diff --git a/java/java-impl/src/com/intellij/codeInsight/completion/scope/CompletionElement.java b/java/java-impl/src/com/intellij/codeInsight/completion/scope/CompletionElement.java
index 5f95ae74e467..a6f3e94dbc09 100644
--- a/java/java-impl/src/com/intellij/codeInsight/completion/scope/CompletionElement.java
+++ b/java/java-impl/src/com/intellij/codeInsight/completion/scope/CompletionElement.java
@@ -54,10 +54,13 @@ public class CompletionElement{
       return ((PsiMethod)myElement).getSignature(mySubstitutor);
     }
     if (myElement instanceof PsiVariable) {
-      return "#" + ((PsiVariable)myElement).getName();
+      return getVariableUniqueId((PsiVariable)myElement);
     }
 
     return null;
   }
 
+  public static String getVariableUniqueId(final PsiVariable variable) {
+    return "#" + variable.getName();
+  }
 }
diff --git a/java/java-impl/src/com/intellij/codeInsight/completion/scope/JavaCompletionProcessor.java b/java/java-impl/src/com/intellij/codeInsight/completion/scope/JavaCompletionProcessor.java
index 0344cfd602fb..041b7f6a2489 100644
--- a/java/java-impl/src/com/intellij/codeInsight/completion/scope/JavaCompletionProcessor.java
+++ b/java/java-impl/src/com/intellij/codeInsight/completion/scope/JavaCompletionProcessor.java
@@ -227,7 +227,10 @@ public class JavaCompletionProcessor extends BaseScopeProcessor implements Eleme
           (sp == StaticProblem.staticAfterInstance ? myFilteredResults : myResults).add(element1);
         }
       }
+    } else if (element instanceof PsiLocalVariable || element instanceof PsiParameter) {
+      myResultNames.add(CompletionElement.getVariableUniqueId((PsiVariable)element));
     }
+
     return true;
   }
 
diff --git a/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter-out.java b/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter-out.java
new file mode 100644
index 000000000000..31d2231f3cf5
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter-out.java
@@ -0,0 +1,18 @@
+import java.util.Collection;
+
+class A {
+  String join(Collection<String> strings) {
+    return StringUtil.join(strings, ",");
+  }
+
+  void method(Collection<String> param) {
+    new ActionListener() {
+      @Override
+      public void actionPerformed(ActionEvent e) {
+        String[] param = {""}; // hides the parameter
+        Collection<String> params = Arrays.asList(param);
+        join(params)<caret>
+      }
+    };
+  }
+}
diff --git a/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter.java b/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter.java
new file mode 100644
index 000000000000..1b697dd14e3a
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/completion/smartType/NoHiddenParameter.java
@@ -0,0 +1,18 @@
+import java.util.Collection;
+
+class A {
+  String join(Collection<String> strings) {
+    return StringUtil.join(strings, ",");
+  }
+
+  void method(Collection<String> param) {
+    new ActionListener() {
+      @Override
+      public void actionPerformed(ActionEvent e) {
+        String[] param = {""}; // hides the parameter
+        Collection<String> params = Arrays.asList(param);
+        join(<caret>)
+      }
+    };
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/completion/SmartTypeCompletionTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/completion/SmartTypeCompletionTest.java
index bea6707b71e1..9cf3b7dc27bc 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/completion/SmartTypeCompletionTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/completion/SmartTypeCompletionTest.java
@@ -994,6 +994,8 @@ public class SmartTypeCompletionTest extends LightFixtureCompletionTestCase {
 
   public void testCaseMissingEnumValue() throws Throwable { doTest(); }
   public void testCaseMissingEnumValue2() throws Throwable { doTest(); }
+  
+  public void testNoHiddenParameter() { doTest(); }
 
   public void testTypeVariableInstanceOf() throws Throwable {
     configureByTestName();
@@ -1106,7 +1108,7 @@ public class SmartTypeCompletionTest extends LightFixtureCompletionTestCase {
     complete();
   }
 
-  private void doTest() throws Exception {
+  private void doTest() {
     doTest(Lookup.NORMAL_SELECT_CHAR);
   }