diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GroovyAnnotator.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GroovyAnnotator.java
index 214564712db7..841070ed0cad 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GroovyAnnotator.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/annotator/GroovyAnnotator.java
@@ -40,6 +40,10 @@ import com.intellij.pom.PomTarget;
 import com.intellij.psi.*;
 import com.intellij.psi.impl.light.LightElement;
 import com.intellij.psi.infos.CandidateInfo;
+import com.intellij.psi.search.GlobalSearchScope;
+import com.intellij.psi.search.LocalSearchScope;
+import com.intellij.psi.search.SearchScope;
+import com.intellij.psi.search.searches.ReferencesSearch;
 import com.intellij.psi.search.searches.SuperMethodsSearch;
 import com.intellij.psi.tree.IElementType;
 import com.intellij.psi.util.MethodSignature;
@@ -189,6 +193,10 @@ public class GroovyAnnotator extends GroovyElementVisitor implements Annotator {
       if (resolved instanceof PsiMember) {
         highlightMemberResolved(myHolder, referenceExpression, ((PsiMember)resolved));
       }
+      else if (resolved instanceof GrVariable) {
+        highlightVariable((GrVariable)resolved, getElementToHighlight(referenceExpression));
+      }
+
       /*if (!resolveResult.isAccessible()) {
         String message = GroovyBundle.message("cannot.access", referenceExpression.getReferenceName());
         final Annotation annotation = myHolder.createWarningAnnotation(getElementToHighlight(referenceExpression), message);
@@ -262,6 +270,35 @@ public class GroovyAnnotator extends GroovyElementVisitor implements Annotator {
     }
   }
 
+  private void highlightVariable(GrVariable variable, PsiElement toHighlight) {
+    Annotation annotation = myHolder.createInfoAnnotation(toHighlight, null);
+    boolean reassigned = isReassigned(variable);
+    if (variable instanceof GrParameter) {
+      annotation
+        .setTextAttributes(reassigned ? DefaultHighlighter.REASSIGNED_PARAMETER : DefaultHighlighter.PARAMETER);
+    } else {
+      annotation
+        .setTextAttributes(reassigned ? DefaultHighlighter.REASSIGNED_LOCAL_VARIABLE : DefaultHighlighter.LOCAL_VARIABLE);
+    }
+  }
+
+  private static boolean isReassigned(GrVariable var) {
+    PsiMethod method = PsiTreeUtil.getParentOfType(var, PsiMethod.class);
+    boolean hasAssignment = var.getInitializerGroovy() != null || var instanceof GrParameter;
+    SearchScope scope = method == null ? GlobalSearchScope.projectScope(var.getProject()) : new LocalSearchScope(method);
+    for (PsiReference reference : ReferencesSearch.search(var, scope).findAll()) {
+      if (reference instanceof GrReferenceExpression &&
+          (PsiUtil.isLValue((GrReferenceExpression)reference) ||
+           ((GrReferenceExpression)reference).getParent() instanceof GrPostfixExpression)) {
+        if (hasAssignment) {
+          return true;
+        }
+        hasAssignment = true;
+      }
+    }
+    return false;
+  }
+
   public static boolean shouldHighlightAsUnresolved(@NotNull GrReferenceExpression referenceExpression) {
     PsiElement refNameElement = referenceExpression.getReferenceNameElement();
     if (refNameElement != null && referenceExpression.getQualifier() == null) {
@@ -485,6 +522,10 @@ public class GroovyAnnotator extends GroovyElementVisitor implements Annotator {
 
   @Override
   public void visitMethod(GrMethod method) {
+    if (!method.isConstructor()) {
+      myHolder.createInfoAnnotation(method.getNameIdentifierGroovy(), null).setTextAttributes(DefaultHighlighter.METHOD_DECLARATION);
+    }
+
     checkMethodDefinitionModifiers(myHolder, method);
     checkMethodWithTypeParamsShouldHaveReturnType(myHolder, method);
     checkInnerMethod(myHolder, method);
@@ -576,6 +617,8 @@ public class GroovyAnnotator extends GroovyElementVisitor implements Annotator {
     checkName(variable);
     if (variable instanceof GrMember) {
       highlightMember(myHolder, ((GrMember)variable));
+    } else {
+      highlightVariable(variable, variable.getNameIdentifierGroovy());
     }
 
