diff --git a/java/java-psi-impl/src/com/intellij/lang/java/parser/DeclarationParser.java b/java/java-psi-impl/src/com/intellij/lang/java/parser/DeclarationParser.java
index 0b1dcb4b6504..7810e3132937 100644
--- a/java/java-psi-impl/src/com/intellij/lang/java/parser/DeclarationParser.java
+++ b/java/java-psi-impl/src/com/intellij/lang/java/parser/DeclarationParser.java
@@ -4,6 +4,7 @@ package com.intellij.lang.java.parser;
 import com.intellij.codeInsight.daemon.JavaErrorMessages;
 import com.intellij.lang.PsiBuilder;
 import com.intellij.openapi.util.Pair;
+import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.JavaTokenType;
 import com.intellij.psi.impl.source.tree.ElementType;
 import com.intellij.psi.impl.source.tree.JavaElementType;
@@ -587,7 +588,9 @@ public class DeclarationParser {
 
   @Nullable
   public PsiBuilder.Marker parseLambdaParameter(PsiBuilder builder, boolean typed) {
-    return parseListElement(builder, typed, ReferenceParser.ELLIPSIS, false);
+    int flags = ReferenceParser.ELLIPSIS;
+    if (getLanguageLevel(builder).isAtLeast(LanguageLevel.JDK_X)) flags |= ReferenceParser.VAR_TYPE;
+    return parseListElement(builder, typed, flags, false);
   }
 
   @Nullable
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
index bc0ebdf7e68f..ae255007e6eb 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
@@ -1,11 +1,12 @@
+import java.util.function.Function;
 
 class Main {
     private static void localVariableDeclaration() {
         var a = 1;
         <error descr="'var' is not allowed in a compound declaration">var b = 2</error>, <error descr="'var' is not allowed in a compound declaration">c = 3.0;</error>
         <error descr="'var' is not allowed as an element type of an array">var</error> d[] = new int[4];
-        var d1 = new int[] {4};                                                                                          
-        var d2 = new int[4];                                                                                          
+        var d1 = new int[] {4};
+        var d2 = new int[4];
         <error descr="Cannot infer type: 'var' on variable without initializer">var</error> e;
         var f = <error descr="Array initializer is not allowed here">{ 6 }</error>;
         var g = (<error descr="Incompatible types. Found: 'int', required: 'null'">g = 7</error>);
@@ -30,9 +31,11 @@ class Main {
         <error descr="Cannot infer type: method reference requires an explicit target type">var</error> m = Main::localVariableDeclaration;
         <error descr="Cannot infer type: variable initializer is 'null'">var</error> g = null;
         var runnable = true ? <error descr="Lambda expression not expected here">() -> {}</error> : <error descr="Lambda expression not expected here">() -> {}</error>;
+
+        Function<String, String> f1 = (<error descr="Cannot resolve symbol 'var'">var</error> var) -> var;
     }
 
-   private void forEachType(String[] strs, Iterable<String> it, Iterable raw) {
+    private void forEachType(String[] strs, Iterable<String> it, Iterable raw) {
         for (var str : strs) {
             String s = str;
         }
@@ -56,6 +59,5 @@ class Main {
     private void tryWithResources(AutoCloseable c) throws Exception {
         try (<error descr="Cannot infer type: variable initializer is 'null'">var</error> v = null) { }
         try (var v = c; var v1 = c) { }
-
     }
-}
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java
new file mode 100644
index 000000000000..f2bcf7951f20
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java
@@ -0,0 +1,7 @@
+import java.util.function.Function;
+
+class C {
+  void m() {
+    Function<String, String> f = (var var) -> var;
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression24.txt b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression24.txt
new file mode 100644
index 000000000000..e1fbe6cdd051
--- /dev/null
+++ b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression24.txt
@@ -0,0 +1,14 @@
+PsiJavaFile:LambdaExpression24.java
+  PsiLambdaExpression
+    PsiParameterList:var
+      PsiParameter:var
+        PsiModifierList:
+          <empty list>
+        PsiIdentifier:var('var')
+    PsiWhiteSpace(' ')
+    PsiJavaToken:ARROW('->')
+    PsiWhiteSpace(' ')
+    PsiReferenceExpression:var
+      PsiReferenceParameterList
+        <empty list>
+      PsiIdentifier:var('var')
\ No newline at end of file
diff --git a/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression25.txt b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression25.txt
new file mode 100644
index 000000000000..6ff11d2294ae
--- /dev/null
+++ b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression25.txt
@@ -0,0 +1,16 @@
+PsiJavaFile:LambdaExpression25.java
+  PsiLambdaExpression
+    PsiParameterList:(var)
+      PsiJavaToken:LPARENTH('(')
+      PsiParameter:var
+        PsiModifierList:
+          <empty list>
+        PsiIdentifier:var('var')
+      PsiJavaToken:RPARENTH(')')
+    PsiWhiteSpace(' ')
+    PsiJavaToken:ARROW('->')
+    PsiWhiteSpace(' ')
+    PsiReferenceExpression:var
+      PsiReferenceParameterList
+        <empty list>
+      PsiIdentifier:var('var')
\ No newline at end of file
diff --git a/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression26.txt b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression26.txt
new file mode 100644
index 000000000000..03b77d51c3ca
--- /dev/null
+++ b/java/java-tests/testData/psi/parser-partial/expressions/LambdaExpression26.txt
@@ -0,0 +1,19 @@
+PsiJavaFile:LambdaExpression26.java
+  PsiLambdaExpression
+    PsiParameterList:(var var)
+      PsiJavaToken:LPARENTH('(')
+      PsiParameter:var
+        PsiModifierList:
+          <empty list>
+        PsiTypeElement:var
+          PsiKeyword:var('var')
+        PsiWhiteSpace(' ')
+        PsiIdentifier:var('var')
+      PsiJavaToken:RPARENTH(')')
+    PsiWhiteSpace(' ')
+    PsiJavaToken:ARROW('->')
+    PsiWhiteSpace(' ')
+    PsiReferenceExpression:var
+      PsiReferenceParameterList
+        <empty list>
+      PsiIdentifier:var('var')
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
index ec43b93d3f0d..76dcc4fd6c7f 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
@@ -3,11 +3,14 @@ package com.intellij.java.codeInsight.daemon;
 
