diff --git a/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java b/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
index 560dcbd948dc..85fae4536e8a 100644
--- a/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
+++ b/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
@@ -93,7 +93,15 @@ public class PsiCapturedWildcardType extends PsiType {
   }
 
   public PsiType getUpperBound () {
-    return myExistential.isExtends() ? myExistential.getBound() : PsiType.getJavaLangObject(myContext.getManager(), getResolveScope());
+    final PsiType bound = myExistential.getBound();
+    if (myExistential.isExtends()) {
+      return bound;
+    }
+    else {
+      return bound instanceof PsiCapturedWildcardType
+             ? ((PsiCapturedWildcardType)bound).getUpperBound()
+             : PsiType.getJavaLangObject(myContext.getManager(), getResolveScope());
+    }
   }
 
   public PsiWildcardType getWildcard() {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA105846.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA105846.java
new file mode 100644
index 000000000000..8b9c700484c9
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA105846.java
@@ -0,0 +1,5 @@
+class MyClass {
+    public static void main(Class<? extends MyClass> clazz){
+        clazz = (Class<? extends MyClass>) clazz.getSuperclass();
+    }
+}
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 f2a6e3af1fa7..cf73a8cd1910 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -205,6 +205,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA99347() { doTest5(false); }
   public void testIDEA86875() { doTest5(false); }
   public void testIDEA103760(){ doTest5(false); }
+  public void testIDEA105846(){ doTest5(false); }
 
   public void testWildcardsOnRawTypes() { doTest5(false); }
   public void testDisableWithinBoundsCheckForSuperWildcards() {