diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/GroovyBundle.properties b/plugins/groovy/src/org/jetbrains/plugins/groovy/GroovyBundle.properties
index 574dd0e07a6f..dd5964be48be 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/GroovyBundle.properties
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/GroovyBundle.properties
@@ -363,3 +363,4 @@ expected.0.to.be.inline.constant=Expected ''{0}'' to be an inline constant
 cannot.assign.a.value.to.final.field.0=Cannot assign a value to final field ''{0}''
 variable.0.might.not.have.been.initialized=Variable ''{0}'' might not have been initialized
 unexpected.symbol=Unexpected symbol
+statement.expected=Statement expected
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrHighlightUtil.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrHighlightUtil.java
index 71d144e7e2f1..0cc8d4cda637 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrHighlightUtil.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrHighlightUtil.java
@@ -34,6 +34,7 @@ import org.jetbrains.plugins.groovy.lang.lexer.TokenSets;
 import org.jetbrains.plugins.groovy.lang.psi.GrReferenceElement;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.GrModifierList;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrClassInitializer;
+import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrLabeledStatement;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrVariable;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.blocks.GrOpenBlock;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.expressions.GrAssignmentExpression;
@@ -181,6 +182,9 @@ public class GrHighlightUtil {
       boolean reassigned = isReassigned((GrVariable)resolved);
       return reassigned ? REASSIGNED_LOCAL_VARIABLE : LOCAL_VARIABLE;
     }
+    else if (resolved instanceof GrLabeledStatement) {
+      return LABEL;
+    }
     return null;
   }
 
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrKeywordAndDeclarationHighlighter.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrKeywordAndDeclarationHighlighter.java
index a5041beaa7b9..bc3cd76177ab 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrKeywordAndDeclarationHighlighter.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GrKeywordAndDeclarationHighlighter.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2012 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -34,7 +34,6 @@ import org.jetbrains.plugins.groovy.lang.lexer.TokenSets;
 import org.jetbrains.plugins.groovy.lang.psi.GrNamedElement;
 import org.jetbrains.plugins.groovy.lang.psi.GroovyFile;
 import org.jetbrains.plugins.groovy.lang.psi.GroovyPsiElement;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.annotation.GrAnnotation;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.annotation.GrAnnotationNameValuePair;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.arguments.GrArgumentLabel;
@@ -47,7 +46,8 @@ import java.util.ArrayList;
 import java.util.List;
 
 import static com.intellij.codeInsight.daemon.impl.HighlightInfoType.INFORMATION;
-import static org.jetbrains.plugins.groovy.highlighter.DefaultHighlighter.*;
+import static org.jetbrains.plugins.groovy.highlighter.DefaultHighlighter.ANNOTATION;
+import static org.jetbrains.plugins.groovy.highlighter.DefaultHighlighter.KEYWORD;
 
 /**
  * @author Max Medvedev
@@ -81,9 +81,6 @@ public class GrKeywordAndDeclarationHighlighter extends TextEditorHighlightingPa
           }
         }
         else {
-          if (element instanceof GrLabel) {
-            addInfo(element, LABEL);
-          }
           super.visitElement(element);
         }
       }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/bugs/GroovyLabeledStatementInspection.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/bugs/GroovyLabeledStatementInspection.java
index faaf3cddd8f7..8037ca7d1b1a 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/bugs/GroovyLabeledStatementInspection.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/bugs/GroovyLabeledStatementInspection.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2011 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -63,7 +63,7 @@ public class GroovyLabeledStatementInspection extends BaseInspection {
     public void visitLabeledStatement(GrLabeledStatement labeledStatement) {
       super.visitLabeledStatement(labeledStatement);
 