     PsiNamedElement duplicate = ResolveUtil
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/DefaultHighlighter.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/DefaultHighlighter.java
index 4fe8253617cd..01b3c3dde025 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/DefaultHighlighter.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/DefaultHighlighter.java
@@ -94,6 +94,18 @@ public class DefaultHighlighter {
   public static TextAttributesKey ANNOTATION = TextAttributesKey.createTextAttributesKey(ANNOTATION_ID,
       HighlightInfoType.ANNOTATION_NAME.getAttributesKey().getDefaultAttributes());
 
+  public static TextAttributesKey LOCAL_VARIABLE = TextAttributesKey.createTextAttributesKey("Groovy var",
+      HighlightInfoType.LOCAL_VARIABLE.getAttributesKey().getDefaultAttributes());
+  public static TextAttributesKey REASSIGNED_LOCAL_VARIABLE = TextAttributesKey.createTextAttributesKey("Groovy reassigned var",
+      HighlightInfoType.REASSIGNED_LOCAL_VARIABLE.getAttributesKey().getDefaultAttributes());
+  public static TextAttributesKey PARAMETER = TextAttributesKey.createTextAttributesKey("Groovy parameter",
+      HighlightInfoType.PARAMETER.getAttributesKey().getDefaultAttributes());
+  public static TextAttributesKey REASSIGNED_PARAMETER = TextAttributesKey.createTextAttributesKey("Groovy reassigned parameter",
+      HighlightInfoType.REASSIGNED_PARAMETER.getAttributesKey().getDefaultAttributes());
+
+  public static TextAttributesKey METHOD_DECLARATION = TextAttributesKey.createTextAttributesKey("Groovy method declaration",
+      HighlightInfoType.METHOD_DECLARATION.getAttributesKey().getDefaultAttributes());
+
   public static TextAttributesKey INSTANCE_FIELD = TextAttributesKey.createTextAttributesKey(INSTANCE_FIELD_ID,
       HighlightInfoType.INSTANCE_FIELD.getAttributesKey().getDefaultAttributes());
 
