diff --git a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
index d8918467ea65..386490d24ab1 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
@@ -467,7 +467,7 @@ public final class PsiUtil extends PsiUtilCore {
     if (args.length < parms.length - 1) return ApplicabilityLevel.NOT_APPLICABLE;
 
     final PsiClass containingClass = method.getContainingClass();
-    final boolean isRaw = containingClass != null && isRawSubstitutor(containingClass, substitutorForMethod);
+    final boolean isRaw = containingClass != null && isRawSubstitutor(method, substitutorForMethod) && isRawSubstitutor(containingClass, substitutorForMethod);
     if (!areFirstArgumentsApplicable(args, parms, languageLevel, substitutorForMethod, isRaw)) return ApplicabilityLevel.NOT_APPLICABLE;
     if (args.length == parms.length) {
       if (parms.length == 0) return ApplicabilityLevel.FIXED_ARITY;
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA107957.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA107957.java
new file mode 100644
index 000000000000..1228be1a48b7
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA107957.java
@@ -0,0 +1,37 @@
+class Test1 {
+
+  private static final Foo<Boolean> test = new Foo().method(Boolean.TRUE);
+
+  public static void main(String[] args) {
+    System.out.println(test);
+  }
+
+  public static class Foo<T> {
+    public Foo<Boolean> method(boolean arg) {
+      return null;
+    }
+
+    public <T extends Enum<T>> Foo<T> method(T arg) {
+      return null;
+    }
+  }
+}
+
+class Test2 {
+
+  private static final Foo<Boolean> test = Foo.method(Boolean.TRUE);
+
+  public static void main(String[] args) {
+    System.out.println(test);
+  }
+
+  public static class Foo<T> {
+    public static Foo<Boolean> method(boolean arg) {
+      return null;
+    }
+
+    public static <T extends Enum<T>> Foo<T> method(T arg) {
+      return null;
+    }
+  }
+}
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 16e3d2c2eb23..68afa706ebbd 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -236,6 +236,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA20244() throws Exception { doTest5(false);}
   public void testIDEA22005() throws Exception { doTest5(false);}
   public void testIDEA57259() throws Exception { doTest5(false);}
+  public void testIDEA107957() throws Exception { doTest6(false);}
   public void testIDEA106964() throws Exception { doTest5(false);}
   public void testInheritedWithDifferentArgsInTypeParams() throws Exception { doTest5(false);}
   public void testIllegalForwardReferenceInTypeParameterDefinition() throws Exception { doTest5(false);}