diff --git a/src/main/java/com/android/tools/r8/ir/conversion/IRConverter.java b/src/main/java/com/android/tools/r8/ir/conversion/IRConverter.java
index 9ccc4c2..5041e1d 100644
--- a/src/main/java/com/android/tools/r8/ir/conversion/IRConverter.java
+++ b/src/main/java/com/android/tools/r8/ir/conversion/IRConverter.java
@@ -1129,6 +1129,11 @@
       } else {
         assert appView.graphLense().isIdentityLense();
       }
+
+      if (lambdaRewriter != null) {
+        lambdaRewriter.desugarLambdas(method, code);
+        assert code.isConsistentSSA();
+      }
     }
 
     if (lambdaMerger != null) {
@@ -1290,10 +1295,6 @@
 
     stringConcatRewriter.desugarStringConcats(method.method, code);
 
-    if (lambdaRewriter != null) {
-      lambdaRewriter.desugarLambdas(method, code);
-      assert code.isConsistentSSA();
-    }
     previous = printMethod(code, "IR after lambda desugaring (SSA)", previous);
 
     assert code.verifyTypes(appView);
diff --git a/src/main/java/com/android/tools/r8/ir/desugar/LambdaClass.java b/src/main/java/com/android/tools/r8/ir/desugar/LambdaClass.java
index 28a70b2..e7ba0b5 100644
--- a/src/main/java/com/android/tools/r8/ir/desugar/LambdaClass.java
+++ b/src/main/java/com/android/tools/r8/ir/desugar/LambdaClass.java
@@ -277,7 +277,7 @@
     for (int i = 0; i < fieldCount; i++) {
       FieldAccessFlags accessFlags =
           FieldAccessFlags.fromSharedAccessFlags(
-              Constants.ACC_FINAL | Constants.ACC_SYNTHETIC | Constants.ACC_PRIVATE);
+              Constants.ACC_FINAL | Constants.ACC_SYNTHETIC | Constants.ACC_PUBLIC);
       fields[i] = new DexEncodedField(
           getCaptureField(i), accessFlags, DexAnnotationSet.empty(), null);
     }
diff --git a/src/main/java/com/android/tools/r8/ir/optimize/classinliner/InlineCandidateProcessor.java b/src/main/java/com/android/tools/r8/ir/optimize/classinliner/InlineCandidateProcessor.java
index 7f488a1..582de88 100644
--- a/src/main/java/com/android/tools/r8/ir/optimize/classinliner/InlineCandidateProcessor.java
+++ b/src/main/java/com/android/tools/r8/ir/optimize/classinliner/InlineCandidateProcessor.java
@@ -196,11 +196,13 @@
       // TrivialInstanceInitializer. This will be checked in areInstanceUsersEligible(...).
 
       // There must be no static initializer on the class itself.
-      if (eligibleClassDefinition.hasClassInitializer()) {
+      if (eligibleClassDefinition.classInitializationMayHaveSideEffects(
+          appView,
+          // Types that are a super type of the current context are guaranteed to be initialized.
+          type -> appView.isSubtype(method.method.holder, type).isTrue())) {
         return EligibilityStatus.HAS_CLINIT;
-      } else {
-        return EligibilityStatus.ELIGIBLE;
       }
+      return EligibilityStatus.ELIGIBLE;
     }
 
     assert root.isStaticGet();
@@ -861,13 +863,7 @@
       return null; // Don't inline itself.
     }
 
-    if (isDesugaredLambda && !singleTarget.accessFlags.isBridge()) {
-      markSizeForInlining(invoke, singleTarget);
-      return new InliningInfo(singleTarget, eligibleClass);
-    }
-
     MethodOptimizationInfo optimizationInfo = singleTarget.getOptimizationInfo();
-
     ClassInlinerEligibilityInfo eligibility = optimizationInfo.getClassInlinerEligibility();
     if (eligibility == null) {
       return null;
diff --git a/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java b/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
index 0084e78..8154dfc 100644
--- a/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
+++ b/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
@@ -102,7 +102,7 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = false)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 179, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 137, "lambdadesugaring"))
         .run();
 
     test("lambdadesugaring", "lambdadesugaring", "LambdaDesugaring")
@@ -110,10 +110,7 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = true)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        // TODO(b/120814598): Should be 24. Some lambdas are not class inlined because parameter
-        // usages for lambda methods are not present for the class inliner.
-        // TODO(b/141719453): Also, some are not inined due to instruction limits.
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 37, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 7, "lambdadesugaring"))
         .run();
   }
 
