diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceIncorporationPhase.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceIncorporationPhase.java
index 1a4ad6a932fc..4f9d1f7f4837 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceIncorporationPhase.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceIncorporationPhase.java
@@ -301,7 +301,7 @@ public class InferenceIncorporationPhase {
         if (!(sType instanceof PsiWildcardType) && !(tType instanceof PsiWildcardType) && sType != null && tType != null) {
           addConstraint(new TypeEqualityConstraint(sType, tType));
         }
-        return true;
+        return false;
       }
     }) != null;
   }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/AcceptFirstPairOfCommonSupertypesDuringUpUpIncorporation.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/AcceptFirstPairOfCommonSupertypesDuringUpUpIncorporation.java
new file mode 100644
index 000000000000..4b7b960499b9
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/AcceptFirstPairOfCommonSupertypesDuringUpUpIncorporation.java
@@ -0,0 +1,13 @@
+interface I<T>{}
+abstract class A<T> implements I<A<T>>{}
+class Factory {
+  static <T extends A<?>> T get(Class<T> c){
+    return null;
+  }
+}
+
+class Impl extends A<Impl> {
+  static Impl get() {
+    return Factory.get(Impl.class);
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
index 411f4cb826f0..428d3e858a87 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
@@ -311,6 +311,10 @@ public class GraphInferenceHighlightingTest extends LightDaemonAnalyzerTestCase
     doTest();
   }
 
+  public void testAcceptFirstPairOfCommonSupertypesDuringUpUpIncorporation() throws Exception {
+    doTest();
+  }
+
   private void doTest() throws Exception {
     doTest(false);
   }