diff --git a/java/java-psi-api/src/com/intellij/psi/GenericsUtil.java b/java/java-psi-api/src/com/intellij/psi/GenericsUtil.java
index 52888f123215..c835a4171f74 100644
--- a/java/java-psi-api/src/com/intellij/psi/GenericsUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/GenericsUtil.java
@@ -153,7 +153,7 @@ public class GenericsUtil {
                                                         PsiType type2,
                                                         Set<Couple<PsiType>> compared,
                                                         PsiManager manager,
-                                                        PsiClass nestedLayer, 
+                                                        PsiClass nestedLayer,
                                                         PsiTypeParameter parameter) {
     Couple<PsiType> types = Couple.of(type1, type2);
     if (compared.contains(types)) {
@@ -549,6 +549,14 @@ public class GenericsUtil {
         return false;
       }
     }
+
+    final PsiClass extendsBoundClass = PsiUtil.resolveClassInClassTypeOnly(extendsBound);
+    final PsiClass boundBoundClass = PsiUtil.resolveClassInClassTypeOnly(boundBound);
+    if (boundBoundClass != null && extendsBoundClass != null && !boundBoundClass.isInterface() && !extendsBoundClass.isInterface()) {
+      return !InheritanceUtil.isInheritorOrSelf(boundBoundClass, extendsBoundClass, true) &&
+             !InheritanceUtil.isInheritorOrSelf(extendsBoundClass, boundBoundClass, true);
+    }
+
     return !TypeConversionUtil.areTypesConvertible(boundBound, extendsBound) &&
            !TypeConversionUtil.areTypesConvertible(extendsBound, boundBound);
   }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/ParameterBoundsWithCapturedWildcard.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/ParameterBoundsWithCapturedWildcard.java
new file mode 100644
index 000000000000..c7cb266321c5
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/ParameterBoundsWithCapturedWildcard.java
@@ -0,0 +1,5 @@
+class Test<T > {
+  public static interface EventListener<V extends String> {}
+  public void addListener (EventListener<<error descr="Type parameter '? extends T' is not within its bound; should extend 'java.lang.String'">? extends T</error>> listener) {}
+  public void addListener1(EventListener<? super T> listener) {}
+}
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 688e83b5b198..12e8d91cabdb 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -372,6 +372,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA126633() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA124363() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA78402() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testParameterBoundsWithCapturedWildcard() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   //jdk should propagate LL 1.4 but actually it provides LL 1.7?!
   public void testCastObjectToIntJdk14() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_4, false); }