diff --git a/python/src/com/jetbrains/python/validation/HighlightingAnnotator.java b/python/src/com/jetbrains/python/validation/HighlightingAnnotator.java
index 5e500eefc0d9..c0d23907b955 100644
--- a/python/src/com/jetbrains/python/validation/HighlightingAnnotator.java
+++ b/python/src/com/jetbrains/python/validation/HighlightingAnnotator.java
@@ -19,7 +19,6 @@ import com.intellij.lang.ASTNode;
 import com.intellij.lang.annotation.Annotation;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.editor.colors.TextAttributesKey;
-import com.intellij.psi.PsiElement;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.jetbrains.python.highlighting.PyHighlighter;
 import com.jetbrains.python.psi.*;
@@ -34,8 +33,7 @@ public class HighlightingAnnotator extends PyAnnotator {
   public void visitPyParameter(PyParameter node) {
     PyFunction function = PsiTreeUtil.getParentOfType(node, PyFunction.class);
     if (function != null) {
-      final PsiElement anchor = node.hasDefaultValue() ? node.getFirstChild() : node;
-      final Annotation annotation = getHolder().createInfoAnnotation(anchor, null);
+      final Annotation annotation = getHolder().createInfoAnnotation(node.getFirstChild(), null);
       annotation.setTextAttributes(node.isSelf() ? PyHighlighter.PY_SELF_PARAMETER : PyHighlighter.PY_PARAMETER);
     }
   }
diff --git a/python/testData/highlighting/annotations.py b/python/testData/highlighting/annotations.py
index 096418ff1cc9..a781f5c8dfe8 100644
--- a/python/testData/highlighting/annotations.py
+++ b/python/testData/highlighting/annotations.py
@@ -2,5 +2,5 @@ TOP_LEVEL: <info descr="null"><info descr="PY.ANNOTATION">str</info></info> = 'f
 
 class <info descr="null">C</info>:
     attr: <info descr="PY.ANNOTATION">Optional[Any]</info> = None
-    def <info descr="null">method</info>(<info descr="null">self</info>, <info descr="null">xs: <info descr="PY.ANNOTATION">List[<info descr="null">int</info>]</info></info>) -> <info descr="PY.ANNOTATION">None</info>:
+    def <info descr="null">method</info>(<info descr="null">self</info>, <info descr="null">xs</info>: <info descr="PY.ANNOTATION">List[<info descr="null">int</info>]</info>) -> <info descr="PY.ANNOTATION">None</info>:
         pass
diff --git a/python/testData/highlighting/parametersWithAnnotationsAndDefaults.py b/python/testData/highlighting/parametersWithAnnotationsAndDefaults.py
new file mode 100644
index 000000000000..f4fd91821e4b
--- /dev/null
+++ b/python/testData/highlighting/parametersWithAnnotationsAndDefaults.py
@@ -0,0 +1,2 @@
+def <info descr="null">f</info>(<info descr="null">p1</info>: <info descr="null"><info descr="PY.ANNOTATION">int</info></info>, <info descr="null">p2</info>: <info descr="null"><info descr="PY.ANNOTATION">int</info></info> = 42):
+    <info descr="null"><info descr="PY.FUNCTION_CALL">print</info></info>(<info descr="null">p1</info>, <info descr="null">p2</info>)
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
index 95a1ec9bc223..69952b127f06 100644
--- a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
+++ b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
@@ -374,6 +374,11 @@ public class PythonHighlightingTest extends PyTestCase {
     runWithLanguageLevel(LanguageLevel.PYTHON36, this::doTest);
   }
 
+  // PY-22729
+  public void testParametersWithAnnotationsAndDefaults() {
+    runWithLanguageLevel(LanguageLevel.PYTHON30, this::doTest);
+  }
+
   @NotNull
   private static EditorColorsScheme createTemporaryColorScheme() {
     EditorColorsManager manager = EditorColorsManager.getInstance();