diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
index d193ee56081d..a346115cbea3 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
@@ -993,7 +993,10 @@ public class PsiResolveHelperImpl implements PsiResolveHelper {
             if (method == null || methodParamsDependOn(typeParameter, expression, 
                                                        functionalInterfaceType, method.getParameterList().getParameters(),
                                                        LambdaUtil.getSubstitutor(method, resolveResult))) {
-              return getFailedInferenceConstraint(typeParameter);
+              if (expression instanceof PsiMethodReferenceExpression) {
+                return getFailedInferenceConstraint(typeParameter);
+              }
+              return null;
             }
           }
         }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/IncompatibleFormalParameterTypes.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/IncompatibleFormalParameterTypes.java
new file mode 100644
index 000000000000..ce112bb0b0b6
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/highlighting/IncompatibleFormalParameterTypes.java
@@ -0,0 +1,19 @@
+class LambdaTest {
+
+  public void highlightsTheBug(Stream<String> stream) {
+    stream.flatMap((Block<? super String> sink, String element) -> {});
+  }
+
+  public interface Block<B> {
+    void apply(B t);
+  }
+
+  public interface Stream<S> {
+    <R> Stream<R> flatMap(FlatMapper<? super S, R> mapper);
+
+  }
+
+  public interface FlatMapper<F, R> {
+    void flatMapInto(Block<? super R> sink, F element);
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/LambdaHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/LambdaHighlightingTest.java
index a4fa1a498b3e..6dac84473075 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/LambdaHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/LambdaHighlightingTest.java
@@ -152,7 +152,11 @@ public class LambdaHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testRecursiveAccess() throws Exception {
     doTest();
   }
-  
+
+  public void testIncompatibleFormalParameterTypes() throws Exception {
+    doTest();
+  }
+
   private void doTest() throws Exception {
     doTest(BASE_PATH + "/" + getTestName(false) + ".java", false, false);
   }