diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
index 51498ba384e8..27ae57350355 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/InferenceSession.java
@@ -992,8 +992,14 @@ public class InferenceSession {
           }
           return false;
         }
-        for (PsiType psiType : classType.getParameters()) {
-          if (!psiType.accept(this)) return false;
+        PsiClassType.ClassResolveResult result = classType.resolveGenerics();
+        PsiClass aClass = result.getElement();
+        if (aClass != null) {
+          PsiSubstitutor substitutor = result.getSubstitutor();
+          for (PsiTypeParameter typeParameter : PsiUtil.typeParametersIterable(aClass)) {
+            PsiType psiType = substitutor.substitute(typeParameter);
+            if (psiType != null && !psiType.accept(this)) return false;
+          }
         }
         return true;
       }
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/StrictSubtypingConstraint.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/StrictSubtypingConstraint.java
index 9773c2fb3c9a..6250e2d24f62 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/StrictSubtypingConstraint.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/StrictSubtypingConstraint.java
@@ -150,18 +150,19 @@ public class StrictSubtypingConstraint implements ConstraintFormula {
 
         if (SClass == null) return false;
 
+        if (((PsiClassType)myT).isRaw()) {
+          return InheritanceUtil.isInheritorOrSelf(SClass, CClass, true);
+        }
+
         PsiSubstitutor substitutor = SResult.getSubstitutor();
         for (PsiTypeParameter typeParameter : SClass.getTypeParameters()) {
           substitutor = substitutor.put(typeParameter, substitutor.substituteWithBoundsPromotion(typeParameter));
         }
 
-        if (((PsiClassType)myT).isRaw()) {
-          return InheritanceUtil.isInheritorOrSelf(SClass, CClass, true);
-        }
         final PsiSubstitutor tSubstitutor = TResult.getSubstitutor();
         final PsiSubstitutor sSubstitutor = TypeConversionUtil.getClassSubstitutor(CClass, SClass, substitutor);
         if (sSubstitutor != null) {
-          for (PsiTypeParameter parameter : CClass.getTypeParameters()) {
+          for (PsiTypeParameter parameter : PsiUtil.typeParametersIterable(CClass)) {
             final PsiType tSubstituted = tSubstitutor.substitute(parameter);
             final PsiType sSubstituted = sSubstitutor.substitute(parameter);
             if (tSubstituted == null ^ sSubstituted == null) {
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeEqualityConstraint.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeEqualityConstraint.java
index 5ce3b2b6376a..813968f67ed9 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeEqualityConstraint.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeEqualityConstraint.java
@@ -21,6 +21,7 @@ import com.intellij.psi.*;
 import com.intellij.psi.impl.source.resolve.graphInference.InferenceBound;
 import com.intellij.psi.impl.source.resolve.graphInference.InferenceSession;
 import com.intellij.psi.impl.source.resolve.graphInference.InferenceVariable;
+import com.intellij.psi.util.PsiUtil;
 
 import java.util.List;
 
@@ -98,7 +99,7 @@ public class TypeEqualityConstraint implements ConstraintFormula {
       if (tClass != null && tClass.getManager().areElementsEquivalent(tClass, sResult.getElement())) {
         final PsiSubstitutor tSubstitutor = tResult.getSubstitutor();
         final PsiSubstitutor sSubstitutor = sResult.getSubstitutor();
-        for (PsiTypeParameter typeParameter : tClass.getTypeParameters()) {
+        for (PsiTypeParameter typeParameter : PsiUtil.typeParametersIterable(tClass)) {
           final PsiType tSubstituted = tSubstitutor.substitute(typeParameter);
           final PsiType sSubstituted = sSubstitutor.substitute(typeParameter);
           if (tSubstituted != null && sSubstituted != null) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/NonGenericInnerOfGenericOuter.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/NonGenericInnerOfGenericOuter.java
new file mode 100644
index 000000000000..b31062b8c43d
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting8/NonGenericInnerOfGenericOuter.java
@@ -0,0 +1,60 @@
+
+import java.util.ArrayList;
+import java.util.List;
+import java.util.function.Supplier;
+
+class OuterClass<E> {
+    private class InnerClass {}
+
+    private static <T> void someMethod(OuterClass<T>.InnerClass inner) {}
+
+    static <T1> void callSomeMethod(OuterClass<T1>.InnerClass inner) {
+        someMethod(inner);
+    }
+}
+
+class Outer<T> {
+    public static <U> Outer<U> loopback(Outer<U>.Inner u){
+        return foo(u);
+    }
+    private static <T> Outer<T> foo(Outer<T>.Inner u){
+        return null;
+    }
+    private class Inner{}
+}
+
+
+class Outer1<O> {
+    public static <T0> void loopback(List<Outer1<T0>.Inner> u){
+        Outer1<T0>.Inner a = foo(u);
+    }
+    private static <T> Outer1<T>.Inner foo(List<Outer1<T>.Inner> u){
+        return null;
+    }
+    private class Inner {}
+}
+
+class Outer2<O> {
+    public static <T0> void loopback(List<? extends Outer2<T0>.Inner> u){
+        Outer2<? extends T0>.Inner a = foo(u);
+    }
+
+    private static <T> Outer2<? extends T>.Inner foo(List<? extends Outer2<T>.Inner> u){
+        return null;
+    }
+    private class Inner {}
+}
+
+
+class Outer3<O> {
+    {
+        bar(Outer3.Inner::new, new ArrayList<>());
+        bar(Inner::new, new ArrayList<>());
+    }
+
+    private <K> void bar(final Supplier<Outer3<K>.Inner> s, List<K> l) {
+
+    }
+
+    private class Inner {}
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GenericsHighlighting8Test.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GenericsHighlighting8Test.java
index 9d457a196fe8..9f0e3061d8ad 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GenericsHighlighting8Test.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/lambda/GenericsHighlighting8Test.java
@@ -1013,6 +1013,8 @@ public class GenericsHighlighting8Test extends LightDaemonAnalyzerTestCase {
     doTest();
   }
 
+  public void testNonGenericInnerOfGenericOuter() { doTest(); }
+
   public void testTypeParameterBoundsWithSubstitutionWhenMethodHierarchyIsChecked() throws Exception {
     doTest();
   }