diff --git a/plugins/kotlin/code-insight/kotlin.code-insight.k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/hints/KtParameterHintsProvider.kt b/plugins/kotlin/code-insight/kotlin.code-insight.k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/hints/KtParameterHintsProvider.kt
index c728968f63c0..88313110fd2c 100644
--- a/plugins/kotlin/code-insight/kotlin.code-insight.k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/hints/KtParameterHintsProvider.kt
+++ b/plugins/kotlin/code-insight/kotlin.code-insight.k2/src/org/jetbrains/kotlin/idea/k2/codeinsight/hints/KtParameterHintsProvider.kt
@@ -99,10 +99,15 @@ class KtParameterHintsProvider : AbstractKtInlayHintsProvider() {
             val argument = arguments[index]
             val symbolName = symbol.name
             val name: Name = symbolName
+            // do not put inlay hints for a named argument
             if (argument.isNamed()) {
+                // it is possible to place named argument in a wrong position when there is some default value
+                // after which you have to name rest arguments and no reason to proceed further
                 if (argument.getArgumentName()?.asName != name) break
                 continue
             }
+            // avoid cases like "`value:` value"
+            if (argument.text == name.asString()) continue
 
             name.takeUnless(Name::isSpecial)?.asString()?.let { stringName ->
                 sink.addPresentation(InlineInlayPosition(argument.startOffset, true), hasBackground = true) {
diff --git a/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.k2.kt b/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.k2.kt
index 7f116a13a262..b782685b3b8c 100644
--- a/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.k2.kt
+++ b/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.k2.kt
@@ -1,6 +1,17 @@
-fun foo(index: Int, firstName: String = "John", lastName: String = "Smith") {
-
-}
+fun foo(index: Int, firstName: String = "John", lastName: String = "Smith") {}
+fun simpleFun1(name: String){}
+fun simpleFun2(name: String){}
+fun simpleFun2(name: String, value: Int){}
 
 val f = foo(/*<# [namedParameters.kt:8]index|: #>*/0, lastName = "Johnson")
-val f2 = foo(/*<# [namedParameters.kt:8]index|: #>*/0, firstName = "Joe", /*<# [namedParameters.kt:48]lastName|: #>*/"Johnson")
\ No newline at end of file
+val f2 = foo(/*<# [namedParameters.kt:8]index|: #>*/0, firstName = "Joe", /*<# [namedParameters.kt:48]lastName|: #>*/"Johnson")
+fun m() {
+    val name = "name"
+    val n = "name"
+    simpleFun0()
+    simpleFun1(/*<# [namedParameters.kt:94]name|: #>*/"name")
+    simpleFun1(name)
+    simpleFun1(/*<# [namedParameters.kt:94]name|: #>*/n)
+    simpleFun2(name)
+    simpleFun2(/*<# [namedParameters.kt:125]name|: #>*/n)
+}
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.kt b/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.kt
index 6498953995e5..7ec8488e7049 100644
--- a/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.kt
+++ b/plugins/kotlin/idea/tests/testData/codeInsight/hints/arguments/namedParameters.kt
@@ -1,6 +1,17 @@
-fun foo(index: Int, firstName: String = "John", lastName: String = "Smith") {
-
-}
+fun foo(index: Int, firstName: String = "John", lastName: String = "Smith") {}
+fun simpleFun1(name: String){}
+fun simpleFun2(name: String){}
+fun simpleFun2(name: String, value: Int){}
 
 val f = foo(<hint text="index:"/>0, lastName = "Johnson")
-val f2 = foo(<hint text="index:"/>0, firstName = "Joe", <hint text="lastName:"/>"Johnson")
\ No newline at end of file
+val f2 = foo(<hint text="index:"/>0, firstName = "Joe", <hint text="lastName:"/>"Johnson")
+fun m() {
+    val name = "name"
+    val n = "name"
+    simpleFun0()
+    simpleFun1(<hint text="name:"/>"name")
+    simpleFun1(name)
+    simpleFun1(n)
+    simpleFun2(name)
+    simpleFun2(n)
+}
\ No newline at end of file