diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/PsiImplUtil.java b/java/java-psi-impl/src/com/intellij/psi/impl/PsiImplUtil.java
index a55d7d53b3d5..90203fc59f66 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/PsiImplUtil.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/PsiImplUtil.java
@@ -414,7 +414,19 @@ public class PsiImplUtil {
 
   private static PsiType doNormalizeWildcardByPosition(final PsiType type, @NotNull PsiExpression expression, final PsiExpression toplevel) {
     if (type instanceof PsiCapturedWildcardType) {
-      return doNormalizeWildcardByPosition(((PsiCapturedWildcardType)type).getWildcard(), expression, toplevel);
+      final PsiWildcardType wildcardType = ((PsiCapturedWildcardType)type).getWildcard();
+
+      if (PsiUtil.isAccessedForWriting(toplevel)) {
+        return wildcardType.isSuper() ? wildcardType.getBound() : PsiCapturedWildcardType.create(wildcardType, expression);
+      }
+      else {
+        if (wildcardType.isExtends()) {
+          return wildcardType.getBound();
+        }
+        else {
+          return ((PsiCapturedWildcardType)type).getUpperBound();
+        }
+      }
     }
 
 
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 96a4a29fb45f..839de2256816 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
@@ -29,6 +29,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
 import java.util.Collections;
+import java.util.List;
 import java.util.Map;
 import java.util.Set;
 
@@ -358,16 +359,25 @@ public class PsiSubstitutorImpl implements PsiSubstitutor {
           }
         }
       }
-    } else if (substituted instanceof PsiWildcardType && ((PsiWildcardType)substituted).isSuper() && !(oldSubstituted instanceof PsiCapturedWildcardType)) {
-      final PsiType erasure = TypeConversionUtil.erasure(((PsiWildcardType)substituted).getBound());
-      if (erasure != null) {
-        final PsiType[] boundTypes = typeParameter.getExtendsListTypes();
-        for (PsiType boundType : boundTypes) {
-          if (TypeConversionUtil.isAssignable(erasure, boundType)) {
-            return boundType.accept(mySimpleSubstitutionVisitor);
+    } else if (substituted instanceof PsiWildcardType && ((PsiWildcardType)substituted).isSuper()) {
+      final PsiType[] boundTypes = typeParameter.getExtendsListTypes();
+      PsiType glb = null;
+      for (PsiType boundType : boundTypes) {
+        final PsiType substitutedBound = boundType.accept(mySimpleSubstitutionVisitor);
+        if (substitutedBound != null) {
+          if (glb == null) {
+            glb = substitutedBound;
+          }
+          else {
+            glb = GenericsUtil.getGreatestLowerBound(glb, substitutedBound);
           }
         }
       }
+      if (glb != null && captureContext != null) {
+        final PsiCapturedWildcardType capturedWildcardType = PsiCapturedWildcardType.create((PsiWildcardType)substituted, captureContext, typeParameter);
+        capturedWildcardType.setUpperBound(glb);
+        return capturedWildcardType;
+      }
     }
 
     if (captureContext != null) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MakeUseOfUpperBoundOfCaptureWildcardDuringNormalization.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MakeUseOfUpperBoundOfCaptureWildcardDuringNormalization.java
new file mode 100644
index 000000000000..08de193d52fd
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MakeUseOfUpperBoundOfCaptureWildcardDuringNormalization.java
@@ -0,0 +1,16 @@
+import java.util.List;
+
+class G<T extends List<String> & Runnable> {
+  T get() {return null;}
+}
+
+interface I extends List<String>, Runnable {}
+
+abstract class Test {
+  abstract G<? super I> m();
+
+  {
+    m().get().run();
+    String s = m().get().get(0);
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/TypeWithinItsWildcardBound.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/TypeWithinItsWildcardBound.java
index 052761440739..e85ae1288b9f 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/TypeWithinItsWildcardBound.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/TypeWithinItsWildcardBound.java
@@ -311,7 +311,7 @@ class WithingBounds {
     A<A<<error descr="Type parameter 'A' is not within its bound; should extend 'A<A>'">A</error>>> a3;
 
     A<? extends A> a4;
-    A<<error descr="Type parameter '? super A' is not within its bound; should extend 'A<A<? super A>>'">? super A</error>> a5;
+    A<<error descr="Type parameter '? super A' is not within its bound; should extend 'A<? super A>'">? super A</error>> a5;
     A<<error descr="Type parameter 'A[]' is not within its bound; should extend 'A<A[]>'">A[]</error>> a7;
   }
 }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/TypeWithinItsWildcardBound.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/TypeWithinItsWildcardBound.java
index 052761440739..e85ae1288b9f 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/TypeWithinItsWildcardBound.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/TypeWithinItsWildcardBound.java
@@ -311,7 +311,7 @@ class WithingBounds {
     A<A<<error descr="Type parameter 'A' is not within its bound; should extend 'A<A>'">A</error>>> a3;
 
     A<? extends A> a4;
-    A<<error descr="Type parameter '? super A' is not within its bound; should extend 'A<A<? super A>>'">? super A</error>> a5;
+    A<<error descr="Type parameter '? super A' is not within its bound; should extend 'A<? super A>'">? super A</error>> a5;
     A<<error descr="Type parameter 'A[]' is not within its bound; should extend 'A<A[]>'">A[]</error>> a7;
   }
 }
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 43712f70a119..16d145bd2c93 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -480,6 +480,10 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
 
   }
 
+  public void testMakeUseOfUpperBoundOfCaptureWildcardDuringNormalization() throws Exception {
+    doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false);
+  }
+
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));
     assertNotNull(collectionsClass);