DeclaringType.TypeParameters.Count + skipCount;
+			if (total == 0)
+				return default(TypeSystem.GenericContext);
+
+			var classTypeParameters = new List<ITypeParameter>(targetMethod.DeclaringType.TypeParameters);
+			var methodTypeParameters = new List<ITypeParameter>(targetMethod.TypeParameters);
+			var skippedTypeArguments = targetMethod.DeclaringType.TypeArguments.Concat(targetMethod.TypeArguments).Take(total);
+			int idx = 0;
+			foreach (var skippedTA in skippedTypeArguments) {
+				int curIdx;
+				List<ITypeParameter> curParameters;
+				IReadOnlyList<IType> curArgs;
+				if (idx < classTypeParameters.Count) {
+					curIdx = idx;
+					curParameters = classTypeParameters;
+					curArgs = targetMethod.DeclaringType.TypeArguments;
+				} else {
+					curIdx = idx - classTypeParameters.Count;
+					curParameters = methodTypeParameters;
+					curArgs = targetMethod.TypeArguments;
+				}
+				if (curArgs[curIdx].Kind != TypeKind.TypeParameter)
+					break;
+				curParameters[curIdx] = (ITypeParameter)skippedTA;
+				idx++;
+			}
+			if (idx != total) {
+				Debug.Assert(false);
+				return null;
+			}
+
+			return new TypeSystem.GenericContext(classTypeParameters, methodTypeParameters);
+		}
+
 		static T FindCommonAncestorInstruction<T>(ILInstruction a, ILInstruction b)
 			where T : ILInstruction
 		{
@@ -204,7 +331,7 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 			return inst;
 		}
 
-		LocalFunctionMethod ReduceToLocalFunction(IMethod method)
+		LocalFunctionMethod ReduceToLocalFunction(IMethod method, int skipCount)
 		{
 			int parametersToRemove = 0;
 			for (int i = method.Parameters.Count - 1; i >= 0; i--) {
@@ -212,21 +339,23 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 					break;
 				parametersToRemove++;
 			}
-			return new LocalFunctionMethod(method, parametersToRemove);
+			return new LocalFunctionMethod(method, parametersToRemove, skipCount);
 		}
 
 		static void TransformToLocalFunctionReference(ILFunction function, CallInstruction useSite)
 		{
 			useSite.Arguments[0].ReplaceWith(new LdNull().WithILRange(useSite.Arguments[0]));
 			var fnptr = (IInstructionWithMethodOperand)useSite.Arguments[1];
-			var replacement = new LdFtn(function.ReducedMethod).WithILRange((ILInstruction)fnptr);
+			var specializeMethod = function.ReducedMethod.Specialize(fnptr.Method.Substitution);
+			var replacement = new LdFtn(specializeMethod).WithILRange((ILInstruction)fnptr);
 			useSite.Arguments[1].ReplaceWith(replacement);
 		}
 
 		void TransformToLocalFunctionInvocation(LocalFunctionMethod reducedMethod, CallInstruction useSite)
 		{
+			var specializeMethod = reducedMethod.Specialize(useSite.Method.Substitution);
 			bool wasInstanceCall = !useSite.Method.IsStatic;
-			var replacement = new Call(reducedMethod);
+			var replacement = new Call(specializeMethod);
 			int firstArgumentIndex = wasInstanceCall ? 1 : 0;
 			int argumentCount = useSite.Arguments.Count;
 			int reducedArgumentCount = argumentCount - (reducedMethod.NumberOfCompilerGeneratedParameters + firstArgumentIndex);
@@ -255,42 +384,37 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 		{
 			int firstArgumentIndex = function.Method.IsStatic ? 0 : 1;
 			for (int i = useSite.Arguments.Count - 1; i >= firstArgumentIndex; i--) {
-				if (!HandleArgument(i, useSite.Arguments[i]))
+				if (!HandleArgument(function, firstArgumentIndex, i, useSite.Arguments[i]))
 					break;
 			}
 			if (firstArgumentIndex > 0) {
-				HandleArgument(0, useSite.Arguments[0]);
+				HandleArgument(function, firstArgumentIndex, 0, useSite.Arguments[0]);
 			}
+		}
 