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/GroovyColorsAndFontsPage.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/GroovyColorsAndFontsPage.java
index bd6bbb63d9ab..19a5b080e094 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/GroovyColorsAndFontsPage.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/highlighter/GroovyColorsAndFontsPage.java
@@ -67,10 +67,15 @@ public class GroovyColorsAndFontsPage implements ColorSettingsPage {
       new AttributesDescriptor("Unresolved reference access", DefaultHighlighter.UNRESOLVED_ACCESS),
       new AttributesDescriptor("List/map to object conversion", DefaultHighlighter.LITERAL_CONVERSION),
       new AttributesDescriptor("Annotation", DefaultHighlighter.ANNOTATION),
+      new AttributesDescriptor("Local variable", DefaultHighlighter.LOCAL_VARIABLE),
+      new AttributesDescriptor("Reassigned local variable", DefaultHighlighter.REASSIGNED_LOCAL_VARIABLE),
+      new AttributesDescriptor("Parameter", DefaultHighlighter.PARAMETER),
+      new AttributesDescriptor("Reassigned parameter", DefaultHighlighter.REASSIGNED_PARAMETER),
       new AttributesDescriptor("Static field", DefaultHighlighter.STATIC_FIELD),
       new AttributesDescriptor("Instance field", DefaultHighlighter.INSTANCE_FIELD),
       new AttributesDescriptor("Instance method call", DefaultHighlighter.METHOD_CALL),
       new AttributesDescriptor("Static method call", DefaultHighlighter.STATIC_METHOD_ACCESS),
+      new AttributesDescriptor("Method declaration", DefaultHighlighter.METHOD_DECLARATION),
       new AttributesDescriptor("Class reference", DefaultHighlighter.CLASS_REFERENCE),
       new AttributesDescriptor("Map key accessed as a property", DefaultHighlighter.MAP_KEY),
       new AttributesDescriptor("Instance property reference", DefaultHighlighter.INSTANCE_PROPERTY_REFERENCE),
@@ -103,10 +108,11 @@ public class GroovyColorsAndFontsPage implements ColorSettingsPage {
            "  def <instfield>property</instfield>\n" +
            "//This is a line comment\n" +
            "/* This is a block comment */\n" +
-           "  static def foo(int i) {\n" +
-           "    <classref>Map</classref> map = [key:1, b:2]\n" +
+           "  static def <method>foo</method>(int <param>i</param>, int <reParam>j</reParam>) {\n" +
+           "    <classref>Map</classref> map = [<mapkey>key</mapkey>:1, <mapkey>b</mapkey>:2]\n" +
+           "    <reParam>j</reParam>++\n" +
            "    print map.<mapkey>key</mapkey>\n" +
-           "    return [i, i, <instfield>property</instfield>]\n" +
+           "    return [<param>i</param>, <instfield>property</instfield>]\n" +
            "  }\n" +
            "  static def <statfield>panel</statfield> = new <classref>JPanel</classref>()\n" +
            "}\n" +
@@ -114,8 +120,9 @@ public class GroovyColorsAndFontsPage implements ColorSettingsPage {
            "<classref>Demo</classref>.<statfield>panel</statfield>.size = " +
            "<classref>Demo</classref>.<statmet>foo</statmet>(\"123${456}789\".toInteger()) \n" +
            "'JetBrains'.matches(/Jw+Bw+/) \n" +
-           "def x=1 + <unresolved>unresolved</unresolved>\n" +
-           "def f1 = []\n" +
+           "def <local>x</local>=1 + <unresolved>unresolved</unresolved>\n" +
+           "def <reLocal>f1</reLocal> = []\n" +
+           "<reLocal>f1</reLocal> = [2]\n" +
            "<classref>File</classref> f=<literal>[</literal>'path'<literal>]</literal>\n" +
            "print new <classref>Demo</classref>().<prop>property</prop>\n" +
            "print '<validescape>\\n</validescape> <invalidescape>\\x</invalidescape>'"
@@ -140,6 +147,11 @@ public class GroovyColorsAndFontsPage implements ColorSettingsPage {
     map.put("staticprop", DefaultHighlighter.STATIC_PROPERTY_REFERENCE);
     map.put("validescape", DefaultHighlighter.VALID_STRING_ESCAPE);
     map.put("invalidescape", DefaultHighlighter.INVALID_STRING_ESCAPE);
+    map.put("local", DefaultHighlighter.LOCAL_VARIABLE);
+    map.put("reLocal", DefaultHighlighter.REASSIGNED_LOCAL_VARIABLE);
+    map.put("param", DefaultHighlighter.PARAMETER);
+    map.put("reParam", DefaultHighlighter.REASSIGNED_PARAMETER);
+    map.put("method", DefaultHighlighter.METHOD_DECLARATION);
     return map;
   }
 }
diff --git a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyHighlightingTest.groovy b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyHighlightingTest.groovy
index 1f884636fffc..49566e1a1486 100644
--- a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyHighlightingTest.groovy
+++ b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyHighlightingTest.groovy
@@ -691,4 +691,8 @@ public class CorrectImplementor implements ActionListener {
 ''')
     myFixture.testHighlighting(true, false, false)
   }
+
+  public void testReassignedHighlighting() {
+    myFixture.testHighlighting(true, true, true, getTestName(false) + ".groovy");
+  }
 }
\ No newline at end of file
diff --git a/plugins/groovy/testdata/highlighting/ReassignedHighlighting.groovy b/plugins/groovy/testdata/highlighting/ReassignedHighlighting.groovy
new file mode 100644
index 000000000000..22ba7339ab32
--- /dev/null
+++ b/plugins/groovy/testdata/highlighting/ReassignedHighlighting.groovy
@@ -0,0 +1,15 @@
+def <info textAttributesKey="Groovy method declaration">method</info>(int <info textAttributesKey="Groovy parameter">param1</info>, int <info textAttributesKey="Groovy reassigned parameter">param2</info>) {
+  int <info textAttributesKey="Groovy var">var1</info> = 0
+  int <info textAttributesKey="Groovy reassigned var">var2</info> = 1
+  int <info textAttributesKey="Groovy reassigned var">var3</info> = 1
+  if (<info textAttributesKey="Groovy parameter">param1</info> == 1) {
+    <info textAttributesKey="Groovy reassigned parameter">param2</info> = <info textAttributesKey="Groovy reassigned var">var2</info> = 2
+    <info textAttributesKey="Groovy reassigned var">var3</info>++
+  }
+  <info textAttributesKey="Method call">println</info> <info textAttributesKey="Groovy var">var1</info> +
+     <info textAttributesKey="Groovy reassigned var">var2</info> +
+     <info textAttributesKey="Groovy parameter">param1</info> +
+     <info textAttributesKey="Groovy reassigned parameter">param2</info>
+}
+
+<info textAttributesKey="Method call">method</info>(239, 42)
\ No newline at end of file