diff --git a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
index 7bed63984254..86ca9e7beffa 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/HardcodedContracts.java
@@ -97,7 +97,7 @@ public class HardcodedContracts {
               ContractProvider.list(SpecialField.COLLECTION_SIZE::getEmptyContracts))
     .register(instanceCall(JAVA_UTIL_MAP, "isEmpty").parameterCount(0),
               ContractProvider.list(SpecialField.MAP_SIZE::getEmptyContracts))
-    .register(instanceCall(JAVA_LANG_STRING, "equals", "equalsIgnoreCase").parameterCount(1),
+    .register(instanceCall(JAVA_LANG_STRING, "equalsIgnoreCase").parameterCount(1),
               ContractProvider.list(SpecialField.STRING_LENGTH::getEqualsContracts))
     .register(anyOf(instanceCall(JAVA_UTIL_SET, "equals").parameterTypes(JAVA_LANG_OBJECT),
                     instanceCall(JAVA_UTIL_LIST, "equals").parameterTypes(JAVA_LANG_OBJECT)),
@@ -238,7 +238,8 @@ public class HardcodedContracts {
 
   private static List<MethodContract> equalsContracts(PsiMethodCallExpression call) {
     PsiExpression qualifier = call == null ? null : call.getMethodExpression().getQualifierExpression();
-    if (qualifier != null && knownAsEqualByReference(qualifier.getType())) {
+    if (qualifier != null && (knownAsEqualByReference(qualifier.getType()) ||
+                              TypeUtils.isJavaLangString(qualifier.getType()))) {
       return Arrays.asList(
         singleConditionContract(ContractValue.qualifier(), RelationType.EQ, ContractValue.argument(0), returnTrue()),
         trivialContract(returnFalse())
diff --git a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/StandardInstructionVisitor.java b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/StandardInstructionVisitor.java
index b10190ed8263..c2ead5812587 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/StandardInstructionVisitor.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInspection/dataFlow/StandardInstructionVisitor.java
@@ -646,6 +646,19 @@ public class StandardInstructionVisitor extends InstructionVisitor {
                                                     DfaValue dfaLeft,
                                                     RelationType relationType) {
     DfaValueFactory factory = runner.getFactory();
+    if((relationType == RelationType.EQ || relationType == RelationType.NE) &&
+       isStringComparison(instruction.getExpression()) &&
+       !memState.isNull(dfaLeft) && !memState.isNull(dfaRight)) {
+      ArrayList<DfaInstructionState> states = new ArrayList<>(2);
+      DfaMemoryState equality = memState.createCopy();
+      if (equality.applyCondition(factory.createCondition(dfaLeft, RelationType.EQ, dfaRight))) {
+        states.add(makeBooleanResult(instruction, runner, equality, ThreeState.UNSURE));
+      }
+      if (memState.applyCondition(factory.createCondition(dfaLeft, RelationType.NE, dfaRight))) {
+        states.add(makeBooleanResult(instruction, runner, memState, ThreeState.fromBoolean(relationType == RelationType.NE)));
+      }
+      return states.toArray(DfaInstructionState.EMPTY_ARRAY);
+    }
     RelationType[] relations = splitRelation(relationType);
 
     ArrayList<DfaInstructionState> states = new ArrayList<>(relations.length);
@@ -676,6 +689,15 @@ public class StandardInstructionVisitor extends InstructionVisitor {
     return states.toArray(DfaInstructionState.EMPTY_ARRAY);
   }
 
+  private static boolean isStringComparison(PsiExpression expression) {
+    if (expression instanceof PsiBinaryExpression) {
+      PsiExpression left = ((PsiBinaryExpression)expression).getLOperand();
+      PsiExpression right = ((PsiBinaryExpression)expression).getROperand();
+      return right != null && (TypeUtils.isJavaLangString(left.getType()) || TypeUtils.isJavaLangString(right.getType()));
+    }
+    return false;
+  }
+
   @NotNull
   private static RelationType[] splitRelation(RelationType relationType) {
     switch (relationType) {
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/ContractReturnValues.java b/java/java-tests/testData/inspection/dataFlow/fixture/ContractReturnValues.java
index 0141029af57b..77b6ca51a223 100644
--- a/java/java-tests/testData/inspection/dataFlow/fixture/ContractReturnValues.java
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/ContractReturnValues.java
@@ -50,7 +50,7 @@ class ContractReturnValues {
   }
 
   void testNullToEmpty(String s, String s1) {
-    if(nullToEmpty(s) != s) {
+    if(!nullToEmpty(s).equals(s)) {
       System.out.println(<warning descr="Condition 's == null' is always 'true'">s == null</warning>);
     }
     if(<warning descr="Condition 'nullToEmpty(s1) == null' is always 'false'">nullToEmpty(s1) == null</warning>) {
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/EffectivelyUnqualified.java b/java/java-tests/testData/inspection/dataFlow/fixture/EffectivelyUnqualified.java
index 86ed56676e26..feabfda393a3 100644
--- a/java/java-tests/testData/inspection/dataFlow/fixture/EffectivelyUnqualified.java
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/EffectivelyUnqualified.java
@@ -1,5 +1,5 @@
 abstract class Foo {
-  protected String bar;
+  protected Object bar;
 }
 
