diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
index 90d06403ae53..76c3d3d8cfec 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
@@ -984,7 +984,11 @@ public class GenericsHighlightUtil {
 
     if (resolved instanceof PsiClass) {
       final PsiClass containingClass = ((PsiClass)resolved).getContainingClass();
-      if (containingClass != null && ref.getQualifier() == null && containingClass.getTypeParameters().length > 0 && !((PsiClass)resolved).hasModifierProperty(PsiModifier.STATIC)) {
+      if (containingClass != null && 
+          ref.getQualifier() == null && 
+          containingClass.getTypeParameters().length > 0 && 
+          !((PsiClass)resolved).hasModifierProperty(PsiModifier.STATIC) && 
+          ((PsiClass)resolved).getTypeParameters().length == 0) {
         return HighlightInfo.createHighlightInfo(HighlightInfoType.ERROR, typeElement, JavaErrorMessages.message("illegal.generic.type.for.instanceof"));
       }
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IllegalGenericTypeInInstanceof.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IllegalGenericTypeInInstanceof.java
index eefe123b537b..52871e84f273 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IllegalGenericTypeInInstanceof.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IllegalGenericTypeInInstanceof.java
@@ -37,3 +37,17 @@ class BreakpointTree<TP> {
 }
 class Node {}
 class XBreakpoint<SR>{}
+
+public class GenericInnerClass<E> {
+    private void problem( Base base ) {
+        if ( base instanceof First) {}
+    }
+
+    private class Base {
+    }
+
+    private class First<T> extends Base {
+    }
+
+}
+