-			bool HandleArgument(int i, ILInstruction arg)
-			{
-				ILVariable closureVar;
-				if (!(arg.MatchLdLoc(out closureVar) || arg.MatchLdLoca(out closureVar)))
-					return false;
-				if (closureVar.Kind == VariableKind.NamedArgument)
-					return false;
-				ITypeDefinition potentialDisplayClass = UnwrapByRef(closureVar.Type).GetDefinition();
-				if (!TransformDisplayClassUsage.IsPotentialClosure(context, potentialDisplayClass))
-					return false;
-				if (i - firstArgumentIndex >= 0) {
-					Debug.Assert(i - firstArgumentIndex < function.Method.Parameters.Count && IsClosureParameter(function.Method.Parameters[i - firstArgumentIndex], resolveContext));
-				}
-				if (closureVar.AddressCount == 0 && closureVar.StoreInstructions.Count == 0)
-					return true;
-				// determine the capture scope of closureVar and the declaration scope of the function 
-				var instructions = closureVar.StoreInstructions.OfType<ILInstruction>()
-					.Concat(closureVar.AddressInstructions).OrderBy(inst => inst.StartILOffset).ToList();
-				var additionalScope = BlockContainer.FindClosestContainer(instructions.First());
-				if (closureVar.CaptureScope == null)
-					closureVar.CaptureScope = additionalScope;
-				else
-					closureVar.CaptureScope = FindCommonAncestorInstruction<BlockContainer>(closureVar.CaptureScope, additionalScope);
-				if (function.DeclarationScope == null)
-					function.DeclarationScope = closureVar.CaptureScope;
-				else if (!IsInNestedLocalFunction(function.DeclarationScope, closureVar.CaptureScope.Ancestors.OfType<ILFunction>().First()))
-					function.DeclarationScope = FindCommonAncestorInstruction<BlockContainer>(function.DeclarationScope, closureVar.CaptureScope);
-				return true;
+		bool HandleArgument(ILFunction function, int firstArgumentIndex, int i, ILInstruction arg)
+		{
+			ILVariable closureVar;
+			if (!(arg.MatchLdLoc(out closureVar) || arg.MatchLdLoca(out closureVar)))
+				return false;
+			if (closureVar.Kind == VariableKind.NamedArgument)
+				return false;
+			if (!TransformDisplayClassUsage.IsClosure(context, closureVar, null, out _, out var initializer))
+				return false;
+			if (i - firstArgumentIndex >= 0) {
+				Debug.Assert(i - firstArgumentIndex < function.Method.Parameters.Count && IsClosureParameter(function.Method.Parameters[i - firstArgumentIndex], resolveContext));
 			}
+			// determine the capture scope of closureVar and the declaration scope of the function 
+			var additionalScope = BlockContainer.FindClosestContainer(initializer);
+			if (closureVar.CaptureScope == null)
+				closureVar.CaptureScope = additionalScope;
+			else
+				closureVar.CaptureScope = FindCommonAncestorInstruction<BlockContainer>(closureVar.CaptureScope, additionalScope);
+			if (function.DeclarationScope == null)
+				function.DeclarationScope = closureVar.CaptureScope;
+			else if (!IsInNestedLocalFunction(function.DeclarationScope, closureVar.CaptureScope.Ancestors.OfType<ILFunction>().First()))
+				function.DeclarationScope = FindCommonAncestorInstruction<BlockContainer>(function.DeclarationScope, closureVar.CaptureScope);
+			return true;
 		}
 
 		bool IsInNestedLocalFunction(BlockContainer declarationScope, ILFunction function)
diff --git a/ICSharpCode.Decompiler/IL/Transforms/TransformDisplayClassUsage.cs b/ICSharpCode.Decompiler/IL/Transforms/TransformDisplayClassUsage.cs
index c8384aac7..ca77a44c4 100644
--- a/ICSharpCode.Decompiler/IL/Transforms/TransformDisplayClassUsage.cs
+++ b/ICSharpCode.Decompiler/IL/Transforms/TransformDisplayClassUsage.cs
@@ -59,7 +59,7 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 					foreach (var v in f.Variables.ToArray()) {
 						if (context.Settings.YieldReturn && HandleMonoStateMachine(function, v, decompilationContext, f))
 							continue;
-						if ((context.Settings.AnonymousMethods || context.Settings.ExpressionTrees) && IsClosure(v, out ITypeDefinition closureType, out var inst)) {
+						if ((context.Settings.AnonymousMethods || context.Settings.ExpressionTrees) && IsClosure(context, v, instructionsToRemove, out ITypeDefinition closureType, out var inst)) {
 							AddOrUpdateDisplayClass(f, v, closureType, inst, localFunctionClosureParameter: false);
 						}
 						if (context.Settings.LocalFunctions && f.Kind == ILFunctionKind.LocalFunction && v.Kind == VariableKind.Parameter && v.Index > -1 && f.Method.Parameters[v.Index.Value] is IParameter p && LocalFunctionDecompiler.IsClosureParameter(p, decompilationContext)) {
@@ -110,30 +110,30 @@ namespace ICSharpCode.Decompiler.IL.Transforms
 			}
 		}
 
