diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA86875.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA86875.java
new file mode 100644
index 000000000000..c5a65df099ab
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA86875.java
@@ -0,0 +1,11 @@
+interface Base<E> {}
+interface Base2<E> {}
+
+class A<E extends Cloneable> {
+  <P, K extends Base<E>&Base2<P>> void m(K k, P p) {
+    E e = null;
+    m(k, e);
+  }
+
+  void m(Base<E> k, E e) {}
+}
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 8de92382bdb8..678bb665de9e 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -203,6 +203,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA67570() { doTest5(false); }
   public void testIDEA99061() { doTest5(false); }
   public void testIDEA99347() { doTest5(false); }
+  public void testIDEA86875() { doTest5(false); }
 
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));