-      final String name = labeledStatement.getLabelName();
+      final String name = labeledStatement.getName();
       GrLabeledStatement existing = ResolveUtil.resolveLabeledStatement(name, labeledStatement, true);
       if (existing != null && PsiTreeUtil.isAncestor(existing, labeledStatement, true)) {
         registerError(labeledStatement.getLabel(), name);
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/local/GroovyPostHighlightingPass.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/local/GroovyPostHighlightingPass.java
index 3281ec903b75..9850efa2ceeb 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/local/GroovyPostHighlightingPass.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/codeInspection/local/GroovyPostHighlightingPass.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2012 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -127,8 +127,8 @@ public class GroovyPostHighlightingPass extends TextEditorHighlightingPass {
         }
 
         if (deadCodeEnabled &&
-            element instanceof GrNamedElement &&
-            !PostHighlightingPass.isImplicitUsage((GrNamedElement)element, progress) &&
+            element instanceof GrNamedElement && element instanceof PsiModifierListOwner &&
+            !PostHighlightingPass.isImplicitUsage((PsiModifierListOwner)element, progress) &&
             !GroovySuppressableInspectionTool.isElementToolSuppressedIn(element, GroovyUnusedDeclarationInspection.SHORT_NAME)) {
           PsiElement nameId = ((GrNamedElement)element).getNameIdentifierGroovy();
           if (nameId.getNode().getElementType() == GroovyTokenTypes.mIDENT) {
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/findUsages/GroovyFindUsagesProvider.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/findUsages/GroovyFindUsagesProvider.java
index e89a6024ac1a..9ddb4debd422 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/findUsages/GroovyFindUsagesProvider.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/findUsages/GroovyFindUsagesProvider.java
@@ -90,7 +90,7 @@ public class GroovyFindUsagesProvider implements FindUsagesProvider {
                 return name;
             }
         } else if (element instanceof GrLabeledStatement) {
-            return ((GrLabeledStatement)element).getLabelName();
+            return ((GrLabeledStatement)element).getName();
         } else if (element instanceof PropertyForRename) {
           return ((PropertyForRename)element).getPropertyName();
         } else if (element instanceof GrClosableBlock) {
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/formatter/processors/GroovyIndentProcessor.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/formatter/processors/GroovyIndentProcessor.java
index 3e692885ff00..0cf6955456b7 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/formatter/processors/GroovyIndentProcessor.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/formatter/processors/GroovyIndentProcessor.java
@@ -145,7 +145,7 @@ public class GroovyIndentProcessor extends GroovyElementVisitor {
 
   @Override
   public void visitLabeledStatement(GrLabeledStatement labeledStatement) {
-    if (myChildType == LABEL) {
+    if (myChildType == mIDENT) {
       CommonCodeStyleSettings.IndentOptions indentOptions = myBlock.getContext().getSettings().getIndentOptions();
       if (indentOptions != null && indentOptions.LABEL_INDENT_ABSOLUTE) {
         myResult = Indent.getAbsoluteLabelIndent();
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/intentions/declaration/GrChangeMemberVisibilityModifierBase.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/intentions/declaration/GrChangeMemberVisibilityModifierBase.java
index a38bcd4eeb0e..89efd4e49d9b 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/intentions/declaration/GrChangeMemberVisibilityModifierBase.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/intentions/declaration/GrChangeMemberVisibilityModifierBase.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2012 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -52,7 +52,7 @@ public abstract class GrChangeMemberVisibilityModifierBase extends Intention {
         final PsiElement parent = element.getParent();
         return parent instanceof GrMember &&
                parent instanceof GrNamedElement &&
-               (((GrNamedElement)parent).getNameIdentifierGroovy() == element || ((GrNamedElement)parent).getModifierList() == element) &&
+               (((GrNamedElement)parent).getNameIdentifierGroovy() == element || ((GrMember)parent).getModifierList() == element) &&
                ((GrMember)parent).getModifierList() != null && !((GrMember)parent).getModifierList().hasExplicitModifier(myModifier);
       }
     };
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyElementTypes.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyElementTypes.java
index 171807dee85d..6cb0df6a87cc 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyElementTypes.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyElementTypes.java
@@ -226,8 +226,6 @@ public interface GroovyElementTypes extends GroovyTokenTypes, GroovyDocElementTy
 
   GroovyElementType PATH_INDEX_PROPERTY = new GroovyElementType("Index property");
   GroovyElementType PARENTHESIZED_EXPRESSION = new GroovyElementType("Parenthesized expression");
-  // Plain label
-  GroovyElementType LABEL = new GroovyElementType("Label");
 
