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 ea34686ec8af..e2065ce3d46c 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
@@ -371,7 +371,12 @@ public class PsiSubstitutorImpl implements PsiSubstitutor {
               !TypeConversionUtil.erasure(substitutedBoundType).isAssignableFrom(TypeConversionUtil.erasure(originalBound)) &&
               !TypeConversionUtil.erasure(substitutedBoundType).isAssignableFrom(originalBound)) { //erasure is essential to avoid infinite recursion
             if (wildcardType.isExtends()) {
-              final PsiType glb = GenericsUtil.getGreatestLowerBound(wildcardType.getBound(), substitutedBoundType);
+              final PsiType bound = wildcardType.getBound();
+              if (bound instanceof PsiArrayType && substitutedBoundType instanceof PsiArrayType &&
+                  !bound.isAssignableFrom(substitutedBoundType) && !substitutedBoundType.isAssignableFrom(bound)) {
+                continue;
+              }
+              final PsiType glb = GenericsUtil.getGreatestLowerBound(bound, substitutedBoundType);
               if (glb != null) {
                 substituted = PsiWildcardType.createExtends(manager, glb);
               }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67600.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67600.java
new file mode 100644
index 000000000000..6f0e625e21c2
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67600.java
@@ -0,0 +1,24 @@
+abstract class A<T, S extends T>
+{
+  abstract S bar();
+  void foo(A<Runnable[], ? extends Cloneable[]> a){
+    <error descr="Incompatible types. Found: 'java.lang.Cloneable[]', required: 'java.lang.Runnable[]'">Runnable[] x = a.bar();</error>
+  }
+}
+
+abstract class AB<T, S extends T>
+{
+  abstract S bar();
+  void foo(AB<Runnable, ? extends Cloneable> a){
+    Runnable x = a.bar();
+  }
+}
+
+abstract class AC<T, S>
+{
+  abstract S bar();
+  void foo(AC<Runnable[], ? extends Cloneable[]> a){
+    <error descr="Incompatible types. Found: 'java.lang.Cloneable[]', required: 'java.lang.Runnable[]'">Runnable[] x = a.bar();</error>
+  }
+}
+
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 c1917eb70481..74d2465f43a5 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -367,6 +367,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA125800() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA125816() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA57338() { doTest(LanguageLevel.JDK_1_6, JavaSdkVersion.JDK_1_6, false); }
+  public void testIDEA67600() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   //jdk should propagate LL 1.4 but actually it provides LL 1.7?!
   public void testCastObjectToIntJdk14() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_4, false); }