PY-45

python/src/com/jetbrains/python/validation/ReturnAnnotator.java

@@ -53,7 +53,7 @@ public class ReturnAnnotator extends PyAnnotator {
     */
   }
 
-  private class YieldVisitor extends PyElementVisitor {
+  private static class YieldVisitor extends PyElementVisitor {
     private boolean _haveYield = false;
 
     public boolean haveYield() {
@@ -71,5 +71,10 @@ public class ReturnAnnotator extends PyAnnotator {
         node.acceptChildren(this);
       }
     }
+
+    @Override
+    public void visitPyFunction(final PyFunction node) {
+      // do not go to nested functions
+    }
   }
 }

python/testData/highlighting/yieldInNestedFunction.py

@@ -0,0 +1,4 @@
+def foo():
+    def a():
+        yield 1
+    return False

python/testSrc/com/jetbrains/python/PythonHighlightingTest.java

@@ -47,6 +47,9 @@ public class PythonHighlightingTest extends DaemonAnalyzerTestCase {
     doTest();
   }
 
+  public void testYieldInNestedFunction() throws Exception {
+    doTest();
+  }
 
   private void doTest() throws Exception {
     doTest(getTestName(true) + ".py", true, true);