diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
index 2186e43d17f1..c7ebe0f5cdfb 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
@@ -315,41 +315,14 @@ public class HighlightVisitorImpl extends JavaElementVisitor implements Highligh
                 final PsiMethod interfaceMethod = LambdaUtil.getFunctionalInterfaceMethod(resolveResult);
                 if (interfaceMethod != null) {
                   final PsiParameter[] parameters = interfaceMethod.getParameterList().getParameters();
-                  final PsiParameter[] lambdaParameters = expression.getParameterList().getParameters();
-                  final String incompatibleTypesMessage = "Incompatible parameter types in lambda expression";
-                  if (lambdaParameters.length != parameters.length) {
-                    HighlightInfo result = HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).range(expression)
+                  PsiElement incompatibleElt = LambdaHighlightingUtil
+                    .checkParametersCompatible(expression, parameters, LambdaUtil.getSubstitutor(interfaceMethod, resolveResult));
+                  if (incompatibleElt != null) {
+                    final String incompatibleTypesMessage = "Incompatible parameter types in lambda expression";
+                    HighlightInfo result = HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).range(incompatibleElt)
                       .descriptionAndTooltip(incompatibleTypesMessage).create();
                     myHolder.add(result);
-                  }
-                  else {
-                    final PsiSubstitutor substitutor = LambdaUtil.getSubstitutor(interfaceMethod, resolveResult);
-                    if (expression.hasFormalParameterTypes()) {
-                      for (int i = 0; i < lambdaParameters.length; i++) {
-                        if (!PsiTypesUtil.compareTypes(lambdaParameters[i].getType(), substitutor.substitute(parameters[i].getType()), true)) {
-                          HighlightInfo result = HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR)
-                            .range(lambdaParameters[i])
-                            .descriptionAndTooltip(incompatibleTypesMessage)
-                            .create();
-                          myHolder.add(result);
-                          break;
-                        }
-                      }
-                    } else {
-                      for (int i = 0; i < lambdaParameters.length; i++) {
-                        PsiParameter lambdaParameter = lambdaParameters[i];
-                        if (!TypeConversionUtil.isAssignable(lambdaParameter.getType(), substitutor.substitute(parameters[i].getType()))) {
-                          HighlightInfo result = HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR)
-                            .range(lambdaParameter)
-                            .descriptionAndTooltip(incompatibleTypesMessage)
-                            .create();
-                          myHolder.add(result);
-                          break;
-                        }
-                      }
-                    }
-                  }
-                  if (!myHolder.hasErrorResults()) {
+                  } else {
                     final PsiClass samClass = resolveResult.getElement();
                     if (!PsiUtil.isAccessible(myFile.getProject(), samClass, expression, null)) {
                       myHolder.add(HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).range(expression)
diff --git a/java/java-psi-api/src/com/intellij/psi/LambdaHighlightingUtil.java b/java/java-psi-api/src/com/intellij/psi/LambdaHighlightingUtil.java
index 503328ab46c5..440e2e2a625c 100644
--- a/java/java-psi-api/src/com/intellij/psi/LambdaHighlightingUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/LambdaHighlightingUtil.java
@@ -17,7 +17,9 @@ package com.intellij.psi;
 
 import com.intellij.openapi.util.Computable;
 import com.intellij.psi.util.MethodSignature;
+import com.intellij.psi.util.PsiTypesUtil;
 import com.intellij.psi.util.PsiUtil;
+import com.intellij.psi.util.TypeConversionUtil;
 import com.intellij.util.IncorrectOperationException;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -45,6 +47,34 @@ public class LambdaHighlightingUtil {
     return "Multiple non-overriding abstract methods found";
   }
 
+  @Nullable
+  public static PsiElement checkParametersCompatible(PsiLambdaExpression expression,
+                                                     PsiParameter[] methodParameters,
+                                                     PsiSubstitutor substitutor) {
+    final PsiParameter[] lambdaParameters = expression.getParameterList().getParameters();
+    if (lambdaParameters.length != methodParameters.length) {
+      return expression;
+    }
+    else {
+      boolean hasFormalParameterTypes = expression.hasFormalParameterTypes();
+      for (int i = 0; i < lambdaParameters.length; i++) {
+        PsiParameter lambdaParameter = lambdaParameters[i];
+        PsiType lambdaParameterType = lambdaParameter.getType();
+        PsiType substitutedParamType = substitutor.substitute(methodParameters[i].getType());
+        if (hasFormalParameterTypes) {
+          if (!PsiTypesUtil.compareTypes(lambdaParameterType, substitutedParamType, true)) {
+            return lambdaParameter;
+          }
+        } else {
+          if (!TypeConversionUtil.isAssignable(lambdaParameterType, substitutedParamType)) {
+            return lambdaParameter;
+          }
+        }
+      }
+    }
+    return null;
+  }
+
   public static String checkReturnTypeCompatible(PsiLambdaExpression lambdaExpression, PsiType functionalInterfaceReturnType) {
     if (functionalInterfaceReturnType == PsiType.VOID) {
       final PsiElement body = lambdaExpression.getBody();