diff --git a/java/debugger/impl/src/com/intellij/debugger/actions/JavaSmartStepIntoHandler.java b/java/debugger/impl/src/com/intellij/debugger/actions/JavaSmartStepIntoHandler.java
index 4adedd69a776..dd28b21bfe18 100644
--- a/java/debugger/impl/src/com/intellij/debugger/actions/JavaSmartStepIntoHandler.java
+++ b/java/debugger/impl/src/com/intellij/debugger/actions/JavaSmartStepIntoHandler.java
@@ -89,7 +89,7 @@ public class JavaSmartStepIntoHandler extends JvmSmartStepIntoHandler {
         @Override
         public void visitAnonymousClass(PsiAnonymousClass aClass) {
           for (PsiMethod psiMethod : aClass.getMethods()) {
-            targets.add(new MethodTarget(psiMethod, getCurrentParamName(), true));
+            targets.add(new MethodTarget(psiMethod, getCurrentParamName(), psiMethod.getBody(), true));
           }
         }
 
@@ -104,7 +104,9 @@ public class JavaSmartStepIntoHandler extends JvmSmartStepIntoHandler {
         public void visitCallExpression(final PsiCallExpression expression) {
           final PsiMethod psiMethod = expression.resolveMethod();
           if (psiMethod != null) {
-            targets.add(new MethodTarget(psiMethod, null, false));
+            final PsiElement highlightElement = expression instanceof PsiMethodCallExpression?
+              ((PsiMethodCallExpression)expression).getMethodExpression().getReferenceNameElement() : null;
+            targets.add(new MethodTarget(psiMethod, null, highlightElement, false));
             final PsiExpressionList argList = expression.getArgumentList();
             if (argList != null) {
               final String methodName = psiMethod.getName();
@@ -143,15 +145,22 @@ public class JavaSmartStepIntoHandler extends JvmSmartStepIntoHandler {
 
   private static class MethodTarget implements StepTarget {
     private final PsiMethod myMethod;
+    private final PsiElement myHighlightElement;
     private final String myLabel;
     private final boolean myNeedBreakpointRequest;
 
-    private MethodTarget(@NotNull PsiMethod method, String currentParamName, boolean needBreakpointRequest) {
+    private MethodTarget(@NotNull PsiMethod method, String currentParamName, PsiElement highlightElement, boolean needBreakpointRequest) {
       myMethod = method;
+      myHighlightElement = highlightElement;
       myLabel = currentParamName == null? null : currentParamName + ".";
       myNeedBreakpointRequest = needBreakpointRequest;
     }
 
+    @Nullable
+    public PsiElement getHighlightElement() {
+      return myHighlightElement;
+    }
+
     @Nullable
     public String getMethodLabel() {
       return myLabel;
diff --git a/java/debugger/impl/src/com/intellij/debugger/actions/JvmSmartStepIntoHandler.java b/java/debugger/impl/src/com/intellij/debugger/actions/JvmSmartStepIntoHandler.java
index b91893b09fbb..8b080134caf5 100644
--- a/java/debugger/impl/src/com/intellij/debugger/actions/JvmSmartStepIntoHandler.java
+++ b/java/debugger/impl/src/com/intellij/debugger/actions/JvmSmartStepIntoHandler.java
@@ -18,16 +18,22 @@ package com.intellij.debugger.actions;
 import com.intellij.debugger.SourcePosition;
 import com.intellij.debugger.engine.MethodFilter;
 import com.intellij.debugger.impl.DebuggerSession;
+import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.extensions.ExtensionPointName;
 import com.intellij.openapi.fileEditor.TextEditor;
 import com.intellij.openapi.ui.popup.JBPopupFactory;
 import com.intellij.openapi.ui.popup.ListPopup;
+import com.intellij.psi.PsiElement;
 import com.intellij.psi.PsiMethod;
 import com.intellij.ui.awt.RelativePoint;
+import com.intellij.ui.components.JBList;
 import com.intellij.xdebugger.impl.ui.DebuggerUIUtil;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
+import javax.swing.event.ListSelectionEvent;
+import javax.swing.event.ListSelectionListener;
+import java.util.Arrays;
 import java.util.List;
 
 /**
@@ -49,6 +55,9 @@ public abstract class JvmSmartStepIntoHandler {
     @Nullable
     String getMethodLabel();
 
