diff --git a/python/src/com/jetbrains/python/PyParameterInfoHandler.java b/python/src/com/jetbrains/python/PyParameterInfoHandler.java
index 6c106bdbeda8..571853ed0a38 100644
--- a/python/src/com/jetbrains/python/PyParameterInfoHandler.java
+++ b/python/src/com/jetbrains/python/PyParameterInfoHandler.java
@@ -102,6 +102,7 @@ public class PyParameterInfoHandler implements ParameterInfoHandler<PyArgumentLi
     return false;
   }
 
+  @Override
   public void updateUI(final CallArgumentsMapping prev_result, final ParameterInfoUIContext context) {
     if (prev_result == null) return;
     final PyArgumentList arglist = prev_result.getArgumentList();
@@ -169,7 +170,6 @@ public class PyParameterInfoHandler implements ParameterInfoHandler<PyArgumentLi
     int last_param_index = marked.getImplicitOffset();
     final List<PyExpression> flat_args = PyUtil.flattenedParensAndLists(arglist.getArguments());
     for (PyExpression arg : flat_args) {
-      can_offer_next &= !(arg instanceof  PyKeywordArgument);
       final boolean must_highlight = arg.getTextRange().contains(current_param_offset);
       PsiElement seeker = arg;
       while (seeker != arglist && seeker != null && !result.getPlainMappedParams().containsKey(seeker)) {
@@ -228,15 +228,16 @@ public class PyParameterInfoHandler implements ParameterInfoHandler<PyArgumentLi
     // highlight the next parameter to be filled
     if (can_offer_next) {
       int highlight_index = Integer.MAX_VALUE; // initially beyond reason = no highlight
+      PyNamedParameter parameter = n_param_list.get(last_param_index);
       if (last_param_index < raw_params.size() - 1 || flat_args.size() == 0) { // last_param not at end, or no args
-        if (flat_args.size() == 0) highlight_index = marked.getImplicitOffset(); // no args, highlight first (PY-3690)
+        if (flat_args.isEmpty()) highlight_index = marked.getImplicitOffset(); // no args, highlight first (PY-3690)
         else {
-          if (n_param_list.get(last_param_index).isPositionalContainer()) highlight_index = last_param_index; // stick to *arg
+          if (parameter.isPositionalContainer()) highlight_index = last_param_index; // stick to *arg
           else highlight_index = last_param_index+1; // highlight next
         }
       }
       else if (last_param_index == raw_params.size() - 1) { // we're right after the end of param list
-        if (n_param_list.get(last_param_index).isPositionalContainer()) highlight_index = last_param_index; // stick to *arg
+        if (parameter.isPositionalContainer() || parameter.isKeywordContainer()) highlight_index = last_param_index; // stick to *arg
       }
       if (highlight_index < n_param_list.size()) {
         hint_flags.get(param_indexes.get(n_param_list.get(highlight_index))).add(ParameterInfoUIContextEx.Flag.HIGHLIGHT);
diff --git a/python/testData/paramInfo/KwdFunction.py b/python/testData/paramInfo/KwdFunction.py
index 50c923dab1a8..cd969077e0f8 100644
--- a/python/testData/paramInfo/KwdFunction.py
+++ b/python/testData/paramInfo/KwdFunction.py
@@ -1,5 +1,5 @@
 def foo(a, b, **c):
   pass
 
-foo(<arg1>1, <arg2>2, <arg3>x=3, <arg4>**{'y':4})
+foo(<arg1>1, <arg2>2, <arg3>x=3, <arg4>**{'y':4}, <arg5>)
 
diff --git a/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java b/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
index d19007ff24df..2c1848a3f09d 100644
--- a/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
+++ b/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
@@ -81,7 +81,7 @@ public class PyParameterInfoTest extends LightMarkedTestCase {
   }
 
   public void testKwdFunction() {
-    Map<String, PsiElement> marks = loadTest(4);
+    Map<String, PsiElement> marks = loadTest(5);
 
     PsiElement arg1 = marks.get("<arg1>");
     feignCtrlP(arg1.getTextOffset()).check("a, b, **c", new String[]{"a, "});
@@ -99,6 +99,9 @@ public class PyParameterInfoTest extends LightMarkedTestCase {
     PsiElement arg4 = marks.get("<arg4>");
     feignCtrlP(arg4.getTextOffset()).check("a, b, **c", new String[]{"**c"});
     feignCtrlP(arg4.getTextOffset()+1).check("a, b, **c", new String[]{"**c"});
+
+    PsiElement arg5 = marks.get("<arg5>");
+    feignCtrlP(arg5.getTextOffset()).check("a, b, **c", new String[]{"**c"});
   }
 
   public void testKwdOutOfOrder() {
@@ -361,7 +364,7 @@ public class PyParameterInfoTest extends LightMarkedTestCase {
     Map<String, PsiElement> marks = loadTest(2);
 
     feignCtrlP(marks.get("<arg1>").getTextOffset()).check("a, b, c=1, d=2, e=3", new String[]{"d=2, "});
-    feignCtrlP(marks.get("<arg2>").getTextOffset()).check("a, b, c=1, d=2, e=3", new String[]{}); // no logical next
+    feignCtrlP(marks.get("<arg2>").getTextOffset()).check("a, b, c=1, d=2, e=3", new String[]{"e=3"}); // no logical next
   }
 
   public void testPy3kPastTupleArg() {