diff --git a/plugins/junit/test/com/intellij/execution/junit/JUnitTreeByDescriptionHierarchyTest.java b/plugins/junit/test/com/intellij/execution/junit/JUnitTreeByDescriptionHierarchyTest.java
index 022873ea6e1e..03537e3101fa 100644
--- a/plugins/junit/test/com/intellij/execution/junit/JUnitTreeByDescriptionHierarchyTest.java
+++ b/plugins/junit/test/com/intellij/execution/junit/JUnitTreeByDescriptionHierarchyTest.java
@@ -655,6 +655,104 @@ public class JUnitTreeByDescriptionHierarchyTest {
     
   }
 
+  @Test
+  public void testAssumptionFailures() throws Exception {
+    Description root = Description.createSuiteDescription("root");
+    for (int i = 0; i< 5; i++) {
+      Description testClassDescription = Description.createSuiteDescription("Test" + i);
+      root.addChild(testClassDescription);
+      testClassDescription.addChild(Description.createTestDescription("Test" + i, "testName"));
+    }
+
+    final StringBuffer buf = new StringBuffer();
+    final JUnit4TestListener sender = createListener(buf);
+    sender.sendTree(root);
+
+    Assert.assertEquals("output: " + buf, "##teamcity[enteredTheMatrix]\n" +
+                                          "##teamcity[suiteTreeStarted name='Test0' locationHint='java:suite://Test0']\n" +
+                                          "##teamcity[suiteTreeNode name='Test0.testName' locationHint='java:test://Test0.testName']\n" +
+                                          "##teamcity[suiteTreeEnded name='Test0']\n" +
+                                          "##teamcity[suiteTreeStarted name='Test1' locationHint='java:suite://Test1']\n" +
+                                          "##teamcity[suiteTreeNode name='Test1.testName' locationHint='java:test://Test1.testName']\n" +
+                                          "##teamcity[suiteTreeEnded name='Test1']\n" +
+                                          "##teamcity[suiteTreeStarted name='Test2' locationHint='java:suite://Test2']\n" +
+                                          "##teamcity[suiteTreeNode name='Test2.testName' locationHint='java:test://Test2.testName']\n" +
+                                          "##teamcity[suiteTreeEnded name='Test2']\n" +
+                                          "##teamcity[suiteTreeStarted name='Test3' locationHint='java:suite://Test3']\n" +
+                                          "##teamcity[suiteTreeNode name='Test3.testName' locationHint='java:test://Test3.testName']\n" +
+                                          "##teamcity[suiteTreeEnded name='Test3']\n" +
+                                          "##teamcity[suiteTreeStarted name='Test4' locationHint='java:suite://Test4']\n" +
+                                          "##teamcity[suiteTreeNode name='Test4.testName' locationHint='java:test://Test4.testName']\n" +
+                                          "##teamcity[suiteTreeEnded name='Test4']\n" +
+                                          "##teamcity[treeEnded]\n", StringUtil.convertLineSeparators(buf.toString()));
+
+    buf.setLength(0);
+
+    sender.testRunStarted(root);
+    final Exception exception = new Exception();
+    exception.setStackTrace(new StackTraceElement[0]);
+    int idx = 0;
+    for (Description description : root.getChildren()) {
+      if (idx++ % 2 != 0) {
+        sender.testAssumptionFailure(new Failure(description, exception));
+      }
+      else {
+        for (Description testDescription : description.getChildren()) {
+          sender.testStarted(testDescription);
+          sender.testFinished(testDescription);
+        }
+      }
+    }
+
+    sender.testRunFinished(new Result());
+
+    Assert.assertEquals("output: " + buf, "##teamcity[rootName name = 'root' location = 'java:suite://root']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteStarted name='Test0']\n" +
+                                          "\n" +
+                                          "##teamcity[testStarted name='Test0.testName' locationHint='java:test://Test0.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testFinished name='Test0.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteFinished name='Test0']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteStarted name='Test1']\n" +
+                                          "\n" +
+                                          "##teamcity[testStarted name='Test1.testName' locationHint='java:test://Test1.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testIgnored name='Test1.testName' details='java.lang.Exception|n' error='true' message='']\n" +
+                                          "\n" +
+                                          "##teamcity[testFinished name='Test1.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteFinished name='Test1']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteStarted name='Test2']\n" +
+                                          "\n" +
+                                          "##teamcity[testStarted name='Test2.testName' locationHint='java:test://Test2.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testFinished name='Test2.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteFinished name='Test2']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteStarted name='Test3']\n" +
+                                          "\n" +
+                                          "##teamcity[testStarted name='Test3.testName' locationHint='java:test://Test3.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testIgnored name='Test3.testName' details='java.lang.Exception|n' error='true' message='']\n" +
+                                          "\n" +
+                                          "##teamcity[testFinished name='Test3.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteFinished name='Test3']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteStarted name='Test4']\n" +
+                                          "\n" +
+                                          "##teamcity[testStarted name='Test4.testName' locationHint='java:test://Test4.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testFinished name='Test4.testName']\n" +
+                                          "\n" +
+                                          "##teamcity[testSuiteFinished name='Test4']\n", StringUtil.convertLineSeparators(buf.toString()));
+  }
+
   @Test
   public void testSingleMethod() throws Exception {
     final Description rootDescription = Description.createTestDescription("TestA", "testName");
diff --git a/plugins/junit_rt/src/com/intellij/junit4/JUnit4TestListener.java b/plugins/junit_rt/src/com/intellij/junit4/JUnit4TestListener.java
index f1ebae2e259a..caf5958705a3 100644
--- a/plugins/junit_rt/src/com/intellij/junit4/JUnit4TestListener.java
+++ b/plugins/junit_rt/src/com/intellij/junit4/JUnit4TestListener.java
@@ -45,7 +45,6 @@ public class JUnit4TestListener extends RunListener {
   private final PrintStream myPrintStream;
   private String myRootName;
   private long myCurrentTestStart;
-  private int myFinishedCount = 0;
 
