diff --git a/java/java-psi-api/src/com/intellij/psi/PsiLambdaExpressionType.java b/java/java-psi-api/src/com/intellij/psi/PsiLambdaExpressionType.java
index 4a31d7b16555..530ac9c2128f 100644
--- a/java/java-psi-api/src/com/intellij/psi/PsiLambdaExpressionType.java
+++ b/java/java-psi-api/src/com/intellij/psi/PsiLambdaExpressionType.java
@@ -70,4 +70,8 @@ public class PsiLambdaExpressionType extends PsiType {
   public PsiType[] getSuperTypes() {
     return PsiType.EMPTY_ARRAY;
   }
+
+  public PsiLambdaExpression getExpression() {
+    return myExpression;
+  }
 }
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/LambdaUtil.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/LambdaUtil.java
index b21b29f1c0ca..87743e188a4f 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/LambdaUtil.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/LambdaUtil.java
@@ -99,6 +99,7 @@ public class LambdaUtil {
 
   @Nullable
   public static MethodSignature getFunction(PsiClass psiClass) {
+    if (psiClass == null) return null;
     final List<MethodSignature> functions = findFunctionCandidates(psiClass);
     if (functions != null && functions.size() == 1) {
       return functions.get(0);
@@ -123,12 +124,9 @@ public class LambdaUtil {
           }
           if (type instanceof PsiClassType) {
             final PsiClassType.ClassResolveResult resolveResult = ((PsiClassType)type).resolveGenerics();
-            final PsiClass psiClass = resolveResult.getElement();
-            if (psiClass != null) {
-              final MethodSignature methodSignature = getFunction(psiClass);
-              if (methodSignature != null) {
-                return resolveResult.getSubstitutor().substitute(methodSignature.getParameterTypes()[parameterIndex]);
-              }
+            final MethodSignature methodSignature = getFunction(resolveResult.getElement());
+            if (methodSignature != null) {
+              return resolveResult.getSubstitutor().substitute(methodSignature.getParameterTypes()[parameterIndex]);
             }
           }
         }
diff --git a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
index 36a90378509d..a3d48972fbe6 100644
--- a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
+++ b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
@@ -22,6 +22,7 @@ import com.intellij.openapi.util.Comparing;
 import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.*;
 import com.intellij.psi.impl.PsiSuperMethodImplUtil;
+import com.intellij.psi.impl.source.tree.java.LambdaUtil;
 import com.intellij.psi.infos.CandidateInfo;
 import com.intellij.psi.infos.MethodCandidateInfo;
 import com.intellij.psi.scope.PsiConflictResolver;
@@ -86,11 +87,49 @@ public class JavaMethodsConflictResolver implements PsiConflictResolver{
     checkPrimitiveVarargs(conflicts, myActualParameterTypes.length);
     if (conflicts.size() == 1) return conflicts.get(0);
 
+    checkLambdaApplicable(conflicts);
+    if (conflicts.size() == 1) return conflicts.get(0);
+
     THashSet<CandidateInfo> uniques = new THashSet<CandidateInfo>(conflicts);
     if (uniques.size() == 1) return uniques.iterator().next();
     return null;
   }
 
+  private void checkLambdaApplicable(List<CandidateInfo> conflicts) {
+    for (int i = 0; i < myActualParameterTypes.length; i++) {
+      PsiType parameterType = myActualParameterTypes[i];
+      if (parameterType instanceof PsiLambdaExpressionType) {
+        final PsiLambdaExpression lambdaExpression = ((PsiLambdaExpressionType)parameterType).getExpression();
+        final int parametersCount = lambdaExpression.getParameterList().getParametersCount();
+        for (Iterator<CandidateInfo> iterator = conflicts.iterator(); iterator.hasNext(); ) {
+          final CandidateInfo conflict = iterator.next();
+          final PsiMethod method = (PsiMethod)conflict.getElement();
+          if (method != null) {
+            final PsiParameter[] methodParameters = method.getParameterList().getParameters();
+            final PsiParameter param = i < methodParameters.length ? methodParameters[i] : methodParameters[methodParameters.length - 1];
+            final PsiClassType.ClassResolveResult resolveResult = PsiUtil.resolveGenericsClassInType(param.getType());
+            final MethodSignature function = LambdaUtil.getFunction(resolveResult.getElement());
+            if (function != null && function.getParameterTypes().length == parametersCount) {
+              boolean correctArgs = true;
+              final PsiParameter[] lambdaParameters = lambdaExpression.getParameterList().getParameters();
+              for (int lambdaParamIdx = 0, length = lambdaParameters.length; lambdaParamIdx < length; lambdaParamIdx++) {
+                PsiParameter parameter = lambdaParameters[lambdaParamIdx];
+                final PsiTypeElement typeElement = parameter.getTypeElement();
+                if (typeElement != null) {
+                  if (!typeElement.getType().equals(resolveResult.getSubstitutor().substitute(function.getParameterTypes()[lambdaParamIdx]))) {
+                    correctArgs = false;
+                  }
+                }
+              }
+              if (correctArgs) continue;
+            }
+            iterator.remove();
+          }
+        }
+      }
+    }
+  }
+
   private void checkSpecifics(List<CandidateInfo> conflicts, @MethodCandidateInfo.ApplicabilityLevelConstant int applicabilityLevel) {
     final boolean applicable = applicabilityLevel > MethodCandidateInfo.ApplicabilityLevel.NOT_APPLICABLE;
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/params/MethodApplicability.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/params/MethodApplicability.java
new file mode 100644
index 000000000000..9c779b8081c7
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/params/MethodApplicability.java
@@ -0,0 +1,68 @@
+interface I {
+  void m(int i);
+}
+interface J {
+  void mm(int i, int j);
+}
+interface K {
+  void k(String m);
+}
+
+class Foo {
+  void foo(I i){}
+  void foo(J j){}
+  void foo(K k){}
+
+  void bar() {
+    foo<error descr="Ambiguous method call: both 'Foo.foo(I)' and 'Foo.foo(K)' match">((p) -> {
+      System.out.println(p);
+    })</error>;
+
+    foo((p, k) -> {
+      System.out.println(p);
+    });
+
+    foo((String s) ->{
+      System.out.println(s);
+    });
+
+    <error descr="Cannot resolve method 'foo(<lambda expression>)'">foo</error>((String p, String k) -> {
+      System.out.println(p);
+    });
+  }
+}
+
+class WithTypeParams {
+  interface I<T> {
+    void m(T t);
+  }
+
+  interface J<K, V> {
+    void n(K k, V v);
+  }
+
+  class Foo {
+    void foo(I<String> i){}
+    void foo(J<String, String> j){}
+    
+    void bar() {
+      foo((p) -> {
+        System.out.println(p);
+      });
+  
+      foo((p, k) -> {
+        System.out.println(p);
+      });
+  
+      foo((String s) ->{
+        System.out.println(s);
+      });
+  
+      foo((String p, String k) -> {
+        System.out.println(p);
+      });
+  
+      <error descr="Cannot resolve method 'foo(<lambda expression>)'">foo</error>((int k) -> {System.out.println(k);});
+    }
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LambdaParamsTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LambdaParamsTest.java
index dabd86927b1c..6eba6532c120 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LambdaParamsTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LambdaParamsTest.java
@@ -28,6 +28,10 @@ public class LambdaParamsTest extends LightDaemonAnalyzerTestCase {
     doTest();
   }
 
+  public void testMethodApplicability() throws Exception {
+    doTest();
+  }
+
   private void doTest() throws Exception {
     doTest(BASE_PATH + "/" + getTestName(false) + ".java", false, false);
   }