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 028a577e33b4..49b0b557ef7e 100644
--- a/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/PsiDiamondTypeImpl.java
@@ -183,7 +183,7 @@ public class PsiDiamondTypeImpl extends PsiDiamondType {
     final JavaPsiFacade facade = JavaPsiFacade.getInstance(project);
     final PsiResolveHelper resolveHelper = facade.getResolveHelper();
     final JavaResolveResult result =
-      resolveHelper.resolveConstructor(facade.getElementFactory().createType(containingClass), argumentList, argumentList);
+      resolveHelper.resolveConstructor(facade.getElementFactory().createType(containingClass, PsiSubstitutor.EMPTY), argumentList, argumentList);
     return (PsiMethod)result.getElement();
   }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA123518.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA123518.java
new file mode 100644
index 000000000000..0440475bde5d
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA123518.java
@@ -0,0 +1,21 @@
+import java.util.*;
+
+class sTest {
+
+  public void shouldCallListConstructor(){
+    List<String>stringList=new ArrayList<String>();
+    ClassUnderTest<Date> cut=new ClassUnderTest<>(stringList);
+  }
+
+  private class ClassUnderTest<T extends Date> {
+
+    public String constructorString;
+    private ClassUnderTest(List<T>stringList) {
+      constructorString="Using List Constructor";
+    }
+
+    private ClassUnderTest(Iterable<String> iterables) {
+      constructorString="Using Iterables Constructor";
+    }
+  }
+}
\ No newline at end of file
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 982a986a4c8e..0f521302c435 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -342,6 +342,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA121400() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA123316() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA123352() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testIDEA123518() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
 
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));