diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/template/LiveTemplateTest.groovy b/java/java-tests/testSrc/com/intellij/codeInsight/template/LiveTemplateTest.groovy
index 6f14d3f68c53..9a685d49ba99 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/template/LiveTemplateTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/template/LiveTemplateTest.groovy
@@ -28,6 +28,7 @@ import com.intellij.openapi.actionSystem.IdeActions
 import com.intellij.openapi.command.WriteCommandAction
 import com.intellij.openapi.editor.Editor
 import com.intellij.openapi.editor.impl.DocumentImpl
+import com.intellij.openapi.util.JDOMUtil
 import com.intellij.openapi.util.text.StringUtil
 import com.intellij.psi.PsiDocumentManager
 import com.intellij.psi.codeStyle.CodeStyleSettingsManager
@@ -36,10 +37,10 @@ import com.intellij.testFramework.fixtures.CodeInsightTestUtil
 import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase
 import com.intellij.util.containers.ContainerUtil
 import com.intellij.util.ui.UIUtil
+import org.jdom.Element
 import org.jetbrains.annotations.NotNull
 
 import static com.intellij.codeInsight.template.Template.Property.USE_STATIC_IMPORT_IF_POSSIBLE
-
 /**
  * @author spleaner
  */
@@ -415,7 +416,7 @@ class Outer {
   }
 
   private TemplateState getState() {
-    TemplateManagerImpl.getTemplateState(getEditor())
+    editor?.with { TemplateManagerImpl.getTemplateState(it) }
   }
 
   public void testIter1() throws Throwable {
@@ -537,6 +538,60 @@ class Outer {
       EverywhereContextType.class);
   }
 
+  public void testJavaOtherContext() throws IOException {
+    def manager = (TemplateManagerImpl)TemplateManager.getInstance(project)
+    def stmtContext = TemplateContextType.EP_NAME.findExtension(JavaCodeContextType.Statement)
+
+    configureFromFileText("a.java", "class Foo {{ iter<caret>  }}");
+
+    TemplateImpl template = TemplateSettings.instance.getTemplate("iter", "iterations")
+    assert (template in manager.findMatchingTemplates(myFixture.file, editor, Lookup.REPLACE_SELECT_CHAR, TemplateSettings.instance)?.keySet())
+
+    assert template.templateContext.getOwnValue(stmtContext)
+    assert !template.templateContext.getOwnValue(stmtContext.baseContextType)
+    template.templateContext.putValue(stmtContext, false)
+    template.templateContext.putValue(stmtContext.baseContextType, true)
+    try {
+      assert !(template in manager.findMatchingTemplates(myFixture.file, editor, Lookup.REPLACE_SELECT_CHAR, TemplateSettings.instance)?.keySet())
+    } finally {
+      template.templateContext.putValue(stmtContext, true)
+      template.templateContext.putValue(stmtContext.baseContextType, false)
+    }
+  }
+
+  public void testDontSaveDefaultContexts() {
+    def defElement = JDOMUtil.loadDocument('''\
+<context>
+  <option name="JAVA_STATEMENT" value="false"/>
+  <option name="JAVA_CODE" value="true"/>
+</context>''').rootElement
+    def defContext = new TemplateContext()
+    defContext.readTemplateContext(defElement)
+
+    assert !defContext.isEnabled(TemplateContextType.EP_NAME.findExtension(JavaCodeContextType.Statement))
+    assert defContext.isEnabled(TemplateContextType.EP_NAME.findExtension(JavaCodeContextType.Declaration))
+    assert defContext.isEnabled(TemplateContextType.EP_NAME.findExtension(JavaCodeContextType.Generic))
+
+    def copy = defContext.createCopy()
+
+    def write = new Element("context")
+    copy.writeTemplateContext(write, defContext)
+    assert write.children.empty
+
+    copy.putValue(TemplateContextType.EP_NAME.findExtension(JavaCommentContextType), false)
+
+    write = new Element("context")
+    copy.writeTemplateContext(write, defContext)
+    assert JDOMUtil.writeElement(write) == '''\
+<context>
+  <option name="JAVA_COMMENT" value="false" />
+</context>'''
+
+    write = new Element("context")
+    copy.writeTemplateContext(write, null)
+    assert write.children.size() == 3 : JDOMUtil.writeElement(write)
+  }
+
   private boolean isApplicable(String text, TemplateImpl inst) throws IOException {
     configureFromFileText("a.java", text);
     return TemplateManagerImpl.isApplicable(myFixture.getFile(), getEditor().getCaretModel().getOffset(), inst);
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/template/impl/TemplateContext.java b/platform/lang-impl/src/com/intellij/codeInsight/template/impl/TemplateContext.java
index 98c20d4b69df..200c6d9c49d0 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/template/impl/TemplateContext.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/template/impl/TemplateContext.java
@@ -17,10 +17,12 @@
 package com.intellij.codeInsight.template.impl;
 