-		bool IsClosure(ILVariable variable, out ITypeDefinition closureType, out ILInstruction initializer)
+		internal static bool IsClosure(ILTransformContext context, ILVariable variable, List<ILInstruction> instructionsToRemove, out ITypeDefinition closureType, out ILInstruction initializer)
 		{
 			closureType = null;
 			initializer = null;
 			if (variable.IsSingleDefinition && variable.StoreInstructions.SingleOrDefault() is StLoc inst) {
 				initializer = inst;
-				if (IsClosureInit(inst, out closureType)) {
-					instructionsToRemove.Add(inst);
+				if (IsClosureInit(context, inst, out closureType)) {
+					instructionsToRemove?.Add(inst);
 					return true;
 				}
 			}
 			closureType = variable.Type.GetDefinition();
-			if (context.Settings.LocalFunctions && closureType?.Kind == TypeKind.Struct && variable.HasInitialValue && IsPotentialClosure(this.context, closureType)) {
+			if (context.Settings.LocalFunctions && closureType?.Kind == TypeKind.Struct && variable.HasInitialValue && IsPotentialClosure(context, closureType)) {
 				initializer = LocalFunctionDecompiler.GetStatement(variable.AddressInstructions.OrderBy(i => i.StartILOffset).First());
 				return true;
 			}
 			return false;
 		}
 
-		bool IsClosureInit(StLoc inst, out ITypeDefinition closureType)
+		static bool IsClosureInit(ILTransformContext context, StLoc inst, out ITypeDefinition closureType)
 		{
 			if (inst.Value is NewObj newObj) {
 				closureType = newObj.Method.DeclaringTypeDefinition;
-				return closureType != null && IsPotentialClosure(this.context, newObj);
+				return closureType != null && IsPotentialClosure(context, newObj);
 			}
 			closureType = null;
 			return false;
diff --git a/ICSharpCode.Decompiler/TypeSystem/Implementation/LocalFunctionMethod.cs b/ICSharpCode.Decompiler/TypeSystem/Implementation/LocalFunctionMethod.cs
index cb53d51a6..242b6b193 100644
--- a/ICSharpCode.Decompiler/TypeSystem/Implementation/LocalFunctionMethod.cs
+++ b/ICSharpCode.Decompiler/TypeSystem/Implementation/LocalFunctionMethod.cs
@@ -18,6 +18,7 @@
 
 using System;
 using System.Collections.Generic;
+using System.Linq;
 using System.Reflection;
 using ICSharpCode.Decompiler.Util;
 
@@ -30,19 +31,22 @@ namespace ICSharpCode.Decompiler.TypeSystem.Implementation
 	{
 		readonly IMethod baseMethod;
 
-		public LocalFunctionMethod(IMethod baseMethod, int numberOfCompilerGeneratedParameters)
+		public LocalFunctionMethod(IMethod baseMethod, int numberOfCompilerGeneratedParameters, int numberOfCompilerGeneratedTypeParameters)
 		{
+			if (baseMethod == null)
+				throw new ArgumentNullException(nameof(baseMethod));
 			this.baseMethod = baseMethod;
 			this.NumberOfCompilerGeneratedParameters = numberOfCompilerGeneratedParameters;
+			this.NumberOfCompilerGeneratedTypeParameters = numberOfCompilerGeneratedTypeParameters;
 		}
 
