diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/PsiSubstitutorImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/PsiSubstitutorImpl.java
index 9c9525aef859..d53bb2e26820 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/PsiSubstitutorImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/PsiSubstitutorImpl.java
@@ -389,7 +389,7 @@ public class PsiSubstitutorImpl implements PsiSubstitutor {
             }
             else {
               //unbounded
-              substituted = PsiWildcardType.createExtends(manager, substitutedBoundType);
+              substituted = substitutedBoundType instanceof PsiCapturedWildcardType ? ((PsiCapturedWildcardType)substitutedBoundType).getWildcard() : PsiWildcardType.createExtends(manager, substitutedBoundType);
             }
           }
         }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/CaptureWildcardFromUnboundCaptureWildcard.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/CaptureWildcardFromUnboundCaptureWildcard.java
new file mode 100644
index 000000000000..0abec87dc335
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/CaptureWildcardFromUnboundCaptureWildcard.java
@@ -0,0 +1,9 @@
+class Test<X extends Getter<?, ?> & Runnable> {}
+
+interface Supplier<K> {
+  K get();
+}
+
+interface Getter<C, S extends C> extends Supplier<C> {
+  public S get();
+}
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 09225b64bc1d..54685fb23c3c 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -372,6 +372,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   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); }
   public void testIDEA78402() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testCaptureWildcardFromUnboundCaptureWildcard() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testSuperCaptureSubstitutionWhenTypeParameterHasUpperBounds() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testParameterBoundsWithCapturedWildcard() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   //jdk should propagate LL 1.4 but actually it provides LL 1.7?!