diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
index 71fe67fba36d..b61dae5a2053 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
@@ -218,7 +218,9 @@ public abstract class PsiJavaFileBaseImpl extends PsiFileImpl implements PsiJava
   private static class StaticImportFilteringProcessor implements PsiScopeProcessor {
     private final PsiScopeProcessor myDelegate;
     private boolean myIsProcessingOnDemand;
-    private final Collection<String> myHiddenNames = new HashSet<String>();
+    private final Collection<String> myHiddenFieldNames = new HashSet<String>();
+    private final Collection<String> myHiddenMethodNames = new HashSet<String>();
+    private final Collection<String> myHiddenTypeNames = new HashSet<String>();
     private final Collection<PsiElement> myCollectedElements = new HashSet<PsiElement>();
 
     public StaticImportFilteringProcessor(final PsiScopeProcessor delegate) {
@@ -235,19 +237,43 @@ public abstract class PsiJavaFileBaseImpl extends PsiFileImpl implements PsiJava
       if (JavaScopeProcessorEvent.SET_CURRENT_FILE_CONTEXT.equals(event) && associated instanceof PsiImportStaticStatement) {
         final PsiImportStaticStatement importStaticStatement = (PsiImportStaticStatement)associated;
         myIsProcessingOnDemand = importStaticStatement.isOnDemand();
-        if (!myIsProcessingOnDemand) {
-          myHiddenNames.add(importStaticStatement.getReferenceName());
-        }
       }
       myDelegate.handleEvent(event, associated);
     }
 
+    /**
+     * JLS 6.4 Shadowing and Obscuring
+     * A single-static-import declaration d in a compilation unit c of package p that imports a field named n shadows the declaration of any
+     * static field named n imported by a static-import-on-demand declaration in c, throughout c.
+     *
+     * A single-static-import declaration d in a compilation unit c of package p that imports a method named n with signature s shadows the
+     * declaration of any static method named n with signature s imported by a static-import-on-demand declaration in c, throughout c.
+     *
+     * A single-static-import declaration d in a compilation unit c of package p that imports a type named n shadows, throughout c, the declarations of:
+     * - any static type named n imported by a static-import-on-demand declaration in c;
+     * - any top level type (§7.6) named n declared in another compilation unit (§7.3) of p;
+     * - any type named n imported by a type-import-on-demand declaration (§7.5.2) in c.
+     */
+    private void registerSingleStaticImportHiding(JavaResolveResult result, String referenceName) {
+      getHiddenMembers(result.getElement()).add(referenceName);
+    }
+
+    private Collection<String> getHiddenMembers(PsiElement element) {
+      if (element instanceof PsiField) {
+        return myHiddenFieldNames;
+      }
+      else {
+        return element instanceof PsiClass ? myHiddenTypeNames
+                                           : myHiddenMethodNames;
+      }
+    }
+
     @Override
     public boolean execute(@NotNull final PsiElement element, @NotNull final ResolveState state) {
       if (element instanceof PsiModifierListOwner && ((PsiModifierListOwner)element).hasModifierProperty(PsiModifier.STATIC)) {
         if (element instanceof PsiNamedElement && myIsProcessingOnDemand) {
           final String name = ((PsiNamedElement)element).getName();
-          if (myHiddenNames.contains(name)) return true;
+          if (getHiddenMembers(element).contains(name)) return true;
         }
         if (myCollectedElements.add(element)) {
           return myDelegate.execute(element, state);
@@ -346,7 +372,9 @@ public abstract class PsiJavaFileBaseImpl extends PsiFileImpl implements PsiJava
           final JavaResolveResult[] results = reference.multiResolve(false);
           if (results.length > 0) {
             staticImportProcessor.handleEvent(JavaScopeProcessorEvent.SET_CURRENT_FILE_CONTEXT, importStaticStatement);
+            final String referenceName = importStaticStatement.getReferenceName();
             for (JavaResolveResult result : results) {
+              staticImportProcessor.registerSingleStaticImportHiding(result, referenceName);
               if (!staticImportProcessor.execute(result.getElement(), state)) return false;
             }
           }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advFixture/HidingOnDemandImports.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advFixture/HidingOnDemandImports.java
new file mode 100644
index 000000000000..6dfd5376b5ac
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advFixture/HidingOnDemandImports.java
@@ -0,0 +1,8 @@
+import static foo.Foo.*;
+import static foo.Bar.foo;
+
+class Usage {
+  {
+    foo(foo);
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingFixtureTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingFixtureTest.java
new file mode 100644
index 000000000000..515e877bccaa
--- /dev/null
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingFixtureTest.java
@@ -0,0 +1,48 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.codeInsight.daemon;
+
+import com.intellij.JavaTestUtil;
+import com.intellij.testFramework.LightProjectDescriptor;
+import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase;
+import org.jetbrains.annotations.NotNull;
+
+public class LightAdvHighlightingFixtureTest extends LightCodeInsightFixtureTestCase {
+
+  public void testHidingOnDemandImports() throws Exception {
+    myFixture.addClass("package foo; public class Foo {" +
+                       "  public static String foo;" +
+                       "}");
+
+    myFixture.addClass("package foo; public class Bar {" +
+                       "  public static void foo(String s) {}" +
+                       "}");
+
+    myFixture.configureByFile(getTestName(false) + ".java");
+    myFixture.checkHighlighting(false, false, false);
+  }
+
+  @Override
+  protected String getBasePath() {
+    return JavaTestUtil.getRelativeJavaTestDataPath() + "/codeInsight/daemonCodeAnalyzer/advFixture";
+  }
+
+  @NotNull
+  @Override
+  protected LightProjectDescriptor getProjectDescriptor() {
+    return JAVA_8;
+  }
+}