-
 		public bool Equals(IMember obj, TypeVisitor typeNormalization)
 		{
 			if (!(obj is LocalFunctionMethod other))
 				return false;
 			return baseMethod.Equals(other.baseMethod, typeNormalization)
-				&& NumberOfCompilerGeneratedParameters == other.NumberOfCompilerGeneratedParameters;
+				&& NumberOfCompilerGeneratedParameters == other.NumberOfCompilerGeneratedParameters
+				&& NumberOfCompilerGeneratedTypeParameters == other.NumberOfCompilerGeneratedTypeParameters;
 		}
 
 		public override bool Equals(object obj)
@@ -50,23 +54,26 @@ namespace ICSharpCode.Decompiler.TypeSystem.Implementation
 			if (!(obj is LocalFunctionMethod other))
 				return false;
 			return baseMethod.Equals(other.baseMethod)
-				&& NumberOfCompilerGeneratedParameters == other.NumberOfCompilerGeneratedParameters;
+				&& NumberOfCompilerGeneratedParameters == other.NumberOfCompilerGeneratedParameters
+				&& NumberOfCompilerGeneratedTypeParameters == other.NumberOfCompilerGeneratedTypeParameters;
 		}
 		
 		public override int GetHashCode()
 		{
-			unchecked {
-				return baseMethod.GetHashCode() + NumberOfCompilerGeneratedParameters + 1;
-			}
+			return baseMethod.GetHashCode();
 		}
 
 		public override string ToString()
 		{
-			return string.Format("[LocalFunctionMethod: ReducedFrom={0}, NumberOfGeneratedParameters={1}]", ReducedFrom, NumberOfCompilerGeneratedParameters);
+			return string.Format("[LocalFunctionMethod: ReducedFrom={0}, NumberOfGeneratedParameters={1}, NumberOfCompilerGeneratedTypeParameters={2}]", ReducedFrom, NumberOfCompilerGeneratedParameters, NumberOfCompilerGeneratedTypeParameters);
 		}
 
 		internal int NumberOfCompilerGeneratedParameters { get; }
 
+		internal int NumberOfCompilerGeneratedTypeParameters { get; }
+
+		internal bool IsStaticLocalFunction => NumberOfCompilerGeneratedParameters == 0 && (baseMethod.IsStatic || (baseMethod.DeclaringTypeDefinition.IsCompilerGenerated() && !baseMethod.DeclaringType.GetFields(f => !f.IsStatic).Any()));
+
 		public IMember MemberDefinition => this;
 
 		public IType ReturnType => baseMethod.ReturnType;
@@ -79,7 +86,9 @@ namespace ICSharpCode.Decompiler.TypeSystem.Implementation
 
 		public IMethod Specialize(TypeParameterSubstitution substitution)
 		{
-			return SpecializedMethod.Create(this, substitution);
+			return new LocalFunctionMethod(
+				baseMethod.Specialize(substitution),
+				NumberOfCompilerGeneratedParameters, NumberOfCompilerGeneratedTypeParameters);
 		}
 		
 		IMember IMember.Specialize(TypeParameterSubstitution substitution)
diff --git a/ILSpy/Properties/Resources.Designer.cs b/ILSpy/Properties/Resources.Designer.cs
index 21b15a4c0..4bab4df31 100644
--- a/ILSpy/Properties/Resources.Designer.cs
+++ b/ILSpy/Properties/Resources.Designer.cs
@@ -835,6 +835,15 @@ namespace ICSharpCode.ILSpy.Properties {
             }
         }
         
+        /// <summary>
+        ///   Looks up a localized string similar to Introduce static local functions.
+        /// </summary>
+        public static string DecompilerSettings_IntroduceStaticLocalFunctions {
+            get {
+                return ResourceManager.GetString("DecompilerSettings.IntroduceStaticLocalFunctions", resourceCulture);
+            }
+        }
+        
         /// <summary>
         ///   Looks up a localized string similar to IsByRefLikeAttribute should be replaced with &apos;ref&apos; modifiers on structs.
         /// </summary>
diff --git a/ILSpy/Properties/Resources.resx b/ILSpy/Properties/Resources.resx
index 4a7684684..a653a52a9 100644
--- a/ILSpy/Properties/Resources.resx
+++ b/ILSpy/Properties/Resources.resx
@@ -826,4 +826,7 @@ Are you sure you want to continue?</value>
   <data name="ListsResetConfirmation" xml:space="preserve">
     <value>Are you sure that you want to remove all assembly lists and recreate the default assembly lists?</value>
   </data>
+  <data name="DecompilerSettings.IntroduceStaticLocalFunctions" xml:space="preserve">
+    <value>Introduce static local functions</value>
+  </data>
 </root>
\ No newline at end of file