diff --git a/air/tests/test_module/issues/issue_295.rs b/air/tests/test_module/issues/issue_295.rs
new file mode 100644
index 00000000..ee00f499
--- /dev/null
+++ b/air/tests/test_module/issues/issue_295.rs
@@ -0,0 +1,52 @@
+/*
+ * Copyright 2022 Fluence Labs Limited
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+use air::UncatchableError;
+use air_test_utils::prelude::*;
+use air_trace_handler::MergeError;
+use air_trace_handler::TraceHandlerError;
+
+use std::rc::Rc;
+
+#[test]
+// test for github.com/fluencelabs/aquavm/issues/295
+fn issue_295() {
+    let vm_peer_id = "vm_peer_id";
+    let mut vm = create_avm(echo_call_service(), vm_peer_id);
+
+    let script = f!(r#"
+        (seq
+            (call "{vm_peer_id}" ("" "") [] scalar)
+            (ap scalar $stream)
+        )
+    "#);
+
+    let prev_trace = vec![executed_state::scalar_string(""), executed_state::ap(Some(1))];
+    let current_trace = vec![executed_state::scalar_string(""), executed_state::scalar_string("")];
+    let prev_data = raw_data_from_trace(prev_trace);
+    let current_data = raw_data_from_trace(current_trace);
+    let result = call_vm!(vm, <_>::default(), &script, prev_data, current_data);
+
+    let expected_error = UncatchableError::TraceError {
+        trace_error: TraceHandlerError::MergeError(MergeError::IncompatibleExecutedStates(
+            ExecutedState::Ap(ApResult::new(vec![1])),
+            ExecutedState::Call(CallResult::Executed(Value::Scalar(Rc::new(json!(""))))),
+        )),
+        instruction: "ap scalar $stream".to_string(),
+    };
+
+    assert!(check_error(&result, expected_error));
+}
diff --git a/air/tests/test_module/issues/mod.rs b/air/tests/test_module/issues/mod.rs
index 52bc0a85..8c86a629 100644
--- a/air/tests/test_module/issues/mod.rs
+++ b/air/tests/test_module/issues/mod.rs
@@ -26,3 +26,4 @@ mod issue_216;
 mod issue_221;
 mod issue_222;
 mod issue_241;
+mod issue_295;
diff --git a/crates/air-lib/air-parser/src/parser/air.rs b/crates/air-lib/air-parser/src/parser/air.rs
index e1be589b..c2342ed9 100644
--- a/crates/air-lib/air-parser/src/parser/air.rs
+++ b/crates/air-lib/air-parser/src/parser/air.rs
@@ -1,5 +1,5 @@
-// auto-generated: "lalrpop 0.19.7"
-// sha3: bd63e614fda5f25993172a583a29b4959c0d2cdba69f5e5343f48f72b98ee
+// auto-generated: "lalrpop 0.19.8"
+// sha3: bd630e614fda5f25993172a583a29b4959c0d20cdba69f5e05343f48f72b98ee
 use crate::ast::*;
 use crate::parser::ParserError;
 use crate::parser::VariableValidator;
diff --git a/crates/air-lib/lambda/parser/src/parser/va_lambda.rs b/crates/air-lib/lambda/parser/src/parser/va_lambda.rs
index c74ee0ac..3ed2f46a 100644
--- a/crates/air-lib/lambda/parser/src/parser/va_lambda.rs
+++ b/crates/air-lib/lambda/parser/src/parser/va_lambda.rs
@@ -1,5 +1,5 @@
-// auto-generated: "lalrpop 0.19.7"
-// sha3: 517c7e1bd341e1434f9ffcbf3c72151e4b928e7befd38c6ee2e3e734565b
+// auto-generated: "lalrpop 0.19.8"
+// sha3: 517c7e1bd341e104034f9ffcbf3c072151e4b9028e7befd38c6ee2e3e734565b
 use crate::ValueAccessor;
 use crate::parser::lexer::LexerError;
 use crate::parser::lexer::Token;
diff --git a/crates/air-lib/trace-handler/src/merger/ap_merger.rs b/crates/air-lib/trace-handler/src/merger/ap_merger.rs
index 101842b3..6f3061f3 100644
--- a/crates/air-lib/trace-handler/src/merger/ap_merger.rs
+++ b/crates/air-lib/trace-handler/src/merger/ap_merger.rs
@@ -36,7 +36,7 @@ pub(crate) fn try_merge_next_state_as_ap(data_keeper: &mut DataKeeper) -> MergeR
     let current_state = data_keeper.current_slider_mut().next_state();
 
     match (prev_state, current_state) {
-        (Some(Ap(prev_ap)), Some(_)) => prepare_merge_result(Some(prev_ap), Both, data_keeper),
+        (Some(Ap(prev_ap)), Some(Ap(_))) => prepare_merge_result(Some(prev_ap), Both, data_keeper),
         (Some(Ap(prev_ap)), None) => prepare_merge_result(Some(prev_ap), Previous, data_keeper),
         // check that current state is Ap, but it's impossible to use it, because prev_data
         // could not have streams with such generations