diff --git a/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java b/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java
index d88896bc3ac9..5e8dac37ca07 100644
--- a/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java
@@ -1,18 +1,4 @@
-/*
- * Copyright 2000-2016 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.
- */
+// Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.psi;
 
 import com.intellij.lang.java.JavaLanguage;
@@ -109,7 +95,15 @@ public class PsiDiamondTypeImpl extends PsiDiamondType {
 
   private PsiNewExpression getNewExpression() {
     PsiElement typeElementWithDiamondTypeArgument = myTypeElement.getParent();
-    return PsiTreeUtil.getParentOfType(typeElementWithDiamondTypeArgument, PsiNewExpression.class, true, PsiTypeElement.class);
+    PsiNewExpression newExpression =
+      PsiTreeUtil.getParentOfType(typeElementWithDiamondTypeArgument, PsiNewExpression.class, true, PsiTypeElement.class, PsiStatement.class);
+    if (newExpression != null) {
+      PsiJavaCodeReferenceElement classReference = newExpression.getClassOrAnonymousClassReference();
+      if (classReference != null && classReference.getParameterList() == typeElementWithDiamondTypeArgument) {
+        return newExpression;
+      }
+    }
+    return null;
   }
 
   @Nullable
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/diamond/NestedClassArgConstructor.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/diamond/NestedClassArgConstructor.java
new file mode 100644
index 000000000000..b4bf738416d0
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/diamond/NestedClassArgConstructor.java
@@ -0,0 +1,11 @@
+class R<T> {
+	static class O {
+		public O(<error descr="'R.this' cannot be referenced from a static context">T</error> t) {
+		}
+	}
+	public static void main(String[] args) {
+		test(new R<>.O<error descr="'O(java.lang.Object)' in 'R.O' cannot be applied to '()'">()</error>);
+	}
+
+	private static void test(R.O o) {}
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/Diamond8HighlightingTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/Diamond8HighlightingTest.java
index 6d4c4162e33b..08eb7da7cbe0 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/Diamond8HighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/Diamond8HighlightingTest.java
@@ -1,4 +1,4 @@
-// Copyright 2000-2021 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+// Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.java.codeInsight.daemon.lambda;
 
 import com.intellij.codeInsight.daemon.LightDaemonAnalyzerTestCase;
@@ -101,6 +101,9 @@ public class Diamond8HighlightingTest extends LightDaemonAnalyzerTestCase {
 
   public void testDiamondsUncheckedWarning() { doTest();}
   public void testWrongNumberOfArguments() { doTest();}
+  public void testNestedClassArgConstructor() {
+    doTest();
+  }
 
   private void doTest() {
     doTest(BASE_PATH + "/" + getTestName(false) + ".java", false, false);