   // Arguments
   GroovyElementType ARGUMENTS = new GroovyElementType("Arguments");
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyParser.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyParser.java
index 1ebee6ff7a16..d12550a57d0f 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyParser.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyParser.java
@@ -247,7 +247,8 @@ public class GroovyParser implements PsiParser {
       if (parseSeparatorsWithoutLastNls(builder, plainStatement, until)) {
         return false;
       }
-    } else {
+    }
+    else {
       builder.error(GroovyBundle.message("wrong.statement"));
       assert builder.getTokenType() != mLCURLY && builder.getTokenType() != mRCURLY;
       builder.advanceLexer();
@@ -272,7 +273,8 @@ public class GroovyParser implements PsiParser {
           return true;
         }
         beforeNls.drop();
-      } else {
+      }
+      else {
         break;
       }
     }
@@ -334,7 +336,8 @@ public class GroovyParser implements PsiParser {
       if (SynchronizedStatement.parse(builder, this)) {
         synMarker.drop();
         return true;
-      } else {
+      }
+      else {
         synMarker.rollbackTo();
       }
     }
@@ -373,24 +376,25 @@ public class GroovyParser implements PsiParser {
     if (BranchStatement.BRANCH_KEYWORDS.contains(builder.getTokenType())) {
       return BranchStatement.parse(builder, this);
     }
-    if (ParserUtils.lookAhead(builder, GroovyTokenTypes.mIDENT, GroovyTokenTypes.mCOLON)) {
-      return parseLabeledStatement(builder);
+    if (parseLabeledStatement(builder)) {
+      return true;
     }
 
     if (parseDeclaration(builder, false, false, null)) return true;
 
     return AssignmentExpression.parse(builder, this, true);
-
   }
 
   /**
    * parses imports (marks them as not allowed), type definitions, methods, variables or fields (if isInClass), initializers (if isInClass), constructors
    * with corresponding typeDefinitionName
-   *
+   * <p/>
    * If non of preceding elements was found rolls back and return false
-   *
    */
-  public boolean parseDeclaration(@NotNull PsiBuilder builder, boolean isInClass, boolean isInAnnotation, @Nullable String typeDefinitionName) {
+  public boolean parseDeclaration(@NotNull PsiBuilder builder,
+                                  boolean isInClass,
+                                  boolean isInAnnotation,
+                                  @Nullable String typeDefinitionName) {
     PsiBuilder.Marker declMarker = builder.mark();
     boolean modifiersParsed = Modifiers.parse(builder, this);
 
@@ -419,7 +423,8 @@ public class GroovyParser implements PsiParser {
       return true;
     }
 
-    final IElementType declType = Declaration.parseAfterModifiers(builder, isInClass, isInAnnotation, typeDefinitionName, this, modifiersParsed);
+    final IElementType declType =
+      Declaration.parseAfterModifiers(builder, isInClass, isInAnnotation, typeDefinitionName, this, modifiersParsed);
     if (declType != WRONGWAY) {
       if (declType != null) {
         declMarker.done(declType);
@@ -455,7 +460,8 @@ public class GroovyParser implements PsiParser {
   public boolean parseStatementWithImports(PsiBuilder builder) {
     if (ImportStatement.parse(builder, this)) {
       return true;
-    } else {
+    }
+    else {
       return parseStatement(builder, false);
     }
   }
@@ -463,12 +469,22 @@ public class GroovyParser implements PsiParser {
   private boolean parseLabeledStatement(PsiBuilder builder) {
 
     PsiBuilder.Marker marker = builder.mark();
-    ParserUtils.eatElement(builder, LABEL);
-    ParserUtils.getToken(builder, GroovyTokenTypes.mCOLON);
+
+    if (!ParserUtils.getToken(builder, mIDENT) || !ParserUtils.getToken(builder, GroovyTokenTypes.mCOLON)) {
+      marker.rollbackTo();
+      return false;
+    }
+
+    final PsiBuilder.Marker nlsMarker = builder.mark();
 