   private Description myCurrentTest;
   private Map myWaitingQueue = new LinkedHashMap();
@@ -130,7 +129,6 @@ public class JUnit4TestListener extends RunListener {
 
     for (int i = myStartedSuites.size() - 1; i >= idx; i--) {
       currentClass = (Description)myStartedSuites.remove(i);
-      myFinishedCount = 0;
       myPrintStream.println("\n##teamcity[testSuiteFinished name=\'" + escapeName(getShortName(JUnit4ReflectionUtil.getClassName(currentClass))) + "\']");
     }
 
@@ -195,7 +193,6 @@ public class JUnit4TestListener extends RunListener {
 
   private void testFinishedNoDumping(final String methodName) {
     if (methodName != null) {
-      myFinishedCount++;
       final long duration = currentTime() - myCurrentTestStart;
       myPrintStream.println("\n##teamcity[testFinished name=\'" + escapeName(methodName) +
                             (duration > 0 ? "\' duration=\'"  + Long.toString(duration) : "") + "\']");
@@ -216,16 +213,13 @@ public class JUnit4TestListener extends RunListener {
         testFailure(failure, description, messageName, CLASS_CONFIGURATION);
         classConfigurationFinished(description);
       }
-
-      if (myFinishedCount == 0) {
-        //only setup failures
+      if (myStartedSuites.isEmpty() || !description.equals(myStartedSuites.get(myStartedSuites.size() - 1))) {
         for (Iterator iterator = description.getChildren().iterator(); iterator.hasNext(); ) {
           Description next = (Description)iterator.next();
           testStarted(next);
           testFailure(isIgnored ? failure : null, next, MapSerializerUtil.TEST_IGNORED);
           testFinished(next);
         }
-        myFinishedCount = 0;
       }
     }
     else {