diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
index 3eb33036bff2..e6124f8cfcd6 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java
@@ -145,7 +145,7 @@ public class GenericsHighlightUtil {
       final String description;
       if (targetParametersNum == 0) {
         if (PsiTreeUtil.getParentOfType(referenceParameterList, PsiCall.class) != null &&
-            PsiUtil.isLanguageLevel7OrHigher(referenceParameterList)) {
+            JavaVersionService.getInstance().isAtLeast(referenceParameterList, JavaSdkVersion.JDK_1_7)) {
           description = null;
         }
         else {
diff --git a/java/java-psi-api/src/com/intellij/psi/infos/MethodCandidateInfo.java b/java/java-psi-api/src/com/intellij/psi/infos/MethodCandidateInfo.java
index 485cf48d0706..8126582654f0 100644
--- a/java/java-psi-api/src/com/intellij/psi/infos/MethodCandidateInfo.java
+++ b/java/java-psi-api/src/com/intellij/psi/infos/MethodCandidateInfo.java
@@ -15,6 +15,8 @@
  */
 package com.intellij.psi.infos;
 
+import com.intellij.openapi.projectRoots.JavaSdkVersion;
+import com.intellij.openapi.projectRoots.JavaVersionService;
 import com.intellij.openapi.util.Pair;
 import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.*;
@@ -136,7 +138,7 @@ public class MethodCandidateInfo extends CandidateInfo{
     final PsiMethod psiMethod = getElement();
     PsiTypeParameter[] typeParams = psiMethod.getTypeParameters();
     if (myTypeArguments != null && typeParams.length != myTypeArguments.length && !PsiUtil.isLanguageLevel7OrHigher(psiMethod)){
-      return false;
+      return typeParams.length == 0 && JavaVersionService.getInstance().isAtLeast(psiMethod, JavaSdkVersion.JDK_1_7);
     }
     PsiSubstitutor substitutor = getSubstitutor();
     return GenericsUtil.isTypeArgumentsApplicable(typeParams, substitutor, getParent());
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67861.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67861.java
new file mode 100644
index 000000000000..f7d654d6a587
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA67861.java
@@ -0,0 +1,8 @@
+abstract class C {
+        <T> void foo(Object s){ }
+        abstract String foo(String s);
+
+    {
+        this.<String>foo("").toLowerCase();
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 838f4c8454b4..df37c98d73e5 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -195,6 +195,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA98421() { doTest5(false); }
   public void testErasureTypeParameterBound() { doTest5(false); }
   public void testThisAsAccessObject() { doTest5(false); }
+  public void testIDEA67861() { doTest7Incompatibility(false); }
 
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));