     ParserUtils.getToken(builder, GroovyTokenTypes.mNLS);
-
-    parseStatement(builder, true);
+    if (parseStatement(builder, true)) {
+      nlsMarker.drop();
+    }
+    else {
+      nlsMarker.rollbackTo();
+      builder.error(GroovyBundle.message("statement.expected"));
+    }
 
     marker.done(LABELED_STATEMENT);
     return true;
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyPsiCreator.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyPsiCreator.java
index 87059549a342..d8a16b70d684 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyPsiCreator.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/parser/GroovyPsiCreator.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -25,7 +25,6 @@ import org.jetbrains.plugins.groovy.lang.groovydoc.psi.GroovyDocPsiCreator;
 import org.jetbrains.plugins.groovy.lang.lexer.GroovyElementType;
 import org.jetbrains.plugins.groovy.lang.lexer.TokenSets;
 import org.jetbrains.plugins.groovy.lang.psi.impl.GroovyASTPsiElementImpl;
-import org.jetbrains.plugins.groovy.lang.psi.impl.auxiliary.GrLabelImpl;
 import org.jetbrains.plugins.groovy.lang.psi.impl.auxiliary.GrListOrMapImpl;
 import org.jetbrains.plugins.groovy.lang.psi.impl.auxiliary.GrThrowsClauseImpl;
 import org.jetbrains.plugins.groovy.lang.psi.impl.auxiliary.annotation.GrAnnotationArgumentListImpl;
@@ -98,7 +97,6 @@ public class GroovyPsiCreator implements GroovyElementTypes {
 
     //Identifiers & literal
     if (elem == LITERAL) return new GrLiteralImpl(node);
-    if (elem == LABEL) return new GrLabelImpl(node);
 //    if (elem.equals(IDENTIFIER)) return new GrIdentifierImpl(node);
     //Lists, maps etc...
     if (elem == LIST_OR_MAP) return new GrListOrMapImpl(node);
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GrNamedElement.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GrNamedElement.java
index 70275dca1303..e4901369e5e1 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GrNamedElement.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GrNamedElement.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -16,15 +16,14 @@
 
 package org.jetbrains.plugins.groovy.lang.psi;
 
-import com.intellij.psi.PsiModifierListOwner;
-import com.intellij.psi.PsiNamedElement;
 import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiNamedElement;
 import org.jetbrains.annotations.NotNull;
 
 /**
  * @author ven
  */
-public interface GrNamedElement extends PsiNamedElement, GroovyPsiElement, PsiModifierListOwner {
+public interface GrNamedElement extends PsiNamedElement, GroovyPsiElement {
   @NotNull
   PsiElement getNameIdentifierGroovy();
 }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyElementVisitor.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyElementVisitor.java
index 08854d70c0f3..e362cba389ec 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyElementVisitor.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyElementVisitor.java
@@ -16,7 +16,6 @@
 package org.jetbrains.plugins.groovy.lang.psi;
 
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.*;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrListOrMap;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrThrowsClause;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.GrModifierList;
@@ -212,10 +211,6 @@ public abstract class GroovyElementVisitor {
     visitExpression(expression);
   }
 
-  public void visitLabel(GrLabel label) {
-    visitElement(label);
-  }
-
   public void visitArgumentList(GrArgumentList list) {
     visitElement(list);
   }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyPsiElementFactory.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyPsiElementFactory.java
index 33114bf2b7c5..9f370e032d95 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyPsiElementFactory.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/GroovyPsiElementFactory.java
@@ -27,7 +27,6 @@ import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocComment;
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocMemberReference;
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocReferenceElement;
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocTag;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.GrModifierList;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.annotation.GrAnnotation;
 import org.jetbrains.plugins.groovy.lang.psi.api.signatures.GrClosureSignature;
@@ -228,8 +227,6 @@ public abstract class GroovyPsiElementFactory implements JVMElementFactory {
 
   public abstract GrMethod createConstructorFromText(String constructorName, CharSequence constructorText, @Nullable PsiElement context);
 
-  public abstract GrLabel createLabel(@NotNull String name);
-
   public abstract GrDocComment createDocCommentFromText(String text) ;
 
   public abstract GrDocTag createDocTagFromText(String text) ;
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/auxiliary/GrLabel.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/auxiliary/GrLabel.java
deleted file mode 100644
index 4cac3e2c1fb9..000000000000
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/auxiliary/GrLabel.java
+++ /dev/null
@@ -1,26 +0,0 @@
-/*
- * Copyright 2000-2009 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-package org.jetbrains.plugins.groovy.lang.psi.api.auxiliary;
-
-import org.jetbrains.plugins.groovy.lang.psi.GroovyPsiElement;
-
-/**
- * @author ilyas
- */
-public interface GrLabel extends GroovyPsiElement {
-  String getName();
-}
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/statements/GrLabeledStatement.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/statements/GrLabeledStatement.java
index 46c7ffbe7bd1..09977132e1bd 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/statements/GrLabeledStatement.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/api/statements/GrLabeledStatement.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -16,21 +16,22 @@
 
 package org.jetbrains.plugins.groovy.lang.psi.api.statements;
 
