diff --git a/java/java-impl/src/com/intellij/codeInsight/generation/GenerateMembersUtil.java b/java/java-impl/src/com/intellij/codeInsight/generation/GenerateMembersUtil.java
index e4d227e3c07d..b9a3503c1497 100644
--- a/java/java-impl/src/com/intellij/codeInsight/generation/GenerateMembersUtil.java
+++ b/java/java-impl/src/com/intellij/codeInsight/generation/GenerateMembersUtil.java
@@ -386,7 +386,7 @@ public class GenerateMembersUtil {
                                                           @NotNull PsiTypeParameter typeParameter,
                                                           final @NotNull PsiSubstitutor substitutor,
                                                           @NotNull final PsiMethod sourceMethod) {
-    final PsiElement copy = typeParameter.copy();
+    final PsiElement copy = (typeParameter instanceof PsiCompiledElement ? ((PsiCompiledElement)typeParameter).getMirror() : typeParameter).copy();
     final Map<PsiElement, PsiElement> replacementMap = new HashMap<>();
     copy.accept(new JavaRecursiveElementVisitor() {
       @Override
diff --git a/java/java-tests/testData/codeInsight/overrideImplement/libraries/IDEA162079.jar b/java/java-tests/testData/codeInsight/overrideImplement/libraries/IDEA162079.jar
new file mode 100644
index 000000000000..d0301dc26da3
Binary files /dev/null and b/java/java-tests/testData/codeInsight/overrideImplement/libraries/IDEA162079.jar differ
diff --git a/java/java-tests/testData/codeInsight/overrideImplement/libraries/afterIDEA162079.java b/java/java-tests/testData/codeInsight/overrideImplement/libraries/afterIDEA162079.java
new file mode 100644
index 000000000000..5f7f4f4bb450
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/overrideImplement/libraries/afterIDEA162079.java
@@ -0,0 +1,6 @@
+import p.P;
+
+interface A extends P<String> {
+    @java.lang.Override
+    <S extends String> void m(java.util.List<S> list);
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/overrideImplement/libraries/beforeIDEA162079.java b/java/java-tests/testData/codeInsight/overrideImplement/libraries/beforeIDEA162079.java
new file mode 100644
index 000000000000..ba163e9fe5ca
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/overrideImplement/libraries/beforeIDEA162079.java
@@ -0,0 +1,5 @@
+import p.P;
+
+interface A extends P<String> {
+  <caret>
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/OverrideImplementFromLibraryTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/OverrideImplementFromLibraryTest.java
new file mode 100644
index 000000000000..caa37adea3d0
--- /dev/null
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/OverrideImplementFromLibraryTest.java
@@ -0,0 +1,60 @@
+/*
+ * Copyright 2000-2017 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+ */
+package com.intellij.java.codeInsight;
+
+import com.intellij.JavaTestUtil;
+import com.intellij.codeInsight.generation.OverrideImplementExploreUtil;
+import com.intellij.codeInsight.generation.OverrideImplementUtil;
+import com.intellij.codeInsight.generation.PsiMethodMember;
+import com.intellij.openapi.application.ApplicationManager;
+import com.intellij.psi.*;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.psi.util.TypeConversionUtil;
+import com.intellij.testFramework.PsiTestUtil;
+import com.intellij.testFramework.fixtures.CodeInsightFixtureTestCase;
+import org.jetbrains.annotations.Nullable;
+
+import java.util.Collections;
+import java.util.List;
+
+public class OverrideImplementFromLibraryTest extends CodeInsightFixtureTestCase {
+
+  @Override
+  protected String getBasePath() {
+    return JavaTestUtil.getRelativeJavaTestDataPath();
+  }
+
+  private static final String BASE_DIR = "/codeInsight/overrideImplement/libraries/";
+  public void testSubstituteTypeParameterBounds() {
+    doTest("IDEA162079", false);
+  }
+
+  private void doTest(String name, @Nullable Boolean toImplement) {
+    PsiTestUtil.addLibrary(myModule, JavaTestUtil.getJavaTestDataPath() + BASE_DIR + name + ".jar");
+    myFixture.configureByFile(BASE_DIR + "before" + name + ".java");
+    int offset = getEditor().getCaretModel().getOffset();
+    PsiElement context = getFile().findElementAt(offset);
+    PsiClass psiClass = PsiTreeUtil.getParentOfType(context, PsiClass.class);
+    assert psiClass != null;
+    ApplicationManager.getApplication().runWriteAction(() -> {
+      if (toImplement == null) {
+        PsiClassType[] implement = psiClass.getImplementsListTypes();
+        final PsiClass superClass = implement.length == 0 ? psiClass.getSuperClass() : implement[0].resolve();
+        assert superClass != null;
+        PsiMethod method = superClass.getMethods()[0];
+        final PsiSubstitutor substitutor = TypeConversionUtil.getSuperClassSubstitutor(superClass, psiClass, PsiSubstitutor.EMPTY);
+        final List<PsiMethodMember> candidates = Collections.singletonList(new PsiMethodMember(method,
+                                                                                               OverrideImplementExploreUtil
+                                                                                                 .correctSubstitutor(method,
+                                                                                                                     substitutor)));
+        OverrideImplementUtil.overrideOrImplementMethodsInRightPlace(getEditor(), psiClass, candidates, false, true);
+      }
+      else {
+        OverrideImplementUtil.chooseAndOverrideOrImplementMethods(getProject(), getEditor(), psiClass, toImplement);
+      }
+    });
+
+    myFixture.checkResultByFile(BASE_DIR + "after" + name + ".java");
+  }
+}