 class FF extends Foo {
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/OptionalInlining.java b/java/java-tests/testData/inspection/dataFlow/fixture/OptionalInlining.java
index ab1926e1497f..2e7ffc84fd7d 100644
--- a/java/java-tests/testData/inspection/dataFlow/fixture/OptionalInlining.java
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/OptionalInlining.java
@@ -80,7 +80,7 @@ public class OptionalInlining {
     if (<warning descr="Condition 's1.equals(\"xz\")' is always 'false'">s1.equals("xz")</warning>) {
       System.out.println("never");
     }
-    String abc = opt.filter(s -> s == "xyz").orElse("abc"); // s.equals("xyz") does not work yet :(
+    String abc = opt.filter(s -> s.equals("xyz")).orElse("abc");
     if (<warning descr="Condition 'abc.equals(\"123\")' is always 'false'">abc.equals("123")</warning>) {
       System.out.println("never");
     }
@@ -184,7 +184,8 @@ public class OptionalInlining {
   }
 
   void testIntermediate(Optional<String> opt) {
-    if (<warning descr="Condition 'opt.filter(x -> x == \"foo\").filter(x -> x == \"bar\").isPresent()' is always 'false'">opt.filter(x -> x == "foo").filter(x -> <warning descr="Condition 'x == \"bar\"' is always 'false'">x == "bar"</warning>).isPresent()</warning>) {
+    if (<warning descr="Condition 'opt.filter(x -> x.equals(\"foo\")) .filter(\"bar\"::equals).isPresent()' is always 'false'">opt.filter(x -> x.equals("foo"))
+            .filter(<warning descr="Method reference result is always 'false'">"bar"::equals</warning>).isPresent()</warning>) {
       System.out.println("never");
     }
   }
diff --git a/java/java-tests/testData/inspection/dataFlow/fixture/StringEquality.java b/java/java-tests/testData/inspection/dataFlow/fixture/StringEquality.java
new file mode 100644
index 000000000000..d76e84fa0717
--- /dev/null
+++ b/java/java-tests/testData/inspection/dataFlow/fixture/StringEquality.java
@@ -0,0 +1,43 @@
+class StringEquality {
+  void ifChain(String s) {
+    if (s.equals("foo")) {
+
+    }
+    else if (s.equals("bar")) {
+
+    }else if(<warning descr="Condition '\"foo\".equals(s)' is always 'false'">"foo".equals(s)</warning>) {
+
+    }
+  }
+
+  void switchAfterIf(String s) {
+    if (s.equals("foo")) {
+      return;
+    }
+    switch(s) {
+      case "bar":
+      case "baz":
+      <warning descr="Switch label 'case \"foo\":' is unreachable">case "foo":</warning>
+    }
+  }
+
+  void lengths(String s, String s1) {
+    if(<warning descr="Condition 's.equals(s1) && s.length() != s1.length()' is always 'false'">s.equals(s1) && <warning descr="Condition 's.length() != s1.length()' is always 'false' when reached">s.length() != s1.length()</warning></warning>) {}
+    if(<warning descr="Condition 's.length() != s1.length() && s.equals(s1)' is always 'false'">s.length() != s1.length() && <warning descr="Condition 's.equals(s1)' is always 'false' when reached">s.equals(s1)</warning></warning>) {}
+  }
+
+  // IDEA-197195
+  void foo() {
+    String v = "Foo";
+    String vv = "FooFoo";
+    String vvv = vv.substring(3);
+    System.out.println(<warning descr="Result of 'v.equals(vv)' is always 'false'">v.equals(vv)</warning>);
+    System.out.println(<warning descr="Condition 'v == vv' is always 'false'">v == vv</warning>);
+
+    System.out.println(<warning descr="Result of 'v.equals(vvv)' is always 'true'">v.equals(vvv)</warning>);
+    System.out.println(v == vvv); // Unsure: strings are equal by content, but DFA does not know whether they are equal by reference
+
+    System.out.println(<warning descr="Result of 'vv.equals(vvv)' is always 'false'">vv.equals(vvv)</warning>);
+    System.out.println(<warning descr="Condition 'vv == vvv' is always 'false'">vv == vvv</warning>);
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInspection/DataFlowInspectionTest.java b/java/java-tests/testSrc/com/intellij/java/codeInspection/DataFlowInspectionTest.java
index 94e21d8ec0a9..f5ff0dc1c482 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInspection/DataFlowInspectionTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInspection/DataFlowInspectionTest.java
@@ -637,4 +637,5 @@ public class DataFlowInspectionTest extends DataFlowInspectionTestCase {
   public void testNullFlushed() { doTest(); }
   public void testBooleanMergeInLoop() { doTest(); }
   public void testVoidIsAlwaysNull() { doTest(); }
+  public void testStringEquality() { doTest(); }
 }