-import com.intellij.psi.PsiNamedElement;
+import com.intellij.psi.PsiElement;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
+import org.jetbrains.plugins.groovy.lang.psi.GrNamedElement;
 
 /**
  * @author ilyas
  */
-public interface GrLabeledStatement extends GrStatement, PsiNamedElement{
-  @NotNull
-  String getLabelName();
-
+public interface GrLabeledStatement extends GrStatement, GrNamedElement {
   @Nullable
   GrStatement getStatement();
 
   @NotNull
-  GrLabel getLabel();
+  PsiElement getLabel();
+
+  @NotNull
+  @Override
+  String getName();
 }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/GroovyPsiElementFactoryImpl.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/GroovyPsiElementFactoryImpl.java
index 71624fe26a78..f0528e88d0dd 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/GroovyPsiElementFactoryImpl.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/GroovyPsiElementFactoryImpl.java
@@ -41,7 +41,6 @@ import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocMemberReference;
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocReferenceElement;
 import org.jetbrains.plugins.groovy.lang.groovydoc.psi.api.GrDocTag;
 import org.jetbrains.plugins.groovy.lang.psi.*;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.GrModifierList;
 import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.modifiers.annotation.GrAnnotation;
 import org.jetbrains.plugins.groovy.lang.psi.api.signatures.GrClosureSignature;
@@ -501,14 +500,6 @@ public class GroovyPsiElementFactoryImpl extends GroovyPsiElementFactory {
     return methods[0];
   }
 
-  @Override
-  public GrLabel createLabel(@NotNull String name) {
-    GroovyFileBase file = createGroovyFileChecked(name + ": println()");
-    GrTopStatement definition = file.getTopStatements()[0];
-    assert definition instanceof GrLabeledStatement;
-    return ((GrLabeledStatement)definition).getLabel();
-  }
-
   @NotNull
   public GrMethod createMethodFromText(@NotNull String methodText, @Nullable PsiElement context) {
     GroovyFile file = createGroovyFile(methodText, false, context);
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelImpl.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelImpl.java
deleted file mode 100644
index 72346b50c1ce..000000000000
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelImpl.java
+++ /dev/null
@@ -1,51 +0,0 @@
-/*
- * Copyright 2000-2009 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-package org.jetbrains.plugins.groovy.lang.psi.impl.auxiliary;
-
-import com.intellij.lang.ASTNode;
-import com.intellij.psi.PsiElement;
-import org.jetbrains.annotations.NotNull;
-import org.jetbrains.annotations.Nullable;
-import org.jetbrains.plugins.groovy.lang.parser.GroovyElementTypes;
-import org.jetbrains.plugins.groovy.lang.psi.GroovyElementVisitor;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
-import org.jetbrains.plugins.groovy.lang.psi.api.statements.expressions.GrExpression;
-import org.jetbrains.plugins.groovy.lang.psi.impl.GroovyPsiElementImpl;
-
-/**
- * @author ilyas
- */
-public class GrLabelImpl extends GroovyPsiElementImpl implements GrLabel {
-
-  public GrLabelImpl(@NotNull ASTNode node) {
-    super(node);
-  }
-
-  public void accept(GroovyElementVisitor visitor) {
-    visitor.visitLabel(this);
-  }
-
-  public String toString() {
-    return "Label";
-  }
-
-  public String getName() {
-    final PsiElement id = findChildByType(GroovyElementTypes.mIDENT);
-    assert id != null;
-    return id.getText();
-  }
-}
\ No newline at end of file
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelReference.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelReference.java
index 8bea5cd7cbff..4c1d287691f3 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelReference.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/auxiliary/GrLabelReference.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -43,7 +43,7 @@ public class GrLabelReference implements PsiReference {
 
