diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
index 7a4cef8b3580..b41e68eaf762 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
@@ -775,7 +775,7 @@ public final class GenericsHighlightUtil {
           }
         }
       }
-      else {
+      else if (!typeElement.isInferredType()){
         String description = JavaErrorBundle.message("generics.wildcards.may.be.used.only.as.reference.parameters");
         return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).range(typeElement).descriptionAndTooltip(description).create();
       }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/WildcardInference.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/WildcardInference.java
new file mode 100644
index 000000000000..325061f95609
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/WildcardInference.java
@@ -0,0 +1,7 @@
+class MyTest {
+   static <T extends Iterable<?>> void print(T collection) {
+        for (var item : collection) {
+            System.out.println(item);
+        }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
index ec83e2094a24..5ca9900a8528 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightAdvLVTIHighlightingTest.java
@@ -1,4 +1,4 @@
-// Copyright 2000-2021 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+// Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.java.codeInsight.daemon;
 
 import com.intellij.codeInsight.daemon.LightDaemonAnalyzerTestCase;
@@ -61,6 +61,8 @@ public class LightAdvLVTIHighlightingTest extends LightDaemonAnalyzerTestCase {
     doTest();
   }
 
+  public void testWildcardInference() { doTest(); }
+
   public void testGotoDeclarationOnVar() {
     configureByFile(BASE_PATH + "/" + getTestName(false) + ".java");
     final int offset = getEditor().getCaretModel().getOffset();