diff --git a/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java b/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
index 14d732b05540..3b81f0b18406 100644
--- a/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
@@ -98,7 +98,7 @@ public class PyReferenceImpl implements PsiReferenceEx, PsiPolyVariantReference
   public ResolveResult[] multiResolve(final boolean incompleteCode) {
     if (USE_CACHE) {
       final ResolveCache cache = ResolveCache.getInstance(getElement().getProject());
-      return cache.resolveWithCaching(this, CachingResolver.INSTANCE, false, incompleteCode);
+      return cache.resolveWithCaching(this, CachingResolver.INSTANCE, true, incompleteCode);
     }
     else {
       return multiResolveInner();
diff --git a/python/testData/resolve/SOEDecoratingFunctionWithSameNameDecorator.py b/python/testData/resolve/SOEDecoratingFunctionWithSameNameDecorator.py
new file mode 100644
index 000000000000..4429edc68e2b
--- /dev/null
+++ b/python/testData/resolve/SOEDecoratingFunctionWithSameNameDecorator.py
@@ -0,0 +1,15 @@
+def foo(baz=None):
+    def _foo(func):
+        def wrapper(*args, **kwargs):
+            func(*args, **kwargs)
+
+        wrapper.baz = baz
+        return wrapper
+
+    return _foo
+
+
+@foo
+# <ref>
+def foo():
+    pass
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyResolveTest.java b/python/testSrc/com/jetbrains/python/PyResolveTest.java
index 53a3643b90a4..934fbe406799 100644
--- a/python/testSrc/com/jetbrains/python/PyResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyResolveTest.java
@@ -1,18 +1,4 @@
-/*
- * Copyright 2000-2017 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
+// 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.jetbrains.python;
 
 import com.intellij.psi.PsiElement;
@@ -1246,4 +1232,10 @@ public class PyResolveTest extends PyResolveTestCase {
     assertEquals("__lt__", dunderLt.getName());
     assertEquals("str", dunderLt.getContainingClass().getName());
   }
+
+  // PY-26006
+  public void testSOEDecoratingFunctionWithSameNameDecorator() {
+    final PyFunction function = assertInstanceOf(doResolve(), PyFunction.class);
+    assertEquals(4, function.getTextOffset());
+  }
 }