   public PsiElement bindToElement(@NotNull PsiElement element) throws IncorrectOperationException {
     if (element instanceof GrLabeledStatement) {
-      myStatement = handleElementRename(((GrLabeledStatement)element).getLabelName());
+      myStatement = handleElementRename(((GrLabeledStatement)element).getName());
     }
     throw new IncorrectOperationException("Can't bind not to labeled statement");
   }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/statements/GrLabeledStatementImpl.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/statements/GrLabeledStatementImpl.java
index 9b6721818b38..ceb4b228472f 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/statements/GrLabeledStatementImpl.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/impl/statements/GrLabeledStatementImpl.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -26,9 +26,9 @@ import com.intellij.util.IncorrectOperationException;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
+import org.jetbrains.plugins.groovy.lang.lexer.GroovyTokenTypes;
 import org.jetbrains.plugins.groovy.lang.psi.GroovyElementVisitor;
 import org.jetbrains.plugins.groovy.lang.psi.GroovyPsiElementFactory;
-import org.jetbrains.plugins.groovy.lang.psi.api.auxiliary.GrLabel;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrLabeledStatement;
 import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrStatement;
 import org.jetbrains.plugins.groovy.lang.psi.impl.GroovyPsiElementImpl;
@@ -51,13 +51,12 @@ public class GrLabeledStatementImpl extends GroovyPsiElementImpl implements GrLa
 
   @NotNull
   public String getLabelName() {
-    final GrLabel label = getLabel();
-    return label.getName();
+    return getName();
   }
 
   @NotNull
-  public GrLabel getLabel() {
-    final GrLabel label = findChildByClass(GrLabel.class);
+  public PsiElement getLabel() {
+    final PsiElement label = findChildByType(GroovyTokenTypes.mIDENT);
     assert label != null;
     return label;
   }
@@ -69,7 +68,7 @@ public class GrLabeledStatementImpl extends GroovyPsiElementImpl implements GrLa
 
   public boolean processDeclarations(@NotNull PsiScopeProcessor processor,
                                      @NotNull ResolveState state,
-                                     PsiElement lastParent,
+                                     @Nullable PsiElement lastParent,
                                      @NotNull PsiElement place) {
     GrStatement statement = getStatement();
     return statement == null || statement == lastParent || statement.processDeclarations(processor, state, lastParent, place);
@@ -82,14 +81,22 @@ public class GrLabeledStatementImpl extends GroovyPsiElementImpl implements GrLa
   }
 
   public PsiElement setName(@NonNls @NotNull String name) throws IncorrectOperationException {
-    final GrLabel labelElement = getLabel();
-    final GrLabel newLabel = GroovyPsiElementFactory.getInstance(getProject()).createLabel(name);
+    final PsiElement labelElement = getLabel();
+    final PsiElement newLabel = GroovyPsiElementFactory.getInstance(getProject()).createReferenceNameFromText(name);
     labelElement.replace(newLabel);
     return this;
   }
 
+  @NotNull
   @Override
   public String getName() {
-    return getLabelName();
+    final PsiElement label = getLabel();
+    return label.getText();
+  }
+
+  @NotNull
+  @Override
+  public PsiElement getNameIdentifierGroovy() {
+    return getLabel();
   }
 }
\ No newline at end of file
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/resolve/ResolveUtil.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/resolve/ResolveUtil.java
index 64ddcf4d4879..d8ef7e40bec9 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/resolve/ResolveUtil.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/resolve/ResolveUtil.java
@@ -448,7 +448,7 @@ public class ResolveUtil {
   }
 
   private static boolean isApplicableLabelStatement(PsiElement element, String labelName) {
-    return ((element instanceof GrLabeledStatement && labelName.equals(((GrLabeledStatement)element).getLabelName())));
+    return ((element instanceof GrLabeledStatement && labelName.equals(((GrLabeledStatement)element).getName())));
   }
 