+    @Nullable
+    PsiElement getHighlightElement();
+
     boolean needsBreakpointRequest();
 
     boolean equals(Object another);
@@ -66,17 +75,31 @@ public abstract class JvmSmartStepIntoHandler {
   public boolean doSmartStep(SourcePosition position, final DebuggerSession session, TextEditor fileEditor) {
     final List<StepTarget> targets = findSmartStepTargets(position);
     if (!targets.isEmpty()) {
+      final StepTarget firstTarget = targets.get(0);
       if (targets.size() == 1) {
-        session.stepInto(true, createMethodFilter(targets.get(0)));
+        session.stepInto(true, createMethodFilter(firstTarget));
       }
       else {
-        final PsiMethodListPopupStep popupStep = new PsiMethodListPopupStep(targets, new PsiMethodListPopupStep.OnChooseRunnable() {
+        final Editor editor = fileEditor.getEditor();
+        final PsiMethodListPopupStep popupStep = new PsiMethodListPopupStep(editor, targets, new PsiMethodListPopupStep.OnChooseRunnable() {
           public void execute(StepTarget chosenTarget) {
             session.stepInto(true, createMethodFilter(chosenTarget));
           }
         });
         final ListPopup popup = JBPopupFactory.getInstance().createListPopup(popupStep);
-        final RelativePoint point = DebuggerUIUtil.calcPopupLocation(fileEditor.getEditor(), position.getLine());
+        popup.addListSelectionListener(new ListSelectionListener() {
+          public void valueChanged(ListSelectionEvent e) {
+            popupStep.getScopeHighlighter().dropHighlight();
+            if (!e.getValueIsAdjusting()) {
+              final StepTarget selectedTarget = (StepTarget)((JBList)e.getSource()).getSelectedValue();
+              if (selectedTarget != null) {
+                highlightTarget(popupStep, selectedTarget);
+              }
+            }
+          }
+        });
+        highlightTarget(popupStep, firstTarget);
+        final RelativePoint point = DebuggerUIUtil.calcPopupLocation(editor, position.getLine());
         popup.show(point);
       }
       return true;
@@ -84,6 +107,13 @@ public abstract class JvmSmartStepIntoHandler {
     return false;
   }
 
+  private static void highlightTarget(PsiMethodListPopupStep popupStep, StepTarget target) {
+    final PsiElement highlightElement = target.getHighlightElement();
+    if (highlightElement != null) {
+      popupStep.getScopeHighlighter().highlight(highlightElement, Arrays.asList(highlightElement));
+    }
+  }
+
   /**
    * Override in case if your JVMNames slightly different then it can be provided by getJvmSignature method.
    *
diff --git a/java/debugger/impl/src/com/intellij/debugger/actions/PsiMethodListPopupStep.java b/java/debugger/impl/src/com/intellij/debugger/actions/PsiMethodListPopupStep.java
index c7c880a09c2a..3e0676a7f0fe 100644
--- a/java/debugger/impl/src/com/intellij/debugger/actions/PsiMethodListPopupStep.java
+++ b/java/debugger/impl/src/com/intellij/debugger/actions/PsiMethodListPopupStep.java
@@ -15,7 +15,9 @@
  */
 package com.intellij.debugger.actions;
 
+import com.intellij.codeInsight.unwrap.ScopeHighlighter;
 import com.intellij.debugger.DebuggerBundle;
+import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.ui.popup.*;
 import com.intellij.psi.PsiMethod;
 import com.intellij.psi.PsiSubstitutor;
@@ -32,17 +34,23 @@ import java.util.List;
 class PsiMethodListPopupStep implements ListPopupStep<JvmSmartStepIntoHandler.StepTarget> {
   private final List<JvmSmartStepIntoHandler.StepTarget> myTargets;
   private final OnChooseRunnable myStepRunnable;
-
+  private final ScopeHighlighter myScopeHighlighter;
 
   public interface OnChooseRunnable {
     void execute(JvmSmartStepIntoHandler.StepTarget stepTarget);
   }
 
-  public PsiMethodListPopupStep(final List<JvmSmartStepIntoHandler.StepTarget> targets, final OnChooseRunnable stepRunnable) {
+  public PsiMethodListPopupStep(Editor editor, final List<JvmSmartStepIntoHandler.StepTarget> targets, final OnChooseRunnable stepRunnable) {
     myTargets = targets;
+    myScopeHighlighter = new ScopeHighlighter(editor);
     myStepRunnable = stepRunnable;
   }
 
+  @NotNull
+  public ScopeHighlighter getScopeHighlighter() {
+    return myScopeHighlighter;
+  }
+
   @NotNull
   public List<JvmSmartStepIntoHandler.StepTarget> getValues() {
     return myTargets;
@@ -84,6 +92,7 @@ class PsiMethodListPopupStep implements ListPopupStep<JvmSmartStepIntoHandler.St
 
   public PopupStep onChosen(JvmSmartStepIntoHandler.StepTarget selectedValue, final boolean finalChoice) {
     if (finalChoice) {
+      myScopeHighlighter.dropHighlight();
       myStepRunnable.execute(selectedValue);
     }
     return FINAL_CHOICE;
@@ -98,6 +107,7 @@ class PsiMethodListPopupStep implements ListPopupStep<JvmSmartStepIntoHandler.St
   }
 
   public void canceled() {
+    myScopeHighlighter.dropHighlight();
   }
 
   public boolean isMnemonicsNavigationEnabled() {