diff --git a/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java b/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
index 095ea22d4ecb..5e13c8f780fc 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
@@ -57,7 +57,7 @@ public class TypesDistinctProver {
           final PsiClass boundClass1 = PsiUtil.resolveClassInType(extendsBound);
           if (boundClass1 == null) return false;
 
-          if (CommonClassNames.JAVA_LANG_OBJECT.equals(psiClass2.getQualifiedName())) {
+          if (CommonClassNames.JAVA_LANG_OBJECT.equals(psiClass2.getQualifiedName()) && !(boundClass1 instanceof PsiTypeParameter)) {
             return !CommonClassNames.JAVA_LANG_OBJECT.equals(boundClass1.getQualifiedName());
           }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124363.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124363.java
new file mode 100644
index 000000000000..577e19a7916d
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124363.java
@@ -0,0 +1,16 @@
+import java.util.*;
+
+class MyTClass {
+
+  <T> void foo(final List<Object> objects){
+    Collection<? extends T> collection = (Collection<? extends T>) objects;
+  }
+  
+  <T> void foo1(final List<Object> objects){
+    Collection<? super T> collection = (Collection<? super T>) objects;
+  }
+
+  <T extends String> void bar(final List<Object> objects){
+    Collection<? extends T> collection = <error descr="Inconvertible types; cannot cast 'java.util.List<java.lang.Object>' to 'java.util.Collection<? extends T>'">(Collection<? extends T>) objects</error>;
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 49b771018cd3..f6be0686d239 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -370,6 +370,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA67600() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA126697() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, true); }
   public void testIDEA126633() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testIDEA124363() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   //jdk should propagate LL 1.4 but actually it provides LL 1.7?!
   public void testCastObjectToIntJdk14() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_4, false); }