   @Nullable
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/convertToJava/CodeBlockGenerator.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/convertToJava/CodeBlockGenerator.java
index a2640eaa6376..0b5785a699ea 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/convertToJava/CodeBlockGenerator.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/convertToJava/CodeBlockGenerator.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2012 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -305,7 +305,7 @@ public class CodeBlockGenerator extends Generator {
     GenerationUtil.writeStatement(builder, context, labeledStatement, new StatementWriter() {
       @Override
       public void writeStatement(StringBuilder builder, ExpressionContext context) {
-        final String label = labeledStatement.getLabelName();
+        final String label = labeledStatement.getName();
         final GrStatement statement = labeledStatement.getStatement();
 
         builder.append(label).append(": ");
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/spock/SpockUtils.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/spock/SpockUtils.java
index d68175b1de8d..6c46532b3606 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/spock/SpockUtils.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/spock/SpockUtils.java
@@ -93,7 +93,7 @@ public class SpockUtils {
         while (true) {
           GrStatement statement = l.getStatement();
 
-          if ("where".equals(l.getLabelName())) {
+          if ("where".equals(l.getName())) {
             elementUnderLabel = statement;
             break main;
           }
diff --git a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/parser/StatementsParsingTest.groovy b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/parser/StatementsParsingTest.groovy
index e21d0e154a5a..f4086fe387e7 100644
--- a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/parser/StatementsParsingTest.groovy
+++ b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/parser/StatementsParsingTest.groovy
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2012 JetBrains s.r.o.
+ * Copyright 2000-2013 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -100,6 +100,7 @@ public class StatementsParsingTest extends GroovyParsingTestCase {
   public void testKing_regex$king4() throws Throwable { doTest(); }
   public void testLabeled$label1() throws Throwable { doTest(); }
   public void testLabeled$label2() throws Throwable { doTest(); }
+  public void testLabeled$label3() throws Throwable { doTest(); }
   public void testLoop$while1() throws Throwable { doTest(); }
   public void testLoop$while2() throws Throwable { doTest(); }
   public void testLoop$while3() throws Throwable { doTest(); }
diff --git a/plugins/groovy/testdata/parsing/groovy/statements/blocks/labeledClosure.test b/plugins/groovy/testdata/parsing/groovy/statements/blocks/labeledClosure.test
index 56d996ab614b..f8e9e5c35e8f 100644
--- a/plugins/groovy/testdata/parsing/groovy/statements/blocks/labeledClosure.test
+++ b/plugins/groovy/testdata/parsing/groovy/statements/blocks/labeledClosure.test
@@ -2,8 +2,7 @@ L:{ x + y }.getClass()
 -----
 Groovy script
   Labeled statement
-    Label
-      PsiElement(identifier)('L')
+    PsiElement(identifier)('L')
     PsiElement(:)(':')
     Block statement
       Open block
diff --git a/plugins/groovy/testdata/parsing/groovy/statements/labeled/label1.test b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label1.test
index db6b6f12b705..d1c775d027aa 100644
--- a/plugins/groovy/testdata/parsing/groovy/statements/labeled/label1.test
+++ b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label1.test
@@ -6,8 +6,7 @@ Groovy script
     PsiElement(Integer)('1')
   PsiElement(new line)('\n')
   Labeled statement
-    Label
-      PsiElement(identifier)('l')
+    PsiElement(identifier)('l')
     PsiElement(:)(':')
     PsiWhiteSpace(' ')
     Block statement
diff --git a/plugins/groovy/testdata/parsing/groovy/statements/labeled/label2.test b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label2.test
index 6e1b5feaa64f..e47598936d9c 100644
--- a/plugins/groovy/testdata/parsing/groovy/statements/labeled/label2.test
+++ b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label2.test
@@ -3,8 +3,7 @@ myLabel:
 -----
 Groovy script
   Labeled statement
-    Label
-      PsiElement(identifier)('myLabel')
+    PsiElement(identifier)('myLabel')
     PsiElement(:)(':')
     PsiElement(new line)('\n')
     Additive expression
diff --git a/plugins/groovy/testdata/parsing/groovy/statements/labeled/label3.test b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label3.test
new file mode 100644
index 000000000000..8744f1ced414
--- /dev/null
+++ b/plugins/groovy/testdata/parsing/groovy/statements/labeled/label3.test
@@ -0,0 +1,8 @@
+myLabel:
+-----
+Groovy script
+  Labeled statement
+    PsiElement(identifier)('myLabel')
+    PsiElement(:)(':')
+    PsiErrorElement:Statement expected
+      <empty list>
\ No newline at end of file