diff --git a/plugins/groovy/groovy-psi/src/org/jetbrains/plugins/groovy/lang/psi/controlFlow/impl/ControlFlowBuilder.java b/plugins/groovy/groovy-psi/src/org/jetbrains/plugins/groovy/lang/psi/controlFlow/impl/ControlFlowBuilder.java
index f49cfecf225c..f0def33ebaa6 100644
--- a/plugins/groovy/groovy-psi/src/org/jetbrains/plugins/groovy/lang/psi/controlFlow/impl/ControlFlowBuilder.java
+++ b/plugins/groovy/groovy-psi/src/org/jetbrains/plugins/groovy/lang/psi/controlFlow/impl/ControlFlowBuilder.java
@@ -632,6 +632,7 @@ public class ControlFlowBuilder extends GroovyRecursiveElementVisitor {
   }
 
   private void processInstanceOf(GrExpression expression) {
+    FList<ConditionInstruction> conditionsBefore = myConditions;
     ConditionInstruction cond = registerCondition(expression);
     addNodeAndCheckPending(cond);
 
@@ -643,6 +644,7 @@ public class ControlFlowBuilder extends GroovyRecursiveElementVisitor {
 
     myHead = cond;
     addNode(new InstanceOfInstruction(expression, cond));
+    myConditions = conditionsBefore;
   }
 
   /**
diff --git a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/resolve/TypeInferenceTest.groovy b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/resolve/TypeInferenceTest.groovy
index 8184f62f9f5a..c510cacd0cb5 100644
--- a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/resolve/TypeInferenceTest.groovy
+++ b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/resolve/TypeInferenceTest.groovy
@@ -789,4 +789,15 @@ def foo(List list) {
     doExprTest '[foo: 2, bar: 4]*.value', 'java.util.ArrayList<java.lang.Integer>'
     doExprTest '[foo: 2, bar: 4]*.undefined', 'java.util.List'
   }
+
+  void 'test instanceof does not interfere with outer if'() {
+    doTest '''\
+def bar(CharSequence xx) {
+  if (xx instanceof String) {
+    1 instanceof Object
+    <caret>xx
+  }  
+}
+''', 'java.lang.String'
+  }
 }
diff --git a/plugins/groovy/testdata/groovy/controlFlow/ifInstanceofElse.test b/plugins/groovy/testdata/groovy/controlFlow/ifInstanceofElse.test
index f6d6f5b404a4..55376b2807ae 100644
--- a/plugins/groovy/testdata/groovy/controlFlow/ifInstanceofElse.test
+++ b/plugins/groovy/testdata/groovy/controlFlow/ifInstanceofElse.test
@@ -12,9 +12,9 @@ else b = 3
 7(8) WRITE b
 8(22) element: Assignment expression MAYBE_RETURN
 9(10) element: IF statement
-10(11) Condition Unary expression, dependent: 3
+10(11) Condition Unary expression
 11(12) READ o
-12(13,15) Condition Instanceof expression, dependent: 10, 3
+12(13,15) Condition Instanceof expression, dependent: 10
 13(14) instanceof: o instanceof Integer
 14(17)  Negating goto instruction, condition=12Instanceof expression
 15(16) instanceof: o instanceof Integer