diff --git a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/NullParameterConstraintChecker.java b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/NullParameterConstraintChecker.java
index e5c4f4fcac9d..218656cfb91d 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/NullParameterConstraintChecker.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/NullParameterConstraintChecker.java
@@ -79,10 +79,6 @@ class NullParameterConstraintChecker extends DataFlowRunner {
   @NotNull
   @Override
   protected DfaInstructionState[] acceptInstruction(@NotNull InstructionVisitor visitor, @NotNull DfaInstructionState instructionState) {
-    DfaMemoryState memState = instructionState.getMemoryState();
-    if (memState.isEphemeral()) {
-      return DfaInstructionState.EMPTY_ARRAY;
-    }
     Instruction instruction = instructionState.getInstruction();
 
     if (instruction instanceof AssignInstruction) {
@@ -96,6 +92,7 @@ class NullParameterConstraintChecker extends DataFlowRunner {
     }
 
     if (instruction instanceof ReturnInstruction && !((ReturnInstruction)instruction).isViaException()) {
+      DfaMemoryState memState = instructionState.getMemoryState();
       for (PsiParameter parameter : myPossiblyViolatedParameters.toArray(new PsiParameter[myPossiblyViolatedParameters.size()])) {
         final DfaVariableValue dfaVar = getFactory().getVarFactory().createVariableValue(parameter, false);
         if (!memState.isNotNull(dfaVar)) {
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/NullLiteralAndInferredMethodContract.java b/java/java-tests/testData/inspection/dataFlow/fixture/NullLiteralAndInferredMethodContract.java
new file mode 100644
index 000000000000..8be1e9e8a7d4
--- /dev/null
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/NullLiteralAndInferredMethodContract.java
@@ -0,0 +1,17 @@
+class NullLiteralAndInferredMethodContract {
+  {
+    initExpressionConstraints(<warning descr="Passing 'null' argument to non annotated parameter">null</warning>);
+  }
+
+  public void initExpressionConstraints(Object parent) {
+    String currentProperties = getCurrentProperties(parent);
+    System.out.println(currentProperties != null ? currentProperties : "");
+  }
+
+  private String getCurrentProperties(Object parent) {
+    if (parent instanceof String) {
+      return  ((String) parent).substring(1);
+    }
+    return <warning descr="'null' is returned by the method which is not declared as @Nullable">null</warning>;
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTest.java b/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTest.java
index e4ad15969725..8d3e4c50b620 100644
--- a/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTest.java
@@ -400,4 +400,9 @@ public class DataFlowInspectionTest extends DataFlowInspectionTestCase {
     doTest();
     myFixture.findSingleIntention("Remove 'if' statement");
   }
+
+  //https://youtrack.jetbrains.com/issue/IDEA-162184
+  public void testNullLiteralAndInferredMethodContract() {
+    doTest();
+  }
 }