 import com.intellij.codeInsight.daemon.LightDaemonAnalyzerTestCase;
 import com.intellij.codeInspection.AnonymousCanBeLambdaInspection;
+import com.intellij.idea.Bombed;
 import com.intellij.openapi.projectRoots.JavaSdkVersion;
 import com.intellij.openapi.projectRoots.Sdk;
 import com.intellij.pom.java.LanguageLevel;
 import com.intellij.testFramework.IdeaTestUtil;
 
+import java.util.Calendar;
+
 public class LightAdvLVTIHighlightingTest extends LightDaemonAnalyzerTestCase {
   private static final String BASE_PATH = "/codeInsight/daemonCodeAnalyzer/advLVTI";
 
@@ -23,16 +26,24 @@ public class LightAdvLVTIHighlightingTest extends LightDaemonAnalyzerTestCase {
   }
 
   public void testSimpleAvailability() { doTest(); }
+
   public void testDisabledInspections() {
     enableInspectionTool(new AnonymousCanBeLambdaInspection());
     doTest(BASE_PATH + "/" + getTestName(false) + ".java", true, false);
   }
+
   public void testVarClassNameConflicts() { doTest(); }
   public void testStandaloneInVarContext() { doTest(); }
   public void testUpwardProjection() { doTest(); }
 
+  @Bombed(user = "anna", day = 12, month = Calendar.MARCH)
+  public void testVarInLambdaParameters() {
+    setLanguageLevel(LanguageLevel.JDK_X);
+    doTest();
+  }
+
   @Override
   protected Sdk getProjectJDK() {
     return IdeaTestUtil.getMockJdk9();
   }
-}
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/parser/partial/ExpressionParserTest.java b/java/java-tests/testSrc/com/intellij/java/parser/partial/ExpressionParserTest.java
index c58997590aec..6ed647fe71c4 100644
--- a/java/java-tests/testSrc/com/intellij/java/parser/partial/ExpressionParserTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/parser/partial/ExpressionParserTest.java
@@ -1,18 +1,4 @@
-/*
- * Copyright 2000-2017 JetBrains s.r.o.
- *
- * 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.
- */
+// Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
 package com.intellij.java.parser.partial;
 
 import com.intellij.java.parser.JavaParsingTestCase;
@@ -153,6 +139,9 @@ public class ExpressionParserTest extends JavaParsingTestCase {
   public void testLambdaExpression21() { doParserTest("(T @A() [] x) -> { }"); }
   public void testLambdaExpression22() { doParserTest("(T x @A() []) -> { }"); }
   public void testLambdaExpression23() { doParserTest("(T... t) -> t.length"); }
+  public void testLambdaExpression24() { doParserTest("var -> var"); }
+  public void testLambdaExpression25() { doParserTest("(var) -> var"); }
+  public void testLambdaExpression26() { doParserTest("(var var) -> var"); }
   public void testAmbiguousLambdaExpression() { doParserTest("f( (x) < y , z > (w) -> v )"); }
 
   private void doParserTest(String text) {