diff --git a/java/java-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java b/java/java-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
index a674ea013098..173ac1533da0 100644
--- a/java/java-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
+++ b/java/java-impl/src/com/intellij/psi/impl/source/resolve/PsiResolveHelperImpl.java
@@ -175,7 +175,7 @@ public class PsiResolveHelperImpl implements PsiResolveHelper {
             }
             break;
           case SUBTYPE:
-            if (PsiType.NULL.equals(upperBound)) {
+            if (PsiType.NULL.equals(upperBound) || TypeConversionUtil.isAssignable(upperBound, type)) {
               upperBound = type;
             }
         }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/InferenceWithUpperBoundPromotion.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/InferenceWithUpperBoundPromotion.java
new file mode 100644
index 000000000000..82a2a68570ad
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/InferenceWithUpperBoundPromotion.java
@@ -0,0 +1,30 @@
+
+public class NestedGenericGoodCodeIsRed {
+
+    public void main( String[] args ) {
+        satisfiesAllOf(isPositive(), isEqualTo(10.9));
+        satisfiesAllOf(isPositive(), isEqualTo(10));
+
+        Number num = null;
+        satisfiesAllOf(isPositive(), isEqualTo(num));
+
+        this.<Number>satisfiesAllOf<error descr="'satisfiesAllOf(NestedGenericGoodCodeIsRed.Predicate<? super java.lang.Number>, NestedGenericGoodCodeIsRed.Predicate<? super java.lang.Number>)' in 'NestedGenericGoodCodeIsRed' cannot be applied to '(NestedGenericGoodCodeIsRed.Predicate<java.lang.Number>, NestedGenericGoodCodeIsRed.Predicate<java.lang.Integer>)'">(isPositive(), isEqualTo(10))</error>;
+    }
+
+
+    public interface Predicate<T> {
+
+    }
+
+    public  <ALL> void satisfiesAllOf( Predicate<? super ALL> first, Predicate<? super ALL> second ) {
+    }
+
+    public  <POSITIVE extends Number> Predicate<POSITIVE> isPositive() {
+        return null;
+    }
+
+    public <EQUALTO extends Number> Predicate<EQUALTO> isEqualTo( EQUALTO target ) {
+        return null;
+    }
+
+}
\ No newline at end of file
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 a68ee6bf6d3f..286dd2015d09 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -50,6 +50,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testExplicitMethodParameters1() throws Exception { doTest(false); }
   public void testInferenceWithBounds() throws Exception {doTest(false);}
   public void testInferenceWithSuperBounds() throws Exception {doTest(false);}
+  public void testInferenceWithUpperBoundPromotion() throws Exception {doTest(false);}
   public void testVariance() throws Exception {doTest(false);}
   public void testForeachTypes() throws Exception {doTest(false);}
   public void testRawOverridingMethods() throws Exception {doTest(false);}