 
+import com.google.common.annotations.VisibleForTesting;
 import com.intellij.codeInsight.template.EverywhereContextType;
 import com.intellij.codeInsight.template.TemplateContextType;
 import com.intellij.openapi.util.WriteExternalException;
 import com.intellij.util.containers.ContainerUtil;
+import com.intellij.util.containers.JBIterable;
 import org.jdom.Element;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -44,10 +46,8 @@ public class TemplateContext {
       synchronized (defaultContext == null ? myContextStates : defaultContext.myContextStates) {
         for (TemplateContextType contextType : TemplateManagerImpl.getAllContextTypes()) {
           Boolean ownValue = getOwnValue(contextType);
-          if (ownValue != null) {
-            if (defaultContext == null || isEnabled(contextType) != defaultContext.isEnabled(contextType)) {
-              result.put(contextType, ownValue);
-            }
+          if (ownValue != null && shouldSaveContextValue(defaultContext, contextType, ownValue)) {
+            result.put(contextType, ownValue);
           }
         }
       }
@@ -55,7 +55,15 @@ public class TemplateContext {
     return result;
   }
 
-  public boolean isEnabled(TemplateContextType contextType) {
+  private boolean shouldSaveContextValue(@Nullable TemplateContext defaultContext, @NotNull TemplateContextType contextType, boolean enabled) {
+    if (defaultContext == null) {
+      TemplateContextType base = contextType.getBaseContextType();
+      return base == null ? enabled : enabled != isEnabled(base);
+    }
+    return enabled != defaultContext.isEnabled(contextType);
+  }
+
+  public boolean isEnabled(@NotNull TemplateContextType contextType) {
     synchronized (myContextStates) {
       Boolean storedValue = getOwnValue(contextType);
       if (storedValue == null) {
@@ -101,7 +109,8 @@ public class TemplateContext {
   }
 
   // used during initialization => no sync
-  void readTemplateContext(Element element) {
+  @VisibleForTesting
+  public void readTemplateContext(Element element) {
     for (Element option : element.getChildren("option")) {
       String name = option.getAttributeValue("name");
       String value = option.getAttributeValue("value");
@@ -109,9 +118,19 @@ public class TemplateContext {
         myContextStates.put(name, Boolean.parseBoolean(value));
       }
     }
+
+    Map<String, Boolean> explicitStates = ContainerUtil.newHashMap();
+    for (TemplateContextType type : TemplateManagerImpl.getAllContextTypes()) {
+      if (getOwnValue(type) == null) {
+        Iterable<TemplateContextType> bases = JBIterable.generate(type, TemplateContextType::getBaseContextType);
+        explicitStates.put(type.getContextId(), ContainerUtil.getFirstItem(ContainerUtil.mapNotNull(bases, this::getOwnValue), false));
+      }
+    }
+    myContextStates.putAll(explicitStates);
   }
 
-  void writeTemplateContext(Element element, @Nullable TemplateContext defaultContext) throws WriteExternalException {
+  @VisibleForTesting
+  public void writeTemplateContext(Element element, @Nullable TemplateContext defaultContext) throws WriteExternalException {
     Map<TemplateContextType, Boolean> diff = getDifference(defaultContext);
     for (TemplateContextType type : diff.keySet()) {
       Element optionElement = new Element("option");