diff --git a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
index 93a444036bef..9dfb4fc39134 100644
--- a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
+++ b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
@@ -719,9 +719,9 @@ public class JavaMethodsConflictResolver implements PsiConflictResolver{
       LOG.assertTrue(typeParameter != null);
       if (!substitutor.getSubstitutionMap().containsKey(typeParameter)) {
         PsiType type = siteSubstitutor.substitute(typeParameter);
-        if (type instanceof PsiClassType) {
+        if (type instanceof PsiClassType && typeParameter.getOwner() == method) {
           final PsiClass aClass = ((PsiClassType)type).resolve();
-          if (aClass instanceof PsiTypeParameter && ((PsiTypeParameter)aClass).getOwner() == typeParameter.getOwner()) {
+          if (aClass instanceof PsiTypeParameter && ((PsiTypeParameter)aClass).getOwner() == method) {
             type = TypeConversionUtil.erasure(type, siteSubstitutor);
           }
         }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124352.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124352.java
new file mode 100644
index 000000000000..15ca7adfb336
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA124352.java
@@ -0,0 +1,13 @@
+class Test<V> {
+
+  void bar(Win window, I<V> consumer) {}
+  void bar(Comp component, I<V> consumer) {}
+
+  private void foo(final Win component, final I<V> consumer) {
+    bar(component, consumer);
+  }
+}
+
+interface I<K>{}
+class Comp {}
+class Win extends Comp {}
\ 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 bf74b4eb756d..96b5c2b6e0f2 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -348,6 +348,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA64103() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA123338() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA124271() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testIDEA124352() { 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()));