diff --git a/java/java-impl/src/com/intellij/codeInspection/uncheckedWarnings/UncheckedWarningLocalInspection.java b/java/java-impl/src/com/intellij/codeInspection/uncheckedWarnings/UncheckedWarningLocalInspection.java
index 6e72cc7230a9..31e4394f29d1 100644
--- a/java/java-impl/src/com/intellij/codeInspection/uncheckedWarnings/UncheckedWarningLocalInspection.java
+++ b/java/java-impl/src/com/intellij/codeInspection/uncheckedWarnings/UncheckedWarningLocalInspection.java
@@ -24,7 +24,10 @@ import com.intellij.codeInsight.daemon.impl.quickfix.VariableArrayTypeFix;
 import com.intellij.codeInsight.intention.IntentionAction;
 import com.intellij.codeInsight.intention.QuickFixFactory;
 import com.intellij.codeInsight.quickfix.ChangeVariableTypeQuickFixProvider;
-import com.intellij.codeInspection.*;
+import com.intellij.codeInspection.BaseJavaLocalInspectionTool;
+import com.intellij.codeInspection.InspectionsBundle;
+import com.intellij.codeInspection.LocalQuickFix;
+import com.intellij.codeInspection.ProblemsHolder;
 import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.extensions.Extensions;
 import com.intellij.openapi.util.Pass;
@@ -248,7 +251,7 @@ public class UncheckedWarningLocalInspection extends BaseJavaLocalInspectionTool
                 PsiParameter parameter = parameters[Math.min(i, parameters.length - 1)];
                 final PsiExpression expression = expressions[i];
                 final PsiType parameterType = substitutor.substitute(parameter.getType());
-                final PsiType expressionType = substitutor.substitute(expression.getType());
+                final PsiType expressionType = expression.getType();
                 if (expressionType != null) {
                   checkRawToGenericsAssignment(expression, parameterType, expressionType, true, myGenerifyFixes);
                 }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/UncheckedWarningsLevel6.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/UncheckedWarningsLevel6.java
new file mode 100644
index 000000000000..ad6d8e79d114
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/UncheckedWarningsLevel6.java
@@ -0,0 +1,94 @@
+import java.util.*;
+class GenericsTest<T> {
+
+    static <S> S next(GenericsTest<S> test)
+    {
+        System.out.println(test);
+        return null;
+    }
+
+    public Iterator<T> iterator()
+    {
+        return new Iterator<T>() {
+            @Override
+            public boolean hasNext()
+            {
+                return false;
+            }
+
+            @Override
+            public T next()
+            {
+                return GenericsTest.next(GenericsTest.this);
+            }
+
+            @Override
+            public void remove()
+            {
+            }
+        };
+    }
+}
+
+class GenericsTest1<T> {
+
+    static <S> S next1(GenericsTest1<S> test)
+    {
+        System.out.println(test);
+        return null;
+    }
+
+    public Iterator<T> iterator()
+    {
+        return new Iterator<T>() {
+            @Override
+            public boolean hasNext()
+            {
+                return false;
+            }
+
+            @Override
+            public T next()
+            {
+                return GenericsTest1.next1(GenericsTest1.this);
+            }
+
+            @Override
+            public void remove()
+            {
+            }
+        };
+    }
+}
+
+
+class GenericsTest2<T> {
+
+    static <S> S next2(GenericsTest2<S> test)
+    {
+        System.out.println(test);
+        return null;
+    }
+
+    public Iterator<T> iterator()
+    {
+        return new Iterator<T>() {
+            @Override
+            public boolean hasNext()
+            {
+                return false;
+            }
+
+            @Override
+            public T next()
+            {
+                return next2(GenericsTest2.this);
+            }
+
+            @Override
+            public void remove()
+            {
+            }
+        };
+    }
+}
\ 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 cb955b02e898..ea10fc48869b 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -119,6 +119,8 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testTypeParameterBoundVisibility() throws Exception { doTest(false);}
   public void testTypeParameterBoundVisibilityJdk14() throws Exception { doTest(false);}
 
+  public void testUncheckedWarningsLevel6() throws Exception { doTest(true);}
+
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));