diff --git a/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java b/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
index bf3b6a65e519..e3416e934584 100644
--- a/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
+++ b/java/java-psi-api/src/com/intellij/psi/PsiCapturedWildcardType.java
@@ -16,7 +16,6 @@
 package com.intellij.psi;
 
 import com.intellij.openapi.util.Comparing;
-import com.intellij.openapi.util.Computable;
 import com.intellij.openapi.util.RecursionGuard;
 import com.intellij.openapi.util.RecursionManager;
 import com.intellij.psi.search.GlobalSearchScope;
@@ -83,13 +82,17 @@ public class PsiCapturedWildcardType extends PsiType.Stub {
         glb = substitutedBoundType;
       }
       else {
-        glb = GenericsUtil.getGreatestLowerBound(glb, substitutedBoundType);
+        glb = getGreatestLowerBound(glb, substitutedBoundType, wildcardType);
       }
     }
 
     return glb;
   }
 
+  private static PsiType getGreatestLowerBound(PsiType glb, PsiType bound, Object guardObject) {
+    return guard.doPreventingRecursion(guardObject, true, () -> GenericsUtil.getGreatestLowerBound(glb, bound));
+  }
+
   @Override
   public boolean equals(Object o) {
     if (!(o instanceof PsiCapturedWildcardType)) {
diff --git a/java/java-psi-api/src/com/intellij/psi/PsiIntersectionType.java b/java/java-psi-api/src/com/intellij/psi/PsiIntersectionType.java
index 4bd643b13974..331063c585dd 100644
--- a/java/java-psi-api/src/com/intellij/psi/PsiIntersectionType.java
+++ b/java/java-psi-api/src/com/intellij/psi/PsiIntersectionType.java
@@ -60,7 +60,7 @@ public class PsiIntersectionType extends PsiType.Stub {
   @NotNull
   private static PsiType[] flattenAndRemoveDuplicates(@NotNull PsiType[] conjuncts) {
     try {
-      final Set<PsiType> flattenConjuncts = PsiCapturedWildcardType.guard.doPreventingRecursion(conjuncts, true, () -> flatten(conjuncts, ContainerUtil.newLinkedHashSet()));
+      final Set<PsiType> flattenConjuncts = flatten(conjuncts, ContainerUtil.newLinkedHashSet());
       if (flattenConjuncts == null) {
         return conjuncts;
       }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/ValidIntersectionTypeWithCapturedBounds1.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/ValidIntersectionTypeWithCapturedBounds1.java
new file mode 100644
index 000000000000..bba01422feca
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/ValidIntersectionTypeWithCapturedBounds1.java
@@ -0,0 +1,21 @@
+
+abstract class Bug {
+    void m1(){
+        D<?> jobHandler = m();
+    }
+
+    abstract <J extends C<? extends B>> J m();
+}
+
+interface B {
+}
+
+abstract class C<T extends B> {
+
+}
+
+abstract class D<T extends E> extends C<T> {
+
+}
+
+abstract class E<T extends String> implements B { }
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
index 2aad6e703571..fd044c5a5e0e 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
@@ -116,6 +116,7 @@ public class GraphInferenceHighlightingTest extends LightDaemonAnalyzerTestCase
   public void testIDEA149774() { doTest(); }
   public void testDisjunctionTypes() { doTest(); }
   public void testValidIntersectionTypeWithCapturedBounds() { doTest(); }
+  public void testValidIntersectionTypeWithCapturedBounds1() { doTest(); }
   public void testPushErasedStateToArguments() { doTest(); }
   public void testStopAtStandaloneConditional() { doTest(); }
   public void testTransitiveInferenceVariableDependencies() { doTest(); }