diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
index 8906acd20834..ecaa8736d001 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
@@ -1231,7 +1231,9 @@ public class InferenceSession {
     final PsiMethodReferenceUtil.QualifierResolveResult qualifierResolveResult = PsiMethodReferenceUtil.getQualifierResolveResult(reference);
 
     final PsiClass containingClass = qualifierResolveResult.getContainingClass();
-    LOG.assertTrue(containingClass != null, myContext);
+    if (containingClass == null) {
+      return resolveSubset(myInferenceVariables, mySiteSubstitutor); 
+    }
 
     final PsiParameter[] functionalMethodParameters = interfaceMethod.getParameterList().getParameters();
     final PsiParameter[] parameters = method.getParameterList().getParameters();
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/IncompleteCodeWithMethodReferenceOverLambdaParameter.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/IncompleteCodeWithMethodReferenceOverLambdaParameter.java
new file mode 100644
index 000000000000..9f7e191ecd6f
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/newMethodRef/IncompleteCodeWithMethodReferenceOverLambdaParameter.java
@@ -0,0 +1,12 @@
+
+import java.util.function.Function;
+class Test {
+  {
+    foo(s -> {
+      foo(s::concat);
+      return s;
+    });
+  }
+
+  <S,<error descr="'>' expected."><error descr="Type parameter expected"> </error></error>  void foo(Function<String, String> f){}
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/NewMethodRefHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/NewMethodRefHighlightingTest.java
index 05e475a286a7..00c60425f436 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/NewMethodRefHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/NewMethodRefHighlightingTest.java
@@ -418,6 +418,10 @@ public class NewMethodRefHighlightingTest extends LightDaemonAnalyzerTestCase {
     doTest();
   }
 
+  public void testIncompleteCodeWithMethodReferenceOverLambdaParameter() throws Exception {
+    doTest();
+  }
+
   private void doTest() {
     doTest(false);
   }