@@ -145,7 +142,7 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = false)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 179, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 137, "lambdadesugaring"))
         .run();
 
     test("lambdadesugaring", "lambdadesugaring", "LambdaDesugaring")
@@ -153,10 +150,7 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = true)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        // TODO(b/120814598): Should be 24. Some lambdas are not class inlined because parameter
-        // usages for lambda methods are not present for the class inliner.
-        // TODO(b/141719453): Also, some are not inined due to instruction limits.
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 37, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 7, "lambdadesugaring"))
         .run();
   }
 
@@ -170,7 +164,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 33, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 31, "lambdadesugaringnplus"))
         .run();
 
     test("lambdadesugaringnplus", "lambdadesugaringnplus", "LambdasWithStaticAndDefaultMethods")
@@ -180,10 +174,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        // TODO(b/120814598): Should be 5. Some lambdas are not class inlined because parameter
-        // usages for lambda methods are not present for the class inliner.
-        // TODO(b/141719453): Also, some are not inined due to instruction limits.
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 24, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 5, "lambdadesugaringnplus"))
         .run();
   }
 
@@ -197,7 +188,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 33, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 31, "lambdadesugaringnplus"))
         .run();
 
     test("lambdadesugaringnplus", "lambdadesugaringnplus", "LambdasWithStaticAndDefaultMethods")
@@ -207,10 +198,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        // TODO(b/120814598): Should be 5. Some lambdas are not class inlined because parameter
-        // usages for lambda methods are not present for the class inliner.
-        // TODO(b/141719453): Also, some are not inined due to instruction limits.
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 24, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 5, "lambdadesugaringnplus"))
         .run();
   }
 
diff --git a/src/test/java/com/android/tools/r8/classmerging/VerticalClassMergerTest.java b/src/test/java/com/android/tools/r8/classmerging/VerticalClassMergerTest.java
index 82385a2..fc3f22f 100644
--- a/src/test/java/com/android/tools/r8/classmerging/VerticalClassMergerTest.java
+++ b/src/test/java/com/android/tools/r8/classmerging/VerticalClassMergerTest.java
@@ -338,11 +338,15 @@
             "classmerging.LambdaRewritingTest",
             "classmerging.LambdaRewritingTest$Function",
             "classmerging.LambdaRewritingTest$InterfaceImpl");
-    runTest(
+    runTestOnInput(
         main,
-        programFiles,
+        readProgramFiles(programFiles),
         name -> preservedClassNames.contains(name) || name.contains("$Lambda$"),
-        getProguardConfig(JAVA8_EXAMPLE_KEEP));
+        getProguardConfig(JAVA8_EXAMPLE_KEEP),
+        options -> {
+          this.configure(options);
+          options.enableClassInlining = false;
+        });
   }
 
   @Test
diff --git a/src/test/java/com/android/tools/r8/ir/optimize/classinliner/ClassInlinerTest.java b/src/test/java/com/android/tools/r8/ir/optimize/classinliner/ClassInlinerTest.java
index 3ad4a37..1058615 100644
--- a/src/test/java/com/android/tools/r8/ir/optimize/classinliner/ClassInlinerTest.java
+++ b/src/test/java/com/android/tools/r8/ir/optimize/classinliner/ClassInlinerTest.java
@@ -11,6 +11,7 @@
 import static org.hamcrest.MatcherAssert.assertThat;
 import static org.junit.Assert.assertEquals;
 import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
 
 import com.android.tools.r8.TestParameters;
 import com.android.tools.r8.TestParametersCollection;
@@ -317,12 +318,8 @@
             .filter(name -> name.contains(LAMBDA_CLASS_NAME_PREFIX))
             .collect(Collectors.toList()));
     assertEquals(expectedTypes, collectTypes(clazz.uniqueMethodWithName("testStatefulLambda")));
-
-    // TODO(b/120814598): Should be 0. Lambdas are not class inlined because parameter usage is not
-    // available for each lambda constructor.
-    assertEquals(
-        3,
-        inspector.allClasses().stream().filter(ClassSubject::isSynthesizedJavaLambdaClass).count());
+    assertTrue(
+        inspector.allClasses().stream().noneMatch(ClassSubject::isSynthesizedJavaLambdaClass));
   }
 
   private String getProguardConfig(String main) {